Banking & Finance
Question: Can Singapore Become Asia’s Leading Financial Centre?
A financial centre can be defined as central locations where there are a large number of financial institutions such as banks and capital markets that allow currency to be collected, switched, disbursed and exchanged. Going forward, I will be listing down the factors leading to a successful international financial centre, the current state, challenges, strengths and weaknesses of Singapore’s financial centre, as well as proposed recommendations.
A Successful International Financial Centre
An international financial centre is generally used to portray an important participant in international financial market trading with at least one major stock market.
Geography
With the improvement of communication technology, some have argued that financial institutions can be located anywhere because computers can perform the functions of financial centres. Although we cannot deny on the previous sentence, geographically speaking, its location is still vital. It generally occupies a specific, compact area within a city. These financial centres are situated where they are because of a diversity of historical, political and economic geographical factors. The locations of financial centres are still critical due to the types of functions that they act upon and the functions that give raise to them.
Size of Sector
A way to measure the size of the financial sector is via Gross Domestic Product (GDP). GDP is defined as the market value of all recognized goods and services produced by the country within a given period of time.
Skill Sets
One of the most important attributes of the competitiveness of international financial centres is the availability of highly skilled professional and managerial talent who signify the infrastructure of professional services. These talents are indispensable to ensure that leading firms can grow their business in worldwide and work with global clients. These professionals
A financial centre can be defined as central locations where there are a large number of financial institutions such as banks and capital markets that allow currency to be collected, switched, disbursed and exchanged. Going forward, I will be listing down the factors leading to a successful international financial centre, the current state, challenges, strengths and weaknesses of Singapore’s financial centre, as well as proposed recommendations.
A Successful International Financial Centre
An international financial centre is generally used to portray an important participant in international financial market trading with at least one major stock market.
Geography
With the improvement of communication technology, some have argued that financial institutions can be located anywhere because computers can perform the functions of financial centres. Although we cannot deny on the previous sentence, geographically speaking, its location is still vital. It generally occupies a specific, compact area within a city. These financial centres are situated where they are because of a diversity of historical, political and economic geographical factors. The locations of financial centres are still critical due to the types of functions that they act upon and the functions that give raise to them.
Size of Sector
A way to measure the size of the financial sector is via Gross Domestic Product (GDP). GDP is defined as the market value of all recognized goods and services produced by the country within a given period of time.
Skill Sets
One of the most important attributes of the competitiveness of international financial centres is the availability of highly skilled professional and managerial talent who signify the infrastructure of professional services. These talents are indispensable to ensure that leading firms can grow their business in worldwide and work with global clients. These professionals
References: 2) Business Insider (January 2010). Retrieved July 2012, from http://www.entrepreneur.com/article/204556 3) Lam Pin Min (November 2011). Retrieved July 2012, from http://lampinmin.sg/?p=342 4) Temasek Times (May 2012). Retrieved July 2012, from http://temasektimes.wordpress.com/2012/05/25/bloomberg-70-percent-of-jobs-created-in-singapore-went-to-foreigners-last-year/ 5) Mr Goh Chok Tong, (2009), Retrieved July 2012, from http://www.smu.edu.sg/news_room/smu_in_the_news/2009/sources/SGPressCentre_20090626_1.pdf 6) Table 1: Ministry of Trade and Industry of Singapore (July 2012) Monetary Authority of Singapore (July 2012). Retrieved July 2012, from https://secure.mas.gov.sg/fid/ 8) Table 3: Monetary Authority of Singapore (December 2010)