Singapore's location in South East Asia makes it a key employment destination for the financial services industry, as more multinational organisations set up shop in the city-state, a major report says.

Singapore's strategic location in South East Asia makes it a key employment destination for the financial services industry, as more multinational organisations set up shop in the city-state, says the annual mid-year recruitment report by Robert Walters.

In the "2013 Half Yearly Market Update," the private banking space experience increased hiring during the period as new global regulations scrutinising key private banking hubs, like Switzerland, led funds to flow into Singapore. This subsequently led to a demand for private bankers with portable high net worth clientele in Asian markets, such as Indonesia, Thailand and China.

New entrants to the market, specifically Asian banks with strong balance sheets, also continued to hire key positions to boost their Singapore operations. In addition, job movers in the front line secured a reasonable salary increase of around 15 per cent when switching to a new position.

As the Asian wealth management market's growth continues in the second half of 2013, with new private equity firms and family offices setting up shop locally, the demand for competent private bankers with an active list of HNW clients will also continue. 

The city-state is home to an estimated $1 trillion of offshore money, a long way behind the estimated figure of over $2.0 trillion for Switzerland. There remains considerable commentary on the likelihood that the Asian hub can overtake the Alpine state, although recently the government of Singapore played down such speculation.

The report also recognised the role of offshoring finance and operations functions to lower-cost locations like India, the Philippines and Eastern Europe. However, the study noted that selective roles also entered Singapore from London and Tokyo, particularly in higher value-added and complex areas as derivative products. Roles involving complex banking areas, project management and compliance were kept onshore.

To date, Robert Walters says the average permanent salary per annum of private bankers in the vice president and director levels is between S$220,000 and S$320,000 ($172,000 and $250,000). Managers and AVPs are likely to earn between S$120,000 and S$220,000, while analysts and associates earn between S$80,000 and S$120,000.

Read the full report.