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Survey: RMs earn more in HK than Singapore

Front office private banking and wealth management professionals in Hong Kong are paid more than their Singapore counterparts, according to the Hays’ 2017 salary survey.
Fund Selector Asia

The maximum salary of relationship managers in Hong Kong is more than double that of those in the Lion City.

In private banking alone, Hong Kong relationship managers earn the most when compared to those that are based in China, Japan, Malaysia and Singapore, the survey shows.

In wealth management, salaries for those in China and Hong Kong are on par with each another. However, those in Japan were paid the highest.

Private banking and wealth management annual salaries (USD)

  Private banking RM Senior private banking RM Sales manager  Sales director
China 43.7k – 69.9k 69.9k – 109.1k 52.4k – 80k 58.2k – 101.9k
Hong Kong 64.4k – 128.9k 154.6k – 386.6k 77.3k – 154.6k 154.6k+
Japan 79.9k – 106.3k 106.3k – 132.9k 132.9k – 160.5k 160.5k+
Malaysia 17.5k – 27k 27k – 41.8k 41.8k – 53k 53k – 71.9k
Singapore 42.6k – 106.5k 106.5k – 177.4k 49.7k – 71k 85.2k – 127.8k

 

  Wealth manager Senior WM Premier banking RM Private banking client services
China 40.7k – 58.2k 65.4k – 94.5k 29k – 50.8k 37.8k – 52.4k
Hong Kong 36.7k – 61.9k 61.9k – 92.8k 46.4k – 77.3k 38.7k – 58k
Japan 62k – 97.5k 88.6k – 106.3k 70.8k – 106.3k 62k – 79.8k
Malaysia 13.5k – 20.2k 20.2k – 32.4k 32.4k – 38.7k  35.1k – 54k
Singapore 24.1k – 29.8k 29.8k – 41.2k  56.8k – 60.3k 29.8k – 41.2k
Source: Hays. Figures exclude all bonuses such as performance-based bonsues. The report had salaries in local currencies and for these charts all figures have been converted to US dollars.

 

FSA sought more information from Hays, but the firm was not able give additional insight on the differences in wages.

Even on a net-basis, Hong Kong private bankers will still earn more than those in Singapore. Although both have relatively low income tax rates than the rest of the world, Hong Kong’s top effective rate of taxation in 2016 is around 15%, while Singapore is at 22%, according to data from KPMG. 

The cost of living for both cities is close. Although Hong Kong is ranked as the city with the highest cost of living globally, Singapore is ranked fourth, according to Mercer’s cost of living ranking survey

Recruitment in Singapore slowing

Separately, Hays’ survey said recruitment in Singapore’s private banking industry has slowed, with the exception of demand for relationship managers from both pure-play private banks and private banking teams of the large banks.

“Private banking, the success story of Singapore in recent times, is also facing a difficult year. The cost of doing business has risen due to increasing regulations and, coupled with a number of external events, we have seen some high profile banks exit Singapore,” the report said.

According to the study, hiring in middle and back offices is expected to slow this year, with the exception of client on-boarding and know-your-customer roles.

In Hong Kong, the consolidation of the private banking industry has also affected the salaries of compliance and client on-boarding roles. Salary increases for those roles are expected to be much less prevalent this year than in past years, the survey said.

Private banking recruitment of relationship managers is also expected to involve higher requirements than in the past. Employers want to meet as many candidates as they can, which means longer recruitment processes, according to the survey.

In addition, some employers will only short-list candidates with stable employment histories.

Echoing the Hays study, Sunny Kwak, Morgan McKinley’s Hong Kong-based consultant for private banking, said in a previous FSA interview that private banks are increasing the type of vetting that potential candidates go through.

The process was faster before and less time was spent on candidate due diligence. Candidates would only be interviewed by the bank’s human resource department and the team head. 

“Now they ask the bankers to not just meet with hiring managers, but also with peers and the team,” she said.

Part of the Mark Allen Group.