Singapore overhauls visa and tax rules to lure top global fund managers

Singapore is implementing three new measures to bolster its standing as a premier asset management hub, according to The Straits Times. The Monetary Authority of Singapore (MAS), in collaboration with the Ministry of Manpower (MOM), aims to bolster the sector's appeal for fund managers and facilitate business establishment, capital allocation, and talent deployment within the city-state.

The measures, set to take effect in 2027, are centered on talent acquisition, fiscal incentives, and ecosystem development. The asset management sector contributes around 15% to Singapore's total output and has demonstrated robust growth, averaging a 7.5% annual increase over the past five years, with a valuation of roughly S$7 trillion.

To draw in senior global fund managers and professionals, MAS and MOM will introduce a new investment management track under the Overseas Network and Expertise (ONE) Pass framework. This five-year visa permits holders to work for multiple firms or launch businesses without attachment to a single employer. The new track will refine the assessment of qualifying salaries, incorporating profit-related returns and fund outcomes, which frequently account for a substantial share of compensation.

Minister for National Development Chee Hong Tat, who is also MAS's deputy chairman, emphasized that this revision will provide greater flexibility to attract top talent, driving economic growth and generating high-quality local employment. The government will also grant tax exemptions on profit-related returns from fund management services provided to qualifying funds, provided they meet economic substance criteria, including a minimum headcount.

This exemption will apply to qualifying returns from commercial fund arrangements beginning in the 2027 assessment year. Additionally, MAS will launch a new hedge fund investment program to encourage hedge fund managers to establish or bolster their presence in Singapore. The program aims to promote investment returns and industry development, ensuring Singapore remains a competitive financial center amidst growing competition between Singapore and Hong Kong.