Singapore to launch new corporate structure for investment funds in 2019

Singapore is preparing a new corporate structure for investment funds in the hopes that more fund managers base their funds and run their fund management activities in the country.

Photo credit: Suman76

Monetary Authority of Singapore (MAS) board member and Singapore education minister Ong Ye Kung announced the structure, called the Variable Capital Company, during the annual Investment Management Association of Singapore conference held yesterday.

“This will further deepen our fund servicing ecosystem, and create new business opportunities for a wide range of professions such as lawyers, accountants, tax advisors, fund administrators and custodians in Singapore,” Ong said.

He also noted that with Singapore’s current financial ecosystem and technological innovations, the country can become a “significant” investment and fund management hub.

In another step towards that goal, Ong said that Singapore will partner with the Singapore Venture Capital & Private Equity Association and Cambridge Associates to create performance benchmarks for Southeast Asian-focused private equity and venture capital funds.

In 2017, MAS introduced simpler regulations for VC fund managers to attract more investment in the country. Last year, the institution also launched Meet ASEAN’s Talents and Champions, a platform that connects startups with investors.

According to professional services network PricewaterhouseCoopers, assets under management in the Asia-Pacific region are expected to grow faster than any other region worldwide, and are projected to double to roughly US$30 trillion in 2025 compared to 2017.

“Singapore is benefitting from this regional trend,” said Ong, adding that the country’s investment management sector grew by 15% year-over-year between 2012 and 2017 to reach total assets under management of US$2.4 trillion.