The Cayman Islands government is considering setting up an office in Singapore as a alternative to a plan to establish its Asia base in Hong Kong.
Financial Services Minister André Ebanks and the Cayman Islands government representative for Asia Gene DaCosta last week met with authorities in both cities to discuss the logistics and requirements of setting up a physical office in one of those locations.
Whichever city is ultimately chosen, DaCosta will be the person representing the Cayman Islands government there.
He told the Compass, “I am looking forward to the establishment of the office and the transition back to life in Asia with my family. Having lived in Hong Kong years ago and done business in Singapore on numerous occasions, I have a great familiarity with the region.
“As an aside, it’s interesting to note that Singapore is very comparable to Grand Cayman as it is a small island nation with a similar climate and residents who have a familiar temperament.”
Ebanks and DaCosta visited Hong Kong on 14-15 May, where they met with authorities regarding the requirements to operate a physical office in the city. After then flying to Singapore to attend the International Trademark Association (INTA) Annual Meeting on 16-20 May, they also met with local officials, agencies and law firms on matters related to operating an office there “as an alternative to Hong Kong”, according to a Ministry of Financial Services and Commerce press release.
Hong Kong had long been considered the preferred location for a base in Asia for a Cayman Islands government office, and there has been a number of attempts by previous governments over the years to set up a post there.
However, Minister Ebanks stated in Parliament in December last year that the government was reconsidering Hong Kong as a base, and instead was looking at establishing an office in Singapore.
In response to a parliamentary question from former Premier Alden McLaughlin on the status of the overseas offices, Ebanks said, “It should be noted that interaction and engagement with stakeholders in Hong Kong can be facilitated with relative ease via an office in Singapore.”
He said at the time that it was projected that the Asia office would be open by the end of this year.
Last month, in response to a similar question from McLaughlin, Ebanks said plans for the Asia office were progressing well, with DaCosta “actively engaging with the British High Commission in Singapore and the government of Singapore”.
Overseas offices
McLaughlin’s Progressives-led administration had got as far as earmarking a budget for a Hong Kong office, which it had expected to open in October 2019, but that did not come to fruition. COVID put plans to open any new overseas office on hold, and following the 2021 election, the PACT government announced it was delaying opening offices in Hong Kong, Washington DC, and Brussels, Belgium.
Cayman’s Washington office opened in January this year, with Chris Duggan appointed as the islands’ US and Canada representative.
Deborah Bodden is the government’s representative for the EU, but an office in Brussels has yet to be opened.
In his update on the overseas offices last month, Ebanks said Bodden was “navigating the large number of legal and technical issues that need to be agreed with EU officials, to agree the final plan for the opening of the EU office”.
Cayman also has a UK office, located in London and headed by Tasha Ebanks-Garcia.
Prior to the 2021 election, Ebanks was Cayman’s representative to the UK and Europe.
Building relationships in Asia
The Financial Times newspaper published an article last week stating that the latest efforts by the Cayman Islands government to establish an office in Singapore or Hong Kong was in response to recent approvals by both cities for new fund vehicles to attract international investment.
It described Cayman’s plan to set up its Asia office as a “fightback against attempts by Singapore and Hong Kong to rival it as a favourite destination for Asia’s hedge funds and super-rich to park assets”.
However, Ebanks says the new office is about collaboration, rather than competition.
“The Cayman Islands Government aims to establish an office in Asia to collaborate with and support important and longstanding stakeholders in the region,” he told the Compass in an emailed statement. “The office is intended to support the work of service providers and their clients who utilize our financial services products (some of whom have done so for over 20 years); and to provide updates and insights on market trends, evolving standards and other relevant developments.”
He said the government also foresees the office creating a support network for Caymanian students, young professionals or others based there, “while also collaborating with countries in Asia to facilitate exchanges of ideas and open lines of dialogue on a variety of subject areas, such as healthcare, education, social development, innovation, and the environment, that can highlight approaches Cayman could adopt to aid various local initiatives.”
“Ultimately,” he said, “the office will serve a comprehensive and strategic role for the Government.”
Singapore IP conference
At the INTA annual meeting in Singapore, considered the world’s top intellectual property forum and attended by more than 7,000 delegates from around the world, the Cayman party took part in “key stakeholder meetings and roundtables with law firms and industry associations to share updates on pertinent financial services developments and gather market insights and trends”, according to the ministry release.
The ministry sponsored the conference’s Latin American and Caribbean reception, which showcased the work of the Cayman Islands Intellectual Property Office, and connected with IP attorneys and administrators from across the region.
During the Singapore trip, Cayman Finance and the Ministry of Financial Services and Commerce hosted a stakeholder event at Flutes restaurant at the National Museum of Singapore on 18 May, at which the Cayman delegation met with industry leaders.
At that gathering, DaCosta highlighted the benefits of doing business in the jurisdiction and the importance of the Cayman Islands government establishing a physical presence in Asia.
“After an extended hiatus, due in part to Covid-19, the Cayman Finance event was a wonderful opportunity for the Government to reconnect in person, with long-standing friends of Cayman, trusted service providers and well-respected stakeholders in Asia,” he said in the release.
The release also quoted Ebanks as saying the week in Hong Kong and Singapore “was very informative, provided strong stakeholder engagement, and was educational in a variety of meaningful ways. There are several opportunities in Asia for enhancing Cayman’s financial industry’s market share, as well as gaining insight into various developments in Asia and how Cayman could provide solutions, and learning of methods to cultivate local talent and address certain local challenges.
“Overall, it was a very productive trip which built upon an already solid foundation and inspired potential future collaboration for the mutual benefit of our respective communities.”
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