Wednesday 29 August 2012

Singapore No 1 finance centre by 2022?

Low-tax and bank-friendly environment cited as a major attraction in survey

LONDON - Top United Kingdom traders and dealmakers bruised by intense banker bashing believe an Asian city, possibly Singapore, will take over as the world's dominant financial centre within 10 years, according to a survey.

Nearly two-thirds of 450 British investment bankers surveyed by headhunters Astbury Marsden said Singapore, Shanghai or Hong Kong would be the top global financial centre in 10 years.

One-fifth felt London would be the world leader in 2022 and one-sixth said New York would hold the No 1 spot.

"A fast-growing, low-tax and bank-friendly environment like Singapore stands as a perfect antidote to the comparatively high tax and anti-banker sentiment of London and New York," said Mr Mark Cameron, Operations Chief at Astbury Marsden.

The annual Preferred Location Survey also found Singapore is the city where British bankers would most like to live, claiming 31 per cent of the vote, up from 27 per cent last year.

"Financial centres in the West have taken a real battering since the start of the financial crisis," said Mr Cameron.

"Cities like Singapore and Hong Kong have been quick to capitalise on setbacks in London and New York, courting investment banks and reacting to demand from expats," he added.

Investment banks and trading firms in New York and Europe have struggled to maintain profitability in recent years amid economic uncertainty partly linked to the ongoing euro zone debt crisis.

Commodities trader Trafigura said in May that Singapore would become its main trading centre as it seeks to tap demand in Asia, dealing a blow to former home Switzerland. 

Asian banks, in contrast to their Western peers, avoided much of the damage inflicted by the latest financial crisis and have benefited in recent years from solid economic growth and a booming commodities market across the Asia-Pacific region. REUTERS

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