As China and its proximity grows in wealth, the number of millionaire generated is colossal: currently at a rate of 30,000 per year, according to Seeking Alpha. This has created a key opportunity to store and manage capital assets within Asia, starting with private banking. And where else in Asia is it better to lay one's wealth down than Singapore, where secrecy laws are stricter than that of Switzerland's?
As a matter of fact, Singapore will soon surpass Switzerland as the world's largest private banking hub, according to Barron's. Since 1998, private capital has swelled to over $300 billion. That's a 600% increase within a decade, compared to single digit growth in Switzerland's private banking sector. The key advantage of Singapore lies in:
1. Avoidance of archaic EU banking laws.
2. Lower inheritance taxes and tax free capital gains.
For the financials, Citigroup leads in Asia-Pacific private banking, and no doubt focusing their resources on Singapore. The human assets, exceptional infrastructure and heavy regulatory environment is the attraction. Will China, India, Indonesia, Taiwan and Korea, with their tendencies to create millionaires, develop domestic private banking hubs in time to capture some of the market share available?
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