The Monetary Authority of Singapore reiterated that fund flows from Hong Kong were still limited, adding that the rival city remains a «formidable» financial center.
«There are more inquiries as you would expect when there’s greater uncertainty in Hong Kong,» said MAS managing director Ravi Menon to reporters this week.
Menon noted that the actual fund flows are not «very large» after the MAS issued a statement last month denying reports of «large flows» from Hong Kong to Singapore. Flows of activities and businesses were also not significant, Menon added.
National Security Law
The controversial enactment of the national security law in Hong Kong has sparked concerns about the city’s future status as a global hub. According to Menon, the «security law-related issues are one set of considerations» that have led businesses to review plans but he added that Singapore will not benefit from a less competitive Hong Kong.
«It’s better to compete with a strong financial center because that means growth and opportunities in the region are good. If things go badly wrong in Hong Kong, that’s not good for the region, and not good for Singapore,» Menon explained.
Watching Hong Kong Closely
«The financial services industry in Asia is growing, so it is not a zero-sum game. We are watching Hong Kong closely but with concern, that the issues there are sorted out and settled, and that stability returns and then we can move forward.»
