3 Advantages of a Singapore Bank Account for HK and Offshore Companies

 For months, there has been tension in pro-democratic protest in Hong Kong SAR, causing problems among business owners concerned about the safety of the Hong Kong banking industry and the protection of their capital asset, i.e. savings in Hong Kong banks.

Long story short, businesspeople and investors alike begin to diversify their investments globally in order to prepare for the chaos in Hong Kong. To protect their wealth, they choose offshore bank accounts, open them remotely, and deposit their savings outside of Hong Kong.

Here are three reasons why your offshore company should open a foreign bank account in Singapore.

Lower Your Political Risk (As Much As You Can)

Nowadays, many Hong Kong entrepreneurs believe that Beijing's political influence poses a significant risk to Hong Kong banking safety (ext. link).

You can, however, feel secure by putting a portion of your savings in an offshore bank account that is not accessible to your domestic government. It is a simple way to safeguard your savings because your government, which is currently the Chinese People's Republic of China in Hong Kong, cannot impose capital controls, freeze, confiscate, or devalue all of your savings with a single notice.

An offshore bank account in Singapore allows you to easily access your deposit when you need it most. Because Singaporean banks (DBS Bank, OCBC Bank, and UOB Bank) have ranked first in Asia in terms of the world's safest banks (ext. link)

Increase the Diversification of Your Currency Volatility Risk Portfolio

Singapore is a leading global financial center, with world-class banking infrastructure to facilitate international trade. Singapore, for example, has no capital controls, allowing currencies to be freely exchanged and moved in and out of the city-state (ext. link)

Singapore offshore bank accounts provide convenient platforms for you to hold your funds in foreign currencies and collect and send funds to international bank accounts.

For Singaporean business bank accounts, the Singapore Dollar (SGD) is not required as the base currency. Holding a diverse range of funds in your offshore Singapore account is a simple way to protect your purchasing power and mitigate the market volatility of your base currency.

Being ready to act quickly

It is better to be a year early than a minute late when it comes to international diversification of your savings. When governments impose capital controls or levy bank accounts, it is too late to protect your savings.

If you don't already have one, you should consider getting one before it's too late. It's a common misconception that only the wealthy can open offshore bank accounts, but this isn't true. A minimum deposit of SG$ 30,000 (or equivalent currency) is required to keep your Singaporean account active. Previously, Singapore banks took 2 to 3 weeks to open an account.