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What happened to the Singapore Islamic Finance scene in 2022 and what to expect for 2023?

Singapore Islamic Finance Report 2023

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INTRODUCTION – EMERGING DESTINATION OF CHOICE

The island nation of Singapore, home to over 5.6 million people, scored a major economic boost when, despite the gloomy global economic forecast, it hosted the first Formula One car race after three years of pandemic lockdown, drawing more than 300,000 people from all over the world. Even though the racing event was important for the economy, the most conspicuous development was that the world's largest hedge fund, Bridgewater Associates, and Asia's second-richest person, Mukesh Ambani, moved to the city-state.


On top of that, many family offices found Singapore as the best place to seek economic refuge in these uncertain times, with Russia and Ukraine at war; Europe coping with the energy crisis; the UK dealing with political turmoil; the US struggling with inflation; China's economic slowdown; and Hong Kong experiencing an exodus of finance professionals.


And according to the Global Financial Centres Index for the year 2022, Singapore is ranked as the top financial centre in Asia and third best in the world.


All in all, the Singaporean government remains cautious and prudent in its economic and trade policies. This is evident in the Monetary Authority of Singapore's (MAS) fourth tightening of its monetary policy in the last 12 months and the S$1.5 billion support package to combat the running near 14-year high inflation, as well as their efforts towards supply-chain resilience via bilateral cooperation, such as Singapore-Australia Green Economy Agreement.