In recent years, a notable trend has emerged, with significant wealth migrating from Hong Kong to Singapore, and to a lesser extent, Switzerland. This shift has been primarily driven by growing concerns over Beijing’s tightening control over Hong Kong’s freedoms and autonomy. Despite these concerns, a surge of articles since early 2024 highlights a renewed preference for Hong Kong as a destination for family offices. This trend appears counterintuitive given the escalating encroachments on the city’s legislative and economic independence those my question Which Country is the Safest Harbor for Family Offices Amidst Global Shifts?
It begs the question: would an Ultra High Net Worth Individual (UHNWI) willingly entrust their fortune to a jurisdiction under the influence of the Communist Party of China? The answer seems straightforward for Shanghai, and by extension, increasingly applies to Hong Kong. Despite some remaining financial and tax autonomy, Hong Kong’s utility to China as an autonomous entity is arguably diminishing. Looking ahead, it would not be surprising if, within the next 15 years or even sooner, Hong Kong were to be fully integrated into mainland China.
Given this backdrop, it is imperative to assess which among Switzerland, Singapore, or Hong Kong offers the most stable and secure environment for High Net Worth Individuals (HNWIs) and UHNWIs considering the establishment of a family office.”
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| Aspect | Switzerland | Singapore | Hong Kong |
| Political Stability | Extremely stable, with a history of neutrality and democratic traditions. Rarely experiences political unrest. | Highly stable but limited political pluralism, with a dominant party in power since independence. | Historically stable, but recent years have seen significant political unrest and increased influence from Beijing. |
| Legal System Stability | Very stable; robust civil law system known for transparency, fairness, and adherence to the rule of law. | Very stable; based on English common law, renowned for efficiency and low corruption. | Historically based on English common law and highly regarded for its judicial independence, but recent legislation and interventions from Beijing have raised concerns about its autonomy. |
| Protection of Assets | High; strong legal protections for assets, supported by banking privacy laws (though these have been relaxed under international pressure). | High; robust legal frameworks provide strong protections for assets and investments. | Traditionally high but increasing political and legal risks are impacting perceptions of asset security. |
| Regulatory Environment | Stable and predictable, supportive of business operations, especially in the financial sector. | Stable and highly regulated, designed to support business and maintain its status as a global financial center. | Still a major financial hub, but recent laws and policies from Beijing are creating uncertainties and perceived risks. |
| Crisis Type | Switzerland | Singapore | Hong Kong |
| Economic Crisis | Likely more stable due to diversified economy and robust financial sector. Known as a safe haven for wealth. | Could be affected by reliance on global trade and financial flows, but strong government reserves and policies provide resilience. | Historically a financial hub, but economic stability is increasingly threatened by political issues and mainland influence. |
| Political/Geopolitical Crisis | Less likely to be involved due to neutrality and political stability. Provides a safe haven during political upheavals. | More exposed due to regional geopolitical involvements, though strong foreign policy and defence capabilities offer stability. | Recent political interventions by Beijing have significantly eroded its autonomy, increasing vulnerability to geopolitical crises. |
| Environmental Crisis | Lower risk from major environmental threats like sea-level rise, equipped with infrastructure to handle climate-related events. | More vulnerable to issues like rising sea levels and urban heat, though highly prepared with advanced environmental management. | High risk from rising sea levels and typhoons, but robust infrastructure and planning mitigate some risks. |
| Summary | Serves as a more stable “last bastion” across various global crises, benefiting from neutrality, economic stability, and lower environmental risk. | Highly resilient and strategically prepared, but geographical and economic exposures slightly heighten vulnerability in specific scenarios. | Increasing political and legal uncertainties undermine its role as a stable haven, despite its strong financial infrastructure and strategic location. |
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| Aspect | Switzerland | Singapore | Hong Kong | |
| Political Stability | 10 | 9 | 6 | |
| Legal System Stability | 9 | 9 | 7 | |
| Protection of Assets | 9 | 9 | 7 | |
| Regulatory Environment | 9 | 9 | 7 | |
| Total | 37/40 | 36/40 | 27/40 | |
| Crisis Type | Switzerland | Singapore | Hong Kong |
| Economic Crisis | 9 | 8 | 7 |
| Political/Geopolitical Crisis | 10 | 8 | 5 |
| Environmental Crisis | 9 | 7 | 6 |
| Overall, Crisis Resilience | 9 | 8 | 6 |
| Total | 37/40 | 31/40 | 24/40 |
For UHNWIs considering where to establish or relocate their family offices, the decision hinges not just on financial benefits but also on long-term security and political stability.
Given the current trends and potential future developments, diversification of locations and a vigilant approach to geopolitical shifts are crucial. The decision on where to establish a family office should be guided by a strategic vision that considers not just immediate financial benefits but also the long-term preservation and growth of wealth in a stable and secure setting.
Switzerland stands out as the clear leader in terms of enduring stability, even in times of crisis, making it an ideal choice for those seeking certainty over the long term. Singapore also presents a strong option, although it may be more susceptible to global financial disturbances. In contrast, Hong Kong no longer appears to be a viable contender due to its diminishing autonomy and the growing influence of mainland China. For UHNWIs prioritizing long-term security and stability, Switzerland and Singapore are the most favorable jurisdictions
Our team of dedicated professionals including lawyers, accountants, auditors and bankers would be glad to assist you in setting up your Swiss Family Office. Do not hesitate to contact us at connect@swissfintechpro.com if you need more information about this matter
