The collapse of Swiss bank Credit Suisse has shaken global wealth investors, with some experts saying it had affected Switzerland’s reputation as a safe place to invest.

On the other side of the world, Singapore may see the opposite effects where wealth managers and private bankers expect growth in client requests and fund movement in 2023, as reported by «The Business Times» (behind paywall).

Singapore’s political stability, transparent government policies and pro-business environment remain intact, said Citibank Singapore CEO Brendan Carney.

Singapore Premium

Since 2022, UOB for example, has seen increased client interest, with an especially healthy pickup in net new money inflow since January this year, added head of private wealth Chew Mun Yew. «Since 2019, we believe this Singapore premium has taken on added significance – just like there used to be a Swiss finish,» he said.

Opportunities may appear for wealth managers and private banks to win new clients or additional funds. Leon Ong, partner of the financial services advisory at KPMG Singapore, expects increased activity in sales and marketing in the near term, as relationship managers seek to get as many new clients as possible.

However, Credit Suisse's collapse may also take the money out. «The average Asian investor also inclines to diversify investments with several banks,» he said.

Gateway to the Rest of APAC

Along with the growing high-net-worth population in Asia, banks are preparing their sight on serving this segment and Singapore remains a gateway to the rest of APAC region.

«We see (Singapore) as the center of an ecosystem; deals are being done here, there is vibrancy, with more investors and wealth being accessible out of Singapore for the region,» said Kerrine Koh, head of Southeast Asia at Hamilton Lane.

From Return on Capital to Return of Capital

The situation may encourage more diversification for investments in the city-state, with the outperforming of private markets versus public. Thus, there will be a great opportunity to serve this expanding investor base in Singapore, Koh said.

On the other hand, there is also increased interest in the areas of succession planning and wealth preservation, according to DBS Private Bank group head Joseph Poon. Amid the recent turmoil, clients are shifting their investment perspective from «return on capital» towards «return of capital», he added.