Singapore

Company opens first full-service one-stop financial soutions centre at its City Square Mall Branch.

Stephen Green will leave HSBC Holdings plc to become UK Minister of State for Trade and Investment in January 2011.

Sale intended to raise funds to ease high US dollar loan-to-deposit ratio and improve financial standing.

Lender to launch trust company in Singapore and representative offices in other Asian nations.   Swiss private banking group Julius Baer is decisively growing Asia into its second home market. It plans to upgrade its Hong Kong presence to a booking centre before the end of this year, to open a representative office in Shanghai, China, and a Trust Company in Singapore next year, upon application and regulatory approvals. The Bank is also rapidly developing its Asian investment capabilities further as a centre of excellence for the rest of the Julius Baer Group, according to a Bank Julius Baer report. These plans were announced by its top management when Julius Baer convened a Board of Directors meeting for the first time in Singapore to signify the importance of Asia. Bank Julius Baer also hosted an exclusive gala dinner for clients and business associates to celebrate its 120th Anniversary.

In the earlier years, other than the Southeast Asia region, Singapore has benefited from the flight of wealth away from North Asia.

Raju transfers to Deutsche Asset after recent high-level hirings and 13.6% decline in lender's consumer banking.

Lender to employ 800 staff to woo customers from 18mln rich Asians with $100,000 to invest.

Collaboration enables DBS/POSB customers to replenish PayPal accounts for online shopping without credit card.

Appointees provide expertise for advisory and financing services of Asia-Pacific resources and energy sector.

The talk in the street has never been more diverse with so much optimism and pessimism coming together at the same time. While the local market has seen more positive news coming through, the international channels have in contrast remained more sombre, with less than positive data from the US and European markets, lawsuits against institutions and the brewing uncertainty in the Korean peninsula. In Singapore, some of the market sentiments within the financial sector are: • Many long-only money managers are not in a rush to buy in. There is a general impression that the stock market has risen too fast in too short a period of time, in the absence of sustainable fundamentals. • Many textbook economists are pointing to a period of inflation in the years ahead with more printed money flooding into supply. The preferred hedge is to store up in physical gold. • Employees who were lucky to keep their jobs last year are starting to feel unappreciated and for not being compensated fairly for their loyalty through recent difficult times. Some other key trends we have observed in the Singapore market include: • With limited upsides in their home markets and the increasing strength of Asian currencies (some of which have been allowed to appreciate), institutions are favouring markets in the East over those in the West, and hence are injecting more investments into Asia at a faster pace than before. • Institutions that had originally considered Singapore purely as a cost centre for hubbing IT and operations, are now increasingly focusing on growing its revenue here. This can be seen in the build-up of sales and trading desks focusing on the Asia Pacific markets. • It appears that Hong Kong is closing in on the heels of Singapore for being a wealth management hub. After a period of relative inactivity for most of 2008/9, many banks are currently busy recruiting for priority-private bankers. • Investment bankers have also jumped on the bandwagon, making their rounds with new employers. • The pay premium for base salaries has returned, though it is largely reserved for asset-acquiring P&L generating positions. • The growth in front office hiring will lead to a corresponding expansion of middle office roles related to client servicing and reporting. • For back office positions, salary premiums for job moves are still relatively conservative. Most open roles are for junior to mid level (VP) hires. Supply of talent exceeds demand for director level and above positions. • Inward migration of senior foreign talent to Singapore can be expected as overseas head offices are starting to dispatch their best talent to ‘take charge’ and manage their biggest growth markets. Eventually a successful stint in Asia would seem almost necessary for anyone aspiring to climb up the corporate ladder back in head office. With more and more companies looking towards Asia for growth and expansion opportunities, Singapore will remain a strong market in the East, particularly with its business-friendly policies that have been put in place by the Singapore government. The only foreseeable threat to Singapore’s hiring market would tend to be more global in nature. For instance, markets will rise and fall based on decisions made by rating agencies and the accounting bodies that decide on valuation or mark-to-market practices. More major shocks are to be expected if there is lack of interest in the government bond markets or if there is a major sovereign debt downgrade, which may in turn lead to another chain of write-downs by creditor banks. The indices may blip frantically in the near term but judging from its performance in the recent global crisis, it would seem that Asia’s emerging markets will be able to ride out any of these shocks in the longer term. The continent should stand to benefit significantly from any uncertainties in the ‘submerging’ markets, and can continue to expect a flight of capital and jobs towards its direction. The Asian hiring markets have been highly active over the last three consecutive quarters since Q409, and we anticipate that there may be a technical ‘breather’ in the second half of the year as the hiring markets try to stabilise and take stock of their hiring activities vis-à-vis targeted profitability and growth plans.

In a stingingly critical assessment of the failure of IBM systems at DBS, the Monetary Authority of Singapore has ordered DBS to "reduce its material outsourcing risks so that it does not overly rely on a single service provider," which effectively means it is ordering DBS to find another vendor.

But misses second quarter forecast behind 24% surge in operating expenses and 40% in staff costs.

The bank said more than half of the margin decline was due to a shift in the securities portfolio towards higher-quality issues with lower yields.

OCBC becoming the first financial institution to launch applications for one of Apple’s latest gadget, continues to pull on technological innovation for its clients and investors.

At the beginning of July, the world saw its first Stewardship Code being launched – in the UK. It will require institutional investors to commit to shareholder engagement or explain why they cannot. Although it will only apply to UK-based investors in UK-listed companies it is likely to attract attention globally, given the international nature of today’s companies. Some even believe that it is reasonable to assume that responsible ownership and investment will become the norm for major significant investors worldwide by 2020. So what is stewardship? According to a study by Tomorrow’s Company in 2008, it is one of four areas of shareholders’ responsibilities, alongside the provision of finance, the election of directors and holding them accountable, and the trading of shares to set the market price. A key responsibility under the stewardship umbrella is to keep companies’ management to account, ensuring they perform, are aware of risks as well as opportunities, and plan for the future. The Code builds on reviews of the governance of banks and other financial institutions, carried out in the UK last year, and comes as a response to concerns raised about the quantity and effectiveness of engagement between institutional investors and boards of listed companies, with questions being asked about whether they challenged company managers enough.  It also builds on the Code on the Responsibilities of Institutional Investors, prepared by the Institutional Shareholders’ Committee. This has been adopted on a voluntary basis in the UK for some years already, What does the code entail and why is it relevant to other markets? In the UK, the concept of active share ownership is key to the governance of listed companies. The thinking behind the Code is that it will contribute to improving the stewardship, and thus the governance, of listed companies. That, in turn, should assist the efficient operation of markets and increase confidence in business and trust in the financial system. It should increase transparency and benefit the ultimate owners of a company, who are typically quite detached. We also believe that it will further encourage dialogue between investors across country borders. Stakeholders that fed back on the consultation by the UK Financial Reporting Council, which oversees the Code, were broadly supportive of the idea of shareholders to disclose whether, how or when they will engage actively with the management of a company in which the invest. However, they raised some concerns over it becoming too onerous or prescriptive. While the Code to a great extent only formalises what is already quite widely adopted as best practice it marks an important shift in how the running and responsibilities of companies are weighted. Many investors, both in the UK and elsewhere, already follow the majority of the rules spelled out in the Code, however, for it to become truly effective, it needs to be given time to become truly ingrained and mature. While disclosure on implementation is important, the critical part is how the policies have been implemented. If it only turns into a box-ticking exercise, not much will be achieved by it. The success of it also depends on how it might be replicated in other markets, as broader adoption is required if market behaviours are going to see a real change. To exemplify; in the 1990s the percentage of shares held by foreign investors in UK companies stood at just over 10%, in 2008 this level had climbed above 40%. In other words, real change is only likely to be seen if the Code is adopted more widely across the world. As with all new rules, there will be cost implications. However, we believe that the benefits will outweigh these costs and should not discourage adoption of the Code. Any expense should be recouped through increased trust and confidence. We look forward to following and participating in debates about the Code here in South East Asia.

A phased reduction in interest withholding tax for Australian banks and foreign banks operating in Australia seeking to access funding from offshore markets was announced in May 2010 as part of the Australian Federal Budget 2010-11.