SINGAPORE – Singapore is seeking to strengthen its position as a leading asset management hub with three new measures that would make the industry more attractive to fund managers and encourage them to anchor their business activities, capital allocation and talent deployment here.
Announced by the Monetary Authority of Singapore (MAS) on Aug 19, the measures include a new investment management track under the Ministry of Manpower’s Overseas Network and Expertise (ONE) Pass framework, which may include refining the assessment of salaries to attract top global leaders and senior investment professionals in asset management.
Other initiatives include a tax exemption for profit-related returns from the provision of fund management services to qualifying funds, and a new hedge fund investment programme.
They would “build on the industry’s positive growth momentum, and will help anchor high value asset management activities, deepen industry capabilities and attract top asset management talent amid growing international competition,” MAS said.
The measures are expected to become effective in 2027, with more details to be announced during the 2027 Budget.
The asset management industry is a key growth engine for the Republic’s financial sector, accounting for around 15 per cent of the sector’s output, MAS said. Over the past five years, the industry grew at an annual rate of 7.5 per cent on average to around $7 trillion.
MAS’ announcement comes as a race between Singapore and Hong Kong to become Asia’s premier asset and wealth management hub heats up.
Minister for National Development Chee Hong Tat, who is also the deputy chairman of MAS, said at a doorstop interview with the media on Aug 19 that he did not “view competition with Hong Kong as zero-sum”, as the region is big enough for both cities to grow as financial centres.
But changes in the global landscape have still raised the need for Singapore to review and adjust its policies.
“We don’t think competitiveness is anchored only on one factor, but that is part of the overall consideration,” he said.
He added that MAS is making the announcement before the Budget, which will take place in Feb 2027, so that the asset management industry players can take into account the Government’s plans when deciding where to locate their businesses, and hopefully attract them to set up base here.
Minister for National Development Chee Hong Tat said at a doorstop interview with the media on Aug 19 that he did not “view competition with Hong Kong as zero-sum”, as the region is big enough for both cities to grow as financial centres.
ST PHOTO: GIN TAY
ONE Pass investment management track
The asset management industry is an important contributor of quality jobs for locals, who take up around 80 per cent of the 25,000 jobs that include functions such as portfolio management, investment research, client servicing, and risk management.
To attract senior talent to take up high quality roles here, MAS and MOM will introduce a new investment management track under the ONE Pass framework that will cater to global leaders and senior investment professionals who have the potential to contribute or are already contributing significantly to Singapore’s asset management industry.
The framework is a five-year work visa designed to attract top global talent. Unlike standard passes that are tied to a single employer, the ONE Pass visa allows holders to work for multiple companies or start businesses freely.
Currently, there is also $30,000 monthly salary requirement to qualify for the pass.
Under the new track, the assessment of salaries could be refined to better reflect established compensation structures in the asset management industry, such as recognising returns linked to investment performance and fund outcomes.
This would acknowledge that such arrangements form a significant and recurring component of compensation for individuals performing specialised fund management services, besides fixed monthly salaries.
Chee said that the new track is an enhancement of the existing framework and will make it more flexible.
“When we bring in this smaller number of top-tier talent from overseas, they help to create a magnified impact on our economic growth, job opportunities, and creating more good jobs for our people. And I think this is what we hope to achieve too for the asset management industry.”
Tax exemption
MAS and the Ministry of Finance will introduce a tax exemption for profit-related returns arising from the provision of fund management services to qualifying funds.
The funds managed would have to be based in Singapore and are already required to meet economic substance requirements, including minimum headcount.
The exemption is targeted and aimed at sharpening the global competitiveness of Singapore as an asset management hub, MAS said.
It would take effect from the year of assessment 2027, taking into account earnings for the full 2026 calendar year, and will apply to qualifying profit-related returns that are received through commercial fund arrangements.
In particular, the exemption will apply to the share of a qualifying fund’s profits that is contractually received by corporate entities, partnerships or individuals directly or indirectly for the provision of fund management services.
Hedge fund investment programme
In addition, MAS will introduce a new hedge fund investment programme to invest with hedge fund managers that are committed to establishing or deepening their presence in Singapore.
Beyond anchoring global and regional hedge fund managers and investment talent, this programme will support the growth of Singapore’s hedge fund investment ecosystem, including ancillary service providers and prime brokerages.
Drawing comparisons to MAS’ Private Markets Programme and Equity Market Development Programme, Minister Chee said the new programme would not only support good investment returns but also an industry development objective to ensure Singapore remains a vibrant and competitive financial centre.
