Singapore to lead commodities trading in Asia

Singapore is well-positioned to lead commodities trading activity in Asia, according to Rikvin, a Singapore company formation specialist. Analysis by Rikvin shows that many commodities traders prefer to incorporate Singapore companies because they understand the long-term benefits of having a presence in the city.

The country continually offers investors and traders an attractive mix of services which make for an ecosystem conducive to trading. These factors include a sound and stable regulatory foundation, world-class arbitration facility for cross-border disputes, and a high degree of personal safety.

Singapore is home to the world’s top energy, agri as well as metal and mineral commodities players including BP, Vitol, Olam International, Trafigura and Anglo American. This is in part due  to  its centralised  geographic positioning and ability to straddle as a gateway between mineral-rich countries such as Indonesia and Australia and developing economies India and China. In addition, trade is facilitated by dynamic infocommunications and supply chain management as well as efficient logistics infrastructure. These services in turn trim unnecessary transportation and stack out costs.

Mr. Satish Bakhda, Head of Operations at Rikvin explained, “While some industry experts anticipate that Hong Kong may supercede Singapore in this regard, Singapore offers an edge on many fronts. When traders look at Singapore, they see beyond its attractive tax rates. Singapore is set to lead the region as a commodities trading epicenter precisely because it is able to offer this eclectic mix of features that traders look out for.”