Business
The $2bn dirty-money case that rocked Singapore
A Singaporean court has begun handing out sentences in a sensational case, which saw 10 Chinese nationals charged for laundering $2.2bn (£1.8bn) earned from criminal activities abroad.
The scandal embroiled multiple banks, property agents, precious metal traders and a top golf club. It led to extensive raids in some of the most affluent neighbourhoods, where police seized billions in cash and assets. The lurid details have gripped Singaporeans – among the seized assets were 152 properties, 62 vehicles, shelves of luxury bags and watches, hundreds of pieces of jewellery and thousands of bottles of alcohol.
Earlier this month, Su Wenqiang and Su Haijin, became the first to be jailed in the case. Su Haijin, police said, jumped off the second-floor balcony of a house trying to flee arrest. Both men will serve a little over a year in prison, after which they will be deported and barred from returning to Singapore. Eight others are still awaiting the court’s decision.
Even as it draws to a close, the case – the biggest of its kind in Singapore – has raised inevitable questions. The money that paid for their plush lives in the country, prosecutors said, came from illegal sources overseas, such as scams and online gambling.
How did these men, some of whom had multiple passports from Cambodia, Vanuatu, Cyprus and Dominica, live and bank in Singapore for years without drawing scrutiny? It has sparked a review of policies, with banks tightening rules, especially around clients who hold multiple passports.
Most important, the case has spotlighted the country’s struggle with welcoming the super wealthy, without also becoming a destination for ill-gotten gains.
Luxury cars were among assets police seized in their raids (BBC)
Singapore, which is often referred to as the Switzerland of Asia, started wooing banks and wealth managers in the 1990s. Economic reforms in China and India had begun to pay off, and then in the 2000s, a newly-stable Indonesia saw wealth grow as well. Soon, Singapore became a haven for foreign businesses, with investor-friendly laws, tax exemptions and other incentives.
Today, the ultra-rich can fly into Singapore’s private jet terminal, live it up in luxurious quayside neighbourhoods, and speculate on the world’s first diamond trading exchange. Just outside the airport is a maximum security vault called Le-Freeport that provides tax-free storage for fine art, jewels, wine and other valuables. The $100m-facility is often dubbed Asia’s Fort Knox.
Singapore’s asset managers drew S$435bn from abroad in 2022, almost double the figure in 2017, according to the country’s market regulator. More than half of Asia’s family offices – firms which manage private wealth – are now in Singapore according to a report by consulting giant KPMG and family office consultancy Agreus.
They include those of Google co-founder Sergey Brin, British billionaire James Dyson and Chinese-Singaporean Shu Ping, boss of the world’s biggest chain of hotpot restaurants, Haidilao.
Authorities say some of the accused in the money laundering case may be linked to family offices that were given tax incentives.
“There is an inherent contradiction for a place like Singapore, which prides itself on clean and good governance but also wants to accommodate the management of massive wealth by offering advantages such as low taxes and banking secrecy,” says Chong Ja-Ian, a non-resident scholar at Carnegie China.
“The risk of also becoming a banker for individuals who earned their money through nefarious or illicit means grows.”
Singapore’s attraction for the ultra-rich comes with risks, analysts say (BBC)
For rich Chinese, Singapore is a top choice because of its reputed governance and stability, as well as its cultural links to China. And more Chinese money has been entering Singapore in recent years.
One of the 10 suspects in this case was wanted in China since 2017 for his alleged role in illegal gambling online. Prosecutors claimed that he settled in Singapore because he “wanted a safe place to hide from the Chinese authorities”.
This isn’t the first time Singapore-based banks have been implicated in a financial crime. They were found to have played a role in cross-border laundering in the 1MDB scandal, where billions were misappropriated from Malaysia’s state investment fund. Dan Tan, who was once described by Interpol as “the leader of the world’s most notorious match-fixing syndicate” also had strong business links to Singapore. He was arrested here in 2013.
The country has strict rules targeting white collar crimes and is an active member of the Financial Action Task Force, a global body which targets money laundering and financing for terror networks. Over the years, banks have invested heavily to strengthen compliance, to screen prospective customers and to urge regulators to report suspicious transactions. But none of this is foolproof.
For one, it is difficult for regulators to spot suspicious cases in a sea of high-value transactions. “It’s not just one needle in a haystack, but one needle in several haystacks,” Singapore’s second minister for home affairs, Josephine Teo, told parliament in October last year.
Singapore’s buoyant property market is a popular means to “clean” dirty money, some experts pointed out. And there are the casinos, nightclubs and luxury stores.
“Massive amounts of money pass through Singapore’s banking system every day. Criminals can exploit this feature and disguise their money laundering activities among legitimate ones,” accounting professor Kelvin Law from Singapore’s Nanyang Technological University told the BBC.
Singapore’s property market is one of the routes for dirty money, experts say (BBC)
Singapore also does not limit the amount of cash that can be carried in and out of the country, only requiring a declaration if the sum exceeds S$20,000. And that is an advantage, says Christopher Leahy, the founder of Singapore-based investigative research and risk advisory firm Blackpeak.
“If you want to move lots of money, you hide it in plain sight and Singapore is a great place for that. There is no point putting it in the Cayman Islands or the British Virgin Islands, where there is nothing to spend money on,” he said.
When asked for a response to analysts’ comments that Singapore’s advantages as a financial capital are also a draw for dirty money, authorities pointed the BBC to the law and home affairs minister interview in a local newspaper last year.
“We can’t close the window, because if we did that, then legitimate funds will also not be able to come. And legitimate business also can’t be done, or becomes very difficult to do. So we have to be sensible,” K Shanmugam said.
“When you are successful, you are a major financial centre, a lot of money comes in, some ‘flies’ will also come in,” he added, referring to an oft-repeated quote of the late Chinese leader, Deng Xiaoping.
Singapore has to decide how far it will go in accepting “money with varying shades of grey”, says Dr Chong of Carnegie China.
While increased regulation will help, he says transparency poses a bigger challenge: “Transparency goes against the very model of discretion that allows many wealth management hubs to thrive.”
Some analysts say this may well be the price Singapore is willing to pay to retain its position as a financial hub.
“The vast majority of the funds are legitimate, after all,” Mr Leahy says. “But there is an inevitable cost to being a major financial centre.”
(BBC)
National Development Bank PLC (NDB) conducted its Investor and Analysts Earnings Call on 12th of March, following the release of the financial results and annual report for the full year ended December 31, 2024.
The session, led by Kelum Edirisinghe, Director and Chief Executive Officer of NDB Bank, along with the bank’s senior management team, was held virtually via Zoom. During the call, the CEO delivered a comprehensive presentation on the bank’s financial performance for FY 2024, its strategic direction, and key operational highlights. This was followed by an interactive Q&A session, providing investors and analysts with valuable insights into the bank’s growth trajectory and future outlook.
The forum attracted a diverse group of stakeholders, including research analysts, stockbrokers, fund managers, and investors. Organized by NDB’s Investor Relations Team, the session reinforced the bank’s commitment to transparency and stakeholder engagement. Since 2014, NDB has consistently hosted these quarterly and annual earnings calls, demonstrating a longstanding commitment to fostering trust and accountability. Transcripts and recordings of the call will be made available on the bank’s website, ensuring continued access to key insights.
During the presentation, the CEO highlighted NDB’s strong financial performance in 2024, underpinned by strategic initiatives aimed at optimizing the cost of funds, strengthening portfolio quality, and driving sustainable profitability. The bank’s digital transformation efforts, coupled with a focus on enhancing transactional and fee-based income, played a pivotal role in navigating macroeconomic challenges and positioning NDB for long-term growth. The Q&A session that followed saw insightful discussions on key topics, including the bank’s loan portfolio quality, CASA base, projected loan growth, sources for loan growth, and expectations on interest rate movements in the economy.
Despite the dynamic economic landscape, NDB remained resilient, leveraging its robust risk management framework and customer-centric approach to maintain stability and deliver value to stakeholders.
The Commercial Bank of Ceylon has been voted the ‘People’s Private Banking Services Brand of the Year’ for the third consecutive year at the SLIM Kantar People’s Awards 2025, in a significant validation of the Bank’s status as the most popular private sector bank in the country.
Presented by the Sri Lanka Institute of Marketing (SLIM) and based on research by Kantar, a leading global insights agency, these awards are considered the ultimate testament to consumer-driven recognition in Sri Lanka. They are determined solely by consumer votes rather than a panel of experts, and recognise the brands and personalities that have earned the trust and loyalty of Sri Lankans.
The Bank said this accolade is a testament to the continuing impact of its services in the lives of millions of people, as well as the effectiveness of the Bank’s brand-building efforts and marketing initiatives. The Bank’s continuous engagement with customers, innovative campaigns, and commitment to delivering superior banking experiences have been instrumental in securing this recognition.
During the Eng. (Prof.) R. H. Paul Memorial Oration 2025, Prof. Lilantha Samaranayake emphasised the urgent need for advanced solar photovoltaic (PV) integration to create a resilient and sustainable energy future. Speaking on the Future of Renewable Energy, he highlighted projections from the International Energy Agency (IEA) that forecast global renewable electricity generation will exceed 17,000 TWh by 2030, representing an almost 90% increase from 2023. Solar PV is anticipated to become the leading source of renewable electricity, followed by wind and hydroelectric power.
Sri Lanka has set an ambitious target of achieving 100% renewable energy. Policymakers are working towards a people-centric, equitable, and affordable energy transition. The government also aims to reduce electricity tariffs by 30% within five years, though no specific timeline has been set for net-zero emissions.
Challenges in Solar PV Integration—While renewable energy adoption is increasing, challenges remain. A major issue is grid stability due to solar energy’s intermittent nature. Grid stability refers to the ability of an electrical power grid to maintain a consistent voltage and frequency while balancing electricity supply and demand. One of the main challenges with integrating solar energy into the grid is its intermittent nature, meaning that solar power generation fluctuates depending on sunlight availability. This variability can cause instability in the grid.
Why is Solar Energy Intermittent? Solar panels generate electricity only when exposed to sunlight. At night, there is no generation, requiring alternative power sources. Cloud cover, rain, and seasonal changes affect solar energy output. On cloudy days, solar generation can drop suddenly, causing fluctuations in power supply. Unlike conventional power plants that provide a steady output, solar energy can vary within minutes, making it challenging to maintain a stable power flow.
How Does This Affect Grid Stability? The Electricity grids operate at a specific frequency (e.g., 50 Hz or 60 Hz). A sudden drop in solar power generation can lead to a decrease in frequency, potentially causing power outages. Solar energy injections can cause voltage levels to rise or drop unpredictably, affecting equipment performance and consumer supply quality. Traditional power plants have rotating generators that provide inertia, helping to stabilise the grid. Solar PV systems do not have this natural inertia, making the grid more susceptible to instability.
Prof. Samaranayake explained that Sri Lanka’s current power generation mix, as of November 2024, includes:
27% from hydroelectric power
19.6% from rooftop solar
14.3% from coal
13.6% from oil
5.1% from private oil plants
Smaller contributions from wind, biomass, and other renewable sources
A key concern is the lack of inertia in renewable energy sources. Unlike conventional power plants, solar and wind do not provide inherent grid stability, leading to frequency fluctuations.
Prof. Samaranayake proposed an innovative solution for grid stability: implementing Virtual Inertia using advanced power electronic control systems. This approach mimics the stabilising effect of traditional rotating generators, ensuring a steady frequency supply in the grid.
Other potential solutions include:
Adding rotating machines such as LNG or nuclear power plants
Energy storage systems like pumped storage, flywheels, and large-scale battery systems
Enhancing grid regulations to support the integration of rooftop solar PV systems
The introduction of advanced Virtual Inertia technology is expected to complement regulatory changes that relax statutory voltage limits and improve the quality of electricity supply.
Another controversial yet forward-looking strategy discussed was the possibility of nuclear energy. According to sources from the Sri Lanka Atomic Energy Board (SLAEB), the country’s first nuclear power plant, leveraging integral pressurized water reactor (iPWR) technology, could be operational by 2032. Given Sri Lanka’s proximity to India, which already operates nuclear plants, proponents argue that nuclear energy could be a viable option for stabilizing the power grid.
Prof. Samaranayake stressed the need for a holistic approach, as solar PV continues to be vital to Sri Lanka’s energy future. This involves investing in energy storage, enhancing grid infrastructure, and enacting regulatory reforms. He called on policymakers, engineers, and the public to collaborate in creating a more sustainable and resilient energy landscape.
The Eng. (Prof.) R. H. Paul Memorial Oration reminds us of engineering and innovation’s critical role in tackling global energy challenges. With strategic planning and technological advancements, Sri Lanka can pave the way for a cleaner, more sustainable future.
The oration paid tribute to the late Prof. R. H. Paul, a distinguished academic and former Dean of the Faculty of Engineering, University of Peradeniya, who made significant contributions to electrical and electronic engineering in Sri Lanka. His legacy continues to inspire advancements in the energy sector.
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