New foreign work pass track, tax exemption perks to strengthen asset management in Singapore

Singapore aims to bolster its asset management sector with three new measures: a new investment management track under the Overseas Network and Expertise (ONE) Pass framework, a tax exemption for profit-related returns from fund management services, and a new hedge fund investment programme. These initiatives are set to become effective in 2027 and will help solidify Singapore's status as a leading global asset management hub.

The industry currently contributes around 15% of the financial sector's output, with annual growth of 7.5% over the past five years. Minister for National Development Chee Hong Tat emphasized that Singapore does not see this competition with Hong Kong as a zero-sum game, as both cities can thrive in the financial services sector.

The ONE Pass framework, which is a five-year work visa, aims to attract top global talent, including senior investment professionals and fund managers. A tax exemption will be provided for the profit-related returns from qualifying funds, sharpening Singapore's competitiveness as an asset management hub. Additionally, a new hedge fund investment programme will support the growth of Singapore's hedge fund ecosystem, attracting global and regional hedge fund managers and investment talent.