Singapore is the fastest growing in the world of wealth management activities. Assets under management in the Singapore financial sector amount to $550 billion, up from $50 billion in 2000. Assets of about $450 billion come from outside the country.
Switzerland manages at this time assets of $2,800 billion, of which $2.100 billion come from abroad. The financial sector of wealth management in Switzerland is 34% of the global figures, totaling $8.150 billion.
Singapore may surpass Switzerland by 2020 on offshore wealth management, shows a study by London-based research firm WealthInsight. Foreign assets managed by Swiss financial sector could fall below $2.000 billion by 2016, while Singapore foreign assets might increase by more than four times during the same period.
“The Swiss wealth management model is under intense pressure. Offshore centers have suffered significant reputational damage in the past four years and advanced economies are increasing their oversight of cross-border banking and tax havens,” WealthInsight report reads.
While Switzerland is under the scrutiny of European Community authorities, Singapore attracts the growing wealth in Asia. Recent scandals on wealth held in tax havens and the legal action in this regard in the U.S. and Europe have affected the reputation of Switzerland.
“Rapid growth in Asian economies such as China, India, Indonesia and Malaysia will continue to see new investments in the years ahead,” states the report from the research company.
Singapore on the other hand, the report said, is waiting with open arms new rich people from Asia. Millionaires and billionaires, especially from China, withdraw hundreds of billions of dollars from their countries and hide money abroad.
Many of these funds end up in Singapore and Hong Kong. More than half of foreign assets managed in Singapore come from China. Singapore is a tax haven for rich people due to its generous tax regime.
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