Singapore’s asset management industry had year-on-year growth of 5.4% to S$3.4trn ($2.5trn) during 2018, with 75% of asset under management (AUM) sourced from outside of Singapore, according to a recent report from Monetary Authority of Singapore (MAS).
By comparison, global AUM for the world’s asset management industry declined by 4% to $74trn, compared to an increase of 12% in 2017, the report noted.
In a follow-on trend from 2017, when alternatives assets grew 17% for the year, Singapore’s asset growth was again boosted by the asset class.
“Traditional [product] AUM was sluggish and registered a 7% decline over the year. The alternatives sector, however, continued to expand strongly, with 15% growth to S$646bn,” the report said.
“In particular, private equity, venture capital and real estate saw strong inflows and continued valuation gains as investors increased exposures to private assets for return enhancement and portfolio diversification,” the report added.
In 2018, MAS pledged support for the growth of private equity with a $5bn initiative. “[$5bn] will be placed for management with top global private equity and infrastructure fund managers who are committed to deepening their existing presence or establishing a significant presence in Singapore,” said Peter Ong, MAS board member.
The report also noted that in 2018 there was a net increase of 72 registered and licensed fund managers, bringing the total to 787.
Fintech Singapore
The report said that the Investment Management Association of Singapore introduced the digital accelerator programme to provide selected fintech start-ups with the opportunity to work with asset management firms in Singapore to develop and test commercial solutions for the industry.
However, according to a recent report from Michael Page Singapore, a recruitment firm, 94% of fintech companies surveyed agreed that Singapore is facing a major shortage of fintech talent.
According to the report, Singapore has roughly 400 fintech companies in various stages of development, and relatively fast growth has created the talent shortage. It is most acute in the fields of artificial intelligence, machine learning, data science and user interface/user experience.
The majority of fintech company management surveyed (63%) preferred finding domestic employees to fill the roles. However, the report suggested that Singapore’s educational institutions are unable to turn out an adequate number of “industry ready” personnel.
