Faced with growing scrutiny by authorities at home and in Singapore, mainland Chinese living in the city state are being more discreet about their wealth, in a shift that is hitting sales of luxury goods from Bentleys to private jets.
Singapore, where some 75 per cent of the resident population is ethnically Chinese, has seen massive inflows of mainland Chinese wealth over the last few years due to the island’s political stability, tax-friendly environment and cultural affinity. The Covid-19 pandemic and the subsequent economic and market turmoil in China brought even more wealth into the city, boosting demand for high-end property, luxury cars and designer fashion.
But a S$3 billion money laundering scandal in 2023 and heightened scrutiny of their assets by authorities in Singapore and in China have prompted the super-rich to be more discreet about their spending. Singapore, for example, has imposed strict know-your-customer requirements on industries from banks to property and golf clubs, while Beijing, according to media reports, has started to crack down on citizens’ overseas income.
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The move underlines how regulatory pressure is reshaping Singapore’s luxury economy amid concerns about growing income inequality even as overall wealth inflows into the city state remain robust.
Lee Lee Langdale, founder of Singapore golf membership brokerage Singolf, said her firm had seen a sharp drop in inquiries from Chinese clients since the 2023 money laundering scandal.
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“Clubs investigate sources of funding for Chinese buyers much more extensively than they did before, and I saw transactions that failed to complete because the clubs were not satisfied regarding the funding [source],” she said.