Banking and Financial Service Sector in Singapore 1. Introduction Banking is defined as a bank and can provide loans, deposits, and other financial services for financial institutions. Financial services industry is defined as all kinds of financial inter mediation activities in respect of financial services offered by service providers posed. In the last two decades, the economies of developed nations have seen a big shift away from being manufacturing-oriented to being more service-dominated (Ostrom et al., 2010). As one of Asia's leading financial services center, Singapore has attracted many major international financial institutions stationed. Singapore's financial institutions through the effective use of its pro-business infrastructure and highly cost-effective business environment to provide better services to individuals and groups from around the world. Supported by its sound macroeconomic fundamentals and prudent policies, today, Singapore ranks among the …show more content…
From this year to 2020, the government expects gross domestic product (GDP) growth in the range, each year will be between 2-4%. In the words of Welter and Heegemann (2015), “the country’s main economic partners are Asian countries which, however, are facing a noticeable slowdown in terms of economic growth, which could influence Singapore’s growth as well if trade with those partners declines”. In the absence of their economic hinterland, Singapore's next phase of economic growth may have come to rely largely financial services to promote. Financial services account for about 11% of Singapore's GDP. Productivity Singapore's financial sector over any other of a financial center, but experts believe the financial sector to GDP ratio must increase output, may have to rise to 20%, indicating that the future of Singapore's financial industry will face a more difficult
Globalization refers to an ongoing process of economies and social integration of economies around the world (Thangavelu, 2010). The key drivers of globalization are trade and the movement of the capital and people. Thangavelu(2010) mentioned that Singapore has effectively used the drivers of globalization to develop its economy and integrate to the global marketplace since it independence. Singapore was able to achieve strong and continuous economic growth by opening up the immigrants to increase the domestic population, attracting foreign direct investment and adopting an export-driven economic strategy.
Analysis #1- The poem title was Evolution, written by Sherman Alexie in 1992. “Evolution” means the gradual development of something, especially from a simple to a more complex form, which is the same idea presented in this poem. Some of the literary devices employed were irony, paradox, symbol, personification and pun. The poem begins with an epigraph. “Buffalo Bills opens a pawn shop on the reservation right across the border from the liquor store and he stays open 24 hours a day, and 7 days a week” (1-3). This epigraph symbolizes about a person named William Frederick Cody who was a soldier and hunter. He arrives at the reservation and opened a pawnshop and started collecting unredeemed items from Indians in exchange for money. This poem also had some poetic devices like irony,
One caveat to the strength of Singapore’s is the amount of foreign investments there. Its economy is not as diverse as the United States. Recently, the government has invested in diversifying the economy. As a result, the tourism, pharmaceutical, and many other industries have flourished. However, competition among financial institutions, particularly in banking, is significant and should be considered as it is one of Singapore’s core elements in its economy. PESTLE analysis also reflects this and others such as labor shortages, rising labor costs and a decline in
Comparative advantage means that an industry, firm, country or individual are able to produce goods and services at a lower opportunity cost than others which are also producing the same goods and services. Also, in order to be profitable, the number in exports must be higher than the number in import. From the diagram we seen above, Singapore is seen to have a comparative advantage in some services. The services are Transport, Financial, business management, maintenance & Repair and Advertising & Market Research, etc. These export services to other countries improve the balance of payment. On the other side, Singapore is seen to have a comparative disadvantage in some services. The services are Travel, Telecommunications, Computer & Information,
We will find out how Singapore manage to raises it economic development in such rapid growth aftermath of war and separation.
It is commonly agreed that Universal Banking is an expansion of the power of banks (Macey, 1993). Institutions which offer clients an entire range of financial services of commercial banks as well as investment banks are known as universal banks (Benston, 1994). They are a superstore for financial products under one roof where firms can not only lend and deposit but can also advantage from different services such as insurance, factoring, mutual funds and housing finance (Singal, 2012). One of the defining feature of universal banking is its ability to hold equity in firms (Rajan, 1995). Switzerland, Germany and various other Continental European countries, compared to the Anglo-Saxon counties, have had universal banks playing a major role
Singapore as a country has had various transformations throughout its history, however the period 1950 and 1970 was quite critical. Much of these changes had a lot to do with the development of trade and manufacturing. This is without forgetting the financial sector where the intention was to come up with a financial hub that could be used in economic development. Looking at the case of Singapore, we would say that it is a productive economy with a very high market competition. This observation has been further clarified by the Swiss International Institute for Management Development, going with their report that they released in the year 2001 (Chellaraj & Mattoo, 2009). In this study, we intend to evaluate the case of political economy of development in Singapore and examine the tensions between the state and various economic institutions. In additions to examining this institution, we would also like to examine how these variables have contributed towards the attainment of favorable growth rates and economic prosperity.
In the 2nd task I will recommend how those needs can be met and from
This is followed in section 5 by an analysis of the recent changes in the banking industry. With the development of the financial system, declining entry barriers and the deregulation of the banking industry make banks no longer the monopoly suppliers of banking services and reduce their comparative advantages which they usually hold in the past. Whether the reasons give rise to the existence of banks are still powerful will be examined here, while section 6 offers a way of considering whether banks are declining by looking at the value added by the banks. When the value added by banks is examined, banks are not a financial intermediation, which not only conduct the traditional services but also provide more diversified
In addition, after the 2011 Singapore general election, the government of Singapore has greatly changed its economic approach and it seems to be better for the economy of Singapore so far. On the other hand, measures have also been taken to cool down the property market which has constantly affected inflation rates, also tightened the foreign labour policies that constantly influence the labour market and unfold its impacts onto the Singapore’s economy as it comes back in one round. The unemployment rate in Singapore has been maintaining itself as being one of the lowest numbers in the world. The majority of Singapore’s labour force is well educated and highly skilled. Even primary education is a must for all citizens (Economywatch.com, 2010). In addition, for the year 2010, Singapore had the 8th largest current account balance in the world at US$49.454 billion. To conclude, Singapore has come so far from its sunken economy since independence in 1965 to become a booming and prosperous economy that it is
The Business Dictionary defines a financial center as a city or district that has a heavy concentration of financial institutions that offer a highly developed commercial and communications infrastructure and where great number of domestic and international trading transactions are conducted. Moreover, a global financial center is a concentration of an extensive variety of international financial businesses and transactions in one location. With there being many financial centers around the world competing to be the prevalent and most predominant of its counter-peers, one must consider the factors that wean out the leaders. A report written by the Centre for the Study of Financial Innovation comprised factors such as regulatory competence, tax regime, skilled labour, government responsiveness, regulatory “touch” and living environment as the six main elements a leading global financial center must keep precedent. Recently, innovative technology and improved communications infrastructure have minimized the need to be close to financial markets and companies are becoming more skilled at managing operations remotely. According to the Global Financial Centres Index, the world’s premier financial centers as of 2013 are London (United Kingdom), New York (United States) and Hong Kong. (Asia). Known as International Financial Centers “IFCs”, the IMF has defined London, New York and Hong Kong as large international full-service centers with advanced settlement and payments systems that support large domestic economies, have deep and liquid markets where both sources and uses of funds are diverse, and where legal and regulatory frameworks are adequate to safeguard the integrity of principal-agent relationships and supervisory functions.
Development is a dynamic process that needs fundamental transformation in different spheres of the country’s economy. It ranges from the traditional economy based on subsistence food production; development in any economy requires a dramatic mobilization of energy resources, an upgrading of rural agriculture and increased investment in the transport industry, education and human capital (Tremewan, 1994). The greatest problem in any economy is how to get started, making the required changes from the low levels of subsistence, and low savings to an economy that is generating surplus that can be invested and be devoted into the building of human capital and infrastructure. This has been witnessed in Singapore, as it has been able to come up with the best strategies to use its resources to develop and generate surplus capital to invest in its development strategies. This development has been encouraged by its geographical and institutional characteristics, which have made great contributions to the economy.
Banks sector is playing an important role in economies. The banking industry, as the classic and the most influential of financial intermediaries, facilitates economic operations. Financial sector in the worldwide country has been changes over these years by looking the changes of financial structure environment and economic conditions. Thus, banks are a very important point to financial system and play an important role as control and contribute growth to the economic sector.
Never have I ever climbed a mountain peak. As a child, I imagined myself conducting expeditions in deep-frozen pathways, leading amateur explorers to the top of the world, and instructing rookies in surviving harsh blizzards. Even though slightly altered, my childhood dream has been achieved. I led a team of fellow classmates, in my Strategic Management course, to the success summit of a financial competition. Over the course of a semester, I and my teammates were supposed to create and manage a company of the IT industry, in a computer-simulated environment, along with other four rival teams. I dealt with strategy and financial matters of our virtual enterprise, while my colleagues were working on marketing and manufacturing. During the four months of the exercise, I have experienced finance from various aspects: capital budgeting, through selecting favorable investment for upcoming quarters; debt management, by assessing the necessary amount and efficiency of loans; profitability analysis and dividend policy, which had been used to compile the company’s general performance index. Working in a multinational team, which included an American, a Norwegian and a Moldovan, strengthen my negotiations skills, as well as flexibility and cooperation. But above all, this experience intensified my passion for finance. Of course, a pleasant bonus was the fact that, in the end, our company’s financial performance was six times the performance of second-best team.
The increase in population have both pros and cons on the effect of Singapore’s economic growth and standard of living. High population growth rate cause difficulty for countries to raise or maintain its current standard of living. As higher population means competition over household, foods, healthcare, and education. Government needs to pump more money to