A recent study found that locating treasury operations within a well-developed, well-regulated and open financial ecosystem is a key factor when it comes to managing a successful regional expansion plan.
Singapore – the world’s third-largest foreign exchange trading hub – is often named as Asia’s top treasury location. Companies using the city-state as a base for all their finance, treasury and banking activities are able to take advantage of Singapore’s efficient banking system, liberal foreign exchange convertability regulations and ease of doing business.
As a tax-efficient and open financial centre, Singapore attracts a deep talent pool with the multinational financial experience that treasure centres require. It also offers a wide and liquid financial market in which to trade, an open eco-system that allows maximum coverage, and a tax regime that supports treasury effectiveness.
Regional treasury centres based here can also take advantage of tax incentives such as the Finance and Treasury Centre (FTC) Incentive, which allows approved companies a reduced corporate tax rate on certain activities, among other things.
Singapore's thriving financial technology (FinTech) industry also presents opportunities for companies to modernise their treasury and cash management functions through digital solutions.
Given these varied strengths, it is not surprising that a wide range of multinational corporations are already using the city-state as a regional hub. The roll call of household names includes the BMW Group, Dow Financial, General Electric, Johnson & Johnson, Nestlé, Mitsubishi Heavy Industries and Samsung.