Singapore - International Financial Centre
Over the last forty years, Singapore has established a thriving financial centre of international repute, serving not only its domestic economy, but also the wider Asia Pacific region and the world. More than 600 financial institutions, ranging from the world's largest players to boutique firms, operate here. Together, they provide a wide range of financial products and services in the areas of consumer banking, corporate and investment banking, fund management, insurance and treasury activities
Singapore's strategic geographical location enables it to access 568 million people in Southeast Asia and 3.2 billion people in Asia within 7 hours of flight time. Financial institutions can also tap on the country's connectivity and links to other regions like the Middle East and explore opportunities further afield
Today, Singapore continues to be a global foreign exchange trading hub. It is also a major wealth management centre in the region. Below are snapshots of the key segments of the financial sector to give a sense of the breadth and depth of the financial activities offered by the Singapore financial centre.
|No. of Financial Institutions
|Fund Management Firms
- Singapore's Banking sector provides traditional lending and deposit functions as well as a wide range of corporate and investment banking services.
Asian Dollar Market (ADM)
- An important feature of the Singapore financial landscape is the Asian Dollar Market. The ADM is an international market for transactions in foreign currencies, including all the world's major currencies. Since its launch in 1968, the Asian Dollar Market has grown from a modest US$30 million to the current US$991 billion as at Mar 2008.
Foreign Exchange Market
- Singapore is the fifth largest FX centre in the world and the second largest in Asia, close behind Tokyo, according to the triennial survey by the Bank for International Settlement (BIS).
- According to the BIS, average daily FX turnover in Singapore jumped 84% from April 2004, to reach US$231 billion in April 2007.
- Singapore's FX market continues to be international in character, with major currencies such as US Dollar, Japanese Yen and Euro dominating turnover.
Commodities and Derivatives Market
- Singapore enjoys the reputation as the top energy trading hub in Asia, and is increasingly a location of choice for other sectors including agri-commodities, metals and minerals.
- In the area of commodities, over 230 global trading companies have their off-shore trading, marketing and procurement operations in Singapore.
- Singapore is the second largest over the counter ("OTC") derivatives trading centre and a leading commodities derivatives trading hub in the region, capturing more than 8% of global OTC commodities.
- Singapore also hosts a vibrant market for the trading of commodity derivatives and OTC energy derivatives.
- Singapore has the largest stock market in South East Asia, with a total of 770 companies having a total combined market capitalization of S$671 billion listed on SGX as at Mar 2008. Of the 770 listed companies, 39% were foreign listings, reflecting the growing status of Singapore as the Asian Gateway, offering global investors access to the dynamic and fast growing Asian markets.
- On 11 April 2008, SGX became the first Asian exchange to list products linked to the Rogers International Commodity Enhanced Indices.
- We also have one of the world's fastest growing domestic bond markets
REITs and Real Estate Business Trusts
- Singapore is fast becoming the premier real estate financing centre in Asia.
- There were a total of 19 REITs and 2 real estate business trusts, with a total market capitalization of S$26 billion as at Mar 2008, making Singapore the largest REIT/real estate business trust market in Asia excluding Japan.
- Majority of top European and American fund management companies already have a presence in Singapore.
- At the end of 2007, assets under management (AUM) in Singapore grew 32% year on year to reach S$1.2 trillion.
- Riding on the back of the growth in the region and the Asset Management Industry, Singapore has grown to be a major wealth management centre.
- Singapore is a strong regional insurance and reinsurance hub and the largest domicile in the Asia Pacific for captive insurers.
- 16 of the top 25 global reinsurance groups have presence in Singapore.
- 5 of top 10 global insurance and reinsurance brokers have established offices in Singapore.
- In 2007, total gross premiums for general insurance grew by 11% from 2006 to record S$6.1 billion while total life new business premiums leaped 28% to S$10.6 billion.
Financial institutions in Singapore are regulated and supervised by the Monetary Authority of Singapore (MAS). For more information on the MAS, please visit www.mas.gov.sg