http://www.straitstimes.com/archive/...ement-20140923

Singapore 'a global hub for wealth management'

UBS' Asia-Pacific chief: Asia's growth has worked in Republic's favour

Published on Sep 23, 2014 1:13 AM

By Grace Leong


SINGAPORE is poised to challenge Switzerland as one of the world's largest wealth management centres, according to UBS officials yesterday.

Mr Chi-Won Yoon, chief executive of the Swiss bank's operations in the Asia-Pacific, told the media on the sidelines of an event to mark its 50 years in Asia: "Singapore plays a very important part in our strategy across the region."

"The way we grew in Singapore is synonymous with Singapore's growth as a financial centre. When we arrived 45 years ago, Singapore was much more focused on trade finance.

"It was then a trading hub for goods, and then moved on to investment banking activities, and South-east Asian companies were raising money through Singapore capital markets. Over the last 10 years, it emerged as one of the key global wealth management hubs."

Mr Yoon noted that Asia is growing faster than any region in the world, a factor that is driving wealth creation in the region.

"It is true that there have been regulations and the world of wealth management has changed. The real compelling advantage in wealth management is the intellectual content and the advice we can give our clients. From that point of view, Switzerland has led the way, and Asia is following to some extent," he added.

UBS has 4,000 employees here across its wealth management, investment banking and global asset management businesses and global offshoring activities. Together with its UBS Business University Asia-Pacific, UBS occupies more than 900,000 sq ft of office space.

UBS has had a presence in Asia since 1964, when Swiss Bank Corp (SBC) opened offices in Hong Kong and then, one year later, in Japan. In 1970, SBC was the first Swiss bank to establish a presence in Singapore. UBS was formed from the 1998 merger of SBC and Union Bank of Switzerland, which opened its office in Singapore in 1971.

UBS marked its 50 years in Asia yesterday by unveiling new signage on top of its building at One Raffles Quay yesterday and launching a youth academy.

The academy, which will have faculties of finance, arts and leadership, will provide education and development opportunities for young people.

UBS had total invested assets of 238 billion Swiss francs (S$320 billion) from wealth management clients in the Asia-Pacific as of the second quarter.

About 15 per cent of its wealth management clients are ultra-high-net-worth customers with 50 million Swiss francs or more in assets, while the rest are high-net-worth clients with between two million and 49 million Swiss francs in assets.

"If you look at our client base in Asia, most of them are entrepreneurs," said Mr Edmund Koh, head of wealth management in South-east Asia.

"If you look at the ownership of corporates across the region, it is predominantly still owned by family, or a majority shareholder or leading founder, which isn't surprising, given that wealth creation took place post-World War II, so it's still relatively young wealth.

"As a platform, given that we are strong in wealth management, investment banking and have a strong asset management arm, we can address needs of clients from beginning to end."

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