Overview: Singapore’s Financial Market
Ever since the worldwide financial crisis, Southeast Asia has been one of the few spots that seemed to offer economic growth, stability and trading opportunities. Investors were drawn to options trading in Singapore due to its favourable binary options conditions and online trading conditions in general. Essentially, Southeast Asia is experiencing a modern day gold rush due to a number of unique economic factors.
Low Interest Rates
The bond markets that are emerging in Singapore and Southeast Asia helped contribute to very low borrowing interest rates and this has lead to a record low for bank loan rates. Corporations can now easily borrow from banks or the bond market by choosing the option that has the lowest borrowing costs.
Credit in Southeast Asia
The low cost credit conditions in Singapore and Southeast Asia are also contributing to the economic boom in the region. These conditions have been a major source of economic growth in recent years. Some countries are driven by household or consumer credit while others are driven by property or construction development. But in either case, the economies have flourished because of these credit conditions.
Because of the low interest rates in Southeast Asia, a boom in property development around the region has been made possible. Due to development the value of properties has increased and with the boom of employment more people are able to own their own homes. In addition, low interest rates as well as increasing property prices have created the perfect conditions for an uptick in construction. The amount of construction that is taking place in this region is rapidly increasing with shopping malls, casinos, restaurants, skyscrapers and other public buildings constantly being erected. The construction industry has benefited from the economic boom in Southeast Asia and has access to accessible and affordable credit. The construction boom has also been focused on residential and condominium property developments as well as resorts, hotels, infrastructure projects, malls and more.
The Financial Sector in Singapore
Singapore has become one of the largest financial and banking centers in Southeast Asia and this city-state has earned the title of the Switzerland of Asia. The financial sector in Singapore is 6 times greater than the economy with foreign and local banks holding assets worth $1.7 trillion. The financial sector’s assets in Singapore that are managed have increased by a total of 9% between the years of 2007 and 2012 but then surged by 22% in 2012. The reason for the rapid AUM growth in Singapore is due to the fact that the banking industry in Singapore has benefitted from the economic boom. In terms of assets managed, 70% were invested in the Asian region in 2013 which was an increase from 60% in 2012. The Singaporean financial services industry increased by 163% between 2008 and 2012.