Singapore's Banking and Financial Services Sector

  1. Introduction

Banking and financial services sector as the part of financial system, it includes banking services, securities services, insurances services and other services. With the corresponding the company includes the lender, securities Company, insurance provider and other financing related company. Thanks to location, plan and other factors help,

Singapore bank and financial services sector development speedily. Singapore not only famous with the banking services and other financial services, but also famous with the forex and stock market the " Singapore Exchange"(SGX), is the 3th major currency markets in the Asia area. Drawn a whole lot of companies right here, especially is the Asia area. Singapore successful with the bank and financial is not any coincidence, the famous papers THE ECNONMIST says: WHEN it began life as an unbiased, individual country in 1965, Singapore's prospects did not look good. Tiny and underdeveloped, it possessed no natural resources and a inhabitants of relatively recent immigrants with little distributed history. Why do Singapore become an monetary success? First, its tactical location and natural harbor helped. It is at the mouth of the Malacca Strait, through which perhaps 40% of world maritime trade passes. Second, under Mr Lee, Singapore welcomed foreign trade and investment. Third, the federal government was held small, useful and honest-qualities absent in most of Singapore's friends and neighbors. (ECNONMIST, 2015). This information wills analysis bank and financial services sector contribution on Singapore current economic climate and challenge. Together with the corresponding strategic likely to keep the contribution and facing the challenge.

  1. Contribution
  1. Foreign immediate investment (FDI) means that can be an investment in a company by an entrepreneur from a different country that the foreign trader has control over the company purchased. (Shawn Grimsley, 2012). With monetary globalization the business are need to expansion the market in the oversea and the other country also take some activities to entice the overseas company. While using booming of bank and financial market Singapore has successful attract plenty of foreign direct investment. Sometime if the country can attract lots of foreign immediate investment in a few sector mean that this country in this sector has many perfect construction. First is the perfect rules to protect this sector revenue, secondly is the fact that has mature market, and finally is this sector in this country has preferential insurance plan. Singapore attract a lot of famous company to come here investment, for example CitibankЇјStandard Chartered Loan providerЇј HSBC, and etc. Singapore positioned third, up two notches from this past year, so that it is the highest-ranked country in Asia. Singapore was also rated the best among all countries in conditions of the efficiency of its goods and labour market segments and second because of its financial market style. (Sameera Anand, 2009). In conversation, Singapore bank and financial services sector draw in many foreign companies and it creates Singapore current economic climate better and better t as an Asia-pacific financial Centre.
  2. Provide a whole lot of occupations. Since Singapore developed this sector, many careers has been creating. A written report demonstrates when Singapore just out of Malaysia the unemployment rate in this country was reach up to 12%. After development the bank and financial services sector, the unemployed rate decrease year by calendar year. This sector derivate banking employees, Securities industry experts, Employees Insurance and so forth. And it achieved impressive results just like a publication say: Singapore experienced a human population of 5. 165 million this year 2010. 2. 795 million of the populations are area of the labour force. Within the same calendar year, Singapore got an unemployment rate of 2. 2 percent. Singapore's unemployment rate is one of the cheapest in the world. (ECNONMYWATCH, 2010). Nowadays more and more local students and international students graduate in Singapore. And the cooking and financial services sector offers a lot of jobs on their behalf.
  1. Challenge
  1. Singapore facing the competition from other areas. Singapore has development banking and financial services sector a long time, so Singapore has more encounters and even more perfect legislation than the other countries. But with the other countries focus on this sector, increasingly more countries are thin the length with the Singapore. For instance Asian financial center in Hong Kong has been long days and nights, Sydney is in the field of trade business and electronic digital form their own unique niche, relying on the rapid expansion of Chinese current economic climate, and Shanghai its financial centre is gradually accepted. A report shows that: Regarding to Financial Development 2009 by the World Economic Forum (WEF), Hong Kong rates 5th worldwide in terms of financial sector development. Along with Tokyo and Singapore, it stands as one of the premier financial centers in Asia. (Dan Steinbock, 2010). Along with the rise of the areas, Singapore will face the fantastic challenge.
  2. Another task is Singapore market is too small, which very dependency of global current economic climate. Singapore is a little country that their local market is not a lot of. To be able to development Singapore have to expansion the oversea market. However when some exceptional circumstances Singapore financial sector will shocks, Including the 1997 Asia financial crisis and the 2008 America financial crisis was effect Singapore this sector. So this is the Singapore should face the task with their banking and financial service sector.
  3. Last but not least, Forex and capital market activities and other conventional financial services sector in the number and position confirmed a downward style. Forex and financial services sector is vital for Singapore, is the main one the main part in Singapore overall economy. If it downward development, it mean in the future Singapore will lose the competitive in this sector. And this is cannot no be ignore problem for Singapore bank and financial services sector.
  1. Strategic planning
  1. Banking and financial services sector also need many different skill in this sector. At exactly the same time also need some Professional knowledge to work in this sector. So the training and education is the best way to achieve this target. And Singapore also cooperation with many company to training and education their students. Citi lender is a example: Singapore - Citi Singapore and Singapore Management University or college (SMU) have jointly launched the first set up financial literacy program for young adults. The program looks for to equip adults between the age range of 17 and 30 with essential personal financial knowledge and skills to provide them a company foundation in managing their money and a financial head-start early in their working lives. (Author, 2012). And to training and education the students that can make the Singapore financial sector Continuity and invention.
  2. Establishment Orientation is Singapore in development bank and financial sector should. To become regional financial center, because Financial Services is Singapore's financial sector to keep good competitiveness and an important source of competitive advantage, in order to encourage local personal financial middle to stay competitive, administration must keep on politically strong, financially stable and industrial management plan.
  3. Create a far more attractive business environment. The federal government should take more communication and Strengthen co-operation with the company. Further improve Singapore's tax environment and offer better job environment for the financial services sector. Previous but no least is Enhance Singapore's financial sector in the international share.

5. Conclusion

(1) Monetary Power of Singapore (MAS) is Singapore's central bank or investment company, founded in 1971, performed by federal departments and professional management, which combines the functions of the Bank to Finance, and many other financial functions, including the development of financial and monetary policy to ensure stable economic growth, lasting development financial services industries. MAS also support to education and training. SKBI is MAS assistance with the Total co-founder to help the students progress education in financial, which to training financial abilities. Along with the MAS also keep communication numerous company find the advise to them. Sometime MAS establish the rules and regulation lender Provide a good environment for the operation of the bank and financial services sector. And do that to support the bank and financial services sector development in Singapore.

(2) Bank and financial services is a crucial part of the Singapore market, is the best value-added service industry. Today Singapore can so well toned and well famous on earth, these successes are inseparable from the support of the banking and financial services sector. So Singapore in the future Continue the development of this sector. Build more and better service on the planet, attract more overseas company to technology in Singapore. While keeping the nice part and need to development, with digital multimedia revolution the banking and financial services sector should innovation. To achieve that get this to sector make more contribution in Singapore current economic climate.

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