“If you look at flows out of the Middle East and Europe that are coming into Singapore - there is a lot more interest and a lot more curiosity given some developments,” Khanna said. Given the UK’s plans to raise taxes for foreign residents in the country, “people are considering alternatives.”
Bank of Singapore books clients’ assets in its home turf and Hong Kong, and derives some 90% of its business from Asia. It stands to be among lenders in the region to benefit from recent UK outflows. These have been partly sparked by Prime Minister Keir Starmer’s deliberations around hiking taxes on ultra-rich residents from overseas to fund key spending plans.
These contentious proposals have prompted many wealthy people to either leave or consider exiting the UK. The government is now considering tweaks to the non-dom overhaul amid concern the current plans may end up costing revenue, Bloomberg News reported last month.
Bank of Singapore works closely with its parent OCBC, the city-state’s second-largest lender, and both have been growing their UK business including by offering mortgages for both residential and commercial needs, Khanna said.
See also: OCBC chairman says bank's 'one in 10 event' stress test meets market challenges
London will be the firm’s main focus in the UK, which is a strategic market, he said. The firm plans to close its Luxembourg operations after a review. The Luxembourg operations, started in 2018, was fined EUR210,000 (S$299,855) about two years ago by the local regulator for breaches related to money laundering and terrorism financing.
“London plays a very important part in our future strategy because it helps us capture the flows” which go both ways, as clients in the Middle East and Asia are keen to snap up real estate in the UK, he said. The bank just named Rob Woodthorpe Browne from SG Kleinwort Hambros as its new London head following the retirement of Liz Bottomley, Khanna said.
Dubai Expansion
See also: OCBC chairman rejects suggestions to sell Chulia Street buildings
Elsewhere, the bank hired Bianca Yau as its first dedicated relationship manager for Chinese clients in Dubai due to their interest in the region, said Khanna. Yau joined from Coutts & Co. in London earlier this year, he said.
The bank has grown its Dubai relationship-manager headcount by about 20% in the past 12 months, according to him. Asked whether the bank plans to make Dubai its third booking center after Singapore and Hong Kong, Khanna said there is no current need but “we strategically review our businesses all the time.”
