Singapore’s rise as a global centre for managing money has taken a big step with assets under management in the city state rising by nearly a quarter last year, putting it closer to matching Switzerland as a wealth management hub.
Funds managed in the city state rose 22 per cent to S$1.63tn ($1.29tn), from S$1.34tn a year previously, the Monetary Authority of Singapore, the central bank, revealed yesterday. In comparison, there were SF2.8tn ($2.9tn) of assets under management in Switzerland last year, according to the Swiss Bankers Association.
Asia was the biggest destination for investments from funds handled out of Singapore, accounting for 70 per cent of all assets under management, up from 60 per cent the previous year. Hong Kong and Singapore are closing the gap with Switzerland and London as they benefit from the growing wealth of a new generation of Asian businesspeople. Switzerland’s private banking industry is suffering from a damaging row with the US over some Swiss banks’ alleged complicity in tax evasion by US citizens.