Hong Kong should offer incentives for philanthropy to compete with Singapore for family offices, study says

City should offer tax incentives and allow the cross-border flow of charity capital, according to a study by the Centre for Asian Philanthropy and Society

Hong Kong currently loses to Singapore in terms of tax incentives for attracting charitable foundations, study shows

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More incentives for charitable giving could help Hong Kong attract family offices, many of which place great emphasis on philanthropy, according to the Centre for Asian Philanthropy and Society. Photo: Roy Issa

Published: 10:31am, 23 Feb 2023Updated: 8:24pm, 23 Feb 2023

Hong Kong could enhance its role as a centre for family offices by offering more tax incentives for philanthropy and exploring cross-border flow of capital for charitable purposes, according to a study by Centre for Asian Philanthropy and Society released on Thursday.

With the third-largest stock market in Asia and its position as a gateway to mainland China, which has the world’s largest population of billionaires, Hong Kong has the potential to be a philanthropy hub for Asia, according to the study, sponsored by the Better Hong Kong Foundation.

The centre’s co-founder and CEO Ruth Shapiro presented the findings of the study in a forum on Thursday.

Promoting philanthropy will be an important step for Hong Kong to compete with Singapore as a hub for family offices, the companies wealthy families or individuals set up to invest their riches and handle succession planning. Many wealthy families place great emphasis on charitable works.

Ruth Shapiro, co-founder and CEO of the Centre for Asian Philanthropy and Society, speaks at an event on charity in Admiralty on February 23, 2023. Photo: Xiaomei Chen

Financial Secretary Paul Chan Mo-po on Wednesday announced the government will allocate HK$100 million (US$12.8 million) to InvestHK to promote family offices and other wealth-management businesses. Earlier, Chief Executive John Lee Ka-chiu in October set a target of having 200 large family offices set up in the city by 2025.