Singapore to allow foreign acquisitions of finance companies

The Singapore exchange is relying increasingly on its derivatives revenue, which soared 42 percent in the year to end-June and accounted for 38 percent of total revenue

SINGAPORE: Singapore’s central bank said it will allow foreign takeovers of the country’s three finance companies, as part of wider industry changes that seek to boost lending to small and medium enterprises (SMEs).

The Monetary Authority of Singapore (MAS) is prepared to consider applications for mergers or acquisitions if any prospective partner “commits to maintaining SME financing as a core business” of the finance company being targeted, it said in a statement.