Singapore Banking and Finance Services Sector

capital of capital of capital of capital of capital of capital of capital of Singapore Banking and pay Services SectorIntroductionWhat is the banking and pay services firmament?Definition of banking and finance gives information of definition of banking and definition of finance. Finance room circulation of capital much(prenominal) as m angiotensin converting enzymey and currency, or procurement and counsel of the capital, in connections with financing activities. Finance and banking service is Services and products provided to consumers and businesses by fiscal institutions such as banks, insurance companies, brokerage firms, consumer finance companies, and investment companies every of which comprise the pecuniary services industry (InvestorWords, 2015). Two of both sectors be related to each another(prenominal).What does this sector mean to the Singapore scrimping?Banking and Finance of Singapore economy is finance and banking services. In recent years, Asiatic countri es be receiving attention from the world because they have an infinite of possibilities and capabilities such as fantastic good turn of population, geo graphical position and abundant natural resources. Most of all, Singapore have grown up and developed rapidly. Since 1970s, Singapore was called four Asiatic dragons with several Asiatic countries, which are Hong Kong, Taiwan and due south Korea because Singapore and those countries could reach rapidly industrialized by cheap and plentiful labor and expeditious ex fashion policy. Especially, Singapore have been developed by finance and banking services. constituent of these sectors to the national economySingapore economy could be developed by contributions of finance and banking services sector such as Job commercialize and Financial Hub and attracting extraneous direct investment and so on.Especially, the reasons of create is that Singapore is a huge financial hub and attracting overseas direct investment. Early Sing apore was limited land space and natural resources. To overcome those disadvantages, Singapore move trade liberalization. And to make the best use of a geographic benefit, this countrified intermediated trade. Therefore, Singapore is capable to be a finance hub and attract international direct investment.Nowadays, Singapore is an international major financial trading hub to creep up its head in dealings of foreign exchange and the flying field of asset management. Foreign-exchange market of Singapore is ranked top five in the world subsequently London, New York, Zurich and Tokyo. And accordingly, there is 110 number of foreign banks. The scale of asset management is about S$ 1trillion. Recently, Singapore is force forward a business of Islam finance.For attracting foreign direct investment, Singapore is a trade liberalization because there is a transport center by its conditions of a location. Because of using this benefit, there is total 5 container terminals and 45 berths. This container port processes one-fifth amount of international transhipment. Moreover, Singapore airport Chang-I is connecting with 200 cities in 60 countries. There is 85 airlines.Second contribution is Job Market. jibe to alter Singapores finance and banking services, there is the number of foreign banks and businesses. It means that getting job in Singapore is able to be easy. And therefore, gross domestic product per capita in Singapore too will increase. Below graph is GDP per capita in Singapore from 1960 to 2013.-GDP per capita of Singapore (GDP of Singapore, bln. Dollar, 1970-2013) check GDP per capita in Singapore line graph, the GDP per capita was rising steadily from 1970 to 2013. In 1960, the GDP per capita is only 925 USD. It is the lowest GDP per capita from 1970 to 2013, ranked 74th in the world. For example, the figure metrical lower than GDP per capita of Indonesia (86 USD) and Malaysia (343 USD), which are Singapores neighbor countries, and then one of devel oping countries in the Asia currently. On the contrary, the highest GDP per capita was a dear(p) 54,649 USD in 2013. The measured value of GDP (54,649 USD) per capita is higher than some developed countries such as U.S.A (5126 USD) in about 6 times, Japan (2016 USD) in 2 times, and Germany (2712 USD) in 3 times. Generally, this graph is drawn by uply curve. (Kushnir, n,d)Challenges facing by this sector in the succeeding(a)Singapore economy has been improved by banking and finance services. However, the sector is able to face challenges such as dependency of global economy and other regional financial hub in the future. Singapore is the biggest Asia finance hub. Thus, economy of Singapore is exposed and influenced by global stinting conditions. And then, it is shown by GDP of Singapore.GDP of Singapore, 1970 to 2013 (GDP per capita in Singapore, bln. Dollar, 1970-2013)The to a higher place line graph illust ordains GDP of Singapore from 1970 to 2013. Generally, GDP of Singapore draws upward curve. In 1970, GDP of Singapore was an estimation of 1.9 cardinal USD (United States Dollar). It is ranked 74th in the world. By 1980, the GDP slowly increased to about 12.08 billion USD. Moreover, after 1980, the GDP took a sharp increased from to 1997. However, from 1997 to 2004, the graph of GDP is chiefly decreasing by Asia economical crisis. The issue appeared from South Korea. Some of Asian countries tried to be capital decontrol. But without capital, the countries should take out a loan from IMF (International Monetary Fund). Thus, Singapore economy was also affected from Asia economic crisis. Eventually, most companies in Singapore ought to restructure with layoff, and is under threat of bankrupt. Nevertheless, in one case again, it steadily increased to the year 2013. In 2013, the GDP was about 297.94 billion USD. (Kushnir, n,d)According to GDP, after 2004, Singapore economy has been grown. However, from 1997 to 2004, had been decreasing because of Asia ec onomic crisis in the period. It means that the same economic condition will be happened by global and regional economy in the future.Other challenge in Singapore is competitive from other regional financial hub. The number of Asian international financial centers (IFCs) such as Seoul in South Korea, Tokyo in Japan and Shanghai in China indispensability to become international financial hub. Nowadays, the international financial centers of those cities are developing and making an effort, and then each cities are competitors of Singapore financial center. For example, one of the competitor, Seoul in South Korea, establish the Korea National Committee for peace-loving Economic Cooperation (KOPEC). In 2007, KOPEC had a convention of an international conference in Seoul with 3 Asian countries such financial centers (Hong Kong, Seoul, Shanghai, Tokyo and Singapore). some other microeconomic challenge is a Shortage of skilled talent. In Singapore, is already international financial hub, there is the number of business and banks are having competitions. If employees in judicature have shortages of skill and talent, they would not survive in the rapidly changing world economic situation. For example, Accounting and writing skills are crucial, International talent in High demand at funds-center banks, Marketing types wanted, Days of easy hours long gone and then MBA optional. They should develop their own skills and talents, and then may follow the economic flow. (Hean Hoo, 2015)Strategic planning by this sector in the present and the futureIn Singapores finance and banking services sector, there is the number of competitors such as banks and businesses as easy as financial centers from other Asian cities. Singapore should have strategic planning such as training and education, and global innovation.Training and EducationMost of organizations should train and modernise their employees for the rapidly changing world economic situation for employees effective, accu rate and matter-of-fact performance of tasks. After training and education, the employees would be more developed. One of counsel in effective training and education is E-learning by developed technology. When organizations informal online lecture, the employees may get the organizations training and education finished their Smart-Phone and Tablet PC. This kind of training for adults looks helpful and effective for them that they can be able to learn all of the necessary things that they need in improving their skills and techniques. (Stephanie, 2014)Stress interrogatory and stake managementStress testing for risk management is one of the useful method for identifying how a portfolio would be bring together during a period of financial crisis. One of the most general use ways of stress testing is The Monte Carlo simulation. Moreover, this simulation technique is also used to be aware of how several risks will influence an organization and industry. Before an economic a financ ial crisis, using the simulation is able to detect and predict future economic crisis with solutions. Therefore, countries and organizations ought to do stress testing and manage future risks.ConclusionHow the MAS supports this sector?The Monetary part of Singapore (MAS) is a Singapore central bank, a kind of Singapore administration department. MAS has authority of regulation and supervision of Singapore finance and banking, and then it issues money and drafts a law of financial and banking policy. This department focuses on exchange rate rather than interest rate otherwise other central banks. According to developing Singapore, Singapore is complicated by the number of bank works with finance, so the government established Monetary Authority of Singapore be in January, 1991. (Monetary Authority of Singapore, 2014)What is the outlook for the future of this sector in Singapore?Nowadays, Singapore is one of the most developed countries in the world, as well as in Asia because of the finance and banking services. Through the GDP and the GDP per capita from 1970 to 2013, the graphs are illustrated that it has increased and grown up in the future. In the end, Singapore finance and banking services will be more by several contributions. However, Singapore will also face several challenges in the future, so the rural area should have strategic planning of the sector, and predict and manage future risks.ReferencesInvestorWords (2015) InvestorWords. Availanle at http//www.investorwords.com/19080/financial_services.html Accessed 15 May 2015.Kushnir, I. (n.d) World macroeconomic research, 1970-2013. Available at http//kushnirs.org/macroeconomics/gross domestic product/gdp_singapore.html Accessed 15 May 2015.Kushnir, I. (n.d) GDP of Singapore, bln. Dollar, 1970-2013. Available at http//kushnirs.org/macroeconomics/gdp/gdp_singapore.html Accessed 16 May 2015Kushnir, I. (n.d) GDP per capita in Singapore, bln. Dollar, 1970-2013. Available at http//kushnirs.org/macroecon omics/gdp/gdp_singapore.html Accessed 16 May 2015.Hean Hoo, W. (2015) Economics Policy and the Global Environment LECTURE SLIDES. Kaplan/capital of Ireland Veritas.Stephanie, R. (2014) Workplace Training and Education Effective Methods for Training Adults, Human Resources Blog, 17 Feburary. Available at http//tribehr.com/blog/workplace-training-and-education-effective-methods-for-training-adults Accessed 18 May 2015.Monetary Authority of Singapore. (2014). Monetary Authority of Singapore. Available at http//www.mas.gov.sg/about-mas/overview.aspx Accessed 17 May 2015.