In the global financial landscape, Singapore is playing an increasingly important role with its unique competitive advantages and continuously innovative financial ecosystem. As a city-state with an area of only 728.6 square kilometers, Singapore has successfully ranked among the world’s top financial centers, comparable to London, New York, and Hong Kong. In 2024, in the reshaping of the global economic landscape in the post-epidemic era, Singapore is attracting more and more international capital with its robust financial regulatory system, superior geographical location, innovative financial technology development and deep talent pool. and financial institutions consider it the preferred location for their Asia-Pacific regional headquarters. This article will provide an in-depth analysis of the core competitiveness of Singapore’s financial center from multiple dimensions and provide comprehensive market insights for companies interested in developing financial businesses in Singapore.
The development history and current situation of Singapore’s financial center
Singapore’s status as a financial center was not achieved overnight, but has experienced strategic development for more than half a century.
From an early trade entrepot to today’s international financial hub, it reflects the strategic vision and execution capabilities of this city-state in the global financial landscape.
From an entrepot trade port to an international financial center, Singapore has embarked on a unique development path. After Sir Raffles opened Singapore as a free trade port in 1819, the city began to play an important role in the global trade network. But the real transformation of the financial center began after independence in 1965. In 1968, the Singaporean government keenly seized the opportunities of international financial development and pioneered the establishment of the Asian dollar market. This decision laid the foundation for Singapore’s subsequent development into a regional financial center. In the following decades, Singapore continued to improve its financial market structure. From establishing a modern foreign exchange market, to developing derivatives trading, to promoting financial technology innovation, every step demonstrated a clear strategic layout.
Singapore performs impressively in the latest competitiveness assessment of global financial centers. According to the latest ranking of the Global Financial Centers Index (GFCI 34), Singapore ranks third in the world, behind New York and London. In the evaluation of five major dimensions, including business environment, human capital, infrastructure, financial system development and reputation, Singapore has demonstrated extraordinary competitive strength. It is particularly worth mentioning that in the field of financial technology, Singapore ranks first in the Asia-Pacific region, showing strong innovation vitality.
Looking at the development status of Singapore’s financial industry in 2024, the key data is impressive. As of the second quarter of 2024, Singapore’s assets under management reached S$4.7 trillion, a year-on-year increase of 8.3%. Foreign exchange transaction volume accounts for 7.6% of the global market share, ranking third in the world. Fintech investment continues to be active, with total fintech investment reaching S$3.1 billion in 2023. In the field of green finance, Singapore is even more eye-catching, with the issuance scale of green bonds and sustainability-linked bonds exceeding S$25 billion in 2023. The stability indicators of the banking industry are also outstanding. The core capital adequacy ratio of major banks remains above 14%, which is much higher than the requirements of the international Basel Accord.
Singapore is actively promoting digital transformation. The “Financial Services Industry Transformation Map 2025” plan launched by the Monetary Authority of Singapore (MAS) clearly proposes to build Singapore into a world-leading digital finance and financial technology center. Under this strategic plan, Singapore has issued multiple digital bank licenses and continues to make efforts in cutting-edge areas such as central bank digital currency research and blockchain technology applications.
Behind these achievements is Singapore’s continuous investment in financial supervision, talent training, infrastructure construction and other aspects. Through these data and development trajectories, we can clearly see that Singapore is making solid strides from a regional financial center to a top global financial center.
Core competitive advantages of Singapore’s financial center
The key to Singapore’s ability to stand out in the global financial market lies in its multi-dimensional core competitive advantages. These advantages are intertwined and mutually reinforcing, creating unique competitive barriers for Singapore’s financial center.
At the policy and regulatory level, Singapore has demonstrated outstanding institutional advantages. The Monetary Authority of Singapore (MAS) adopts a “principles-based” regulatory approach to maintain regulatory flexibility while maintaining financial stability. This balance is reflected in many aspects: First, MAS has established a clear financial license approval system, and the average approval time is more efficient than other financial centers, usually completed within 3-6 months. Secondly, in terms of financial innovation, the regulatory sandbox program launched by MAS has assisted more than 100 financial technology projects in innovative attempts. It is particularly worth mentioning that the “Project Guardian” plan launched by MAS in 2023 provides a clear regulatory framework for asset tokenization and decentralized finance, demonstrating an open attitude towards financial innovation. At the same time, Singapore’s strict anti-money laundering standards and complete corporate governance requirements provide financial market participants with a reliable operating environment.
From a geographical location perspective, Singapore has unique advantages. Its strategic location on the Straits of Malacca makes it a natural hub connecting the East and the West. In terms of time zone, Singapore is at the center of Asian trading hours, forming a perfect 24-hour global financial trading chain with London and New York. This advantage has made Singapore an important node for global foreign exchange transactions, with the average daily foreign exchange transaction volume exceeding US$840 billion. As the financial core of the ten ASEAN countries, Singapore radiates a market of nearly 700 million people. Especially under the RCEP framework, Singapore’s location advantages have been further strengthened and it has become the preferred platform for regional financial services.
Singapore’s advantages are equally significant in terms of infrastructure and talent. In terms of infrastructure, the Singapore Exchange (SGX) adopts the world’s leading trading system, with transaction delays as low as 90 microseconds. The data center has complete facilities and currently operates more than 70 data centers, providing a stable operating environment for financial institutions. In terms of network connections, Singapore has 23 international submarine optical cable systems to ensure high-speed and stable financial data transmission.
Talent reserve is Singapore’s key competitiveness. According to MAS statistics, Singapore’s financial services industry directly employs more than 170,000 professionals, of which about 70% are local talents. In terms of education system, the finance majors of the National University of Singapore and Nanyang Technological University are both among the top 20 in the world, delivering a large number of high-quality talents to the market every year. At the same time, the “SkillsFuture” program launched by the Singaporean government provides continuing education opportunities for financial practitioners to ensure that the talent pool is updated simultaneously with market demand.
In order to attract international talents, Singapore has implemented a number of friendly policies. For example, the “Tech.Pass” program provides high-quality technology talents with a convenient channel to work in Singapore. In addition, Singapore continues to strengthen its talent magnet effect through multiple measures such as tax incentives and convenient living.
The synergistic effect of these three core advantages has enabled Singapore to maintain its leading position in global financial competition. A stable policy environment provides guarantee for innovation, a superior geographical location brings natural advantages, and perfect infrastructure and abundant talent reserves ensure that these advantages can be fully utilized to form a virtuous cycle. Through the superposition of these advantages, it is not difficult to understand why more and more international financial institutions choose Singapore as the location of their Asia-Pacific regional headquarters.
Benchmarking analysis with other international financial centers
In the Asia-Pacific region and even the global financial landscape, Singapore has formed a competitive and complementary relationship with other financial centers. By comparing it with three representative financial centers, Hong Kong, Tokyo and Dubai, we can more clearly grasp Singapore’s unique advantages and market positioning.
First of all, the competition between Singapore and Hong Kong attracts the most market attention. As the two major international financial centers in Asia, the two places have different development paths. In terms of regulatory framework, Singapore adopts a single regulatory agency model, with the Monetary Authority (MAS) responsible for monetary policy, financial supervision and financial development, while Hong Kong adopts a multi-regulatory regulatory system. This makes Singapore more efficient and unified in policy implementation. Market data shows that Singapore’s IPO funds raised in 2023 will reach S$3.8 billion, exceeding Hong Kong’s level in the same period. In terms of financial product features, Singapore is good at foreign exchange, commodities and wealth management. In the first quarter of 2024, the scale of private wealth managed in Singapore reached S$5.4 trillion. In contrast, Hong Kong has advantages in the stock market and offshore RMB business.
Comparison with Tokyo highlights Singapore’s advantages in market openness and innovation capabilities. As the financial center of the world’s third largest economy, Tokyo has a huge domestic market, but it is slightly insufficient in terms of internationalization. Foreign financial institutions in Singapore account for more than 60%, while in Tokyo this proportion is only about 30%. In terms of financial innovation, Singapore’s Payment Services Act provides a clear regulatory framework for digital payments and cryptocurrency transactions, while Tokyo’s policies in this regard are relatively conservative. In 2023, total financial technology investment in Singapore will reach S$3.1 billion, nearly twice that of Tokyo.
In comparison with Dubai, tax policy and regional coverage are two key dimensions. Although Dubai’s zero income tax policy seems to be more advantageous than Singapore’s 17% corporate income tax rate, Singapore’s comprehensive network of double tax treaties (covering more than 90 countries) and targeted tax preferential policies actually provide enterprises with create a more competitive tax environment. In terms of regional radiation, Singapore, as the financial hub of ASEAN, directly serves a market of nearly 700 million people and expands its influence through RCEP. Dubai mainly radiates to the Middle East and North Africa, and its market depth is relatively small.
In terms of the completeness of its financial ecosystem, Singapore shows clear advantages. As of early 2024, Singapore has more than 1,200 financial technology companies, more than 200 banks, and a complete supporting service system such as capital markets, insurance, and asset management. In contrast, Dubai’s financial ecosystem is still developing, mainly concentrated in DIFC (Dubai International Financial Center).
It is worth noting that each of these financial centers has its own characteristics and plays different roles in the global financial network. Singapore’s advantages are:
- The regulatory environment is more stable and forward-looking than Hong Kong.
- Market openness and innovation vitality are higher than those in Tokyo.
- 3. The financial ecosystem is more mature and complete than Dubai’s.
Through these comparisons, we can see that Singapore is building the “Singapore Model” – an international financial center development model that combines efficient supervision, market openness, innovation-friendliness and ecological integrity. This model not only maintains the stability of the financial market, but also leaves enough room for innovation, making Singapore unique in global financial competition.
The latest data shows that in the 2024 Global Financial Center Index, Singapore’s comprehensive score remains leading among these financial centers, especially its scores in financial technology innovation and business environment are the most outstanding, which also verifies the success of Singapore’s development model.
Analysis of Singapore’s characteristic financial services
The vigorous development of Singapore’s financial industry is reflected in many distinctive fields, among which wealth management, foreign exchange trading and financial technology constitute the three pillar businesses. The development of these areas not only demonstrates Singapore’s financial strength, but also demonstrates its leading position in the wave of global financial innovation.
In the field of wealth management, Singapore has become a leader in the Asia-Pacific region. The boom in the family office business is particularly eye-catching. As of early 2024, the number of registered family offices in Singapore has exceeded 1,100, an increase of nearly three times from more than 400 in 2020. This rapid growth is driven by Singapore’s unique tax incentives, such as the “13O” and “13U” schemes that provide tax relief to qualifying family offices. At the same time, Singapore’s comprehensive legal framework, especially the continuous optimization of trust laws, provides high-net-worth families with strong guarantees for asset protection and intergenerational inheritance.
Private banking also performed well. According to the latest statistics, the scale of private banking assets under management in Singapore has exceeded S$4.7 trillion, with an annual growth rate of more than 8%. This growth has been driven by the rapid accumulation of wealth in the Asia-Pacific region and Singapore’s reputation as a safe haven. Especially against the backdrop of increasing geopolitical uncertainty, more and more high-net-worth individuals in Asia are choosing Singapore as a wealth management center.
In the field of foreign exchange trading, Singapore plays an important role. As the world’s third largest foreign exchange trading center, Singapore accounts for 7.6% of global foreign exchange trading volume, second only to London and New York. The average daily transaction volume exceeds $840 billion, and this number is still growing steadily. Singapore’s foreign exchange market is particularly active during Asian hours, providing important support for the global 24-hour foreign exchange trading chain. In terms of product innovation, Singapore took the lead in launching trading on multiple Asian currency pairs and developed a wealth of foreign exchange derivatives to meet the risk management needs of different institutions.
Fintech development is one of the most dynamic areas in Singapore. In terms of regulatory technology (RegTech), the “RegTech Grant” program launched by the Monetary Authority of Singapore (MAS) provides financial support of up to S$750,000 to promote the adoption of innovative compliance technology solutions by financial institutions. In the field of digital banking, since the first batch of digital bank licenses were issued in 2020, many digital banks have officially opened for operation. As of 2024, these digital banks have attracted more than 1 million users, demonstrating strong market potential.
Singapore adopts a “cautious and open” attitude when it comes to cryptocurrency regulation. The Payment Services Act provides a clear regulatory framework for digital payments and cryptocurrency transactions. As of early 2024, more than 15 cryptocurrency exchanges have obtained MAS licenses, and the trading volume of these licensed institutions accounts for more than 80% of the Singapore cryptocurrency market. Singapore is also actively exploring central bank digital currency (CBDC), and the research results of Project Ubin have attracted global attention.
In terms of infrastructure construction, Singapore continues to invest. The processing efficiency of the new generation real-time payment and clearing system (MEPS+) ranks among the best in the world, with the average clearing time not exceeding 10 seconds. At the same time, Singapore is building a new generation of financial data centers, which are expected to further improve market efficiency when put into use in 2025.
The development advantages of these three distinctive business areas complement each other and together constitute the core competitiveness of Singapore’s financial center. Wealth management business brings stable capital flow to the market, foreign exchange trading provides liquidity support, and financial technology innovation continues to improve market efficiency. This positive interaction makes Singapore more important in the global financial map and lays a solid foundation for future development.
It should be noted that Singapore is actively promoting integrated innovation in these three areas. For example, using blockchain technology to optimize wealth management processes and applying artificial intelligence to foreign exchange trading strategies, these innovative attempts are accumulating momentum for the next round of development of Singapore’s financial industry.
Future Development Trends and Opportunities
The future development of Singapore’s financial center is facing unprecedented opportunities, mainly reflected in the three major areas of green finance, digital transformation and regional integration. These trends not only reflect the direction of global financial development, but also highlight Singapore’s forward-looking layout in seizing new opportunities.
In the field of green finance, Singapore is building a sustainable finance center in Asia. The Monetary Authority of Singapore’s (MAS) Green Finance Action Plan 2.0, updated in 2023, sets a target of S$25 trillion in green assets under management by 2030. At present, Singapore has established a complete sustainable finance framework, including green bond standards, climate-related information disclosure guidelines, etc. As of 2024, Singapore’s green bond issuance scale will reach S$25 billion, with an annual growth rate of more than 40%.
ESG (environmental, social and governance) investing is growing rapidly in Singapore. According to the latest statistics, the size of Singapore’s ESG funds has exceeded S$50 billion, and institutional investors’ allocation to ESG products continues to increase. Especially in the field of climate technology, Singapore’s S$2 billion Green Investments Program is driving private sector investment in sustainable projects.
The carbon trading market is another important growth point. Since the Singapore Carbon Exchange (Climate Impact Singapore is building a regional carbon credit trading center to provide financing channels for emission reduction projects in the Asia-Pacific region.
When it comes to digital transformation, Singapore is even more determined. The development of central bank digital currency (CBDC) has attracted much attention. Project Orchid (Singapore’s retail CBDC project) has entered the implementation phase and the first pilot application is expected to be launched in 2025. At the same time, Singapore has carried out CBDC cross-border payment trials with many countries, and the success of Project Dunbar has laid the foundation for the future multilateral CBDC system.
Fintech innovation has entered the 2.0 era, and the focus has shifted to in-depth technological innovation and application scenario expansion. MAS plans to invest S$1.5 billion in 2024-2025 to promote financial technology innovation, focusing on supporting the application of cutting-edge technologies such as artificial intelligence and quantum computing in the financial field. The digital asset ecosystem is taking shape. As of 2024, there will be 200 licensed digital payment institutions in Singapore, and the scale of digital asset transactions will increase by more than 50% annually.
The opportunities brought by regional integration are particularly considerable. The full implementation of RCEP (Regional Comprehensive Economic Partnership) brings significant advantages to Singapore. The degree of liberalization of financial services trade has increased, and the level of cross-border payment facilitation has increased. It is expected that by 2025, cross-border financial transactions under the RCEP framework will increase by more than 30%.
ASEAN’s financial integration process has accelerated, and Singapore’s status as a core hub has become more prominent. The ASEAN Payment Connectivity project has been rapidly promoted by Singapore and has now been connected to the real-time payment systems of Thailand, Malaysia and other countries. In 2024, the total amount of ASEAN cross-border payments processed through Singapore will exceed S$1 trillion.
Cross-border financial cooperation shows a trend of diversification. Singapore is deepening financial cooperation with major economies such as China, Japan, and India. Especially in emerging fields such as digital currency and green finance, Singapore actively promotes the establishment of regional cooperation mechanisms. For example, the annual transaction size of the Singapore-China (Chongqing) Digital Trade Corridor project has exceeded S$50 billion.
In the future, these three major development trends will be intertwined and promote each other. The development of green finance will use digital technology to achieve more efficient resource allocation, and regional integration will provide a broader market space for green finance and digital innovation. Singapore is actively planning to seize the commanding heights of future financial development through policy guidance, market cultivation and infrastructure construction.
What is particularly noteworthy is that Singapore is promoting the integrated development of these three trends. For example, blockchain technology is used to track the flow of carbon credits, develop ESG assessment tools based on artificial intelligence, and promote the standardization of regional green financial products. This innovative integration idea will provide new momentum for the sustainable development of Singapore’s financial center.
It is expected that by 2030, driven by these three major trends, Singapore is expected to consolidate its position as the leading financial center in Asia-Pacific and establish global leadership in specific areas (such as sustainable finance, digital assets, regional payments, etc.). This will not only promote the quality improvement of Singapore’s financial industry, but also provide an important reference for the innovative development of the global financial market.
Practical suggestions for enterprises
For companies planning to enter the Singapore financial market, formulating reasonable market strategies, obtaining corresponding licenses, achieving localized operations, and conducting risk management and control are key factors for success. Based on the latest market environment and regulatory requirements in Singapore, the following suggestions are available for reference.
When choosing a market entry strategy, companies need to adopt differentiated plans based on their own business characteristics and development stages. Data shows that among foreign financial institutions entering the Singapore market in 2023, about 45% will choose to directly establish subsidiaries, 35% will adopt the branch model, and 20% will enter through acquisitions or joint ventures. For large financial institutions, although the initial investment to directly establish a subsidiary is relatively large (usually requiring at least S$20 million in registered capital), it has more advantages in terms of business expansion and brand building. For small and medium-sized institutions, you can consider setting up a representative office to conduct market research first, and then upgrade to a branch after the business model is verified. Especially in the field of financial technology, innovative business models can be tested at a lower cost by participating in the MAS’ regulatory sandbox program.
Application for a financial license is a key step in market access. According to the latest statistics, the average approval cycle for Singapore financial licenses in 2024 is 6-9 months, and the approval rate is about 65%. During the application process, special attention needs to be paid to the following aspects: First, the corporate governance structure must meet the requirements of MAS, including the establishment of independent directors (accounting for at least 1/3 of the board of directors), the establishment of a complete internal control system, etc. Secondly, the qualification requirements for key personnel have become stricter. In addition to relevant industry experience, the senior management team must also prove professional capabilities in risk management and compliance. Third, capital adequacy requirements vary by business type. For example, digital payment institutions need to maintain a basic capital of at least S$250,000, while banks need to comply with various requirements of Basel III.
Localized operations are an important guarantee for ensuring sustainable business development. According to the latest data from Singapore’s Ministry of Manpower, the proportion of local employees in the financial industry has been raised to 70%. Enterprises should develop a systematic local talent training plan and can obtain up to 70% training subsidies by participating in MAS’s talent development plan. In terms of business operations, it is recommended to adopt a “localization +” strategy: on the one hand, it is deeply integrated into the Singapore market, and on the other hand, it uses Singapore’s regional hub advantages to radiate surrounding markets. For example, many companies choose to locate core functions such as product development and risk control in Singapore, while locating functional departments such as operations and customer service in lower-cost neighboring countries.
Risk management and control is particularly important in the current market environment. The latest guidelines issued by MAS in 2024 emphasize several key areas: First, network security risks are becoming increasingly prominent, and companies need to invest resources in building network protection systems and conduct regular stress tests to ensure the resilience of key systems. According to statistics, financial institutions spend an average of 25% of their IT budgets on cybersecurity. Second, compliance risk management requirements have increased, especially in terms of anti-money laundering and counter-terrorism financing, and a complete customer due diligence (CDD) system needs to be established. Third, ESG-related risks are receiving increasing attention, and it is recommended that companies incorporate climate risks into the overall risk assessment framework.
Specific operational suggestions include:
- Establish a dedicated risk management committee to regularly evaluate and update risk control measures.
- Invest in risk management technology systems to improve risk identification and disposal efficiency.
- Strengthen employee training and cultivate risk awareness and compliance culture.
- Establish an effective communication mechanism with regulatory agencies to keep abreast of policy changes.
In addition, companies also need to pay special attention to market reputation risk management. In the era of social media, the speed and scope of negative information’s spread have increased significantly. It is recommended to set up a dedicated crisis public relations team, formulate detailed emergency plans, and hire local professional organizations to provide support when necessary.
For new companies entering the market, it is recommended to adopt a progressive development strategy: focus on compliance construction and team formation in the first year, start to steadily expand business in the second year, and expand appropriately according to market conditions after the third year. Data shows that the five-year survival rate of companies adopting this strategy in the Singapore market exceeds 80%, which is significantly higher than the 60% rate of aggressive expansion companies.
Success in the Singapore market requires companies to be fully prepared and systematically plan in terms of market strategy, license application, localized operations and risk management and control. By rationally utilizing various resources and supporting policies, enterprises can better grasp the development opportunities brought by Singapore as an international financial center.
Conclusion and outlook
Looking back at the development history of Singapore’s financial center and looking forward to the future, we can clearly see its unique competitive advantages, the opportunities and challenges it faces, and the strategic direction that enterprises need to grasp. These insights are important for understanding the strategic positioning and future development prospects of Singapore’s financial centre.
The core competitiveness of Singapore’s financial center is mainly reflected in three dimensions. The first is the institutional advantage. Singapore has a complete legal system, a transparent regulatory environment and efficient government governance. The World Bank’s 2024 Doing Business Report shows that Singapore continues to maintain its top three positions among 190 economies. Secondly, there is the location advantage. As an important hub connecting the East and the West, Singapore’s time zone advantage makes it a key link in the global 24-hour financial transaction chain. The third is innovation advantage. Singapore’s continuous innovation in emerging fields such as financial technology and green finance ensures that it maintains its leading position in the global financial map. As of 2024, Singapore’s assets under management will reach S$4.7 trillion, a 60% increase from five years ago, fully demonstrating its strength as an international financial center.
Singapore’s financial center faces important development opportunities. First, the rapid growth of wealth in the Asia-Pacific region brings huge potential for Singapore’s wealth management business. It is expected that the investable assets of high-net-worth individuals in the Asia-Pacific region will exceed US$30 trillion by 2030. Secondly, the vigorous development of the digital economy provides broad space for financial innovation. Singapore’s first-mover advantage in areas such as digital banking and payment interconnection is expected to drive a new round of growth. Third, the deepening of regional economic integration, especially the full implementation of RCEP, will further strengthen Singapore’s position as a regional financial center.
However, challenges cannot be ignored. Factors such as increased volatility in global financial markets, rising geopolitical risks, and intensified competition for talent may affect the development of Singapore’s financial center. In particular, competition from other regional financial centers is becoming increasingly fierce, and cities such as Hong Kong, Tokyo, and Dubai are actively improving their competitiveness. Data shows that talent mobility in financial centers in the Asia-Pacific region will reach an all-time high in 2024, with about 25% of financial professionals considering cross-regional mobility.
Based on the above analysis, the following strategic suggestions are put forward for enterprises:
First, adopt a differentiated positioning strategy. Enterprises should choose business priorities that suit them based on Singapore’s comparative advantages. For example, wealth management institutions can focus on developing family office business to grasp the needs of Asia’s new generation of wealth inheritance; financial technology companies can use Singapore’s regulatory sandbox environment to test innovative business models. Data shows that financial institutions that adopt clear differentiation strategies have an average revenue growth rate that is 30% higher than the industry level.
Second, strengthen investment in digital transformation. Enterprises need to increase investment in technological innovation, especially in the application of cutting-edge technologies such as artificial intelligence and blockchain. According to the latest survey, Singaporean financial institutions invest an average of 15% of their revenue in digital transformation, and this proportion is expected to increase to 20% in the next three years.
Third, establish a regional business network. Enterprises should make full use of Singapore’s regional hub status to build a business network that radiates to Southeast Asia. Data from 2024 show that for financial institutions that expand into the Southeast Asian market through Singapore, their regional business revenue accounts for an average of 45%, which is significantly higher than that of single market operating institutions.
Fourth, pay attention to sustainable development strategy. As ESG investing becomes mainstream, companies need to integrate sustainable development concepts into their business strategies. The survey shows that the proportion of institutional investors in financial institutions that have established an ESG framework is 25 percentage points higher on average.
In terms of talent strategy, it is recommended that enterprises adopt a “local + international” hybrid model, which not only cultivates local core teams but also attracts international talents to respond to the diversified needs of the market. At the same time, we will strengthen cooperation with educational institutions and establish talent training channels to ensure the sustainability of talent supply.
In terms of risk management, companies need to establish a more comprehensive risk assessment system, paying special attention to emerging risks, such as climate risks, cybersecurity risks, etc. It is recommended to increase the risk management budget to 8-10% of operating costs, a level consistent with international best practice.
Finally, enterprises should maintain strategic focus and not only seize development opportunities, but also prevent risks. The development prospects of Singapore’s financial center are exciting, but success requires long-term investment and patience from enterprises. Those companies that can balance short-term gains and long-term development in strategic planning can often stand out from the competition. According to statistics, the average return on assets of foreign financial institutions that have been deeply involved in the Singapore market for more than ten years is 3 percentage points higher than that of institutions newly entering the market.
Looking to the future, Singapore’s financial center is expected to play an even more important role in the global financial landscape. Through continuous innovation and improvement, Singapore will not only consolidate its position as Asia’s leading financial center, but also hope to establish global leadership in certain segments and make greater contributions to regional economic development.
