Singapore Announces Tax Breaks to Attract Asset Managers

The Monetary Authority of Singapore announced a series of measures to strengthen the city-state's position as a global asset-management hub, which currently oversees approximately US$5.5 trillion in assets. The proposal introduces new tax breaks for specific investment profits earned by fund managers and investment professionals, a new hedge fund investment program, and a revised work visa framework designed to attract senior investment professionals.

While full details are scheduled for release in the February 2027 budget, the central bank shared these plans early to influence the location decisions of fund managers. Deputy chair Chee Hong Tat stated the early disclosure was intended to assist firms in their business planning.

These actions follow similar tax-cut reforms in Hong Kong. The Alternative Investment Management Association had previously warned the central bank that a widening tax gap was prompting some members to consider relocating to Hong Kong. Suhaimi Zainul-Abidin, chief executive of Quantedge Capital, supported the timing of the announcement, stating that the industry could not afford further silence.