Hostname: page-component-8448b6f56d-xtgtn Total loading time: 0 Render date: 2024-04-23T13:10:49.581Z Has data issue: false hasContentIssue false
  • English
  • Français

Becoming a Wealth Management Centre and International Relations Implications: The Singapore Policy Approach and Global and Regional Responses

Published online by Cambridge University Press:  28 October 2015

IAN PATRICK AUSTIN
IAN PATRICK AUSTIN*
Affiliation:
Senior Lecturer in International Business, Edith Cowan University, Perth, Western Australiai.austin@ecu.edu.au
Get access Rights & Permissions [Opens in a new window]

Abstract

Singapore's strategic play to secure international wealth management market share has been very successful. Serious questions, however, were raised in relation to this ascendency as the Global Financial Crisis (GFC, beginning in 2007) drove the European Union (EU) and the United States of America (US) to become proactive in clamping down on tax evasion and other areas deemed by them to be undesirable within the international financial system. This paper will examine the Singapore government's decade-long growth policy of its wealth management sector, and how it has been impacted upon by international regulatory responses. Further, it examines how in stark contrast to the EU and the US, Indonesia has been far less successful in its diplomatic efforts to have Singapore address financial diplomacy issues (tax evasion and ill-gotten gains from corruption) in relation to Indonesian citizens residing in Singapore. This article will argue, however, that Singapore's less than robust response to Indonesia's constant requests for action maybe to the long-term detriment of Singapore itself.

Economics is now a large part of foreign policy. (George Yeo, May 2005, then Minister for Foreign Affairs, Singapore)

Singapore Inc's new growth strategy in a whole range of services from real estate as a new asset class to lifestyle, taps millionaires and billionaires who value privacy, political stability, and sensitivity to money laundering implications. (Low, 2010: 171)

Type
Research Article
Information
Japanese Journal of Political Science , Volume 16 , Issue 4 , December 2015 , pp. 532 - 552
Copyright
Copyright © Cambridge University Press 2015 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

ACCA The Global Body for Professional Accountants (2014), G20: Single Standard for Automatic Information Exchange, 23 September, www.accaglobal.com/uk/en/member/accounting-business/single-standard.html.Google Scholar
Anandarajah, Kala (2005), ‘State and Corporate Governance Reforms in Singapore: Economic Realities, Political Institutions, and Regulatory Frameworks’, in Ho Leong, Khai (ed.), Reforming Corporate Governance in Southeast Asia: Economics, Politics and Regulations, Singapore: Institute of Southeast Asian Studies.Google Scholar
Australian Broadcasting Corporation (ABC) (2009), Saturday Extra, 28 March, Singapore: Downturn and Dissent, http://www.abc.net.au/rn/saturdayextra/stories/2009/2527911.htm#transcript.Google Scholar
The Australian Financial Review (2009–14), various, www.afr.com.Google Scholar
Backman, Michael (2006), ‘Singapore None too Fussy about the Source of Wealth in Its Financial Sector’, The Age, 26 July, www.theage.com.au/news/business/singapore-non-too-fussy-about-the-source-of-wealth-in-its-financial-sector.Google Scholar
Ball, Deborah (2009), ‘Swiss Banks hit by European Exodus’, The Wall Street Journal in The Australian, 31 October–1 November, p. 28.Google Scholar
British Broadcasting Corporation (BBC) (2012), ‘Singapore and Germany Agree Deal to Tackle Tax Evasion’, 15 October, http://www.bbc.com/news/business-19944057.Google Scholar
Basu Das, Sanchita (2010), Road to Recovery: Singapore's Journey through the Global Crisis, Singapore: Institute of Southeast Asian Studies (ISEAS).CrossRefGoogle Scholar
ChannelNewsAsia (2014), ‘Indonesia urges Singapore to withdraw all $10,000 notes: Report’, 7 July, http://www.channelnewsasia.com/news/singapore/indonesia-urges-singapore/1242535.htmlGoogle Scholar
Choy, Keen Meng (2010), ‘Singapore's Changing Economic Model’, in Chong, Terence (ed.), Management of Success Singapore Revisited, Singapore: Institute of Southeast Asian Studies, pp. 123–38.Google Scholar
The Conversation Australia (2014), various, https://theconversation.com/search?q=jokowi&sort=relevancy&date=all&date_from=&date_to=&type=all.Google Scholar
Crispin, Shawn. W. (2009), ‘Cracks Appear in Lee's Mantle’, Asia Times Online, 20 March, http://www.atimes.com/atimes/Southeast_Asia/KC20Ae02.html.Google Scholar
da Cunha, Derek (2010), Singapore Places Its Bets: Casinos, Foreign Talent and Remaking a City-State, Singapore: Straits Times Press Reference.Google Scholar
Development Bank of Singapore (DBS group) (2009–2014), various, www.dbs.com.Google Scholar
Drummond, Matthew (2011), ‘Banks Face Fallout from US Law’, The Australian Financial Review, 29 August, www.afr.com.Google Scholar
The Economist (2011a), Singapore's Financial Rise Going Swimmingly: The City-State Has a Handy Habit of Taking Advantage of Financial Upheaval, Print edition, www.theeconomist.com.Google Scholar
The Economist (2011b), Indonesian Politicians on the Lamb: The Singapore Slink, Print edition, www.theeconomist.com.Google Scholar
The Economist (2011c), Singapore's Property Market: An Overheated Market May Be Cooling, Print edition, www.theeconomist.com.Google Scholar
Evans, Jones (2009), ‘Singapore, HK feel heat from EU’, 6 April, Banking and Payments Asia, http://www.vrl-financila-news-com/bpa/banking-payments-asia-issues/bpa-2009Google Scholar
Ganesan, Narayanan (2005), Realism and Interdependence in Singapore's Foreign Policy, London and New York: Routledge.CrossRefGoogle Scholar
Giam, Gerald (2010), Singapore Version 2.0: Alternative Proposals for a Better Singapore, http://geraldgiam.sg.Google Scholar
Goh, Chok Tong (2009), ‘The Future of the Financial Sector in Singapore – Riding the Challenges, Emerging Stronger’, delivered to the 36th Association of Banks of Singapore Annual Dinner, 26 June, Singapore SMU SG Press Centre.Google Scholar
Grigg, Angus (2014), ‘Did Hong Kong begin to wane long ago?’, The Australian Financial Review, 6–7 September, p. 13, www.afr.com.Google Scholar
Grant, Jeremy (2013), ‘Singapore Loosens Switzerland's Grip on Wealth Management’, Financial Times, 23 July, www.ft.com/cms/s/048c3630.Google Scholar
Guo, Yvonne and Woo, Jun Jie (2013), ‘S'pore–Swiss tackling of tax evasion How the two countries manage such activities will be crucial for their continued success and global standing’, The Business Times, 11 July, www.thebusinesstimes.com.Google Scholar
Hamilton-Hart, Natasha (2010), ‘Indonesia–Singapore Relations’, in Ganesan, N. and Amer, Ramses (eds.), International Relations in Southeast Asia: Between Bilateralism and Multilateralism, Singapore: Institute of Southeast Asian Studies, pp. 199–224.Google Scholar
Ho, Khai Leong (2005), ‘Corporate Governance Reforms and the Management of the GLCs in Singapore: Pressures, Problems, and Paradoxes’, in Ho, Khai Leong (ed.), Reforming Corporate Governance in Southeast Asia: Economics, Politics and Regulations, Singapore: Institute of Southeast Asian Studies.CrossRefGoogle Scholar
Kleinman, Mark (2008), ‘Singapore PM “transparency isn't everything”’, The Telegraph, 27 January, www.telegraph.co.ok/finance/markets/2783367/Singapore-PM-transparency-isn't-everything.Google Scholar
Koh, Tommy and Lin, Chang Li (eds.) (2005), The Little Red Dot Reflections by Singapore's Diplomats, Singapore: World Scientific and Institute of Policy Studies.CrossRefGoogle Scholar
Lee Hsien Loong, (2010), ‘Keynote Address’, in Tar How, Tan (ed.), Singapore Perspectives 2010: Home, Heart, Horizon, Singapore: Institute of Policy Studies, Lee Kuan Yew School of Public Policy and World Scientific. pp. 5–12.Google Scholar
Letzing, John and Zibel, Alan (2014), “Swiss ‘regret aiding tax dodgers’”, The Wall Street Journal in The Australian, 28 February, p. 20.Google Scholar
Liow, J.C. (2010), ‘Singapore's Foreign Policy: Reading and Adapting to the Fast-changing International Context’, in Chong, Terence (ed.), Management of Success Singapore Revisited, Singapore: Institute of Southeast Asian Studies, pp. 21–37.Google Scholar
Logutenkova, Elena (2012), ‘Banking secrecy under threat’, The Australian Financial Review, 21 March, p. 24.Google Scholar
Low, Linda (2010), ‘Exploring New Engines for Growth’, in Chong, Terence (ed.), Management of Success Singapore Revisited, Singapore: Institute of Southeast Asian Studies, pp. 159–79.Google Scholar
Merkel, Angela (2011a), ‘Address by Federal Chancellor Dr Angela Merkel as part of the 31st Singapore Lectures of the Institute of Southeast Asian Studies Singapore’, 2 June, http://www.singapur.diplo.de/Vertretung/singapur/en/03/4__Germany__Singapore/seite__merkel__singapore__lecture.html.Google Scholar
Merkel, Angela (2011b), ‘Address by Federal Chancellor Angela Merkel as part of the Singapore Lectures of the Institute of Southeast Asian Studies’, Die Bundesregierung, 9 July, http://www.bundesregierung.de/nn_6566/Content/EN/Reden/2011/2011–06–02-bkin-singapur__en.html.Google Scholar
Monetary Authority of Singapore (2011), Annual Report 2010/2011, Singapore: MAS, www.mas.gov.sg.Google Scholar
OECD (Organisation of Economic Cooperation and Development) (2009), Countering Offshore Tax Evasion Some Questions and Answers on the Project, 28 September, http://www.oecd.org/tax/evasionGoogle Scholar
OECD (Organisation of Economic Cooperation and Development) (2014), Automatic Exchange of Information, 21 July, http://www.oecd.org/ctp/exchange-of-tax-information/standard-for-automatic-exchange-of-financial-information-in-tax-matters.htmGoogle Scholar
OECD (Organisation of Economic Cooperation and Development) (2014), Automatic Exchange of Information, 23 September, www.oecd.org/tax/exchange-of-tax-informartion/automaticexchange.htm.Google Scholar
Purba, Kornelias (2011), ‘To Singapore's PM Lee: Reject Indonesian Corrupt Criminals’, The Jakarta Post, 7 July, www.thejakartapost.com.Google Scholar
Reuters (2009), Singapore Passes Tax Law to Improve Transparency, 19 October, Thomson Reuters, www.reuters.com.Google Scholar
Robins, Brian (2014), ‘Singapore Turns Its Hand to Wealth Management’, 10 March, The Sydney Morning Herald, www.smh.com.au/business.Google Scholar
Saltmarsh, Mathew (2010), ‘Swiss Banks Losing Cloak of Secrecy’, The Australian Financial Review, 15–16 May, p. 33, www.afr.com.Google Scholar
Saunders, Laura and Letzing, John (2013), ‘Swiss Bow to US on Bank Data’, The Wall Street Journal in The Australian, 31 May, p. 20, www.theaustralian.com.au.Google Scholar
Saunders, Laura and Letzing, John (2014), ‘Swiss “Regret Aiding Tax Dodgers”’, The Wall Street Journal in The Australian, 28 February, p. 21, www.theaustralian.com.au.Google Scholar
Shotter, James (2013), ‘Swiss and US Still at Odds over Tax Deal’, Financial Times in The Australian Financial Review, 21 June, p. 18, www.afr.com.Google Scholar
Smith, Anthony (1999), ‘Indonesia's Role in ASEAN: The End of Leadership?’, Contemporary Southeast Asia, 21 (2): 238–60.Google Scholar
Smith, Anthony L. (2000), Strategic Centrality: Indonesia's Changing Role in ASEAN, Pacific Strategic Papers, Singapore: Institute of Southeast Asian Studies.Google Scholar
Song, Sophie (2014), ‘Singapore, Now World's Fastest Growing Wealth Management Hub, Not Free From Tax Evasion and Other Crimes’, 18 February, International Business Times, www.internationalbusinesstimes.com.Google Scholar
Sasdi, Ardimas (2007), ‘Singapore Will Never Sign Treaty with RI’, 26 February, The Jakarta Post, www.mail-archive.com/akhi@yahoogroups.com/msg00568.html.Google Scholar
Studwell, Joseph (2008), Asian Godfathers: Money and Power in Hong Kong and South-East Asia, London: Profile Books.Google Scholar
Tan, Tarn How (eds.) (2010), Singapore Perspectives 2010: Home. Heart. Horizon, Singapore: Institute of Policy Studies, Lee Kuan Yew School of Public Policy and World Scientific.Google Scholar
Times Business Directory of Singapore (2011), ‘PM Lee: Singapore to Maintain High Standards as Financial Centre’, 2 June, www.timesbusinessdirectory.com/Singlenews.aspx?DirID+134&rec_code+737.Google Scholar
US Department of State (2011), ‘2014 Investment Climate Statement – Singapore’, 21 May http://www.state.gov/r/pa/ei/bgn/2798.htm.Google Scholar
US Department of State (2014), ‘2014 Investment Climate Statement – Singapore’, June, http://www.state.gov/e/eb/rls/othr/ics/2014/227226.htm.Google Scholar
Vernardos, Angelo M. (eds.) (2010), Current Issues in Islamic Banking and Finance: Resilience and Stability in the Present System, Singapore: World Scientific.CrossRefGoogle Scholar
Welsh, Bridget, Chin, James, Mahizhnan, Arun, and Tarn How, Tan (eds.) (2009), Impressions of the Goh Chok Tong Years in Singapore, Singapore: NUS Press Singapore, Lee Kuan Yew School of Public Policy, National University of Singapore and Institute of Policy Studies.CrossRefGoogle Scholar
Yeo, George (2005), ‘Foreword’ in Tommy, Koh and Chang, Li Lin (eds.), The Little Red Dot Reflections by Singapore's Diplomats, May, Singapore: World Scientific and Institute of Policy Studies. pp. vii–viii.Google Scholar