OIL is a leader in international incorporations and corporate services. It focuses on serving the financial and professional intermediary sectors in Asia.
SINGAPORE: Demand for asset protection, wealth planning and funds by high net worth individuals in Asia will drive continued growth in the offshore industry, according to OIL’s sixth ‘Offshore 2020’ annual market research study.
OIL is a leader in international incorporations and corporate services. It focuses on serving the financial and professional intermediary sectors in Asia.
For the annual market research study, it interviewed 320 industry experts, including chief executive officers, lawyers and fund managers to find out about the current state of the industry and examine trends that will impact the industry’s future.
OIL Group managing Director, Jonathon Clifton, said non-tax-driven demand drivers, such as wealth planning and asset protection, would increase due to the rise in wealth in Asian countries and an increase in the understanding of wealth management solutions.
“Offshore jurisdictions offer investors modern, cutting-edge legislation, the provision of neutral venues that can be trusted by all parties involved in a transaction and a tax neutral environment that ensures profits are not taxed up to three times,” Clifton said.
He said offshore jurisdictions had long served as neutral venues for companies to make cross-border investments with their robust and familiar legal systems and professional infrastructure providing reassurance to investors.
The survey, which this year sampled respondents from not only Asia but the rest of the globe to ensure a clear picture of global sentiment in the offshore industry, overwhelmingly ranked Greater China and South-East Asia as the top two regions for growth through to 2020 based on the rising wealth within the region.
The report noted renminbi liberalisation and burgeoning Chinese wealth, in particular, were giving rise to a client base eager to protect and diversify assets.
“Asia-Pacific now holds claim to more millionaires than does the US.
Entrepreneurs and high net worth individuals are largely regarded by respondents as the primary contributors to offshore’s growth in this region over the next five years.
“Due to that influx of wealth, it is therefore not surprising that respondents have again ranked Hong Kong and Singapore as the most important jurisdictions come 2020, followed by the BVI and Cayman Islands,” he said.
Clifton said Hong Kong, Singapore, London and Dubai all meet the criteria to at least some degree.
“All can provide substance for structures via a strong employee base and sound business infrastructure, plus expertise and resources to clients,” he said. — Bernama