Singapore is one of the three remaining true city-states in the world. And it is the smallest nation in Southeast Asia. But there is nothing small about the country's achievements. For the record, Singapore is the sixth wealthiest country in the world in terms of GDP per capita. And soon, the world's most efficient city state may become the global hub for commodities trading.

If you notice the speed with which Singapore moves as a bustling financial hub, it looks commodities is a sector that the city is focusing heavily. Strange it would sound. For, Singapore does not produce any commodity. It even imports drinking water from Malaysia. But over the years, a large number of commodity traders have chosen the city as their epicentre of operations that it would not be a wonder if Singapore emerges as the most efficient commodities trading centre in the world.

There are lots of things going on to prove the point. First and foremost, the world's most respected commodities guru and investing legend Jim Rogers gave up living in the United States, sold his Manhattan home and settled with family in Singapore.

His reason: Singapore, and largely Asia, is the best commodities destination in the world.

Meeting Jim is fun. He is an investor, academician, traveler and writer par excellence. He is a billionaire investor who partnered another global billionaire George Soros to launch the most successful hedge fund Quantum Fund years ago. And Jim retired from active business at the age of 38. Now, 66, Jim relaxes in Singapore, travels a lot (his famous travels include two-time road journeys by bike and car around the world) and invests in select countries like China. “I am very hot on China,” says Jim in an exclusive interview that he gave to Commodity Market.

But Jim is upset with India. If Jim Rogers' decision to settle down in Singapore is enough proof for the scope of commodities trading in the city, it has been enhanced by another event last month. India's Financial Technologies that has promoted the Multi Commodity Exchange launched the Singapore Mercantile Exchange (SMX) in Singapore.

“We have started a commodity exchange in Singapore because we feel the city is the financial hub of Asia. We want SMX in Asia to be like LME in Europe and NYMEX in America,” says Financial Technologies founder Chairman Jignesh Shah.

Already, Singapore has another commodity bourse the Singapore Commodity Exchange owned now by the Singapore Stock Exchange. Since independence in 1965, the island country's standard of living has been on the rise.

Foreign direct investment and a state-led drive to industrialisation based on plans drawn up by the Dutch economist Albert Winsemius have created a modern economy focused on electronics manufacturing, petrochemicals, tourism, financial services and now commodities.

This month's Commodity Market magazine issue looks at Singapore as a commodity destination, with a focus on what Jim Rogers has to say about India, China, the global recession, commodities as the best investment destination etc.

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook