Singapore Drafts Plan to Sharpen Edge as Asset-Management Hub

By Megan Cheah

Singapore has proposed a slew of measures, including new tax breaks, to strengthen its position as an asset-management hub overseeing nearly US$5.5 trillion in assets.

Tax breaks have been proposed for certain investment profits earned by fund managers and investment professionals, the Monetary Authority of Singapore said Wednesday.

Singapore is among the top destinations for the financial industry and has attracted global asset managers such as BlackRock, Blackstone and Schroders. It has positioned itself as an Asian center for investment management and financial services but wants to cement that status further, especially as it vies with Hong Kong to be foreign firms' gateway to the region.

The MAS said further details of the proposed tax breaks will be announced in the city-state's 2027 budget, which is typically presented in February.

Chee Hong Tat, deputy chair of the MAS, said the central bank decided to share some of its plans early for fund managers to take into account as they consider where to locate their businesses.

The proposed tax exemption will take effect on profits from this year, but won't apply to ordinary salaries, bonuses or other forms of employee remuneration, the central bank said.

Other measures include a new hedge fund investment program to anchor more asset managers in the city-state and a new framework for work visas to attract senior investment professionals in asset management, said the MAS.

MAS's announcement comes a few months after Hong Kong proposed tax-cut reforms for fund managers and family offices to attract top investment talent.

In a letter to the MAS last month, the Alternative Investment Management Association--a top global industry body--said that Hong Kong's plans will widen the tax gap between the two cities, and that some of its members have been considering relocating there as a result.

Singapore's asset management industry is a key growth engine for its financial sector, accounting for around 15% of the sector's output and 13% of its employment. The industry grew by 7.5% per year on average over the last five year to almost S$7 trillion, equivalent to US$5.475 trillion.

Write to Megan Cheah at megan.cheah@wsj.com

(END) Dow Jones Newswires

August 19, 2026 01:14 ET (05:14 GMT)