Singapore lenders Oversea-Chinese Banking Corp and United Overseas Bank have reported to overtake their quarterly profit due to Singapore’s recovering lower provisions for loan losses and core markets. Demands for mortgages and loans have also increased and further motivated the wealth management business.
Despite the current pandemic that proved to be a great struggle for the economy of many countries, the Singapore dollar outperformed its Southeast Asian neighbors due to their high vaccination rate and rising core inflation. Singapore’s effective management of COVID-19 is said to set the nation apart from its Southeast Asian peers.
“While the long-term trajectory of global economic recovery is positive, we remain watchful of the current operating environment in view of the recent virus resurgence and heightened safety measures in our key markets.” said OCBC Chief Executive Helen Wong.
The strong profit growth and decrease in loan losses are a great indicator of Singapore’s blooming and recovering economy. Even before the current COVID-19 pandemic, Singapore has been a strong and welcoming business environment that has always been a hotspot for companies and organizations to expand into the country. According to the Heritage Foundation’s Index of Economic Freedom and the World Bank’s Doing Business report 2017, Singapore was ranked the world’s second most open economy and most pro-business regime.
What are the industries that Singapore excels at?
The manufacturing sector is Singapore’s largest industry which contributes 20% to 25% of the county’s annual Gross Domestic Product (GDP). Manufactures of products that are of high demand from Singapore include electronics, logistics, biomedical sciences, chemical and transport engineering.
The pro-business environment and political stability of the country also prompted their financial industry to achieve stable growth throughout the years. With over 200 banks and global financial services firms, the country’s financial services stretch throughout domestic, regional and global markets. Singapore also has strict requirements for bank loans where credit score and background of each candidate are closely screened. While this decreases loan loss and profit loss, their meticulous checkpoints make it hard for individuals and businesses to get loans in a short period of time. Consider checking out Fast Cash Loan Singapore as an alternative way to get funding for your business. Not to be confused with illegal loan sharks or also referred to as “Ah Long” in Singapore, they are legal moneylenders that provide similar loaning services as banks.
Other industries such as medical technology, clean energy, content development, healthcare and aerospace engineering also pushes Singapore to be one of the famous business locations for companies and organizations to strive and bloom in.
Singapore’s Effective Infrastructure
Singapore’s infrastructures are well developed with communication, transport, industrial, and housing systems. On the land of Singapore, it is filled with mass rapid transit and light rail as well as taxi, island-wide bus and ride-share operations – ensuring the convenient mobility of its citizens with safe, punctual and effective transportation options.
Changi International Airport is also one of Singapore’s most stunning architectures that connects to 380 cities around 90 countries. With 7,000 weekly flights transporting passengers and cargo worldwide, the airport becomes an important asset of Singapore’s trading and travelling port. Despite its transportation functions, the airport’s architecture and garden landscape attracts millions of travelers to mesmerize the beauty of the design.
Singapore Dollar (SGD)
Besides Singapore’s recovering economy, the nation’s currency is becoming one of the strongest and most stable currencies among countries across the globe. The stability of the nation’s currencies is monitored and maintained by the Monetary Authority of Singapore – the nation’s central bank and financial regulator entity. The organization keeps track of international currency exchange rates and ensures its proceedings are always in the right direction that benefits its nation.
Singapore’s economy is also deemed to be the most competitive economy across the globe, according to the World Economic Forum 2020. With its favorable tax rates, business-friendly environment and skilled labor talent, Singapore attracts foreign investments as a major financial services center and major shipping port. Its strategic location and effective planning of the economy puts Singapore’s GDP per capita rate as the second-highest in the world.
Singapore is on the rise of being one of the nations that outshines Southeast Asia countries in terms of health and economy. With its effective management of the pandemic and its rising currency, Singapore is about to become an attractive location for business to bloom and strive.