Singapore has outlined three major initiatives to further strengthen the asset management ecosystem.
First, it is set to introduce a new corporate structure for investment funds – the Singapore Variable Capital Company (S-VACC) - by next year.
The S-VACC structure will allow asset managers to achieve greater synergies through co-locating their management and domiciliation activities.
Secondly, it has simplified regulations to facilitate the activities of venture capital (VC) and private equity (PE) managers. The increased availability of alternative investments like VC, PE, and infrastructure has helped to attract sovereign wealth funds and pension funds.
Thirdly, Singapore is strengthening the ecosystem for family offices. The quality and capability of service providers of family offices – like lawyers, consultants and tax advisors – has deepened.
Ravi Menon, managing director at Monetary Authority of Singapore, highlighted these initiatives at the Nomura Investment Forum Asia earlier this week.
Singapore is putting in place a compelling asset management ecosystem as it aims to act as a platform to connect global investors to Asia.
Asia is already a major destination for VC and PE investments, as investors in Asia are increasingly looking to private markets for investment opportunities.
Last year, VC and PE investments into Asia reached $160 billion, which accounted for 30% of global investments and surpassed Europe for the first time.
Asian companies are choosing to stay private for longer and becoming more receptive to VC and PE financing.
With close to 7,000 start-ups in Southeast Asia alone, there are opportunities abound for private investments in the region.