1. Introduction

Fundamentally, banking is a process that help the people to solve the problem in financial, for instance DBS. The term “finance” sector is the regulatory framework that permit transactions to be made by incurring and settling debts (Parkin, 2014). Banking and finance means a lot in Singapore economy as it helps the Singapore economy to growth gradually over the last one and a half decades. Besides, the economy of Singapore become the strongest among the Asian (Top 10 most competitive economies in Asia-Pacific | World Economic Forum, 2015). Most of the bank are earning profit by charging interest on money that the bank lend and by trading financial instruments in the financial markets (Risksandrewards.org.uk, 2015). Thus, almost every bank is seeking the rich person and give them the best offer and try to persuade them to save the money in their bank.

2. Contribution to the national economy

2.1 Job Market

Basically, job market implies the employer looking for employee and the employee that is looking for jobs. Whether the job market grow or shrink, it is depends on the labour demand and supply within the long-term economy. (Investopedia, 2010). Job market has help Singapore economy, according to Ministry of Manpower report, the jobs that available has risen to 67,400 and it is the highest level in six years (Stats.mom.gov.sg, 2015). The jobs help the citizens and foreign workers to get the job more easily in Singapore, thus, the unemployment rate also has been decreased steadily (Channel NewsAsia, 2015). Moreover, the banking and finance sector help the SMEs with provide loan as much as possible and once the SMEs expanded their business and it will let the Singapore economy become more stable.

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2.2 Local Financial institution investing offshores projects

The primary transaction of local financial institution is dealing with financial transaction, for example, deposits, loans and investments. Practically, everybody has deal with financial institution all the time. Everything from keeping cash to taking out loans and exchange currencies must be done through financial institutions (Investopedia, 2006). Singapore have to build up the local financial institution so that Singapore itself able to invest the offshore project. Thus, the economy of Singapore will go steadily. Singapore has to use it advantage which is longstanding position as a main trading hub in the Southeast Asia, so that Singapore allow to proceed with the projects. The strategy which Singapore used has promote and develop the strategy to let Singapore to become offshore trading hub for the import and export for the foreign currency. By that time, Singapore foreign exchange market has been inseparable. Thusly the banking and finance service sector has been becoming emphatically as the year goes through with the enormous economic growth that the Singapore is encountering. Growth in the foreign exchange market has surpass the economy in Singapore and it served to create a lot of worldwide banking institutions. For instance, Singapore leading the global marine and offshore engineering market (Singapore Economic Development Board – Investing Business in Singapore, 2015).

2.3 Financing SME

SME is extremely important to the Singapore economy said by Finance Minister Tharman (Channel NewsAsia, 2015). The Ministry of Trade and Industry (MTI) announced a series of measures to enhance support for SME to restructure and achieve quality growth. Furthermore, the government will enhance support the SME in the areas of productivity, innovation and capabilities upgrading in order to boost their capabilities and remain the competency between the SME (Mti.gov.sg, 2015). In additional, SMEs are important to economy of Singapore as they make up 99% enterprises, said by MR Tan Ser Luck. As Singapore is a small domestic market, so the SMEs need to take risk abroad relatively in the development in order to grow and there are approximately 74% of the SMEs export the goods and services (News.gov.sg, 2015).