The Monetary Authority of Singapore said on Tuesday it would launch a vaulting service to hold bullion for foreign central banks and lower taxes on some gold-market companies as it competes for a bigger share of the precious metals trade.

"Developing our gold market is an extension of Singapore's role as a trusted financial centre," said Deputy Prime Minister Gan Kim Yong, who is also Singapore's minister for trade and industry and chairman of MAS
The gold vaulting service will hold bullion reserves on behalf of foreign central ⁠banks, international financial institutions and sovereign entities in Singapore's national currency vault, which has room for 500 metric tons
"With growing demand for gold as a reserve asset, central banks are looking for more options to strengthen their resilience," Gan said
"There's interest that has been expressed to us. Because these were confidential, I won't be able to share details of which particular central banks have approached us," he added
MAS and the Ministry of Finance will also seek to introduce a new tax framework from April next year, extending tax relief for ‌gold ⁠to wholesale services between institutional participants, such as vaulting, refining, recasting, assaying and broking
"Taken together, these initiatives will put in place the key building blocks for a deeper and more vibrant Singapore gold market, facilitate price discovery and risk management during Asian trading hours, while strengthening Singapore’s role as ⁠a trusted connector to established gold centres and global liquidity," MAS said in a statement
The move comes as Singapore prepares to launch an over-the-counter gold clearing system by the end of the year
Live trading ⁠and market operations are expected to commence by March 2027, with gold market liquidity building throughout the year, MAS said in its statement
Separately, SGX’s physically deliverable gold kilobar futures ⁠are targeted for launch in the second quarter of 2027, the statement added
Elsewhere in Asia, Hong Kong's government has been pushing to expand bullion storage and develop the city as an international gold trading centre

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Singapore to launch gold vault service for foreign central banks

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