Singapore’s new law to entice funds and strengthen financial industry
Singapore’s new law has made it easier for investment firms to register funds locally as the city-state strives to increases its allure as a financial hub.
The new law, which came into effect on Tuesday, encourages asset managers to domicile their funds in Singapore by allowing the creation of a single structure to hold assets and sub-funds. This offers investors greater flexibility and can be used for both traditional and alternative strategies.
The move is part of government efforts to build Singapore as a strong financial center and reduce the economy’s reliance on volatile sectors such as trade. The city’s asset-management has grown more than 5% to S$3.4 trillion ($2.5 trillion) in 2018, according to the Monetary Authority of Singapore.
Additionally, the city-state is set to benefit from the ongoing civil unrest in Hong Kong as more asset-managers inquire about opening offices in Singapore.