SINGAPORE, Aug 19 — The Monetary Authority of Singapore (MAS) has introduced three new measures aimed at strengthening Singapore’s position as a leading asset management hub.

These initiatives are designed to increase the attractiveness of the sector for fund managers and encourage the anchoring of business activities, capital allocation, and talent deployment within the city-state, The Straits Times reported.

Announced today, the measures focus on talent acquisition, fiscal incentives, and ecosystem development. The initiatives are expected to become effective in 2027, with further details to be provided during the 2027 Budget.

The asset management industry is a significant contributor to Singapore’s financial sector, accounting for approximately 15 per cent of its total output. Over the past five years, the sector has grown at an average annual rate of 7.5 per cent, reaching a valuation of around S$7 trillion (RM22 trillion).

To attract senior global leaders and investment professionals, MAS and the Ministry of Manpower (MOM) will introduce a new investment management track under the Overseas Network and Expertise (ONE) Pass framework.

The ONE Pass is a five-year work visa that allows holders to work for multiple companies or establish businesses without being tied to a single employer. Under the new track, the assessment of qualifying salaries will be refined to better reflect the compensation structures of the asset management industry.

This includes the recognition of profit-related returns and fund outcomes, acknowledging that these often constitute a significant portion of compensation alongside fixed monthly salaries.

Minister for National Development Chee Hong Tat, who also serves as the deputy chairman of MAS, stated that this enhancement will provide greater flexibility to attract top-tier talent who can contribute to economic growth and the creation of high-quality local jobs.

Tax exemptions and hedge fund initiatives

MAS and the Ministry of Finance will implement a tax exemption for profit-related returns derived from fund management services provided to qualifying funds. To be eligible, funds must be based in Singapore and meet specific economic substance requirements, including minimum headcount. This exemption will apply to qualifying profit-related returns received through commercial fund arrangements starting from the year of assessment 2027.

Additionally, MAS will launch a new hedge fund investment programme to encourage hedge fund managers to establish or deepen their presence in Singapore. This programme is intended to support the broader investment ecosystem, including prime brokerages and ancillary service providers.

Chee noted that the programme aims to balance investment returns with an industry development objective to ensure Singapore remains a competitive financial centre.

These measures come amid ongoing competition between Singapore and Hong Kong to serve as Asia’s primary asset and wealth management hub. Chee later said that he did not “view competition with Hong Kong as zero-sum,” noting that the region is large enough for both cities to grow as financial centres.

However, he acknowledged that changes in the global landscape necessitate periodic policy reviews. By announcing these measures ahead of the February 2027 Budget, the government intends to provide industry players with the necessary foresight to plan their business locations and operations.