Good timing for S’pore reforms as competition for fund managers with Hong Kong heats up: Analysts
Singapore must move quickly to remain competitive in attracting asset managers and industry talent, they added.
Singapore is positioning itself to become the leading asset management hub in the region, with the Monetary Authority of Singapore (MAS) announcing new measures to attract top talent on August 19. Although details remain undisclosed until the 2027 budget, industry analysts believe the timing is crucial as Hong Kong intensifies competition for asset managers.
Suhaimi Zainal-Abidin, deputy chairman of the Alternative Investment Management Association (AIMA), stated that every month of delay risks losing firms that may relocate their talent. Hong Kong's asset under management (AUM) grew by 20% to reach a record high of HK$42.2 trillion (S$68.7 trillion) in 2025, driven by a 300% increase in net fund inflows.
In contrast, Singapore's AUM grew by 10% year-on-year to $6.7 trillion in 2025, with net inflows rising by 29%. Meanwhile, Hong Kong is set to introduce tax exemptions for carried interest, commonly regarded as income and taxable in Singapore. The proposed reforms by MAS are expected to bring Singapore in line with competing financial centers and strengthen its appeal, considering its political stability, robust regulatory framework, and deep capital markets.
However, these initiatives require refinement to effectively support talent, investment activity, and industry growth.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
