Shariah hiring set to move higher

Barely a week goes by without Singapore hosting an Islamic finance conference or seminar. And, judging by the appearance of senior Monetary Authority of Singapore (MAS) officials at these events, Singapore is desperate to emulate Malaysia in becoming an Islamic finance hub.

These are early days, but heavyweights including HSBC Amanah and Kuwait Finance House recently established Singapore operations. Local banks such as UOB and DBS also run small designated Islamic finance teams. And theyíll be adding staff as Singaporeís regulatory framework becomes conducive to Shariíah-compliant products.

Recruiters certainly think Singapore has the potential to seize more Shariíah business. According to Chia Tek-Yew, financial services industry partner at Heidrick and Struggles, Singapore needs to exploit its inherent advantages over Malaysia to attract funds from the lucrative Middle Eastern market.

ìThe sovereign risk is much better, there is a healthy market between the Singapore dollar and US$, Euros and Yen, and MAS has created a favourable platform to raise funds,î argues Chia. ìThe issue presently is the lack of certified Islamic products to invest in after attracting money from the Middle East. Singapore could carve a niche as the Asia hub for institutional fund management and asset gathering. It just requires some clear defining of investment grade Islamic products.î He tells eFinancialCareers.

ìIf you take wealth management, much of the Islamic business is serviced out of London but there is no reason why Singapore could not fulfill this role,î adds Andrew Price, director of banking at PSD Group. ìAs a market, Singapore has certain advantages, not to compete with Malaysia ñ which has more potential on the retail side - but to carve out its own niche. Some banks and the authorities believe it has huge potential on corporate and institutional side.î

Price predicts asset managers will soon establish real estate and infrastructure funds in Singapore. ìThis will provide the momentum for the market to start working on Islamic certifications and development of compliant products. I can also see financial institutions establishing separate Shariíah compliant Islamic funds/wealth management companies as a distinct client segment, similar to the non-resident India market,î he adds.