China's wealthy individuals escape crackdowns and move to Singapore, known as 'Asia's Switzerland'

In Taichung, Taiwan, it was reported that Bao Fan disappeared in the middle of February. He was known as one of China's most renowned investment bankers who had been searching for a secure way to store his riches.

According to the Financial Times, Bao, who founded China Renaissance, was reportedly setting up a company for managing private wealth in Singapore. The aim was to move money out of China and Hong Kong. Four sources familiar with the plans provided this information.

Bao has joined a lengthy roster of powerful entrepreneurs who have vanished in China. Many rich Chinese business leaders have turned to Singapore, known as the "Switzerland of Asia," in order to evade the Chinese government's efforts to regulate private enterprise and quash corruption.

A confidential wealth manager working at a Singaporean bank that serves many Chinese customers revealed to Al Jazeera that Singapore has seen a huge influx of riches pouring in from China and Hong Kong in recent times.

The financial advisor stated that during private discussions, a lot of individuals have cited the vanishing of Chinese entrepreneurs and the unstable financial climate as the main factors for transferring their funds out of China.

Singapore has gained a strong standing as a top destination for business, according to the Economist Intelligence Unit. It has also gained popularity among wealthy Chinese individuals, especially following the ascension of Xi Jinping, who has helped steer China towards a more nationalist and authoritarian stance in recent times.

Over the course of five years, Xi has been spearheading an anticorruption movement that has resulted in the prosecution of over a hundred high-ranking officials from the Chinese Communist Party. Additionally, tens of thousands of lower-level officials and business individuals have also faced prosecution for white-collar crimes.

In recent times, there has been a government-led effort to enforce regulations on the private sector, impacting various fields such as technology, education, and property. This has caused a significant amount of capital to exit China.

One anonymous supervisor at a renowned international bank that has branches in Singapore has revealed that their customers have expressed concerns about the current political situation in China, which is less receptive to wealthy individuals than it was before. As a result, these customers want to move their assets out of China.

Beforehand, Chinese financiers would have turned their attention to Hong Kong for investment opportunities but this city's draw has weakened due to its prolonged periods of instability and economic downturn.

In easy terms, China is no longer seen as a desirable place to invest in. This has led Chinese investors to look for more promising opportunities outside of their country. This was stated by Sara Hsu, a knowledgeable person in Chinese fintech and shadow banking from the University of Tennessee, in an interview with Al Jazeera.

According to Hsu, transferring substantial sums of money from China can be quite difficult. However, there are individuals who have figured out a solution to this problem.

Singapore has experienced a noticeable increase in the amount of money coming in from China.

In 2022, mainland Chinese buyers accounted for almost 25% of the purchasers of 425 luxury homes in the city. They exceeded the number of US citizens by more than a factor of two.

The real estate prices in Singapore's residential areas experienced a significant increase of 14 percent in 2022. However, prices in other cities that are typically known for their popular real estate markets such as Hong Kong and Sydney faced a decrease in single digits. Despite the rise in prices, industry experts have stated that it is not the result of rich foreigners investing in the market, but rather due to local factors.

Individuals from China who are ineligible to purchase property in Singapore according to the country's regulations have chosen to lease instead. Their decision has resulted in a surge of over 300% in the annual rental fees for certain luxurious properties.

The Straits Times newspaper reported that rental rates in the entire city-state went up by 33.2% in the period between January 2022 and January 2023.

In the previous month, a legal professional in Singapore's wealth management industry predicted that the number of wealth management establishments greatly increased from 700 offices to 1500, and almost half of these originated from China.

In the popular Sentosa island located off the southern coast of Singapore's main land, the arrival of international currency has caused an increase in membership fees at the Sentosa Golf Club. The current price for foreigners is now $660,000 Singaporean dollars, which is twice the amount it cost in 2019.

The supervisor at a big global bank, who wished to keep their identity hidden, remarked that there is a significant increase in the number of Chinese people in the city compared to the past few years.

Wherever you may be, it is common to encounter individuals speaking in accents originating from mainland China and Hong Kong.

Emma Chiu, who works as a sales manager, has observed that there has been an increase in the number of Chinese nationals from Mainland China residing in Singapore throughout the past few years.

Chiu informed Al Jazeera that frequently he converses with his companions concerning the Chinese mainlanders whom he observes cruising in luxurious, high-priced automobiles, flaunting the most recent designer labels and indulging in fancy dining experiences.

I find some of the extravagant displays of wealth by the Chinese to be excessive, but I suppose it adds to their entertainment value.

The occurrence of an increased number of people from mainland China moving to Singapore indicates that affluent Chinese individuals are concerned about securing not only their wealth, but also their loved ones. This insight was shared by a wealth manager who wished to remain anonymous.

In Singapore, there exists a program for investors from around the world to obtain long-lasting residency for both themselves and their families. This opportunity is achieved by investing a specific minimum amount in Singapore's economy.

The financial advisor claimed that by storing their belongings in this location, they could safeguard their wealth and personal safety in case of a potentially unstable political circumstance in China or Hong Kong.

Wealthy individuals from other countries who are looking for protection for themselves and their possessions find Singapore very appealing.

For many years, the city-state has been a dependable location for people seeking to avoid taxes. Its banking and investment management services have attracted affluent clients from various parts of the globe.

Ever since Singapore became a sovereign nation in 1965, it has been recognized as an excellent example of stability. Despite having a government that restricts protests and a low media freedom rating, the People's Action Party has managed to maintain one of the world's most uninterrupted governing streaks.

The occurrence of criminal activities and corruption is infrequent, and the per person measure of the overall economic output, at over $72,000, is ranked as one of the most elevated worldwide.

Singapore is a popular destination for people from mainland China, as it is located near their home country and has many cultural similarities. As Singapore is located in the same time zone as China, it is convenient for travelers to adjust their schedules. Additionally, Singapore has a large population of ethnic Chinese people who speak Mandarin, making it easy for visitors to communicate.

However, the movement of resources and individuals from China to Singapore may not continue.

Yan Jiang is a researcher in charge at the Danish Institute for International Studies. Her specialization is centered on the prevailing political economy of China. Recently, Yan states that the Chinese government might opt to reinforce its already strict capital control measures, in case the flow of capital out of the country becomes more rampant.

Jiang stated that if numerous entrepreneurs decide to leave China, it may lead to a situation akin to a Chinese exodus of skilful labor.

The government would prefer to suppress this progress because private individuals are critical for China to keep its market energy thriving.

Not everyone in Singapore is happy about the arrival of overseas riches.

Although a significant amount of housing in Singapore is legally set aside for citizens of the country, shielding a substantial part of the industry from overseas purchasing, the surge of funds has made an impact in different regions.

Chiu mentioned that he has been told about instances in which new mainland China residents have indulged in extravagant spending sprees.

Additionally, I have noticed that when I have the urge to shop nowadays, the cost of items is noticeably higher or they are completely out of stock in comparison to previous times. In my opinion, this occurrence is due to the abundant presence of foreign currency circulating throughout the city.

A sharp rise in food prices has made it difficult for school teacher Sean Feng to cover his family's expenses.

The Asian country of Singapore has to rely on foreign sources to obtain more than 90% of its food. This situation can make Singapore prone to external factors that affect the supply of food. In the first two months of this year, the cost of food rose by more than 8%. To put this into perspective, this increase was much higher than the rise in the overall rate of inflation. These facts come directly from the Department of Statistics of Singapore.

Singapore has a high core inflation rate of 5.5 percent in February, which is among the highest in Southeast Asia. This rate is more than twice the rates seen in other developed Asian countries such as Hong Kong, Japan, and Taiwan. According to the Economist Intelligence Unit, Singapore is the most expensive city to live in, alongside New York City, as of December of last year.

Feng spoke to Al Jazeera and mentioned that a plethora of everyday objects have undergone considerable price hikes. The inflation situation has been troublesome worldwide, but when a vast number of affluent individuals decide to reside at a particular location, it can exacerbate the issue for the rest of the community.

Chiu expressed her desire for Singapore to be a city that accommodates not only the wealthy residents but also everyone else who considers it their home.