Singapore’s vision of being a financial hub is paying off, and it’s going to go hyper.
According to this post from Bloomberg, what Jack Gu from Shanghai-based Platinum Analytics said is spot on –
The MAS (Monetary Authority of Singapore) being Singapore’s central bank and financial regulatory have been a faithful key player in making Singapore an effective financial hub.
The Singapore government overall has ensured stability and longevity of political atmosphere which is fundamental to long term economic growth.
The best option ahead is for both MAS and the government to enhance what they have achieved and make it bigger and reach further.
Since independence Singapore had faced the challenges of limited land, space and natural resources. Food imported worldwide via containers, water bought in from Malaysia through pipes, and being a farmer in Singapore is to be in the super-niche sector. Don’t be surprise farmers in Singapore are millionaire.
Now that this nation has reached the status of economic power, the next immediate obstacle is – volume.
To continue being a power house, size does matter.
Singapore with a domestic population of less than 6 million and limited natural resources does not have the critical mass to compete with the international market.
But Singapore’s survival depends on winning competition.
Therefore her foreign policies have been persistently “outward” and “welcoming” to foreign enterprises and inflow of FDI.
Now with the shift of attention to digital, her financial trades are expected to go hyper.
This is not just about encouraging people to do digital payment via smart phone apps but national infrastructures going digital base.
The advantage of going digital is to transcend time and location.
Although MAS spokesperson Benny Chey expects things to move not that fast but digital platform demands speed and more speed.
Singapore is playing a long game and the government’s efforts are unlikely to bear fruit overnight, according to MAS’s Chey. “Singapore has a good mix of real-money demand that have investment needs as well as risk-management and hedging needs,” he said. “When these demands are here and growing, the demand on FX and FX-trading volumes will rise commensurately.”
Once you are set on digital, it will drive you faster and faster.
Digital platform is something that will drives you more than you controlling it.