Singapore Financial Centre

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singapore financial centreIn many decades, Singapore has established itself as a leading global financial Centre. World Bank’s Ease of Doing Business ranked second the Singapore Financial Centre. Singapore’s business-friendly regulations attract the global financial institutions seeking to establish a business in Asia. Singapore’s financial Centre offers a range of financial services including banking, insurance, investment banking and treasury services. Several financial sectors or markets have been important for Singapore’s success and ongoing development as a global financial Centre.

Banking Sector

Singapore had a key regional and global role as a major banking hub. According to the MAS (Monetary Authority of Singapore) banks in Singapore held a total of US $2 trillion in assets as of 2013. The Asian Dollar Market would lay the foundation for banking and finance in Singapore, ADM allowing for the participation of foreign banks and financial institutions in Singapore’s financial services sector.

Singapore hosted a total of 126 commercial banks, of which 5 are local banks and 121 are foreign banks.22 Of these foreign banks, 29 were full banks, 55 are wholesale banks, and 37 are offshore banks.23 In particular, Singapore’s 3 largest local banks, DBS, UOB, and OCBC, have been ranked among the world’s strongest and most valuable banking brands. High net worth individuals choose Singapore for a number of reasons, such as economic and political stability, reputation for high standard of regulation.

Capital Markets

Singapore Financial Centre also depended on its deep and liquid capital markets, with the markets for bonds, equity capital, foreign exchange and over-the-counter (OTC) derivatives particularly prominent. Singapore’s equity capital market has been known to be one of the most established in the Asia Pacific region, with close to 800 companies listed on the SGX. Singapore’s equity capital markets are highly internationalized, with foreign companies making up 40% of listings on the Singapore Exchange.

Apart from bonds and stocks, Singapore has also emerged as a key location for the exchange of foreign currency. It has become the largest foreign exchange Centre in the Asia Pacific region, and ranks third in the world. In 2016, average daily trading volume amounted to S$ 705 billion, with Singapore’s share of global foreign exchange rising to 7.9%.

Asset Management

Having identified asset management as a key growth sector in the 1980s, Singapore has since emerged to become a leading asset management Centre in Asia. Singapore was fast emerging to become a leading regional and global asset management Centre that played an important role in mediating global flows of private investments.

 Insurance

In Asia, Singapore has become a top insurance hub. A large number of major international insurers and reinsurers are based in Singapore. Together, they provide a full range of insurance services to meet the needs of the domestic market. Insurance services offered including general insurance, life insurance, reinsurance, captive insurance, and insurance intermediaries.

These all sectors play a major role in strengthening the Singapore Financial Centre .Costs of doing business such as wages and rental, office rental in Singapore remained significantly lower than that of  leading rival financial centers.

 

 

 

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