Singapore Leads in Forex Trading in Asia-Pacific Region
The city-state of Singapore has established itself as a leading offshore financial centre in Asia. As a matter of fact, it is also the forex trading hub of the Asia-Pacific region, coming third after London and New York. The business is overseen by the Singapore Monetary Authority, and like most things in that country, it is managed very well indeed. One of the main reasons that the industry has flourished here is the proper regulatory framework that exists.
Singapore has come a long way from being a British colony to becoming an economic powerhouse. It also suffered heavily during the Second World War when it came under a brutal Japanese occupation. Furthermore, it has a large population of ethnic Chinese and Indians in a region that is predominantly Malay or Muslim. In fact, Singapore was part of the Malay Federation when the war was over and Japanese occupation overthrown. However, it was expelled from the Federation on account of many differences.
The credit for Singapore’s spectacular success goes to its visionary leader Lee Kuan Yew who realized that the state would have to develop its own human resources in the absence of other natural resources. The government has invested heavily in a bilingual and modern education system that places great emphasis on STEM (science, technology, engineering, and mathematics) fields. The government has instituted a number of scholarships and programmes to help develop the country’s human potential, either by training them within the country or helping them get the necessary education abroad. Equally importantly, the society gives immense respect to educators and provides them with salaries that are above the national average.
The emphasis on high quality and universal education has no doubt helped Singapore develop a well-trained workforce and this has enabled it to attract businesses from all over the world. Another reason for Singapore’s success has been the importance given to meritocracy. The country has also enjoyed a very long period of political stability, much unlike many of the countries in its neighbourhood. In addition, it has passed a number of laws that are business friendly, making it one of the best places in the world to start an offshore enterprise. The government is fiercely opposed to corruption, and it hands out very severe punishments to people who are caught.
It has to be admitted that Singapore has had a reputation for authoritarianism, but the government has begun to tone it down with the times. The government is indeed run by a political cartel of sorts, but since its emphasis is on making the country a business-friendly destination this does not seem to trouble offshore investors in the least since they have been coming to do business in ever increasing numbers.
Forex Trading in Singapore
The retail forex trading industry in Singapore is extremely well developed since its highly educated and wealthy citizens are confident that the industry is regulated properly. Forex trading is a very good way to earn money and increasing numbers of Singaporeans are taking this opportunity. There are nine authorized retail forex brokers in the country, and each of them is experiencing an uptick in business.
While some of these brokerages are global entities others are smaller local ones. Traders, therefore, have plenty of good options to choose from and can find a trader offering services that suit their needs perfectly. Over and above these nine brokers, there are also offshore brokers that offer forex services to Singaporeans. These brokers will no doubt continue to do increasing business in Singapore as more people find out about the advantages of forex trading and jump onto the bandwagon.