The Asian Dollar Market of 1968: practical consequences

Read the PDF edition (1 page)

The Asian Dollar Market belongs to history, but its legacy shapes the work of practitioners today. Banking, tax and insolvency rules in Singapore still distinguish between Singapore dollar and foreign currency business. Many incentives continue to depend on approval, separate accounting and the residence of counterparties. Advisers who structure the financing of a trading company, the deposits of a family office or the booking model of a bank meet these distinctions daily. The following checklist summarises the questions that follow from the history traced in this chapter.

Determine the currency of each deposit and loan, since the ranking of uninsured non-bank deposits in insolvency now depends on the currency of denomination.
Check whether the counterparty is resident or non-resident in Singapore for tax purposes, because exemptions on interest and concessionary rates still turn on residence and on the absence of a permanent establishment.
Identify the incentive under which the bank or financial company books the relevant income, such as the Financial Sector Incentive, and the conditions attached to it.
Review the booking model of cross-border loans. The historical division between Singapore as a funding centre and Hong Kong as a booking centre shows that tax rates influence where transactions are recorded, and tax authorities now examine whether booking follows substance.
Assess the documentation for stamp duty and place of execution, since earlier practice of executing documents outside Singapore illustrates how formal requirements affect structuring.
Bear in mind the remaining limits on the use of the Singapore dollar by non-residents, which MAS has relaxed in stages without removing them entirely.
Keep a record of the commercial reasons for each structure, because routing transactions through offshore vehicles solely to obtain a lower rate is exposed to anti-avoidance rules and reputational risk.

For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of October 2026.

English

Contact

Dr Alexander Ressos, TEP

Of Counsel, KGP Legal LLC

I am Of Counsel with KGP Legal LLC in Singapore, where I work with a global client base of successful entrepreneurs and their families, independent asset managers, commodity trading houses and other commercial clients. I am a German and Swiss attorney-at-law, also admitted as a solicitor in England & Wales and in Hong Kong. I divide my time between Zug in Switzerland, Singapore and Hong Kong. Since 2017 I have advised international clients on more than 700 crypto and digital asset projects. I also have extensive experience in cross-border litigation and arbitration in Singapore, Hong Kong and other markets in South-East Asia and Greater China.

I operate across the key financial centres in South-East Asia, the Middle East and Switzerland, with a particular focus on asset protection, international tax and estate planning, as well as trusts, company administration and other fiduciary services. My philosophy is to serve as a trusted advisor working closely with my clients and to help them achieve their commercial objectives.

All Singapore law advice is provided through KGP Legal LLC, an established and duly licensed firm of Singapore advocates and solicitors.

KGP Legal LLC is a medium-sized law firm in Singapore that is capable of providing the full range of legal services and corporate administration work. Please contact me directly at [email protected] if you need any further information.

Get in touch →

Articles and Insights

Setting up or expanding in Singapore?

SingaporeIQ is edited by Dr Alexander Ressos, an international business lawyer with more than 15 years of local experience in Singapore as a permanent resident, a Singapore registered foreign lawyer and managing partner of a Singapore foreign law practice. In addition to significant experience in cross-border investments and transactions, UHNWI private client work and sanctions/export controls, Dr Ressos has extensive experience in cross-border business and in crypto and digital-asset projects in Singapore, drawn from more than 700 projects since 2017.

If you are planning a company incorporation, an investment, a holding structure or a market entry through Singapore, you can reach Dr Ressos directly at [email protected]. Singapore law advice is provided by KGP Legal LLC, a licensed firm of Singapore advocates and solicitors. As a Singapore law practice, KGP Legal LLC is authorised under the Legal Profession Act 1966 to advise on Singapore law and to represent clients before the Singapore courts; foreign law practices with an office in Singapore are, as a rule, not permitted to do either. Dr Ressos and his team facilitate the full range of Singapore legal, compliance and company administration services, including company incorporation, corporate transactions, commercial contracts, crypto and digital assets, financial regulatory work and dispute resolution, including litigation in the Singapore courts. For legal, tax and fiduciary services in Switzerland, see helveticaregister.com.