First Fund Management Company In Singapore To Be Awarded.

19 Nov 1998... Minister for Finance, Dr Richard Hu, today awarded Morgan Stanley Dean Witter (MSDW) Investment Management Company with the Enhanced Fund Manager status, the first fund management company in Singapore to be granted the tax holiday.

Speaking at the opening of MSDW's new office premises at Capital Square, Dr Hu noted that MSDW's Singapore operations had grown substantially since it started operating in 1990. "Singapore now serves as a major hub in Morgan Stanley Dean Witter's global operations, engaging in a variety of businesses including investment banking, asset management, securities, foreign exchange and derivatives trading," he said, "The Enhanced Fund Manager status was awarded in recognition of MSDW Investment Management Company's commitment in developing Singapore as a regional centre for asset managers."

In his 1998 Budget Statement, the Minister had announced enhancements to the Tax Exemption Scheme for Fund Management. From Year of Assessment 1999, fund management companies granted the Enhanced Fund Manager status will enjoy tax exemption for the fee income earned from providing investment management or advisory services, if they manage at least S$5 billion of foreign investors' funds. MSDW Investment Management Company is the first fund management company to qualify for this tax holiday.

Despite the economic crisis, Dr Hu said that Singapore will press ahead to develop itself as an attractive location for financial institutions. "Our strategic location at the gateway of Asia and our excellent air and telecommunication links makes us an attractive regional hub. Our strengths, together with the Government's swift policy responses to the crisis will help us to overcome the challenge. By providing a conducive business environment for leading global players like Morgan Stanley Dean Witter to operate here, I am confident that Singapore will emerge an even more attractive and vibrant financial centre," said Dr Hu.