Singapore Offers Economic Opportunities For Expatriates

Singapore Offers Economic Opportunities For Expatriates

According to a study, nine in 10 Singapore expats say overseas life speeds up path to financial freedom. 

Living and working in Singapore is helping most expatriates achieve financial freedom and retire earlier, although managing wealth across multiple countries remains a major challenge, according to a new study by wealth management firm St. James's Place Asia.

The report, «Money on the Move», found that 93% of affluent and high-net-worth expatriates in Singapore believe living abroad will accelerate their journey to financial freedom, while 83% expect it to help them retire sooner.

More than half (57%) of respondents said they would have reached financial freedom at least five years later had they never moved overseas. Meanwhile, 59% believe living abroad will bring forward their retirement by at least three years.

Significant Financial Advantages

The financial advantages appear to be significant. Almost all respondents (96%) said they earn more in Singapore than they would in their home country, while 97% reported saving more each month after expenses.

The findings suggest many expatriates are planning to stay in Singapore for the long term. Nearly four in five (78%) intend to remain in the city-state for at least eight years, while half said they are likely to return to their home country only after retirement. Another 16% said they are unlikely to return home at all.

Higher-net-worth individuals were particularly inclined to settle overseas permanently, with 31% saying they do not expect to move back to their home country, compared with 14% of mass affluent and affluent respondents.

The report also found that Singapore's tax regime, visa policies, property ownership rules, and access to education and healthcare were important factors influencing expatriates' decision to live in the city-state, with more than eight in 10 respondents citing these considerations.

Complexity in Managing Wealth

Despite the financial benefits, expatriates face growing complexity in managing wealth across jurisdictions.

Currency volatility emerged as the biggest obstacle to effective wealth management, affecting 85% of respondents. Limited access to preferred investment products (83%), cross-border tax and regulatory complexity (82%), Singapore's high cost of living (82%) and a lack of time to manage finances (82%) were also identified as significant challenges.

Broader economic uncertainty is also weighing on expatriates, with around nine in 10 expressing concern about global inflation, interest rate changes, recession risks and exchange-rate fluctuations.
The study highlighted relatively low levels of financial confidence among expatriates. Only 27% described themselves as highly financially literate.

Professional Advice is Widely Used

Those with higher financial literacy were considerably more likely to hold diversified investment portfolios, prepare for wealth succession and seek financial advice in both their home country and Singapore. They were also more likely to report that their financial position had improved while living abroad.

Professional advice is already widely used, with 53% of respondents relying on financial advisers for tax planning, investment strategy and retirement planning.

Nearly nine in 10 respondents (89%) said obtaining professional financial advice earlier would have improved their financial position. On average, they estimated they could have accumulated an additional US$58,464 in savings and investment returns had they sought advice sooner.

Similarly, 90% believed a better understanding of cross-border tax rules would have helped them avoid tax losses, with respondents estimating average losses of nearly US$54,000 over their time abroad.
The report also points to gaps in estate planning. Only about one-third of expatriates have life insurance, a trust or foundation, or a will and estate plan in place. As a result, just 16% said they feel fully prepared for wealth succession.

Oliver Wickham, Asia & Middle East Partnership Director at St. James's Place, said Singapore continues to offer strong economic opportunities for expatriates, but managing increasingly international financial lives requires specialist expertise.

«The value of financial advice for expats goes beyond achieving better returns,» he said. «It is about an ongoing relationship that evolves with increasingly international lives, offering continuity, clarity and confidence for the future.»