Singapore adds lustre to bullion hub with gold vault service for central banks

The Monetary Authority of Singapore (MAS) announced plans to launch a gold vaulting service in March 2027, aimed at holding bullion reserves for foreign central banks and lowering taxes on certain gold market companies. Deputy Prime Minister Gan Kim Yong emphasized that this initiative is part of Singapore's role as a trusted financial hub.

The vault will accommodate up to 500 metric tonnes of bullion reserves for central banks, financial institutions, and sovereign entities, addressing the increasing demand for gold as a reserve asset. MAS and the Ministry of Finance will also introduce a new tax framework from April 2026, providing tax relief for various gold-related services, including vaulting, refining, and broking, to stimulate the Singapore gold market and enhance price discovery and risk management.

Additionally, Singapore is preparing to launch an over-the-counter gold clearing system by year-end, with physically deliverable gold kilobar futures scheduled for launch in the second quarter of 2027 on SGX. Meanwhile, Hong Kong is actively promoting the expansion of bullion storage and its role as an international gold trading center.