Singapore is set to join the ranks of New York and London as one of the largest asset management markets in the world by 2040, a recent report by PricewaterhouseCoopers forecasts.

In the report titled "See The Future", which maps out the performances of various global sectors by 2040, it is predicted that Singapore will outdo Hong Kong and other financial services hubs to become the second largest asset management centre worldwide.

"Tighter regulation and higher taxes are currently working against clusters in the United States and Europe but the key factor will be the increase in public and private capital available in Asia – which will fuel growth in asset management in the region," said the report.

"We expect to see the existing asset management clusters of Hong Kong and Singapore to grow rapidly," it added.

Hong Kong was ahead of Singapore in the first half of 2010, attracting 65 per cent of the Asian funds launched during the period. But with Singapore's government working hard to market the city-state as a global financial centre, it is well placed to overtake Hong Kong in the coming years, according to the report. Singapore's independent location also gives it leverage, as Hong Kong - a China-controlled state - will most likely have to compete with the likes of Beijing for a share of the asset management space.

PwC said that by 2040 the top clusters in terms of assets under management will be New York, Singapore, and London. 

The report highlights the geographical locations that will host the largest clusters in five industries, namely pharmaceuticals, automotives, film entertainment, tertiary education, and asset management, by 2040.