Switzerland and Zurich have historically been the epicenter of private banking and wealth management, with multiple 100-year-old banks like UBS and Credit Suisse helping the rich grow, protect, and enjoy their wealth. However, in recent years, there has been a remarkable shift: Singapore, a city-state renowned for its economic might, is swiftly emerging as a new capital of global wealth and financial innovation.
Singapore's rise is underpinned by its strategic geographical location and business-friendly regulatory environment, along with its emerging role as a new focal point for Asian finance and world-class lifestyle.
Strategic Location
If you draw a circle with Singapore in the center and a radius of 6 hours of flying time, more people live inside that circle than outside it. This strategic location, encompassing a significant portion of Asia's population, places it right at the heart of the region's innovation community. As a result, Singapore's geographic position offers unmatched access to burgeoning Asian markets.
Many of those markets are the drivers of tomorrow's wealth. An analysis by the World Economic Forum found that average annual GDP growth in Asia has consistently exceeded 4 percent for every decade since the 1980s, the only region in the world to maintain that pace. Emerging and developing Asia also leads the International Monetary Fund's economic projections for 2024, with an October 2023 forecast for 4.8 percent growth in 2024.
Singapore has made the most of its strategic location by creating programs like Startup SG, which connect with the region's creative spirit. Programs like this show Singapore's dedication to growing a lively startup environment, bringing together the goals of the startup community and making it easier to support and participate in this vibrant sector.
Business-Friendly Regulatory Environment
The nation skillfully balances responsible governance with market-friendly policies, promoting financial integrity and attracting global investors in search of a stable and predictable business landscape. Singapore's regulatory framework is characterized by responsible and forward-thinking governance with a deep understanding of technology.
Thanks to the supportive regulation policy, Singapore has developed a dynamic environment that houses innovation hubs for leading international companies like Johnson & Johnson and Unilever alongside more than 150 venture capital funds, incubators, and accelerators. Additionally, it's the location for the headquarters of prominent "unicorns" like Grab, Sea, Lazada, and Razer, among over 5,000 other startups.
Major companies from Europe, Asia, and the U.S. have established engineering offices here – Google, Meta, TikTok, Siemens, Hitachi, and AECOM, to name a few. This contributed to a surge of both local and regional tech talent, making Singapore a top-tier location for tech development, rivaling even the Bay Area.
Asia's New Financial Epicenter
It is no surprise that Singapore has emerged as a new focal point for Asian finance over the last decade, transitioning the epicenter of financial activity from Hong Kong. This transition is underscored by a surge in air travel to Singapore compared to Hong Kong, coupled with a notable rise in foreign currency deposits favoring Singapore. Moreover, the flourishing wealth management industry in Singapore is underscored by the dramatic increase in the number of family offices. From a modest handful in 2018, there were approximately 1,500 family offices by the end of 2022,
The fact is that people with means are comfortable managing and domiciling their money in Singapore. In an era frequently disrupted by political and economic turmoil, Singapore shines as a model of consistency and reliability
The Lesser-Known Factor in Singapore's Appeal: World-Class Living
Singapore's appeal extends well beyond its strategic location, dynamic innovation ecosystem, and focus on financial growth, offering a compelling appeal at a personal level. The city-state boasts a high standard of living, exceptional healthcare, and top-tier education, all set against the backdrop of a vibrant culture. These elements are not only attractive to professionals but for their families – who play a big part in important decisions like moving to a new part of the world. Especially when there are kids involved.
Additionally, Singapore's commitment to an eco-friendly lifestyle, evidenced by extensive cycling networks, incentives for electric vehicles, and a focus on becoming a "City in Nature," further enhances its allure. This green approach aligns with the values of environmentally conscious professionals and businesses, making Singapore a desirable destination for those seeking a balance between professional opportunities and a sustainable, family-friendly living environment.
Embracing the Future
Singapore is cultivating a unique and powerful ecosystem, home to a diverse network of innovators, professionals, and businesses from around the world, including European, American, Chinese, Indian, and Southeast Asian founders, many of whom are moving to Singapore and making it home. Singapore fosters business success and personal well-being, making it more than an innovation hub – it's a place where people choose to stay, set down roots, and build their lives.
The future is coming - and it's in Singapore.
And it doesn't hurt that the food is incredible, too.
Caesar Sengupta is the CEO and co-founder of Arta Finance.
