Challenges and Opportunities for the Wealth Sector in Singapore

Synopsis

This report is the result of WealthInsight’s extensive research covering the HNWI population and Wealth Management industry in Singapore.

Summary

This report is a thorough analysis of Singapore’s Wealth Management and Private Banking sector, and the opportunities and challenges that it faces. In addition to providing a comprehensive and robust background of the Singapore economy, including, uniquely, detailed analysis of economic and political risks to HNWI wealth creation, the report provides robust projections of the volume and wealth of Singapore’s HNWI.

Scope

The report features:

• Independent market sizing of Singapore’s HNWI
• Details of the development, challenges and opportunities of the Wealth Management and Private Banking sector in Singapore
• Current insights into the drivers of HNWI wealth
• Family office information

Reasons To Buy

• The WealthInsight Intelligence Center Database is an unparalleled resource and the leading resource of its kind. Compiled and curated by a team of expert research specialists, the Database comprises up to one hundred data-points on over 100,000 HNWI, private banks, wealth managers and family offices around the world. With the Database as the foundation for our research and analysis, we are able obtain an unsurpassed level of granularity, insight and authority on the HNWI and wealth management universe in each of the countries and regions we cover.
• Comprehensive forecasts to 2015.
• Asia is the fastest growing region in the world in terms of wealth. Financial centres such as Singapore and Hong Kong are ideally located to benefit from this new wealth.

Key Highlights

• The Asia-Pacific wealth management sector (excluding Japan and Australia) grew from assets under management (AuM) of US$650 billion in 2007 to over US$1.3 trillion in 2011. Singapore on its own constitutes 30% of this figure with AuM of over US$550 billion.
• Singapore is the second-largest offshore private banking center in the world, after Switzerland.
• By 2015, Singapore is expected to gain significant ground on Switzerland. This will be fueled by Asia-Pacific HNWIs and by an increasing number of global clients moving their offshore funds from other jurisdictions to Singapore.
• Singapore has positioned itself as the region’s leading financial center and is the prime candidate to take advantage of the large capital flows that are expected to flow into China, India and Indonesia over the forecast period.

Table of Contents

1 Introduction
1.1 What is this Report About?

2 Wealth Sector Fundamentals
2.1 Political Background of the Wealth Sector
2.2 Economic Background to the Wealth Sector
2.3 Benchmarking Singaporean Wealth in Context
2.3.1 Distribution of wealth

3 Competitive Landscape of the Wealth Sector
3.1 Competitive Structure
3.1.1 Wealth management and private banking industry – competitive structure
3.1.2 Multinational banks
3.1.3 Local banks
3.1.4 Wealth managers
3.1.5 Private banks
3.1.6 Mergers and joint ventures
3.1.7 Boutique and independent financial advisors
3.1.8 Private trusts
3.2 Family offices
3.2.1 Multi-family offices
3.2.2 Single-family offices
3.3 Leading Companies in the Wealth Management and Private Banking Industry
3.4 Singapore: An International Offshore Hub
3.5 Islamic banking: A Topic of Discussion
3.6 Singapore Wealth Management and Private Banking Industry – Behavioral Mapping
3.7 Challenges and Opportunities for the Wealth Sector in Singapore
3.7.1 Regulatory environment
3.7.2 Tax structure
3.7.3 Human resource availability for the wealth management industry
3.7.4 Philanthropy
3.7.5 Demand for intergenerational wealth transfer and younger clientele

4 Appendix
4.1 Pertinent Regulations
4.1.1 Regulations on banks
4.1.2 Regulations related to Islamic banking
4.1.3 Regulations related to capital requirements on banks
4.1.4 Regulations related to taxes
4.1.5 Regulations related to taxes on capital gains
4.1.6 Regulations related to taxes on start-ups
4.1.7 Regulations related to taxes on fund management activities
4.1.8 Regulations related to fund management
4.1.9 Regulations related to real estate
4.1.10 Regulations related to the real estate business of a bank
4.1.11 Regulations related to foreign investment
4.1.12 Regulations related to capital investment
4.1.13 Regulations related to private equity (PE) and venture capital investment (VC)
4.1.14 Regulations related to hedge funds and fund management
4.1.15 Regulations related to hedge fund subscription requirement
4.1.16 Regulations related to investment and employment in Singapore
4.2 Key Economic Trends and Drivers
4.2.1 SG$ to US$ moving annual average exchange rate
4.2.2 Real GDP growth
4.2.3 Per capita GDP
4.2.4 Gross savings rate as a percentage of GDP
4.2.5 Housing price index
4.2.6 Commodity index
4.2.7 Foreign direct investment
4.2.8 Investments of FIIs in equity products
4.2.9 Inflation rate
4.2.10 Repo rate
4.2.11 Balance of payments
4.2.12 Stock market performance
4.2.13 HNWI wealth vs GDP ratio
4.2.14 Capital formation as a percentage of GDP
4.2.15 Disposable income as a percentage of GDP

5 About WealthInsight

List of Tables

Table 1: HNWI Wealth Band and Group Definitions
Table 2: Major Companies in the Wealth Management Industry in Singapore
Table 3: SG$ to US$ Moving Annual Average Exchange Rate, 2006–2015
Table 4: Real GDP Growth Rate, 2006–2015
Table 5: GDP Per Capita, 2006–2015
Table 6: Gross Savings as a Percentage of Real GDP, 2006–2015
Table 7: Housing Price Index, 2006–2010
Table 8: Commodity Indices, 2006–2015
Table 9: Foreign Direct Investments, 2006–2015
Table 10: Investments of FIIs in Equity Products, 2006–2009
Table 11: Inflation Rate, 2006–2015
Table 12: Repo Rate, 2006–2015
Table 13: Balance of Payments, 2006–2010
Table 14: Stock Market Performance, 2006–2010
Table 15: HNWI Wealth vs GDP Ratio, 2006–2010
Table 16: Capital Formation as a Percentage of GDP, 2006–2015
Table 17: Disposable Income as a Percentage of GDP, 2006–2015

List of Figures

Figure 1: HNWI Wealth Band Definitions
Figure 2: HNWI Wealth Sector Market Attractiveness, 2007–2015
Figure 3: HNWIs – Singapore vs RoW and Asia-Pacific
Figure 4: Singapore Wealth Management Industry – Behavioral Mapping, 2011
Figure 5: SG$ to US$ Moving Annual Average Exchange Rate, 2006–2015
Figure 6: Real GDP Growth (%), 2006–2015
Figure 7: GDP Per Capita, 2006–2015
Figure 8: Gross Savings as a Percentage of Real GDP, 2006–2015
Figure 9: Housing Price Index, 2006–2010
Figure 10: Commodity Indices, 2006–2015
Figure 11: Foreign Direct Investments, 2006–2015
Figure 12: Investments of FIIs in Equity Products, 2006–2009
Figure 13: Inflation Rate, 2006–2015
Figure 14: Repo Rate, 2006–2015
Figure 15: Balance of Payments, 2006–2010
Figure 16: Stock Market Performance, 2006–2010
Figure 17: HNWI Wealth vs GDP Ratio, 2006–2010
Figure 18: Capital Formation as a Percentage of GDP, 2006–2015
Figure 19: Disposable Income as a Percentage of GDP, 2006–2015