PUBLISHED ONBYAsyiqin NadzriForeign central banks, international financial institutions and sovereign entities can now store their gold reserves in Singapore through a new vaulting service launched by the Monetary Authority of Singapore (MAS) on Tuesday (Nov 10).
It allows institutions to store gold in Singapore's national currency vault, which can hold up to 500 tonnes, with room for expansion as demand grows.
MAS will also offer gold custody accounts to selected Singapore-based bullion banks to help them provide gold-related services and trading liquidity to foreign institutions.
Speaking to the media, Deputy Prime Minister Gan Kim Yong said Singapore was not seeking to replace existing gold centres, but to provide central banks with an additional option to store their reserves.
He added that there is already an interest in the service, but did not disclose more details.
"Singapore has always been a financial hub, and we have built up very strong credibility among financial institutions as well as with our fellow central banks," he said.
Separately, MAS and the Ministry of Finance will introduce an enhanced Goods and Services Tax (GST) framework for wholesale gold market activities from April 2027.
The framework will extend GST waivers to specified services between institutional participants, including vaulting, refining, recasting, assaying and broking.
Further details will be announced at Budget 2027.
DPM Gan said the changes would support gold trading in Singapore, stressing that the framework was intended for institutional transactions rather than the retail market.
Singapore's over-the-counter gold clearing system, developed by Singapore Exchange (SGX) Group and six founding clearing banks, is expected to be ready by end-2026.
Live trading and market operations are expected to begin in the first quarter of 2027, with SGX's physically deliverable Gold Kilobar Futures targeted for launch in the second quarter.
Asked how Singapore's plans differ from Hong Kong's efforts to develop its own gold market, DPM Gan said the growing demand for gold meant there was room for both markets.
"The market is growing. It's not a zero-sum game," he said.
"I think we are in a strong position to be able to serve these central banks' needs, and we look forward to working with them."
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