Singapore Tax Cuts & Visa Ease Boost Asset Management Hub

Singapore’s central bank, the Monetary Authority of Singapore (MAS), and the finance ministry are implementing a series of measures to strengthen the city-state’s position as a global asset management hub. These initiatives, which include tax exemptions and easier work visa access, are set to take effect from the 2027 tax assessment year.

This strategic move directly addresses global competitiveness, particularly in light of similar preferential tax regimes announced by rival financial centers such as Hong Kong.

Bolstering Fund Attractiveness

A key component of Singapore’s strategy involves offering tax exemptions on profits for qualifying funds. These exemptions are specifically designed to attract and retain various investment vehicles, including those managed by family offices.

Streamlining Talent Acquisition

To tackle the intense competition for top-tier talent, MAS and the manpower ministry will expand the existing Overseas Networks and Expertise (ONE) Pass framework. This expansion is specifically aimed at investment professionals.

• The ONE Pass provides a five-year work visa.
• It allows foreign talent to work for multiple companies within Singapore.
• This framework is designed to help attract individuals who can contribute significantly to Singapore’s economic growth.

Responding to Regional Competition

The industry is keenly aware of external pressures, with groups like the Alternative Investment Management Association (AIMA) highlighting competitive challenges from Hong Kong’s proposed tax concessions. Such concessions, if not matched, could widen the effective tax gap between the two hubs.

• In 2025, Hong Kong’s assets under management (AUM) grew 20% to US$5.4 trillion.
• During the same period, Singapore’s AUM rose 12% to $5.2 trillion.

Singapore’s Industry Growth and Future Plans

Singapore’s asset management industry has demonstrated robust growth, averaging 7.5% annually over the past five years. This expansion has seen the sector reach nearly S$7 trillion (US$5.51 trillion) and create 25,000 jobs.

Deputy Chairman of MAS, Chee Hong Tat, explicitly stated the goal to further expand these impressive figures. Additionally, MAS plans to introduce a new hedge fund investment program, specifically designed to encourage leading hedge fund managers to establish their business activities, capital allocation, and talent deployment within Singapore.

According to Anulekha Samant of KPMG Singapore, these comprehensive measures are expected to reinforce Singapore’s standing as a premier asset management hub within the broader Asian growth narrative.