Why Singapore and Hong Kong Are Top Choices for Safe-Haven Capital?

Why are Singapore and Hong Kong the top choices for global fund security?

In an era of increasingly complex global economy and rising geopolitical risks, more high-net-worth individuals and businesses are re-evaluating their asset allocation strategies. Among them, Singapore and Hong Kong, as Asia's most international financial centers, have become the preferred destinations for global fund security due to their stable legal systems, mature financial markets, and efficient financial services. Especially in recent years, with intensified global economic fluctuations and increased policy uncertainties in some countries, the advantages of these two regions have become even more prominent.

Firstly, both Singapore and Hong Kong offer highly transparent and well-governed financial environments. According to the World Bank's Global Governance Indicators, Singapore has consistently ranked among the top in the rule of law index, while Hong Kong also performs excellently in this regard. This legal environment provides strong protection for investors, ensuring that funds operate within a legal and compliant framework. For example, in June 2025, the Monetary Authority of Singapore MAS announced further strengthening of anti-money laundering and counter-terrorist financing measures, enhancing oversight of financial institutions and boosting market credibility.

Secondly, the financial systems of both regions are highly open, attracting a large amount of international capital. According to data from the MAS, by early 2025, the asset management scale in Singapore had exceeded 1.5 trillion U.S. dollars, with about 70% coming from overseas. Meanwhile, Hong Kong, as the world's largest offshore RMB center, saw the balance of RMB deposits surpass 900 billion HKD by the first quarter of 2025, demonstrating its strong appeal in the global financial market. Both places have signed free trade agreements with multiple major economies, reducing barriers to cross-border capital flows and offering greater convenience for investors.

Thirdly, both regions also have significant advantages in tax systems. Singapore implements a low-tax policy, with a corporate income tax rate of only 17%, and offers various tax incentives for qualifying foreign enterprises. Hong Kong, on the other hand, adopts a simple tax system where companies only pay profits tax, without value-added tax or consumption tax. This low-tax environment greatly enhances investor confidence. For instance, in August 2025, Singapore announced additional tax exemptions for technology companies to attract more innovative enterprises.

The infrastructure and level of financial technology development in both regions are also at the global forefront. Since 2016, Singapore has launched the Smart Nation initiative to promote the development of financial technology and is now one of the leading global fintech hubs. Hong Kong, relying on its strong financial infrastructure, such as the Hong Kong Stock Exchange and headquarters of international financial institutions like HSBC and Standard Chartered, has built a complete financial ecosystem. In March 2025, the Hong Kong Special Administrative Region announced an investment of 10 billion HKD to support fintech development, further solidifying its leadership in this field.

At the same time, financial turbulence caused by economic reasons in some countries and regions in recent years has also driven more capital toward Singapore and Hong Kong. For example, in late 2025, some U.S. states experienced liquidity issues in certain banks due to policy adjustments, causing market concerns. In contrast, Singapore and Hong Kong, with their stable financial systems, became popular choices for capital preservation. According to Bloomberg, the number of foreign bank branches in Singapore increased by 12% in the first half of 2025, reflecting international capital's recognition of the local financial environment.

Finally, both regions also have advantages in talent reserves and internationalization. Singapore and Hong Kong are home to a large number of well-educated, multilingual professionals who can meet the diverse needs of multinational companies. At the same time, their multicultural atmosphere makes it easier for international investors to integrate into the local market. For example, in April 2025, Singapore launched the Global Talent Scheme to attract more high-level talents from abroad, further enhancing its appeal as an international financial center.

In conclusion, Singapore and Hong Kong have become the top choices for global fund security due to their stable legal environment, open financial markets, low-tax policies, advanced infrastructure, and strong talent pool. In the current context of increasing global economic uncertainty, these two regions will continue to leverage their unique strengths to attract the attention and favor of global capital. For investors seeking safe and efficient fund management, Singapore and Hong Kong are undoubtedly among the most trustworthy choices.