Singapore's Business Landscape Set to Attract More Financial Service Firms: SingaporeStartup.com

Online, October 27, 2010 (Newswire.com) - Singapore offshore company incorporation portal www.SingaporeStartup.com predicts that Singapore's business friendly environment continues to enhance its appeal as a regional finance hub and will result in more Singapore company formations in the financial services sector.

SingaporeStartup.com has identified factors such as Singapore's talented workforce, its excellent infrastructure, low tax system, transparent legal system, strategic location, and optimal level of financial regulation as key drivers for financial service firms that are facing curbs in the West to relocate to Singapore.

According to Mr. Darren Leow, a senior member of the editorial team at SingaporeStartup.com, "Based on our analysis, we find that a number of indicators are pointing towards Singapore's positive business environment for financial services companies. As a result, there is bound to be heightened interest in the possibility of setting up a Singapore corporation by foreign finance companies."

Singapore's strategic location at the heart of emerging markets in Asia lends itself a competitive advantage over other financial centers. With the growth of Asia's affluent elite, there is a robust demand for private banking services from Singapore. A number of major banks in the city such as Standard Chartered, HSBC, Barclays, Deutsche Bank, and Citibank are reported to have launched recruitment drives in an effort to expand their resources to meet the growing demand from Asia's flourishing market.

Singapore's tax system is a major factor that adds to its appeal as a financial hub. Today, London's position as a top global financial center is threatened owing to an increase in its top personal income tax rate from 40% to 50% and its punitive 50% tax on bonuses in excess of £25,000 on employees of financial institutions. Furthermore, the EU's new regulations on private equity and hedge funds has resulted in an exodus of the European financial community to tax friendly financial centers such as Singapore. Singapore's personal income tax rates start at 0% and end at 20%, while its corporate income tax rate is 17%. Additionally, there are several tax incentives for the financial services and fund management industry. A survey that was recently commissioned by UK's tax department reveals that approximately one in five UK-based firms have considered the possibility of relocating their business offshore in order to avail tax benefits.

Singapore's flexible, efficient, and transparent regulatory environment has also been identified as a key factor that drives financial institutions to do business in the region. At present, Singapore's hedge fund industry is the second largest in Asia. This can be attributed to Singapore's light regulatory regime and licensing exemption for boutique fund managers. Global hedge funds such as Algebris Investments, Prana Capital, and Fortress Investments have announced plans of setting up operations in Singapore. Furthermore, the central bank recently abolished the licensing of representatives of financial advisory firms.

"The financial sector clampdown in the West represents a very good opportunity for foreign companies and professionals to migrate to Singapore. In fact, according to last month's Singapore Company Registration Statistics released by Singapore incorporation agency Janus, the financial services sector accounted for the second highest number of new Singapore company formations in September. The outlook for Singapore's financial industry is definitely promising and the coming quarters are likely to show robust growth in this sector," added Mr. Leow.