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Why Hong Kong behind Singapore?

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  1. #11
    bdw
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    Australians are pissed off about fuel prices being so high at the moment despite the AUD being so high to the USD (now 1:1). Logically, fuel prices should be much cheaper. But apparently, the Australian govt reply is that the oil and the exchange rates for the region are set in Singapore, not US. Not sure if this has anything to do with this thread.


  2. #12

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    Quote Originally Posted by bdw
    Australians are pissed off about fuel prices being so high at the moment despite the AUD being so high to the USD (now 1:1). Logically, fuel prices should be much cheaper. But apparently, the Australian govt reply is that the oil and the exchange rates for the region are set in Singapore, not US. Not sure if this has anything to do with this thread.
    Exchange rates and oil prices are set all over the world, not just in Singapore.

  3. #13

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    Quote Originally Posted by bdw
    Australians are pissed off about fuel prices being so high at the moment despite the AUD being so high to the USD (now 1:1). Logically, fuel prices should be much cheaper. But apparently, the Australian govt reply is that the oil and the exchange rates for the region are set in Singapore, not US. Not sure if this has anything to do with this thread.
    That's definitely inaccurate. Fuel prices are set based on an international benchmark, the Australian government may choose a Singapore benchmark (unlikely, though).

    The AUD follows a free-float system, and is not pegged to any currency. Its value depends soleley on market forces.

  4. #14

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    funny that nobody got this right yet: the real reason why SG has a bigger FX market (including traders, etc.) is because MAS (the HKMA counterpart) actively has chosen FX as a key focus area and scrutinizes all foreign banks when it comes to whether traders and trading desks are placed in SG vs HK

    i am just now involved personally in negotiations with MAS and i can see the difference to the laissez-faire approach of HKMA so clearly


  5. #15
    fth
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    The Singapore government also actively supported multinationals in setting up their regional treasury operations there even supporting the training for local candidates. If you can build up a local batch of clients chances are you will have local batch of suppliers. They also changed a lot of policies in order to attract hedge funds as well (even leading to a vast increase in bars in the city centre).

    On the fixed income side there are tax breaks only for instruments that were structured in Singapore as well.

    They also have certain advantages over HK to make things more attractive for international executives such as more schools, less pollution.

    Last edited by fth; 04-03-2011 at 07:18 PM.

  6. #16

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    Quote Originally Posted by vinyljunky
    That's definitely inaccurate. Fuel prices are set based on an international benchmark, the Australian government may choose a Singapore benchmark (unlikely, though).

    The AUD follows a free-float system, and is not pegged to any currency. Its value depends soleley on market forces.
    Aust. does choose the Singapore as a benchmark.

    Incidently the fuel excise in Australia is around 40%. Anyway at least it's not double of the cost like it is in Europe.

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