Banks including Barclays and Credit Suisse are shrinking their office space in Singapore as cost pressures bite and firms refocus their business, a report says.

Barclays and Credit Suisse are among a number of banks, Bloomberg reports, that have shrunk their Singapore office space as growth ambitions in the Asian financial centre are scaled back.

This publication is in contact with the banks for comment.

The news service said global banks vacated about 500,000 square feet of leased space in the city since 2011, enough to seat 3,800 employees, quoting figures from Jones Lang LaSalle Property Consultants.
About 80 per cent of that is in the central business district, data tracked by the real estate broker show.

As regulations on capital and other aspects of banking tightened in recent years, banking hiring and staffing levels have contracted in parts of the industry, reducing need for space. Singapore has also restricted hiring of foreign staff, another factor that has hit the need for space, the report said.

Meanwhile, both banks have faced a number of litigation and regulatory cost issues, putting further pressure to trim costs where possible.

Barclays has recently exited 29,000 square feet of suburban office space in Singapore’s Changi Business Park; it will leave 15,500 square feet in another eastern suburb by July this year.

The report said Barclays declined to comment on the issue.

Credit Suisse, Switzerland’s second-largest bank, is planning a phased exit from its One Raffles Quay office space in the downtown area this year, the report said, citing an unnamed source.

A spokesperson for the Swiss bank reportedly said: “Credit Suisse continually reviews its real estate strategy in line with the needs of its businesses. Singapore is the largest regional hub for its business and back-office support and remains very committed to its presence in this market.”