Singapore's Increasing Attractiveness As An Asian Financial Center

Singapore's financial sector benefits from the government's stable political environment, sound financial regulation and continued human capital investment, particularly in emerging fields in finance. Meanwhile, political tensions in Hong Kong and rising financial centers in mainland China are causing businesses to consider branching out from Hong Kong. In this commentary, we highlight how Singapore's policy efforts and Hong Kong's recent challenges have brightened the outlook for Singapore as a major Asian financial center.

Key Highlights
• Singapore's dynamic economy is supported by its role as one of Asia's main financial centers.
• Recent challenges may have diminished Hong Kong's appeal and shifted the calculus between the two cities.
• Singapore could benefit from the evolving global dynamics due to its stable regulatory framework and highly open economy.

"Singapore's ongoing efforts to deepen the financial sector and diversify the broader economy have contributed to Singapore becoming a global financial center,” said Rohini Malkani, Senior Vice President of the Sovereign Group at DBRS Morningstar. “With a long track record of political stability and prudent management, Singapore's financial sector is well-positioned to benefit from the evolving financial landscape.”