Arguments on how or when Singapore will challenge Switzerland’s dominance of the wealth management league table took another twist when a senior UBS executive were reported as saying the Asian city-state is a threat to the Alpine state.

Arguments on how or when Singapore will challenge Switzerland’s dominance of the wealth management league table took another twist when a senior UBS executive were reported as saying the Asian city-state is a threat to the Alpine state.

Chi-Won Yoon, chief executive UBS's operations in the Asia-Pacific, is reported by AsiaOne as saying: "Singapore plays a very important part in our strategy across the region."

"The way we grew in Singapore is synonymous with Singapore's growth as a financial centre. When we arrived 45 years ago, Singapore was much more focused on trade finance,” he is reported to have said.
 
Earlier this year, Boston Consulting Group reported that Switzerland remains the world’s single largest offshore centre, holding $2.3 trillion in assets, or 26 per cent of all offshore money, but it noted the pressure on the country from other nations to combat tax evasion. That report said: “In the long run, Switzerland’s position as the world’s largest offshore centre is being challenged by the rise of Singapore and Hong Kong, which currently account for about 16 per cent of global offshore assets and benefit strongly from the ongoing creation of new wealth in the region.”  BCG expects assets booked in Singapore and Hong Kong to rise at CAGRs of 10.2 per cent and 11.3 per cent, respectively, through 2018, together accounting for 20 per cent of such offshore money by that year.

In 2013, Hong Kong and Singapore accounted for $1.4 trillion of offshore wealth; Caribbean and Panama was $1.2 trillion; Channel Islands and Ireland, $1.1 trillion, and the UK was $1.0 trillion. The US held about $700 billion of such money, with Luxembourg holding $600 billion and “Other” holding $700 billion.

Yoon reportedly noted that Asia is growing faster than any region in the world, a factor that is driving wealth creation in the region.

"It is true that there have been regulations and the world of wealth management has changed. The real compelling advantage in wealth management is the intellectual content and the advice we can give our clients. From that point of view, Switzerland has led the way, and Asia is following to some extent," he added.

(Editor’s comment: While the notion of Singapore’s challenge to Switzerland makes sense to some degree, it is worth noting that Singapore officials have issued blunt comments on the dangers of money laundering and undeclared money in recent years, so it would be unwise to assume the jurisdiction will welcome hot money fleeing Switzerland.)