Around 50 Singaporean companies participated at AIFC Connect: Singapore 2023 event, DKNews.kz reports.
The Astana International Financial Centre (AIFC) with the support of the Kazakh Embassy in Singapore hosted “AIFC Connect: Singapore 2023” event, where international investors and financial experts gathered to exchange their perspectives on the business prospects in Kazakhstan and Central Asia. This exclusive gathering served as a platform to delve into the financial landscape of Kazakhstan, its capital markets and asset management sector.
At the outset of the even, His Excellency Ambassador of the Republic of Kazakhstan in Singapore, Commonwealth of Australia and New Zealand, Askar Kuttykadam, delivered a keynote address:
“Over the years, Kazakhstan and Singapore built strong and enduring partnership anchored on regular political dialogue, robust economic and people-to-people ties. We regard Singapore as our leading political and economic partner in Southeast Asia. In its turn, Kazakhstan is determined to consolidate its role as Singapore’s partner of choice in Central Asia. The historic state visit by the 8th President of Singapore, Her Excellency Mdm. Halimah Yacob to Kazakhstan in May this year heralded a new chapter in our partnership. Its main deliverable was the reinforced mutual commitment to advancing bilateral relations in various areas” Askar Kuttykadam
Distinguished panelists shared their expertise on a diverse range of topics. Among the speakers of the event were Tek Khoan Ong (Co-Chief Executive Officer at Templeton Asset Management), Alexis Ng (Country Head, Singapore and Head of Asia Pacific ex Japan at Ashmore), James Tan (Managing Partner at Quest Ventures) with the moderator Rainer Michael Preiss (Partner & Portfolio Strategist at DAS Family Office).
Renat Bekturov, the Governor of AIFC, highlighted the main figures and perspectives on the bilateral relations between the countries:
“The key to our multifaceted relationship is economic cooperation, as Kazakhstan and Singapore are the two largest trading and investment partners in Central Asia and ASEAN. The total investment by Singapore in Kazakhstan has exceeded USD 1.35 billion. 90 joint KZ-Singapore ventures operate in Kazakhstan, covering financial and insurance activities, manufacturing, mining, and other sectors. Additionally, 143 Singaporean companies operate in Kazakhstan, reflecting the breadth of their activities in wholesale and retail trade, professional, scientific and technical activities, and other industries. Trans-Caspian International Transport Route, also known as Middle Corridor, demonstrates high transport potential for both our countries. AIFC is ready to provide its infrastructure to ensure the effective implementation of this and other transnational projects” Renat Bekturov
The event featured two panel sessions. The first panel focused on exploring the appealing investment opportunities within Kazakhstan's capital markets, particularly with the advent of the technologically advanced Astana International Exchange, which has already garnered attention due to its fast growth.
The second panel session centered on the potential of AIFC to enhance the asset management industry in the region, as well as the prospects and challenges faced by global asset management firms seeking to enter the market.
According to Temirlan Mukhanbetzhanov, acting CEO of Astana International Financial Centre Authority:
“The AIFC jurisdiction provides companies with unique advantages, including a legal framework based on the principles of English common law, an independent financial regulator, impartial dispute resolution mechanisms, flexible corporate regulations, and a favorable tax regime. AIFC welcomes financial and non-financial firms as well as professional service providers, catering to a wide range of business activities. Today 29 Singaporean participants actively grow their business within AIFC jurisdiction. The companies provide services in crypto mining and data processing, IT and software development, trade, financial services, etc.” Temirlan Mukhanbetzhanov
In summary, the event encouraged the exchange of knowledge, improved comprehension, and reinforced the importance of establishing valuable relationships within AIFC, a financial hub that aims to attract investments and create a vibrant and liquid capital market, fostering innovation and being at the forefront of the financial industry. AIFC will keep promoting the possibilities that Kazakhstan and Central Asia can provide to investors from around the world.
Background information on AIFC activities
The Astana International Financial Centre (AIFC) is an independent jurisdiction that began its operations in 2018. AIFC's primary goals include facilitating investment in Kazakhstan's economy, fostering the growth of the country's financial industry, including its stock market, and promoting integration with global capital markets.
AIFC has established all the necessary infrastructure, which is now fully operational – all the bodies and organisations, including the Management Council led by the President of the Republic of Kazakhstan, authority, regulator, stock exchange, court and arbitration centre, as well as several initiatives aimed at attracting investment and businesses to the AIFC site, promoting the development of technological and green projects, and providing vocational training opportunities.
Investments totaling 10 billion U.S. dollars have been attracted through AIFC to the economy of Kazakhstan. AIFC jurisdiction currently boasts over 2200 registered companies from 78 different countries.
A favourable tax regime has been established for AIFC participants who are engaged in licensed financial activities. AIFC tax regime is in compliance with the global standards of tax transparency set forth by the Organisation for Economic Cooperation and Development (OECD).
AIFC is the only jurisdiction in Central Asia that operates based on the principles, norms and precedents of the law of England and Wales, and the standards of the world's leading financial centres. There is a growing interest among legal and business communities in the activities of the AIFC Court and the International Arbitration Centre (IAC). The AIFC Court is comprised of 9 world-class judges who were appointed by the President of Kazakhstan, while the International Arbitration Centre involves 42 international arbitrators.
Portfolio investments. Astana International Exchange (AIX) has emerged as a successful platform for attracting portfolio investments as part of the development of the country's capital market.
Major global custodian banks such as J.P. Morgan, Bank of New York, State Street, Citi, BNP Paribas and Northern Trust have become AIX depositary clients and hold securities listed on the exchange. Operating on the widely recognized Nasdaq Matching Engine, connected to Euroclear, utilizing the Avenir settlement system and integrated with Swift's global network, the AIX offers modern exchange services as those provided by financial hubs like London and Hong Kong.
Sustainable development. The AIFC Green Finance Centre remains actively engaged in implementing the Centre's regional leadership strategy in green and sustainable finance introducing new tools to the country and the region, such as green bonds, social bonds, and subsidies for green projects, among others.
Innovation and Technology Development. AIFC’s Tech Hub is dedicated to promoting the development of the startup ecosystem, venture capital market, e-commerce, corporate innovation, and new technological areas in Kazakhstan (GovTech, SatelliteTech etc.). Currently, Tech Hub has attracted 430 technology, ICT, and fintech companies from around the world to register within AIFC jurisdiction, including some of the world's largest companies (Amazon Data Services Kazakhstan, Minebest, Bitfury, OneWeb, among others). Tech Hub has also supported 200 startups to date.
