Cathay Financial Holding Co., Taiwan’s largest financial firm by assets, is making strategic moves in Singapore to capitalize on shifting regional money flows as its clients expand their presence in Southeast Asia. The group’s Cathay United Bank Co. is increasing its headcount in the city-state, aiming to reach around 200 employees by 2025, up from 100 two years ago. This expansion includes hiring relationship managers for corporate clients expanding in the region and private bankers, reflecting the growing importance of Southeast Asia in the global economy.
The decision to bolster its presence in Singapore comes at a time when companies are looking to diversify their investments and manufacturing operations in response to US-China tensions. This trend has led to significant outbound investment flows, creating opportunities for financial institutions like Cathay Financial Holding Co. to support their clients in navigating the evolving landscape of the region.
One notable example of this trend is the partnership between Taiwan’s Vanguard International Semiconductor Corp. and NXP Semiconductors NV to build a US$7.8 billion chip wafer plant in Singapore. Additionally, companies like Foxconn Technology Co., a key supplier to Apple Inc., are expanding their operations in Vietnam. These developments highlight the growing importance of Southeast Asia as a hub for technology and manufacturing investments.
Cathay Financial Holdings, led by the billionaire Tsai family, is a diversified financial conglomerate with interests in insurance, asset management, and brokerage services. The group’s chairman, Tsai Hong-Tu, has a net worth of US$5.3 billion according to the Bloomberg Billionaires Index. The company’s expansion in Singapore reflects its commitment to serving the needs of its clients in the region and capitalizing on the opportunities presented by the evolving economic landscape.
In line with its growth strategy, Cathay United Bank is looking to hire more staff in key areas such as information technology, risk management, transaction management, and capital solutions. The bank currently operates in nine Southeast Asian markets and has seen significant growth in its private banking business in Singapore since its inception in 2020. Assets under management have doubled to several hundred million dollars, with a minimum threshold of around US$2 million for account holders.
Winfield Wong, CEO of Cathay United Bank’s Singapore unit, is among the recent hires driving the bank’s expansion in the region. With over 12 years of experience at HSBC Holdings Plc and previous roles at Citigroup Inc. and ANZ Group Holdings Ltd., Wong brings a wealth of expertise to his new role. His appointment underscores the bank’s commitment to attracting top talent to support its growth strategy in Southeast Asia.
The shifting investment landscape in Asia is evident in Taiwan’s changing foreign direct investment patterns. Once heavily focused on China, Taiwanese investors are now diversifying their investments across a broader range of markets, including India, Australia, and Southeast Asia. This trend is reflected in Taiwan’s banking sector, which has seen a steady decline in exposure to the mainland over the past few years.
Overall, Cathay Financial Holding Co.’s expansion in Singapore is a strategic move to capitalize on the growing opportunities in Southeast Asia and support its clients in navigating the evolving economic landscape. With a focus on hiring top talent and expanding its service offerings, the company is well-positioned to benefit from the region’s continued growth and diversification.
