IBF and MAS Launch Skills Map to Enhance Capabilities of Family Office Advisors
IBF and MAS have launched a skills map for family office advisors to deepen specialist skillsets in order to better serve Singapore’s growing family office ecosystem.
Mr Mu Naimi, Chief Operating Officer, China Construction Bank
Ms Harriet Green, Chairman and CEO, IBM Asia Pacific
Mr Clive Horwood, Editor, Euromoney,
Distinguished guests,
Ladies and gentlemen,
1 A very good morning. Let me begin by extending a warm welcome to our overseas guests. It gives me great pleasure to be here at the inaugural Asia Private Banking Seminar.
2 The organisers have chosen very challenging topics for today, such as how technology would impact the industry, and how client needs will evolve as impatient millennials take greater responsibility of family wealth. There are no clear answers on how these trends will pan out.
3 One trend, however, is clear – rising Asian wealth will play a key role in shaping the global wealth management industry. Boston Consulting Group (BCG) has projected Asian wealth to grow at 14% per annum between 2017 and 2022 compared to 11% globally, with countries such as China and India leading the growth.
4 I am glad that after China Construction Bank launched its private banking centre in Singapore last year, it has taken the initiative this year to partner Euromoney in organising this seminar and to bring together fellow wealth managers in the region to engage in discussion on the future of this sector.
Future-Planning for the Future Generation
5 This seminar comes at a significant point for wealth management in Singapore.
6 Euromoney describes these changing attitudes in a useful report titled “The death of private banking”.
7 In this regard, Singapore stands ready to support future-planning for future generations by creating a conducive environment to do so. It has always been in our DNA to plan ahead. Specifically, MAS will work with the industry to:
8 I will elaborate on these three areas next.
Positioning our wealth management industry for the future
9 First, let us look at how Singapore is positioning our wealth management industry for the future.
10 Against a backdrop of rapid technological developments, MAS, together with our industry partners, have developed the Financial Services Industry Transformation Map (ITM), setting out our strategies and targets, in making Singapore a leading global financial centre in Asia.
11 We are on track to achieve our ITM targets of which the wealth management sector plays a major contributing role.
12 Maintaining our position as a leading wealth management hub is a key developmental priority. We will push forth on our transformation priorities for the wealth management segment which includes:
13 Why do we do all these? It is so that clients are able to access solutions in Singapore that best meet their needs. They will be served by highly competent professionals who have the expertise and empathy to act in the best interest of their clients. Intelligent technology offerings will supplement the personalised service, providing individuals with timely information and advice. Individuals will also have access to a broad range of products that can help them achieve their investment and impact-driven objectives.
Supporting the professionalisation of family wealth management for the future
14 Next, we look at how MAS is planning to support the professionalising of family wealth management in Singapore.
15 As the mindset in Asia evolves from one of wealth accumulation to wealth preservation, issues such as succession planning and intergenerational wealth transfer have moved up the agenda. We see an increasing number of families consolidating their wealth through formalised structures, such as trusts and family offices. Professional managers are hired within these structures to optimise investments and carry out legacy planning for these families.
16 The stable political environment in Singapore, clear regulatory regime, comprehensive network of tax treaties and a robust ecosystem of professional services, positions us as an ideal jurisdiction for families to set up such structures.
17 To strengthen Singapore’s value proposition as a centre of excellence for managing family wealth, MAS will:
18 The increasing sophistication of family offices means that the services they require from their advisers and service providers, including private banks, will change. For example, family offices are now increasingly likely to hire an in-house investment professional instead of just allocating a portion of their assets to certain strategies. As such, private banks’ value proposition to their clients will have to change – they may have to help family offices set up these strategies, assist in operational requirements, hire the right investment professional and even offer prime brokerage services.
Singapore is facilitating investments in the future
19 Finally, I would like to share with you on how Singapore offers an attractive platform for facilitating investments in the future. We can look at this in two parts:
Private Equity / Venture Capital Investments
20 First, we facilitate investment into innovation and future businesses, by creating a vibrant private equity and venture capital (PE/VC) eco-system.
21 The promising opportunities in the private markets have led to strong growth in the PE/VC space in Singapore.
22 We will continue deepening capabilities in this space to empower investments into the future.
Sustainable Investments
23 The second area we are looking at is to facilitate investment in sustainable endeavours.
24 The Asian Development Bank estimates that developing Asia will require US$1.7 trillion annually in infrastructure investments from 2016 to 2030 to maintain its growth momentum, tackle poverty, and respond to climate change.
25 I believe many of your clients have taken the lead in sustainable investing. Many have warmed up to the idea of aligning investments with personal values, and are keen to understand the environmental and social impact of their investments.
26 Ensuring sustainability is very much a part of Singapore’s ethos – making the best use of limited resources has, for a long time, been a key part of our nation-building process.
27 To sustain our efforts in promoting sustainable investments, we will continue to:
Conclusion
28 To summarise, the wealth management of the future will be one of stewardship and purposeful deployment of assets. We are positioning Singapore’s wealth management industry for the future. We will continue our efforts to support the professionalising of wealth management for the future and facilitate investments in innovation and sustainability. We will continue to work with our industry partners to facilitate future-planning for the future generation.
29 I wish you all a fruitful day. Thank you.