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Why billionaires are setting up family offices in Singapore

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Why billionaires are setting up family offices in Singapore

John Doe

Asia’s billionaires are getting ready to hand over to the next generation, and Singapore is benefiting from the rush to set up new or satellite family offices with an increased focus on philanthropy and impact investing.

In recent months, Horizon Ventures, a private investment firm associated with Hong Kong billionaire Li Ka-shing opened an outpost in Singapore.* Oppenheimer Generations, the family office of former De Beers chairman Nicky Oppenheimer, is also in Singapore while Bridgewater Associates founder Ray Dalio and Google co-founder Sergey Brin both set up shop in late 2020.

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Singapore’s Economic Development Board is doing everything in its power to reel them in. It has enlisted the private banking sector to help family offices’ interest in philanthropy and impact investing, which seeks to generate a social or environmental impact as well as a financial return.

Two years ago, the Singapore government introduced variable capital companies (VCC), fund management vehicles with tax incentives and other benefits. These are appealing for family offices, particularly those with an interest in changing the world.

“Philanthropy is the new black in Asia,” said one private banker who advises the wealthy. “Singapore prides itself on being a financial hub and to keep that reputation, it needs to set the pace on new trends like green investing and impact investing.”

Asia is behind Europe and the United States, where philanthropy has long been a business that’s expected to generate measurable returns and the likes of the Bill and Melinda Gates Foundation have pioneered impact investing.

This is likely to shift with the looming generational change in wealth, said Peter Golovsky, managing director and head of family office services, Asia Pacific, at Alvarium, a global multi-family office.

“Some 85 per cent of Asia’s billionaires are first-generation wealth creators, founders of family businesses.

“Their average age is 65, so they are looking at succession strategies. Family office allocations in impact investments sit at around 12 per cent, but we expect that to double in the next few years, and it will be driven by the next generation.

“Singapore has attracted a lot of wealth through structures like VCCs and other tax incentives, including residency options and paths to citizenship.

“As global families and entrepreneurs, including philanthropists, think about where they want to set up and run their businesses, and where they want to live, I think there will be another step up,” he said.

One measure of interest in social investing is a sold-out conference on the topic, organised by industry group AVPN, that kicks off next Tuesday in Bali.

Despite this increased interest, impact investing structures have a long way to go, according to Mette Ekeroth, managing director and group head of philanthropy at the North-East Family Office, who will be at the conference.

NEFO was established by the founders of the Pandora jewellery brand, Winnie Liljeborg and Per Algot Enevoldsen, in Denmark in 2013. They opened a Singapore office three years later.

“Regulatory systems all over the world treat philanthropy and investment as very, very separate. Now everyone is realising there is an area between these two categories where a lot of the solutions lie to the problems the world faces,” Ms Ekeroth said.

“I have faith that Singapore is going to be the place that comes up with the structures we need. The authorities are engaging and consulting as they work multiple angles to try and address the gaps. We’ve seen in the past that when Singapore really wants to develop an ecosystem, it does, and it does it at high speed.”

*Clarification: After this story was published, CK Asset Holdings has advised Horizons Ventures is owned by Ms Solina Chau. Mr Li has collaborated with the firm on technology projects.

This article was originally published in The Australian Financial Review here.

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Lianhe Zaobao: More companies and individuals seeking professionals to manage their charitable funds

John Doe

新加坡社区基金会成立10年来，设立或管理的慈善基金从2008年的两 个增至今年2月的110个，而基金会筹获的善款也已达1亿元，发放的 款项达6000万元，惠及的慈善团体多达400个。

Song Huichun

随着国人对有效行善的意识提高，更多企业和个人善款捐赠者过去10年来选择与专人合作，协助他们管理和发放善款给希望帮助的机构或项目。

Man starts charitable fund with close to $100k in life savings left by his nanny

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Changi Foundation – Helping youths to realise their dreams

数据显示，捐赠者透过新加坡社区基金会（Community Foundation of Singapore）设立或管理的慈善基金从2008年的两个增至2013年3月的47个，到了今年2月已增至110个，10年来增幅超过50 倍。

协助企业或个人捐赠者以可持续、妥善和具透明度的方式管理与设立行善基金的新加坡社区基金会迈入第10年，多年来，基金会把捐赠者与他们关注的相关慈善团体妥善配对，制定有效行善策略，让更多有需要者受惠。

基金会总裁罗佩仪（50岁）接受《联合早报》访问并透露上述数据时说，基金会成立之初希望做的是通过了解捐赠者关注的课题及行善动力，协助发展出一套适合捐赠者的有效行善策略。

新加坡社区基金会在本地超过2000个慈善机构中找出适合捐赠者资助的项目……找出不同群体的需求及捐赠者可提供协助的机会，让捐赠者可更有效地施予援助，发挥更大影响力。”

罗佩仪说，在为捐赠者与慈善项目或机构进行配对时，捐赠者的理念、兴趣、愿意承担风险的限度、拨款数额等都会影响基金会所做的推荐。而基金会发挥的影响力，也随着更多国人了解以有效方式行善何其重要后，逐年增加。

深入了解慈善机构运作及善款影响力

基金会提供给本报的数据显示，截至2013年3月，基金会共筹到 5000万元善款，发放的款项约1200万元，惠及130个慈善伙伴。

而到了今年2月，基金会筹获的善款已达1亿元，发放的款项达 6000万元，惠及的慈善团体多达400个。

为了确保善款获得妥善运用，基金会也会深入了解慈善机构的运作、领导班子、受惠人如何获益、财务状况、个别项目如何进行、有多少资源、有没有执行能力等。基金会也会为捐赠者跟进汇报善款发挥的影响力，以及使用后的结果等。

罗佩仪说：“企业一般上会觉得这样的模式很管用，因为他们必须向股东汇报善款用途。”

她也说，基金会未来会继续透过讲座和活动接触更多群体，让各方更了解基金会提供的服务。

运输业者发挥“专长” 让派发食物更有效

交通运输企业行善不忘发挥专业，出钱出力出车，协助非盈利组织有效地派发更多食物给有需要的人。

交通运输业者金钟集团（Goldbell Group）自2015年起成立金钟基金会，探讨如何在经营生意的同时尽社会企业责任，选择帮助真正需要帮助的人。

金钟财务服务私人有限公司执行董事蔡满榜（38岁）积极带领金钟集团履行企业社会责任，他受访时说，在和新加坡社区基金会合作行善之前，金钟集团一般都以零星方式回馈社会，有机会就帮忙，没有一个制式的行善结构。

在金钟基金会成立隔年，因刚好有一名新加坡社区基金会成员认识蔡满榜的父亲，从此，金钟集团就透过新加坡社区基金会从旁牵线和指引，确认行善计划和目的，帮助本身关注的群体。

金钟基金会和新加坡社区基金会展开合作初期，计划每年拨出30万元行善，而慈善团体“爱心食品”（Food From The Heart）是金钟基金会资助的团体之一。

蔡满榜说：“与该团体数次接触后，发现我个人的行善理念与他们的管理营运理念不谋而合，尤其是他们去找合作伙伴捐赠食品给他们要帮助的人，而不是花钱购买食品。”

在透过新加坡社区基金会促成更有效的合作之前，金钟集团已免费租借两辆有冷冻设备的卡车给“爱心食品”，方便他们载送易腐食品。

现在，金钟集团允诺资助“爱心食品”三年，支持该组织卡车队的营运和载送食品给有需要者所需的营运费用等。

如此一来，“爱心食品”就能更好地进行预算和营运规划，确保在金钟集团资助期间，有需者可持续获得食品援助。

除了“爱心食品”，金钟集团也资助过不少个别项目，包括绿色生活、援助有需要青年等。

Link to stories: Here and here.

Translation:

More companies and individuals seeking professionals to manage their charitable funds

In the 10 years since the Community Foundation of Singapore was established, the number of charitable funds set up or managed has increased from two in 2008 to 110 in February this year. The donations raised by the foundation have also reached $100 million, with $60 million distributed, benefiting up to 400 charities.
Song Huichun

As awareness of effective charitable giving increases, more corporate and individual donors have spent the past 10 years choosing to collaborate with dedicated professionals to help them manage and distribute charitable funds to the institutions or projects they wish to help.

According to statistics, charitable funds created or managed by donors through the Community Foundation of Singapore increased from two in 2008 to 47 in March 2013 and further increased to 110 in February this year. In 10 years, it has gone up more than 50 folds.

The Community Foundation of Singapore, which assists corporate or individual donors to manage and establish charitable funds in a sustainable, appropriate and transparent manner, is reaching its 10th year. Over the years, the Foundation has properly matched donors with the charities they care about, formulating effective strategies for good practices to benefit more people in need.

When CFS CEO Catherine Loh, 50, accepted the Zaobao interview, she disclosed the data above and added that the Foundation’s initial hope was to help develop a set of donor-friendly products by understanding donors’ concerns and the motivation to do good.

The Community Foundation of Singapore has identified programmes that are suitable for support from more than 2,000 charitable organisations in the country by identifying the needs of different groups to provide opportunities for assistance so that donors can more effectively provide assistance and make greater impact.

Ms Loh said that when pairing donors with charitable projects or institutions, the donor’s ideas, interests, willingness to take risks, the amount of funding, etc. all influence the Foundation’s recommendations. The influence of the Foundation is also gradually increasing as more people understand how important it is to be effective.

Learning more about charity operations and the impact of charitable funds

According to the data provided by the Foundation, as of March 2013, it had raised a total of $50 million in donations, with $12 million grants given out, benefiting 130 charitable partners.

In February this year, the donations raised by the Foundation reached $100 million, with grants amounting to $60 million, benefiting up to 400 charities.

In order to ensure the proper use of donations, the Foundation has an in-depth understanding of charity operations, leadership, impact on beneficiaries, financial status, how individual projects are run, how much resources they have, and whether they have executive capabilities. The Foundation also follow up with donors to report on the impact of charitable donations, as well as the outcomes.

Ms Loh said: “Companies generally feel that this model is very useful, because they must report to shareholders on the use of funds.”

She also said that in the future, the Foundation will continue to reach out to more groups through lectures and events so that all parties can better understand the services provided by the Foundation.

Transport operators use their expertise to make food delivery more effective

Transportation companies have not forgotten their professional role – using their expertise and money to help non-profit organisations to effectively distribute food to those in need.

Transportation company Goldbell Group established the Goldbell Foundation in 2015 to explore how to conduct social responsibility while running their business and helping those in need.

Alex Chua, 38, Executive Director of Goldbell Financial Services Pte Ltd, actively led the Goldbell Group in fulfilling its corporate social responsibilities. During the interview, he said that prior to collaborating with the Community Foundation of Singapore, the Goldbell Group generally gave back to society in sporadic ways. If there’s an opportunity, they help, there was no structure for doing good.

In the year after the Goldbell Foundation was established, a member of the Community Foundation of Singapore who knew his father William Chua reached out to them. Since then, through guidance provided by the Community Foundation of Singapore, they have a philanthropic plan and goals, helping causes of their choice.

In the early stages of the collaboration between Goldbell Foundation and the Community Foundation of Singapore, it plans to set aside $300,000 a year to support charities, and charity Food from the Heart is one of the groups funded by the Goldbell Foundation.

Mr Chua said: “After several interactions with the organisation, I discovered that my concept of personal goodwill is in line with their management concept. In particular, they approach partners to donate food to the people they want to help, rather than spend money to buy food.”

Prior to promoting more effective collaboration through the Community Foundation of Singapore, the Goldbell Group has already rented two trucks with freezer equipment to Food from the Heart to facilitate the delivery of perishable foods.

Now Goldbell Group has promised to fund Food from the Heart for three years to support the operation of the truck fleet as well as the operating expenses required to transport food to beneficiaries.

As a result, Food from the Heart is able to better budget and plan its operations to ensure that those in need can continue to receive food assistance during the period the Goldbell Group is funding.

In addition to supporting Food from the Heart, Goldbell Group has also funded a number of individual projects, including environment projects, and providing help to young people.

Photo: Lianhe Zaobao

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联合早报: 领导基金会教师奖得主: 激发特需学生学习兴趣比成绩更重要

John Doe

胡洁梅 18 October 2016

特别学校教师郭正才利用乐高让学生创作动画，也利用机器人等来提高学生的学习兴趣。对他而言，学生享受学习过程并从中激发他们的好奇心，这比学生的成品更为重要。

郭正才（33岁）在特别需求者协会东陵学校（APSN Tanglin School）任教，是今年领导基金会教师奖的得主之一。

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The Funding Network (TFN)

领导基金会教师奖（The Leading Foundation Teacher Award)自前年起颁发，目的是肯定学前教育工作者、特别需求教师和教育协作人员（Allied Educator）在专业领域的卓越表现。

该基金会由新加坡政府投资公司集团总裁林祥源与女儿林华敏设立，基金会目的是支持教育与领袖培养项目，特别是肯定学前和特别教育工作者的贡献。林祥源曾在不同政府部门任要职，包括公务员首长、教育部常任秘书。

今年共有四人得奖，另三人是人民行动党社区基金会（PCF）Sparkletots学前教育中心教师帕敏吉（Parvinjit Kaur）和扎希拉（Zahirah Bte Surian），以及圣加俾尔中学教育协作员贾雅然（Jeyaram s/o Kadivan）。

郭正才踏入特别教育工作五年，对他而言，获奖是种肯定，但最大的成就感莫过于看到特需学生的才华获得他人赞赏。

他分享说，今年中带领几名学生到新加坡科技设计大学举办的“制汇节”（Maker Faire）参展，由学生介绍他们的三维打印作品。参观者在反馈单中反映对学生作品的欣赏，好些公众表示并没发觉他们是来自特别学校。

他说：“看到学生能够独立，在公众面前展现自信并获得肯定，我更加确信我的（职业）选择是正确的。”

特别需求者协会东陵学校的学生主要患有轻微智力障碍，郭正才是推动科技教学的其中一名教师。他认为，学生在制作机器人（robotics）等时能应用数学和科学概念，激发他们的思考能力和好奇心，学习也更有趣。

另一名得奖教师帕敏吉（36岁）曾是骨科矫形外科助理，因为喜欢与孩童互动，六年前到PCF Sparkletots学前教育中心（兀兰第677座）教书，边工作边进修学前教育课程。她间中也曾到AWWA的特别教育学校工作一年。

她说：“每当看到孩子的笑容，或听他们和我分享故事，我就觉得很欣慰。”

颁奖仪式由国立教育学院和新加坡社会基金会联办，新加坡社会基金会是管理领导基金会的非营利机构。评审来自国立教育学院、教育部和新加坡幼儿教师协会。今年的得奖教师可获得1350元现金和奖状。

Sustainable Philanthropy Matters: The History of Caring and Charity

John Doe

In this three-part series ‘Sustainable Philanthropy Matters’, we explore the surprisingly intimate relationship between philanthropy and sustainability and how the practice of one can in fact, lead to the advancement of the other. Both of these issues are close to our hearts here at CFS and we want to share how our philanthropy can help preserve our planet, our communities and our future.

Believe it or not, philanthropy and sustainability are concepts that have been around for millennia. Our forefathers understood the need for charity and living with the future in mind long before we had frameworks and modern models for them.

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Examining the Roots of Giving

Although the word philanthropy, or philanthropia as the ancient Greeks called it, first emerged about 7000 years ago, it meant a love for one’s fellow people, not so much the donation of drachmas.

In fact, it was not until about 5000 years later, as described in the Bible, that a form of community where those who shared what they had with those who had not really began. Although some may argue that this was communism, not charity; however, this was an early record of giving resources to help those in need. While the term sustainability seems like a pretty modern buzzword, elements of this actually existed 3,000 years ago. It was discovered that humans in the late Neolithic period had developed a method of sustainably obtaining their firewood, avoiding deforestation and ensuring they would always have a way to keep warm (Dufraisse, 2008, pp199-210).

This could be said to be the distant ancestor of the 1713 Principle of Saxony formulated by Hans Carl von Carlowitz. His forestry treatise discussed the “continuously enduring and sustainable use” of the forest for wood (World Ocean Review, 2015).

Philanthropy in the Present

Giving to others has continued to exist till today, expanding from religious origins to permeate many facets of society. Tithes still exist but now one can donate through the Government or via non-profit and voluntary welfare organisations. The range of beneficiaries has also expanded, with those in need ranging from children and people with disabilities to isolated seniors, ex-offenders and so much more. The underlying commonality is that they are almost always in financial need of some sort. And it is the act of giving a monetary donation to support these beneficiaries that is the philanthropy we have come to know today.

However, evidence of financial contributions towards the environment only came along in the middle of the 20th century. It began in 1941, to be exact, with Rockefeller funding conservation activities across the United States, amongst his numerous other philanthropic efforts (Rockefeller Brothers Fund, 2022). And it was only seven years after that that the International Union for Conservation of Nature—the oldest environmental organisation in the world, mind you—was only established on 5 October 1948.

The Purpose of Philanthropy and Planning Ahead

For those who give, whether to social or environmental causes, there is a variety of reasons as to why we do so: a sense of obligation, concern over a particular issue, a desire to see a better future and, yes, even tax relief. It is alright to be pragmatic!

However, giving towards social causes has a deep-seated, almost unconscious need to grow the community. From ancient times, we humans have understood the strength in numbers, which is why we formed communities, or tribes as they were called back then.

However, in banding together, there was an inevitable strain on resources. This created the need to be responsible for how we consumed our natural resources and, in a larger sense, be mindful of how our actions impacted the environment.

Charity + Conservation = Sustainability

Without the ever-present danger of a larger tribe taking over our own, or at least not in Singapore, there is little direct and personal benefit to us as a donor, apart from tax deduction and a sense of well-being.

We give simply because we care. That is the link between the two.

Whether it is towards social or environmental causes, community or green philanthropy, our contributions show that we care for others. It could be for the present, through financial assistance for daily living for instance, or for future generations, through conservation efforts. Because, after all, the children of our children will need a liveable world in which to grow up.

It can be a little daunting, given the sheer range of needs that society faces today, to consider also the needs of those who have not yet been born.

Leave a Legacy

Thankfully, the world (and its needs) does not rest on one’s shoulders alone. With years of experience in studying philanthropic trends and working to understand the needs of the community and environment, The Community Foundation of Singapore (CFS) can help you add your footprint to humankind’s long and ongoing journey of giving.

We value the creation of positive impact while keeping in mind the bigger picture of how the contribution will create sustained change.

At CFS, we steward our donors, through their funds, to make their mark on our community and our planet. Whether they contribute today or over the years, it will be their legacy. To find out how you can leave your legacy for tomorrow, please visit here.

To learn more about CFS’s Corporate Sustainability efforts, please read more here.

To read the other 2 stories in the ‘Sustainable Philanthropy Matters’ series, please click below:

The SDGs in SG
Navigating the SDGs with Philanthropy

This article was written by Adam, a Principal Consultant with CFS and an experienced sustainability practitioner. He is an advocate for sustainable practices. His colleagues are still wondering how his monthly household utilities bill is only around $70.

Disclaimer: The opinions expressed in this publication are those of the author. They do not purport to reflect the opinions or views of CFS or its members.

References

Alexa Dufraisse. (2008). Firewood management and woodland exploitation during the late Neolithic at Lac de Chalain (Jura, France). Vegetation History and Archaeobotany 17(2).
World Ocean Review 4. (2015). Sustainable Use of Our Oceans – Making Ideas Work. https://worldoceanreview.com/en/wor-4/concepts-for-a-better-world/what-is-sustainability/
Rockefeller Brothers Fund. (Accessed 2022). Conservation and the Environment. https://www.rbf.org/about/about-us/conservation-and-environment

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CFS Donor Learning Trip Series: The transformative power of early intervention by the Dyslexia Association of Singapore

John Doe

This initiative is part of CFS’s Donor Learning Trips, a series of engagement opportunities that enable donors to personally connect with charities and gain insights into how they support communities in need.

Imagine not being able to read because the letters and words are mixed up. Imagine struggling to spell or write, being labelled slow and falling behind at school. These are the realities students with dyslexia face, realities that empathetic donors from CFS got to better understand during a visit to the Dyslexia Association of Singapore (DAS).

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“It was an eye-opening experience that left a lasting impact on us,” said Mr Sim Willing, President of the IFPAS Love Fund. The IFPAS Love Fund is one of four donor-advised funds (DAFs) that joined our Donor Learning Trip in July 2023 to the DAS Learning Centre at Serangoon Central. The social service organisation provides dyslexia screenings, psychological assessments and remediation.

Accessing Quality Education is one of CFS’s five focal areas for grantmaking, where we curate programmes that ensure everyone has access to quality, holistic education and opportunities for them to function and thrive academically.

During the visit, donors had the valuable opportunity to hear from and talk with DAS Vice-Chairman Mr Kevin Kwek, DAS CEO Mr Lee Siang, Senior Specialist Psychologist Ms Scarlett Leong and other staff members.

One key takeaway for our donors was that dyslexia is more common than they thought. Dyslexia is a neurological condition where the brain is wired to handle information differently. It is lifelong and tends to be hereditary. Studies indicate that it affects around 10% of the population, 4% severely.

In Singapore, there are an estimated 20,000 students with dyslexia severe enough to need intervention, says Mr Lee. Children with dyslexia, moreover, may also have co-occurring difficulties. These include problems with memory, attention, time management and sequencing. DAS currently serves around 3,500 preschool, primary and secondary school students across 12 centres.

Poverty significantly compounds the challenge for students with learning difficulties. Undiagnosed children who slip through the cracks find it hard to break out of poverty. As Mr Lee points out, “International research suggests that 30-60% of prison populations may have dyslexia. Specialist intervention can help break a vicious cycle for those with special needs.” At DAS, 52% of its students come from lower-income families. This is where intervention—supported by donor generosity— can be transformative.

Intervention requires significant resources. DAS gets some funding for screenings but none for psychological assessments. Such assessments are crucial to ascertain if a child has a learning difficulty, its severity and to identify areas of learning needs. Each assessment must be carried out by a highly trained psychologist and takes considerable time, making it costly. This can put it out of reach of the less well-off.

To bridge this gap, DAS collaborates with like-minded partners like CFS. For the charity, CFS has been critical in bringing in donors such as the IPFAS Love Fund. Their grants directly help children from lower-income families access this much-needed service.

IFPAS set up the IFPAS Love Fund in 2017, choosing CFS for its strong track record in managing charitable funds. “A dedicated advisor at CFS takes the time to understand our giving goals and guides us to make well-informed decisions on where to direct resources for maximum effect. Administration is also easy as CFS handles legal and financial compliance, fund management, and grant distribution,” adds Mr Sim

As our relationship with CFS has grown, so has the depth and breadth of our giving. Over time, we have gained a better understanding of social issues and community needs, and CFS has played a pivotal role in keeping us updated on emerging trends and impactful projects. This ongoing learning process has led to the evolution of our giving strategies, allowing us to be more strategic, responsive, and effective in addressing the changing needs of the community.

Sim Willing, President of IFPAS Love Fund

Dyslexia is a hidden disability but with timely intervention, many can go on to contribute significantly to society. Through targeted and thoughtful philanthropy, we can extend professional support to more children with dyslexia, allowing them to reach their full potential and lead more fulfilling lives.

CFS assists charities and their underprivileged communities by connecting them with donors seeking to support causes and crucial needs that resonate with them deeply.

To find out more about the causes we support, please visit www.cf.org.sg/what-we-support/.