Rumors of Singapore's collapse are circulating online: What is the truth?

Data suggests that Singapore is not "declining" as rumored on Chinese-language social media, but is entering a restructuring phase: the luxury market is projected to grow by 7–9% in 2025 and reach SGD 13.9 billion.

The sarcastic remarks like "washing money" and posts about luxury brands leaving Marina Bay Sands or Orchard Road being "deserted" reflect more emotion than reality. Looking back from 2019 to the present, the biggest changes lie in Capital flows, crypto regulations, and the structure of domestic consumption.

The shift away from Hong Kong in 2019 propelled Singapore to the role of a financial hub.

The Hong Kong protests in 2019 sparked a wave of businesses and Capital shifting to Singapore, which accelerated after the 2020 National Security Law and the “zero-COVID” period.

As protests against the extradition bill escalated, many noted that the biggest risk was "companies and money moving to Singapore," according to analyses on CNBC . A survey showed that 23% of businesses with offices in Hong Kong were considering relocating part of their operations, and a majority chose Singapore as their preferred destination, according to Bloomberg .

Subsequently, strict pandemic control policies in Hong Kong further accelerated the outflow of financial personnel. The asset management industry in Singapore is described as having doubled in six years to approximately $4 trillion, with 80% coming from overseas, according to Time . Many global asset managers expanded their presence, while some teams in Hong Kong saw a contraction.

China's anti-corruption campaign has triggered a demand for asset transfers overseas.

The anti-corruption campaign since 2012 has created psychological pressure and policy risks, prompting some investors to seek ways to move assets abroad, with Singapore being a prominent destination.

The "tiger and fly" anti-corruption campaign is described as the largest in the CCP's history, with over 4.7 million officials punished since 2012, including 553 at ministerial level or higher. The "Sky Net" and "Fox Hunt" campaigns are cited as efforts to track down and recover assets across borders, according to one commentary .

Since 2015, the fear of " Capital flight" has haunted the Chinese economy; faced with the risk of currency devaluation and a strong anti-corruption campaign, the outflow of capital was so large that the central bank had to use more than $1 trillion in foreign exchange reserves to maintain the exchange rate.
– MERICS, commentary on the risks of “capital flight” (excerpt)

Against this backdrop, the number of "family offices" in Singapore increased from 400 (2020) to 1,100 by the end of 2022. The ironic phrase "洗钱坡" (washing money in a safe haven) also spread, associating Singapore with the story of "money seeking refuge" rather than just pure growth.

Singapore was once considered the most viable option for crypto in Asia, so the shift is understandable.

Following restrictions on ICOs (2017) and a crypto ban (2021) in China, many large exchanges moved to Singapore due to its relatively flexible legal framework and access to international Capital .

Many exchanges with Chinese origins, such as Binance, Huobi , Bybit, and OKX, are described as relocating their operations to Singapore. Ethereum co-founder Vitalik Buterin once commented that Singapore is becoming a hub for the crypto community. The reason is that other markets have experienced the shock and tightened regulations quickly.

Japan faced the Mt. Gox incident (2014), where approximately $500 million worth of Bitcoin was stolen, and subsequently implemented a registration system for exchanges from 2016. Following the Coincheck case, which resulted in the loss of $534 million worth of NEM Token (January 2018), regulations continued to tighten. South Korea also took strong action after the "kimchi premium" and the FATF's Travel Rule recommendations in 2019.

Singapore enacted the Payment Services Act (PSA) in 2019 but still allowed many operating models to operate under a certain exemption mechanism for a period, provided they did not serve domestic retail investors. This favorable situation contributed to Token2049's move from Hong Kong to Singapore in 2022; the number of attendees was reported to be 7,000 (2022), 20,000 (2024), and a record 25,000 (2025).

The shocks of 2022–2023 and the “Fujian gang” incident prompted Singapore to shift its priorities to risk control.

Following the Terra-Luna, FTX, and related cases, Singapore shifted from a “conditional flexibility” approach to one that emphasizes licensing and supervision, particularly for crypto operations serving foreign clients.

In 2022, the collapse of Terra-Luna (May) and the bankruptcy of FTX (November) were both mentioned as having links to Singapore; the Singapore-based Three Arrows Capital (3AC) fund also went bankrupt. By 2023, a $2.3 billion money laundering case involving a group of people of Hokkien origin was uncovered, according to a summary of the details .

The MAS regulatory authority implemented a Digital Token Service Provider (DTSP) licensing regime effective June 30, 2025, requiring businesses based in Singapore but serving crypto customers overseas to also obtain a license, and stated that there would be no transition period. Some companies, such as Bitget and Bybit, have been described as having moved personnel to Dubai and Hong Kong; even a Hong Kong politician publicly invited businesses to relocate from Singapore to Hong Kong.

By the end of 2025, approximately 35 companies held Major Payment Institution (MPI) licenses, including Coinbase, Crypto.com, Circle , and Upbit. This indicates a shift in focus towards organizations with strong compliance capabilities rather than those prioritizing rapid growth at all costs.

Luxury and real estate haven't disappeared, but the focus has shifted to domestic purchasing power and sustainable structures.

While the number of wealthy immigrants and foreign buyers has decreased, the luxury market continues to grow thanks to the domestic wealthy class; and the high-end real estate market is shifting towards a higher proportion of domestic buyers.

According to Henley & Partners , the influx of millionaires to Singapore is projected to decrease from 3,500 (2024) to 1,600 (2025), with one article also mentioning a 54% drop. Applications for family offices from wealthy Chinese are described as down 50% from their 2022 peak, according to CNBC .

In the real estate market, non-permanent resident (non-PR) buyers accounted for only 1% of private home transactions in Q1 2024, down from 6.4% in the same period last year, according to market analysis . One reason is the increase in the ABSD tax to 60% under the ABSD regulations .

However, Euromonitor forecasts that Singapore's luxury market will grow by 7–9% in 2025, reaching S$13.9 billion. This is driven by the 242,400 resident millionaires and the five-year consecutive increase in median household income, helping domestic purchasing power offset the gap left by high-spending overseas consumers.

Rumors circulating that the luxury brand is leaving Marina Bay Sands are also countered by facts: in July 2025, Chanel will open a temporary 900 m² boutique at MBS while its flagship store is being upgraded for a major reopening in 2027, according to an article about the store . The 2025 Christmas season at MBS will also feature nighttime activities between the Gucci and Chanel areas, according to event information .

This is "strategic reconstruction," not collapse.

The common denominator is that Singapore is reducing its reliance on speculative Capital and unlicensed crypto activity, while increasing the proportion of domestic assets and institutional players—prioritizing long-term stability over short-term growth.

The narrative "Singapore collapses" often exaggerates negative signals (fewer millionaires arriving, some crypto personnel leaving) and XEM positive signals (increased luxury spending, growing domestic wealth). In policy logic, "cleaning up" after the shocks of 2022–2023 may be a necessary step to maintain its position as a clean and sustainable financial center.

“Consumption restructuring, not consumption decline” — restructuring consumption, not consumption decline.
– User comments on X (excerpt)

Frequently Asked Questions

This section addresses common points of confusion when comparing social media rumors with data on luxury, real estate, and crypto regulations in Singapore.

Why are Chinese-language social media users saying Singapore is "going downhill"?

Signs such as fewer immigrant millionaires, sharply rising property taxes for foreigners, and some crypto companies moving their workforce out easily create the impression of a "retreat." However, other indicators such as forecasts of luxury growth and expanding domestic purchasing power suggest a restructuring picture.

What does DTSP mean for a crypto business based in Singapore?

The DTSP regime (effective June 30, 2025) requires businesses based in Singapore but serving crypto customers overseas to also obtain a license. This increases compliance costs and makes it difficult for "flexible operations" models to survive, in exchange for prioritizing system security.

Why can the luxury market continue to grow even when the influx of wealthy immigrants is decreasing?

Because demand could shift from high-spending international buyers to wealthy domestic buyers, the article highlights the large number of resident millionaires and the increase in median household income over the years, helping to offset the shortfall in demand from foreign buyers.

Is the news about "brands leaving Marina Bay Sands" credible?

The data in the original document gives the example of Chanel opening a temporary boutique at MBS in July 2025 while the flagship is being renovated until 2027, and MBS still holding Christmas activities in 2025 around the Gucci–Chanel area. This doesn't fit the scenario of a "mass exodus."