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.
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.
“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.