Indonesian tax amnesty could spark outflow from Singapore

Singapore

SINGAPORE'S wealth management industry is likely to suffer a bad dent as rich Indonesians move some money back home to take advantage of a tax amnesty, but the exodus of funds is not going to be as big as Jakarta is predicting.

Around US$200 billion of Indonesian money that may not have been declared to the tax authorities in Jakarta has been squirrelled away in Singapore, according to private banking sources. It is a huge portion of the approximately US$470 billion of assets under management by private banks in the financial hub.