Singapore has set out a new policy package for the asset management sector, combining tax changes, investment support for hedge funds and a new route for senior hiring as competition for capital and expertise intensifies across financial centres.
The Monetary Authority of Singapore (MAS) said the steps are intended to reinforce the country’s standing in fund management.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
One part of the package is a planned tax exemption for profit-linked returns earned from providing fund management services to qualifying funds.
MAS and the Ministry of Finance said the exemption is being designed for funds that already meet economic substance conditions, including minimum staffing requirements.
The measure is expected to start from the year of assessment 2027.
It would cover qualifying profit-related returns received through commercial fund arrangements, including cases where part of a qualifying fund’s profits is contractually paid to companies, partnerships or individuals, directly or indirectly, in return for fund management services.
Further details are due at Budget 2027.
MAS will launch a hedge fund investment programme, under which it will invest with hedge fund managers that commit to setting up or expanding operations in Singapore.
A third measure involves a new investment management track within the overseas networks & expertise, or ONE Pass, framework.
MAS and the Ministry of Manpower said this route is intended for global leaders and senior investment professionals who could make, or are already making, a significant contribution to the asset management industry.
The authorities said the track could involve changes to how salary is assessed, so that established pay structures in the industry are better reflected.
This may include recognising returns tied to investment performance and fund outcomes, alongside fixed monthly pay.
The move comes shortly after reports that Hong Kong is weighing a broader set of tax changes for the investment sector.
Earlier this month, the Financial Times reported that the city is considering extending planned reforms to proprietary trading firms such as Jane Street and Citadel Securities.
In May, Singapore’s financial regulator told private banks to cut the time needed for client account opening, after major money-laundering cases had contributed to lengthy delays.
