Under the agreement, Bank of Singapore will serve SMBC Trust’s clients who want to invest outside of Japan, Bahren Shaari, Bank of Singapore’s CEO, said in a joint statement.
The Singaporean bank hopes that the partnership will significantly raise its profile amongst Japanese ultra high and high net worth individuals.
The bank also said it believes the agreement, a memorandum of understanding, is the first of its kind between a Singapore-based private bank and a Japanese bank.
SMBC Trust is a wholly-owned subsidiary of Sumitomo Mitsui Banking Corporation, which offers a variety of services, including private banking.
FSA sought more information from Bank of Singapore, but it was not able to comment in time for publication about what kind of services and products it will be offering to SMBC Trust’s clients.
Private wealth assets in Japan is expected to increase to $16.2trn in 2021 from $14.9trn in 2016, according to the statement, citing a study published by the Boston Consulting Group.
In addition, Japanese investors are looking outside domestic bonds and stocks and at alternative assets, including real estate, the statement added, citing data from Jones Lang Lasalle. Outbound real estate investment from Japan was nearly $3.5bn in 2017, which is 70% more than in 2016.
