Asian Cities to Become Top Finance Centres by 2022-Survey

LONDON (Reuters) - Top UK traders and dealmakers bruised by intense banker bashing believe an Asian city will take over as the world's dominant financial centre within 10 years, according to a survey.

They also relegated London to third place from second as their preferred location behind Singapore and New York, the poll by headhunters Astbury Marsden found.

Nearly two thirds of 450 British investment bankers surveyed said Hong Kong, Shanghai or Singapore would be the top global finance centre in 10 years.

One fifth felt London would be the world leader in 2022 and one sixth said New York would hold no.1 spot.

"A fast growing, low tax and bank friendly environment like Singapore stands as a perfect antidote to the comparatively high tax and anti-banker sentiment of London and New York," said Mark Cameron, operations chief at Astbury Marsden.

The annual ‘Preferred Location Survey' also found Singapore is the city where British bankers would most like to live, claiming 31 percent of the vote, up from 27 percent last year.

New York was second with a fifth of votes while London slipped to third with 19 percent of the votes versus 22 percent last year.

"Financial centres in the West have taken a real battering since the start of the financial crisis," said Cameron.

"Cities like Singapore and Hong Kong have been quick to capitalise on setbacks in London and New York, courting investment banks and reacting to demand from expats," he added.

Investment banks and trading firms in New York and Europe have struggled to maintain profitability in recent years amid economic uncertainty partly linked to the ongoing euro zone debt crisis.

Bankers and traders in the United States and Europe also face the prospect of draconian restrictions on their riskier practices, moves likely to impact future profitability.

Commodities trader Trafigura said in May that Singapore would become its main trading centre as it seeks to tap demand in Asia, dealing a blow to its former home Switzerland.

Asian banks, in contrast to their Western peers, avoided much of the damage inflicted by the latest financial crisis and have benefited in recent years from solid economic growth and a booming commodities market across the Asia-Pacific region.

source: nytimes.com

Bankers offer financing advice to business owners

“It felt like a checklist,” said Alicia Almendral, a family physician who has a private practice in the Bronx. “It’s very helpful.”

Almendral was one of several entrepreneurs who were taking note as Citibank executives gave a presentation on “Setting Up Your Business” at the Philippine Center on Fifth Avenue.

Donald DiMartini, Citibank director for small businesses, addressed proprietors by asking them a series of questions: Do you know your message? Do you keep track of your passion? Have you assembled your “kitchen cabinet”? Do you have a contingency plan? He said those who can answer these questions are more likely to know where they are headed and where they plan to take their business.

“Know your message,” advised DiMartini at the June 26 forum organized by ABS-CBN’s The Filipino Channel. It means the owner should be able to explain his business within minutes, especially to a person who is busy and may not have the time to listen. “It’s called the elevator speech,” he said. “You should be able to talk about your business in 20 seconds or less.”

The “kitchen cabinet” is the Holy Trinity of advisers a business owner should have in his team, he said. They usually include an accountant, who will decide the business model; an attorney, who will provide legal counsel; and a banker, who will make sure you know when “somebody out there is looking to compete with you,” he said.

Passion is what sets the business apart from the others, said DiMartini. “Put your passion and ideas into a business plan. Keep a journal. Those ideas will change, keep track of them,” he said.

Another speaker at the forum was Eileen Thornton, business banking director at Citibank. She discussed financing – how to secure it and how to make sure the owner has access to it. It is not enough that money is flowing into a business, she said. A business owner should be able to understand the cash flow cycle; plans for collection and repayment; lines of credit and should have income projections measurable over a period of time.

“These are keys to success,” she said.

Almendral, who has a cosmetic medical clinic managed by her husband Aries, said she found the discussions “beneficial” to startup entrepreneurs or those just thinking of going into business. Even though she has done many of the suggestions, in her mind she was doing a “checklist” of things she has yet to do.

“The forum made complex business aspects simple and straightforward,” she told The FilAm.

Doris Mutuc, East Coast/Canada representative of ABS-CBN International, said many proprietors and executives in the restaurant and retail businesses, financial services and travel agencies attended the forum. Although many of them are quite successful, she said they also wanted to know why “some businesses are thriving and why some fail.”

source: thefilam.net