Singapore will remain the go-to destination for asset managers veering away from the volatile economic markets in the US and Europe despite the industry still admittedly in its development stage, according to a paper released by management consulting firm Solution Providers.

The Singapore asset management industry is still in its early stages of development, with most companies having only established their presence in the city-state in the last five years, or after the 2008 financial crisis erupted. Regardless, the paper states that the Monetary Authority of Singapore should be commended for its "steady as she goes" approach to growing the industry.

"The rise in awareness of external asset managers and the strong regulatory foundations for the industry provide an excellent springboard for future development and success," noted Dr Mario Bassi, managing director and head of Asia for Solution Providers.

According to the Monetary Authority of Singapore, the assets managed by Singapore-based asset managers totalled $1.03 trillion as of the end of 2011. More than 70 per cent of total AuM was sourced from outside the city-state.