Singapore’s new law to entice funds and strengthen financial industry

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.