FSIReview: Issue 9

Asia is a continent of contrasts, with huge variations in natural resources, business environments, and cultures. Made up of a mix of mature, emerging and frontier markets, Asia’s economies are uniquely diverse, which inevitably has resulted in a variety of growth opportunities and challenges for the financial services industry.

In this issue, we outline a number of recent developments in the Asian market that may have an impact on our clients’ businesses in the near future. We begin by exploring the current state of capital markets in Asia and assessing how the region compares to the rest of the world. To better understand the developments in Asia, we have identified five mega trends for discussion. In this evolving market, it is imperative for capital markets players to keep abreast of not only industry-specific trends but also the mega consumer and institutional trends shaping the region.

In Japan, the Government Pension Investment Fund (GPIF), one of the largest investment funds in the world, has announced changes in its policy asset mix, governance and other key aspects. This reform will impact the Japanese market and asset management industry. Closer to the region, Singapore’s Inland Revenue Authority of Singapore (IRAS) released revised transfer pricing (TP) guidelines. We review the details of these changes and share our perspectives on the expected impact to the financial services industry. We round things off with our Asia Pacific Economic Outlook for the first quarter, which provides a near-term outlook for China, Japan, Malaysia, and Singapore.