HKUST Business School Magazine

A trusted platform With that in mind, other financial centers are now putting in place, or fine-tuning, structures to enable the establishment of family offices. But Singapore is determined not to lose ground. Supported by government policy, and facilitated by the Monetary Authority of Singapore (MAS) and the Economic Development Board (EDB), the intention is to keep strengthening in ways which benefit investors and the local economy, while also enhancing overall levels of expertise. “Singapore has been raising the bar to provide a trusted environment and support a sector where the money is active, not just being held offshore, and the participants contribute to a vibrant ecosystem,” says Foo, who is also a member of WMI’s Board of Trustees. Singapore has recently introduced new requirements for hiring and minimum investment levels, including active encouragement to invest a certain amount in local enterprises. There must also be global connectivity and easy access to global markets. In broader terms, there is a desire to offer the amenities that are conducive to a high standard of living, from good healthcare and education to a pleasant environment. Also essential is a corps of professionals who can provide the full range of services that will come into play. These include tax and legal, risk management, trust services, financial advisory with an eye for new opportunities, asset management, and philanthropy advisory. “Every family has unique investment objectives, mandates and values, so there is really no magic formula,” Foo says. “We see some offices take a very conservative approach. They don’t like large swings and drops and let their investment managers take discretionary decisions and go for single-digit returns. Other family offices may be comfortable taking more risk and larger positions. But family office capital tends to be patient and takes a long-term view, even though the structures are built to be agile and decisions can be taken quickly.” WMI aims to use its influence to help tackle some of society’s most pressing challenges and issues. It is achieving that through the Impact Philanthropy Partnership (IPP), a joint scheme with the Private Banking Industry Group (PBIG) and supported by MAS. The plan is to bring together family principals and offices to build greater awareness and momentum, and to focus attention on newer models of impact investing and venture philanthropy. The thinking behind the initiative is that many families want to give back to society, and they have the means to deploy resources to respond to emergencies, such as natural disasters, or to back purposeful projects which can genuinely change lives for the better. They can also provide catalytic capital and support more innovative approaches, as well as invest to back promising social entrepreneurs and changemakers. “We want to inspire a broader movement for more strategic and impactful giving,” Foo says. “There is more work to do, but it is clear that our stakeholders are keen to move in this direction. Making money is one thing, but the real goal is to galvanise purposeful wealth. Many next-generation family members are passionate about social impact, and we want to help them be part of the community and the capacity building initiatives. Biz@HKUST 34 Cover