1. Introduction

Banking and financial services sector as the part of financial system, it includes banking services, securities services, insurances services and other services. With the corresponding the agency includes the bank, securities Company, insurance company and other finance related company. Thanks to location, policy and other factors help,

Singapore banking and financial services sector development rapidly. Singapore not only famous with the banking services and other financial services, but also famous with the foreign exchange and stock exchange the “ Singapore Exchange”(SGX), is the 3th largest stock market in the Asia area. Attracted a lot of companies listed here, especially is the Asia area. Singapore successful with the banking and financial is no coincidence, the famous newspaper THE ECNONMIST says: WHEN it started life as an independent, separate country in 1965, Singapore’s prospects did not look good. Tiny and underdeveloped, it had no natural resources and a population of relatively recent immigrants with little shared history. Why did Singapore become an economic success? First, its strategic location and natural harbor helped. It is at the mouth of the Malacca Strait, through which perhaps 40% of world maritime trade passes. Second, under Mr Lee, Singapore welcomed foreign trade and investment. Third, the government was kept small, efficient and honest—qualities absent in most of Singapore’s neighbors. (ECNONMIST, 2015). This article wills analysis banking and financial services sector contribution on Singapore economy and challenge. With the corresponding strategic planning to keep the contribution and facing the challenge.

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2. Contribution

1. Foreign direct investment (FDI) means that is an investment in a business by an investor from another country for which the foreign investor has control over the company purchased. (Shawn Grimsley, 2012). With economic globalization the company are need to expansion the market in the oversea and the other country also take some actions to attract the foreign company. With the booming of banking and financial market Singapore has successful attract lots of foreign direct investment. Sometime if the country can attract lots of foreign direct investment in some sector mean that this country in this sector has many perfect configuration. First is the perfect law to protect this sector profit, secondly is that has mature market, and finally is this sector in this country has preferential policy. Singapore attract lots of famous company to come here investment, for example Citibank，Standard Chartered Bank， HSBC, and etc. Singapore ranked third, up two notches from last year, making it the highest-ranked country in Asia.Singapore was also rated the best among all countries in terms of the efficiency of its goods and labour markets and second for its financial market sophistication. (Sameera Anand, 2009). In interaction, Singapore banking and financial services sector attract many foreign companies and it makes Singapore economy better and better t as an Asia-pacific financial Centre.
2. Provide a lot of employment opportunities. Since Singapore developed this sector, many jobs has been creating. A report shows that when Singapore just out of Malaysia the unemployment rate in this country was reach up to 12%. After development the banking and financial services sector, the unemployed rate decline year by year. This sector derivate banking employees, Securities industry professionals, Employees Insurance and so on. And it achieved remarkable results just like a newspaper say: Singapore had a population of 5.165 million in 2010. 2.795 million of the populations are part of the labour force. In the same year, Singapore had an unemployment rate of 2.2 percent. Singapore’s unemployment rate is one of the lowest in the world.(ECNONMYWATCH, 2010). Nowadays more and more local students and international students graduate in Singapore. And the baking and financial services sector provides a lot of jobs for them.