Why this thriving financial centre is the one to watch for your next career move
None of the world’s major financial centres has escaped the global financial crisis unscathed. But while traditional heavyweights like New York and London have taken a battering, new centres like Singapore are seizing the opportunity to move from the wings into the limelight. And with great success. A study by KPMG/Dubai ranks the country as the most competitive financial hub globally, saying Singapore’s performance in terms of its capability is consistent with the steady improvement in its ranking and scores in various financial centre surveys.
Expanding sectors, new opportunities
This is a sentiment shared wholeheartedly by Mark O’Reilly, Managing Director of Astbury Marsden for the Asia Pacific region. “Singapore is fast becoming a centre of excellence for infrastructure functions that support global operations centres,” says O’Reilly. He explains that as investment banks move towards a multi-polar model, with key functions located in numerous worldwide locations and several time zones, Singapore is taking up the mantle for a number of these global support centres while it continues to act as a hub for fixed income and commodities. “We are especially seeing increased demand in accounting, finance, operations and technology areas as a result of these global processing centres being based in Singapore.”
Interestingly, although cost advantages used to be the primary motivation for establishing business hubs in Singapore, that is no longer the case. These days it is the time zone advantages, wealth of talent and the chance to reduce the risk of having all business functions in one location like London or New York, that makes companies sit up and take notice of Singapore according to O’Reilly.
There is no denying that the city-state is exerting a magnetic pull on financial services talent. In fact, in a recent survey by Astbury Marsden Singapore came out top of the five global financial centres listed, with respondents saying they expected the country to expand fastest with regards to financial services recruitment over the next year.
High living standards
A high standard of living, appealing career prospects and a favourable financial system are three of the major drawing cards luring talent from the West. “Expats love the tropical climate here and the year-round warm weather,” says Chris Gillibrand, Astbury Marsden’s Country Manager for Singapore. “Add to that more spacious housing, high quality schooling and the prevalence of English and it is easy to see why the country is especially appealing to candidates moving over with their family.”
On the financial front the single tier tax system makes a strong case and the complete absence of capital gains tax further adds to that. Although Singapore living expenses aren’t the lowest in Asia, the country does boast the highest salaries of the entire Asia Pacific region. That combined with favourable taxation means substantial disposable income for employees in the financial services industry.
Demand for emerging market experience
So strong is the draw of working in Singapore and the associated career development of an international role, however, that for many candidates it is no longer just about the money and other expat comforts like housing and cars. “In recent years international experience has become increasingly important for aspiring managers, and many employers now specify emerging market experience as a prerequisite,” adds Gillibrand. “It simply isn’t possible to get those skills from working in developed markets like London or New York.”
Perhaps most telling is the fact that Singapore no longer only attracts mid-level management. “Previously you could argue there would be a ceiling to the level of seniority you could achieve in Singapore, and that you would need to go to New York or London to get the ultimate role in your profession,” says O’Reilly. “Not anymore. Because of the financial investments that banks have made into Asia they are also basing global heads of functions in the region, thus it is now perfectly possible for you to get to the very top of your career in Singapore.”