The first trading post in Singapore was established in 1819 as an outpost of the British East India Company that aimed to breaks up the Dutch spice trade monopoly.
This began a long history of Singapore as a major commerce and trading hub. The geographical location of Singapore has always been an ideal situation for trade. The natural harbor has always provided safe port and offers respite from storms and weather patterns. Even the seas around Singapore are generally calm without waves. Historically Singapore was located directly in the middle of the trade routes between Europe and what used to be termed the Far East. Ships found it a convenient place to stop for supplies, goods for trading and information exchange after voyaging through the Strait of Malacca.
Trade as a significant source of economy allowed the financial sector to grow parallel as trade, shipping and financial services are significantly connected. This connection can be seen today as Singapore’s Central Business District is located on the waterfront where big trading ships would import and export goods. In modern times the government of Singapore has actively reformed legislation and financial liberalization in order to facilitate the growth the financial sector. As a result, Singapore overtook Hong Kong and Tokyo as the third largest in Z/Yen’s Global Financial Index in 2016 but was beat out by its top competitor Hong Kong due to losing 18 points in 2017.
Z/Yen’s Global Financial Index employs a survey method that aims to use respondent perception of the financial centers to score cities on the following 5 factors the business environment, development of the financial sector, the infrastructure of the city, it’s human capital and factors related to the reputation of competitiveness. Approximately 80 financial centers are assessed every six months. The last survey results were reported in September 2017, so the new one should be in the works.
Will Singapore Overtake Hong Kong?
Singapore’s financial center’s deal in a wide range of services such as banking, treasury services, investment banking, and insurance. They serve not only the domestic economy but also the wider Asiana Pacific region. Strengths of Singapore financial center are it vault like banking system, and the sophisticated interbank and institutional foreign exchange businesses, along with the foreign exchange retail markets. A top priority for the Singapore government is to support innovations in the financial sector. Additionally, the Singaporean government gives access to financial organization to governmental databases that include identify checks and anti-money laundering validation.
Ease of Migration for Attracting Expatriates
Singapore attracts top talent among finance professionals and has been touted as the best expat city for the field. Living in Singapore can be expensive given the immigration status. In order to gain benefits for housing, taxation, loans and property investments. expats living in Singapore with a work pass have the option to apply for Singapore permanent residence after six months. The process is complicated and tedious and can take anywhere from 6 months to 1 year. Using Immigration Solutions Singapore http://www.immigrationsolutions.sg/ is recommended to speed up the process and ensure that the requirements are fulfilled.