|
 |
|
Source:
www.mas.gov.sg |
|
Speech by Mr Ong Chong Tee, Deputy Managing
Director, MAS at Private Wealth Management Conference |
|
An Excerpt |
|
|
Asia is doing well economically, powered by
the rise of China and India. |
|
With the growth in wealth of Asian High Net
Worth Individuals (HWNI) at 7% a year, the latest Merrill Lynch Cap
Gemini World Wealth Report estimated that Asia's wealth is expected to
reach US$10.6 trillion by 2010, from about US$7.1 trillion in 2004... |
|
As Asia's economic growth story unfolds, new
opportunities will arise. The business of Wealth Management will also
have to adapt to tap this growth... |
|
At the business level, there will be
increasing competition to provide comprehensive and integrated services.
Private banks are pursuing ambitious growth strategies in Asia by
competing for new clients, and at the same time, angling for a greater
share of existing clients' wealth; |
|
At the investor level, Asian clients are
becoming more sophisticated and demanding of their private banking
relationships. |
|
Singapore as A Leading Wealth
Management Hub |
|
These trends favour Singapore as a leading
wealth management centre, not just in Asia, but also globally. |
|
Rising wealth in Asia, and the focus
on Asian growth prospects have seen total assets under management
in Singapore's fund management industry grow from about S$280
billion in 2000 to much more than S$600 billion now. |
|
Growth in private banking assets under
management has also been strong, with anecdotal feedback suggesting
Singapore private banking AUM averaging 20% per annum over the past
few years to about US$200 billion currently. |
|
This strong performance can also in part
be credited to Singapore's solid fundamentals. Our location
facilitates ready access to global and regional financial markets. |
|
Our reputation for high standards of
regulation and supervision and a robust legal and judicial
framework, is trusted by financial intermediaries and clients alike
to conduct wealth management activities. |
|
Apart from our political and economic
stability, HNWIs value our respect for customer confidentiality and
the fact that besides being able to bank, they can school their
children in reputable institutions, carry out high quality medical
checks and enjoy the shopping and other amenities in a safe and
friendly environment here in Singapore. |
|
Many of the major private banks are
already here in force and growing rapidly. This is complemented by
the expertise of more than 300 asset management firms investing
throughout the region. |
|
Moving forward, we expect an enlargement
of the wealth management eco-system. This will include trust
companies, philanthropy, family offices and the ancillary service
providers such as tax, legal advisors, consultants and technology
platform providers. Together, these specialists will help deepen and
broaden our offerings as a global wealth management centre. |
|
Human Capital - The Key to
Differentiation and Business Growth |
|
Good infrastructure and sound
fundamentals will continue to propel the wealth management industry
forward, but at the heart of a successful industry or financial
sector is the need for skilled manpower. This is crucial for the
wealth management industry, which is a people-centric business built
on trusted advice and deep relationships. |
|
Private banks compete for clients based
on differentiated service. Integral to this strategy is talent,
which is the key enabler to delivering differentiation services,
innovation and growth... |
|
To succeed as a leading wealth
management hub, it is critical to strengthen and grow skills - both
quantity and quality. Ideas and execution are what will set one
apart from the competition, and in aggregate, will take the industry
to the next stage of growth. |
|
The MAS is therefore taking steps with
industry to build the wealth management talent pool in 2 broad ways: |
a) First, by focusing on the pipeline of
talent flowing into the industry.
b) Second, by raising the capabilities of our existing talent stock. |
|
Let me elaborate briefly on each. |
|
a) Building a Strong Talent
Pipeline |
|
Private bankers have to think of
expanding operations beyond recruiting relationship managers who
bring existing clients along. |
|
It is vital that we build a strong
pipeline of fresh blood and increase the inflow of new but competent
people into the industry. This is a key challenge since the industry
is facing competition not only from other financial segments, and
non-financial industries, but also across borders. In other words,
it is the cliche "the global war for talent". |
|
The battle for experienced wealth
managers in this part of the world is an intense one, as private
banks gear up to capture a larger slice of the Asian wealth. |
|
If left unaddressed, the talent squeeze
will lead to wage spirals, that are unsustainable in the long run,
and even in the interim, can lead to a dip in service levels; for
example when wealth managers seek to cope with expanding business by
increasing the number of accounts managed per wealth manager. |
|
In view of the tight manpower market,
MAS and industry players have heightened our collective efforts to
expand the talent pool. Let me highlight some of the initiatives. |
|
At the pre-employment stage, we must
continue to attract good graduates from our Universities,
Polytechnics and so on, to enter the finance sector. |
|
According to the Department of
Statistics, the financial services industry has the highest average
monthly earnings amongst all other industries in Singapore. |
|
Despite the sector's attractiveness as a
paymaster, it should not be complacent and leave recruitment to
chance. The MAS on its part have stepped up efforts to profile
career opportunities in key finance growth sectors such as wealth
management, through campus outreach events at the local Universities
and business schools such as INSEAD... |
|
Besides building a pipeline of bright
young graduates into the sector, there are also specific efforts to
attract working professionals from other financial segments, and
non-financial industries to join the wealth management sector. |
|
One key area is in skill conversion
training. The Financial Sector Manpower Conversion Scheme that MAS
launched two years ago has already prepared some 500 participants
for entry into growth areas such as wealth management, settlement
operations and middle office product control. |
|
The wealth management programme offered
by Wealth Management Institute (WMI) alone has trained over 150
trainees for entry into the sector to-date... |
|
Apart from grooming our own pool of
indigenous talent, it is equally critical to keep attracting top
people and good talent from all over the world. They add not just
numbers, but also bring diverse perspectives, experiences and ideas.
Singapore has always welcomed talented individuals to complement
domestic talent... |
|
b) Raising Capabilities of Existing
Talent Stock |
|
...As we set the stage for further
growth in wealth management and private banking, Singapore is well
placed as a training ground for wealth management. This will not
only raise the quality of our workforce, but also attract
professionals from all over the world to upgrade and excel in the
trade... |
|
Apart from establishing a vibrant and
self-sustaining training and education hub, it is equally important
to inculcate a systematic and institutionalized approach to upskill
the capabilities of our financial sector workforce. |
|
With this in mind, the Institute of
Banking and Finance, with the support of MAS and industry, launched
the Financial Industry Competency Standards (FICS) last year to
benchmark competency standards of financial professionals, including
wealth managers, to international best practices... |
|
People are, and will remain the most
important factor in delivering quality advice and solutions, and
cultivating valued client relationships - key elements to give a
private bank that sustained edge in this competitive business. |
|
MAS remains committed to creating a
pro-business environment where the different players in the wealth
management community can thrive and succeed but without compromising
on high professional standards and conduct... |
|
Full Text of Speech |
|
Source:
www.mas.gov.sg News Release 29
Jun 2006 |
|
 |
|
Important
Notice |
|
Our FrontPage
Editions are a historical record of our Web site and reflect
the changing of the times, and also of our Web site through
time. We do not and will not update the links and stories on
these FrontPages even if they have become obsolete. |
|
FrontPage Edition: Fri 30 June 2006
All rights reserved
