Singapore "overtook" Hong Kong as the center of Asian financial technology

Singapore is trying to rebuild its image as Asia's financial technology hub in response to the potential risks of asset management and support for the struggling economy.

Government funding, regulatory clearance and recent government approval allowing start-ups to test financial products in a controlled environment have pushed Singapore to pass on the specialty. Hong Kong (China) became the center of Asian financial technology. New destination of the world Singapore's emerging financial industry has emerged as its center of foreign private banking is facing a multibillion-dollar multi-billion dollar scandal in neighboring Malaysia. In addition, the sectors that are traditional growth drivers of Singapore such as shipping and manufacturing are in the process of slipping off the downturn of the world economy. In addition, commodity prices and demand are decline in the island nation. Singapore is attracting the attention of about 60,000 businesses located in the financial market worth nearly 9 billion dollars of London (England). Markus Gnirck, a partner and co-founder of Mode Financial Technology Consultancy, said Singapore is receiving the interest of UK businesses wishing to move to Asia as the business environment in " the land of fog "becomes difficult. The British left the EU (Brexit) certainly contributed to this trend. Not easy Although catching up with trends at the right time, not everything is easy for Singaporeans. First of all, Singapore's immigration laws are becoming an obstacle, start-ups and consultants say measures to limit the number of foreign workers and give priority to labor Singapore has caused talent shortages. Secondly, Singapore banking regulations have traditionally created a culture of risk-averse, contrary to the "trial and error" approach to start-ups. financial technology. Why Singapore? Despite these barriers, "you can not find such a progressive government in any other city in the world when it comes to innovation, from donations, to capital facilities. and operational support measures, "said Raghav Kapoor, co-founder and CEO of SmartKarma's start-up company, which operates on the basis of providing Asian research and analysis. They chose Singapore instead of Hong Kong as their headquarters. SPRING-a state-owned body of Singapore is one of the investors for SmartKarma. The agency is also a government agency that helps businesses expand their international operations. In Hong Kong, according to lawyers, consultants and executives of financial start-ups, despite funding of up to $ 300 million, they face many difficulties, hurdles legal restrictions. According to Mode, there are less than 100 financial technology companies in Hong Kong. Hong Kong rules and regulations make it difficult for start-ups to set up social fundraising platforms, payment companies, peer-to-peer lending, and to secure the license. In Singapore, any economic entity can operate the payment system and electronic wallets without approval, while in Hong Kong, the new rules introduced last year still require companies Must have a Stored Value Facilities license, or electronic money or prepaid card. Singapore Monetary Authority (MAS) Executive Director Ravi Menon said the financial star-up technology will only be subject to regulatory controls as they grow large enough to endanger the traditional financial system.