SINGAPORE

O V E R V I E WLocated in southeast Asia, Singapore is a tiny city-state that has become an international financial hub - the fourth leading financial center in the world. Along with a regime of low taxes, business-friendly attitude, and limited government, its banking sector is considered one of the most stable in the world. As one of the four Asian Tiger economies, it has achieved solid GDP growth and a strengthening currency. Financial freedoms have been advancing further, making it the second freest economy in the world. State ownership in key sectors does continue, however, and the social security program is wide-reaching with savings been allocated toward retirement, housing (most of which is government built), and health care. Cars are mercilessly taxed. Public debt is high but assets held in sovereign wealth funds create a zero net debt environment.

Occupied by Japan during World War II, Singapore declared independence from Britain to form part of the new Malaysia in 1963, until breaking off on its own two years later. A massive increase in wealth followed, now ranking it as the third richest country behind Qatar and Luxembourg, and first in the number of US-dollar millionaires per capita. It is a truly international destination. Low tax rates and a dynamic economy have attracted expats who hail from around the world, giving the city a vibrant, yet extremely safe, feel to it.

GUIDE TO INTERNATIONAL BANKING:SINGAPORE

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A N A L Y S I SSingapore is a vibrant place. There’s a feeling of action and productivity in the humid tropical air. With over five million people packed into a postage-stamp sized nation, it’s a bustling place.

If you’re a westerner, you will feel relatively at home in Singapore right away. It’s clean, well laid-out, and efficient. Public transportation can take you anywhere you will likely want to go. While Americans will be a bit confused by the practice of driving on the left, Singapore is as close to home as you can get in Asia.

Singapore’s hallmark is its economic freedom. If you talk to lifelong residents, especially young people, you’ll see that they find their personal freedoms to be lacking. From forced military service to not being able to drink water on the subway, you may need to adjust to the Singapore way of life. However, you can easily tap into the efficient banking system with little fanfare.

While there are three “main” banks in Singapore - the result of consolidation - there are also plenty of other regional and international banks worth looking into. Most of these banks have an office in the central business district near Collyer Quay and Marina Bay. Banks like UOB and OCBC maintain large complexes here, while smaller banks from Malaysia, Australia, the UK, the US, India, Japan, and elsewhere have smaller presences in line with their market position.

The best way to open an account is simply to visit the main branch of the bank of your choice. Some smaller or suburban branches may be able to help foreigners or may not, either because of lack of experience or - in some cases - the bank’s goal to process foreigner accounts in one place. Raffles Place is easy to get to on the Red or Green MRT lines and you could throw a stone from the exit and hit a dozen banks.

This guide will focus on accounts available to US persons, since Americans have become the most reviled of any nationality among foreign banks thanks to laws like FATCA. In general, banks based in Malaysia, Japan, and India won’t open accounts for non-residents; their Singapore presence is too small and they’re too niche to have a need to deal with the headaches.

If you’re a US person, your best bet is to focus on UK and local banks. Some Hong Kong banks may open an account for you but you’d probably be better off going to Hong Kong for that. The larger local banks have different options based on your profile.

If you only have $1,000 to deposit, UOB (as an example) won’t touch you - they want foreigners to be private bank clients. OCBC, on the other hand, will put you with a low-level banker with little personality, but they will likely open an account for you. Meanwhile, a bank like HSBC or Standard Chartered with a global presence will be most easy to deal with; they’re already complying with your home country’s silly laws.

GUIDE TO INTERNATIONAL BANKING:SINGAPORE

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Meanwhile, if you are looking to deposit a larger sum of money, some banks will really roll out the red carpet for you. One private bank I visited brought my choice of fresh juices while I waited in their lobby lounge, then offered a wine flight once with the private banker. While minimums for private bank-style accounts can be as high as $1 million, others exist for as little as a couple hundred thousand.

As discussed later, Singapore does not insure amounts over S$50,000 held in a bank account, so make sure you are comfortable with the bank before depositing larger amounts. While I believe confidence in the bank is an important factor alongside insurance, no banker I talked to knew much about private deposit insurance, nor did their banks offer it. Tread carefully.

English is widely spoken in Singapore, although with a dialect casually called “Singlish”. Everyone at almost every bank will speak English well, but as with any cultural difference, there may be a few words or terms they pronounce differently.

Some say that Singapore is a culture of rules. I won’t say that about the whole country, but it is true in banking. Don’t expect an introductory-level retail banker to find a creative way to open a certain type of account. Do your research and be clear in what you want before going in.

You should be aware that Singapore banks will sometimes try to sell you “savings plans” that require you to contribute a certain amount into an un-touchable savings account, usually for anywhere from six to ten years. These plans are tied in with a form of cash-value life insurance

GUIDE TO INTERNATIONAL BANKING:SINGAPORE

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