Singapore 'to overtake Switzerland as top wealth management centre'

by Teo Xuanwei
06:07 AM Jun 22, 2011


SINGAPORE - Amid increased financial regulatory pressures in the West post-financial crisis, the Republic has been tipped to oust Switzerland as the world's top wealth management centre within the next two years, according to a survey by PricewaterhouseCoopers (PwC) published yesterday.

Strong growth in emerging markets in Asia was also another reason behind the survey respondents' bullish prediction that Singapore would leapfrog Switzerland and London to the perch. Hong Kong was also expected to jump ahead of London into third place.

The PwC study, titled Global Private Banking and Wealth Management Survey 2011, involved 275 firms from 67 countries.

PwC's leader of Asia-Pacific global private banking and wealth management Justin Ong said the key factors in the Republic's favour include its strong regulatory environment, efforts by the Government and regulator to promote and develop private banking activities and tax incentives for the wealth management industry.

Private wealth managers Today spoke to felt it was only a matter of time before Singapore overtook Switzerland and London, given that Monetary Authority of Singapore statistics showed that the industry here had grown by 13 per cent to manage S$1.4 trillion last year.

Over the last five years, the industry has recorded an average growth rate of 16 per cent, propelling Singapore from being a small player - according to Boston Consulting Group, in 2007, Switzerland had four times as much offshore assets under management as Singapore - to becoming contenders as top dog.

Said Hoffman & Partners founder and managing partner Urs Brutsch: "We're certainly exceptionally well-positioned to become No 1 because Singapore has all the right ingredients, such as booming economies around the region, a supportive regulator and stable political climate."

Traditional powerhouses such as Switzerland and London will, at best, probably only retain the assets they already hold, he said. HSBC Private Bank chief executive Nancie Dupier noted: "Many wealth management clients already value Singapore's corruption-free environment and emphasis on client confidentiality and these will become increasingly strong pull factors as regulatory concerns grow in importance."

While the exodus of fund managers from the West has been attributed to a harsher regulatory regime, the MAS had reiterated earlier this month that the Republic's laws matched, and in some cases, exceeded international standards.

Mr Brutsch, however, described the two-year timeframe for Singapore to become the top wealth management centre in the world as "incredibly ambitious".

"The mature industries will not fall asleep, they will not stop moving ... there's quite some way to go before we can overtake Switzerland," he said.


Via: http://www.todayonline.com/Singapore/EDC110622-0000527/Spore-to-overtake-Switzerland-as-top-wealth-management-centre