Sentosa, a resort island of palm trees and imported sand off the southern coast of Singapore, is a place devoted to pleasure. It has theme parks, golf courses, elegant gardens and casinos. You get the sense that the rules of this famously law-abiding republic might not apply here: a land of the super-rich where villas rent for $35,000 a month.
That sense would turn out to be illusory. In mid-August, Singapore police arrested a couple here in their mid-forties as part of a country-wide raid targeting suspected money-laundering. The man had a passport from Saint Kitts and Nevis, The Straits Times reported, while his partner had a Dominican passport — but both were also Chinese nationals.
Overall, 10 people were arrested across Singapore that day and charged with offences relating to money-laundering. The group held passports from countries including Cyprus, Turkey, and Vanuatu, but all originated from China. Police seized assets including wine, jewellery, Bentley and Rolls-Royce cars and Patek Philippe watches, collectively valued at S$1 billion (nearly £600 million).
The raids and the trials that are expected to follow have shone a light on the exodus of money — both licit and illicit — from Xi Jinping’s China. And it draws attention to Singapore’s role as a haven for China’s business elite, both legitimate businesspeople fleeing an increasingly restrictive regime, as well as the small fraction suspected of financial crime. In 2022, China surpassed Russia as the world’s leading exporter of wealthy citizens, according to Henley & Partners, a firm that advises people on how to get residency and citizenship through investment.
Many business elites have decided that the good life is no longer possible in China as long as Xi continues to torment the private sector. Ever since the disappearance of Alibaba founder Jack Ma in 2020, Xi has been cracking down on the leaders of private businesses. Regulators cancelled the stock exchange listing of Ma’s Ant Group, the giant financial tech business behind the Alipay app, which would have been the biggest stock listing in history. And since then, a number of other sectors have had their collars felt, from online gaming to private tutoring, each move apparently aimed at shoring up the Chinese Communist Party’s vision of a healthy society and curbing the excesses of capitalism.
This February, the banker Bao Fan, a legendary tech dealmaker, went missing. His company China Renaissance said he was “cooperating” in an investigation, the details of which have never been specified though his disappearance has dragged on for months. According to the FT, he was in the process of establishing a family office in Singapore to manage his personal wealth. Such vanishing acts undoubtedly unnerve the super-rich, spurring many of them to flee the country.
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SubscribeThe super rich aren’t really leaving China. No matter where they go, China will be there, and their wealth creating assets will still be in China. All watched over by the CCP. Indeed, the CCP encourages its super rich to go West because China can’t influence the world if it stays at home.
“Extravagant Chinese émigrés” in Singapore are not China’s super rich. And Singapore isn’t upset by ostentatious, gross displays of wealth if Nassim Road is any guide.
These Chinese emigres do however have a lot of cash. Often they are cash rich through old fashioned gangsterism, or corruption, or they are just spoiled progeny. People the CCP can’t easily admit it has, and often would prefer if they weren’t in China. It is why the CCP leaves these emigres alone to get on with life in Singapore and London, and why Singapore (but not London…) is keen to kick them out. Using money laundering rules to eject them tells you exactly what sort of emigres are being targeted.
For what I see the Chinese elite are moving their children to the West as a safe haven
The CCP uses its Consulates in our big cities and Chinese Societies at our univerisities to monitor expatriates. It isn’t clear if we are a safe haven given Chinese elites have all their assets and a great proportion of family left in China, and are being monitored even though they live abroad.
The Chinese ‘rich man’ cannot vote in China. Therefore, he votes with his feet, and flees to a safe space for him and his riches … 😉
Interesting that the US surpassed China this year. I wonder what US billionaires could be afraid of that happens in 2024. Let me think….