The investment banking industry opened up as Singapore matured into a key international debt arranging hub in Asia. Singapore is widely a flourishing financial centre of international repute servicing not only its domestic economy but also the entire Asia Pacific region. The banking system is therefore a key player in the country’s financial market segment, emerging as one of the strongest in the world.
The Investment Banking and Capital Markets industry is witnessing unprecedented competition. Not only from traditional providers but also entrants from retail, BigTech etc. It is thus the need of an hour to reimagine the business models to meet the evolving demands from the market, customers, partners and the regulators.
Capital market is a market where buyers and sellers engage in trade of monetary securities like bonds, stocks, etc. The buying/selling is undertaken by participants such as individuals and institutions.
Capital markets help channelise surplus funds from savers to institutions which then invest them into productive use. Generally, this market trades mostly in long-term securities.It can be further defined as a financial market in which long-term debt or equity-backed securities are bought and sold, in contrast to a money market where short-term debt is bought and sold.
The following factors have contributed to the country’s active and thriving capital market:
- Encouraging a gentle flow of issuance from the Singapore Government, statutory boards, supra-nationals and corporates.
- High standards to take care of investor confidence led to various initiatives to enhance disclosure, strengthen market discipline and improve corporate governance of listed companies. These measures included: the Code of Corporate Governance, revisions to the SGX listing rules and therefore the introduction of the new civil penalty regime under the Securities and Futures Act.
The pandemic has had a terrible impact on humanity and various sectors of the global economy have been severely impacted. Capital markets firms have played a key role in helping to stabilize the global economy and going forward, it would be vital that banks, asset managers and investors continue to provide funding and liquidity to ensure that credit markets are functioning.
Capital markets firms will also need to be flexible and embrace change. As the global economy emerges from the pandemic, capital markets are going to be fundamental to making sure that capital flows resume, and the recovery takes off.
Investment Banking is a financial service provided by a banking division or a finance company. It assists high-net-worth individuals, companies, or government to raise or create capital. It helps in identifying the risks associated with the projects before clients can invest time and money. Investment banking is the division of a bank or financial institution that serves governments, corporations, and institutions by providing underwriting (capital raising) and mergers and acquisitions (M&A) advisory services. Investment banks act as intermediaries between investors (who have money to invest) and corporations (who require capital to grow and run their businesses).
Most investment banks in Singapore perform various corporate-finance and investment related activities like:
- Underwriting securities
- Acting as an intermediary between an issuer of securities and the investing public
- Acting as a broker for institutional clients
- Facilitating mergers and acquisitions; and
- Corporate reorganization
Snapshots of Industry
- With well-established capital markets, the Singapore Exchange (SGX) is the preferred listing location for more than 200 global companies.
- Singapore has grown to be the largest Real Estate Investment Trust (REITs) market in Asia ex-Japan and also provides an extensive offering of investments in business trusts of shipping, aviation and infrastructure assets.
- With an in depth range of both Singapore government securities and foreign corporate bonds available, Singapore offers fixed income investors a wide range of investment opportunities.
- As one of the top 5 most active foreign exchange trading centres in the world,
- Singapore is also the second largest over-the-counter derivatives trading centre in Asia, and a leading commodities derivatives trading hub.
- Singapore is recognized as one of the premier asset management location in Asia with total assets under management around S$1 trillion.
Why Bluebox?
Our Investment Banking team deliver high-quality strategic advice and artistic financing solutions to our clients, including mergers and acquisitions, financing, and risk management transactions.
Bluebox works closely with some of the world’s leading tax advisors, accountancy firms and lawyers to deliver a service proposition that supports capital markets activities.
Singapore is a global leader in market development. The country’s competitiveness is supported by no restrictions on the repatriation of profits and thus the import of capital. Paired with Singapore’s strong diplomatic ties, and its stable political and economic climate, it’s easy to ascertain how this is an ideal environment to invest in.
Leveraging global strategies and data-driven insights, our capital markets consulting practice helps firms rethink their business model, manage risk, redefine workplace strategies, improve operational efficiency and more.
Insurance
Insurance businesses in Singapore are benefiting from strong demand for vehicle, property, health, and other insurances across the country. Customers across insurance segments are being encouraged by rising life expectancy, tax incentives on insurance products, and favorable savings connected with insurance.
Real Estate
The Real Estate practice at Bluebox provides relevant audit, tax, and advisory services to a diversified client base in the industry. Our committed specialists deliver complete, integrated solutions to meet our clients’ particular needs. Singapore has established itself as a key investment destination for global land players and as a regional land investment hub.
Funds & Asset Management
Singapore is a leading asset management hub for institutional investors and fund managers to access pan-Asian opportunities. Such framework seeks to position Singapore as a Leading Fund domiciliation Hub and strengthen Singapore’s position as a full-service International Funds & Asset Management Centre.