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. <\/p>\n
The Monetary Authority of Singapore (MAS) said the steps are intended to reinforce the country’s standing in fund management. <\/p>\n
One part of the package is a planned tax exemption for profit-linked returns earned from providing fund management services to qualifying funds. <\/p>\n
MAS and the Ministry of Finance said the exemption is being designed for funds that already meet economic substance conditions, including minimum staffing requirements. <\/p>\n
The measure is expected to start from the year of assessment 2027. <\/p>\n
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. <\/p>\n
Further details are due at Budget 2027. <\/p>\n
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. <\/p>\n
A third measure involves a new investment management track within the overseas networks & expertise, or ONE Pass, framework. <\/p>\n
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. <\/p>\n
The authorities said the track could involve changes to how salary is assessed, so that established pay structures in the industry are better reflected. <\/p>\n
This may include recognising returns tied to investment performance and fund outcomes, alongside fixed monthly pay. <\/p>\n
The move comes shortly after reports that Hong Kong is weighing a broader set of tax changes<\/a> for the investment sector. <\/p>\n 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. <\/p>\n In May, Singapore’s financial regulator told private banks to cut the time needed for client account opening,<\/a> after major money-laundering cases had contributed to lengthy delays. <\/p>\n