As geopolitical tensions rise globally, Singapore’s financial services sector has steadily grown, offering investors a stable environment to take a long-term view. Chee Hong Tat, Singapore’s Minister for Transport and Second Minister for Finance, highlights this resilience, particularly in the wealth management segment, which has flourished in recent years.
Chee, who also serves as the Deputy Chairman of the Monetary Authority of Singapore (MAS), explains that MAS aims to continue fostering growth in this sector. The goal is to diversify investment options and attract individuals interested in placing their wealth in Singapore. In 2023, Singapore’s total assets under management (AUM) reached approximately $5.4 trillion, marking a 10% increase from the previous year. While traditional asset classes saw a 7% growth in AUM, alternative investments such as hedge funds, private equity, and real estate grew at a slightly faster rate of 8%.
A significant contributor to this growth is the increasing number of single-family offices, which have surged from around 1,400 at the end of 2023 to more than 2,000 currently. This surge is expected to further elevate Singapore’s AUM in the coming years, solidifying its position as a key global financial hub.
UBS, the world’s largest wealth manager, also recognizes the importance of maintaining long-term stability amid ongoing global uncertainties, including potential US tariffs and China’s economic slowdown. Iqbal Khan, co-president of UBS Global Wealth Management and president of UBS Asia Pacific, notes that UBS remains committed to its fiduciary duty, ensuring unbiased investment advice to clients despite the volatile environment.
UBS’s scale, especially after merging with Credit Suisse, strengthens its ability to deliver sustainable, impactful outcomes to clients. Khan stresses the importance of maintaining a diversified portfolio, pointing out that regional biases in investment strategies may result in missed opportunities, such as the rally in US markets in the previous year.
As Singapore’s financial services sector continues to grow, it remains a compelling destination for investors, offering stability and a broad range of investment opportunities in both traditional and alternative asset classes. With ongoing support from institutions like MAS and global players like UBS, Singapore is poised to further solidify its position as a key global financial hub for years to come.
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