Singapore rolls out new foreign work pass track, tax exemptions for asset management industry
The central bank will also introduce a new hedge fund investment programme to anchor global and regional players in Singapore.
The logo of the Monetary Authority of Singapore on Feb 13, 2026. (Photo: CNA/Ili Mansor)
New: You can now listen to articles.
This audio is generated by an AI tool.
Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
SINGAPORE: The Monetary Authority of Singapore (MAS) on Wednesday (Aug 19) unveiled a suite of measures to strengthen Singapore’s position as an asset management hub, including a new foreign work pass track to attract senior professionals in the industry.
The new Investment Management Track, under the Overseas Networks and Expertise (ONE) Pass framework, is aimed at global leaders and senior investment professionals who have the potential to contribute, or are already contributing significantly, to Singapore’s asset management industry, MAS said in a press release.
The asset management industry accounts for around 15 per cent of Singapore’s financial sector output and 13 per cent of its employment.
Speaking to the media on Wednesday, Minister for National Development Chee Hong Tat, who is also the deputy chairman of MAS, said the measures reflect Singapore’s continued commitment to strengthen the country’s value proposition and ensure it remains a “trusted, vibrant, and globally competitive financial hub”.
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
The industry has grown by an average of 7.5 per cent a year over the past five years to almost S$7 trillion (US$5.5 trillion) in assets under management. Mr Chee noted that it provides 25,000 jobs, 80 per cent of which are held by locals.
“We want to be able to grow this further as part of our plans to grow Singapore’s position as an international financial sector,” he said.
TAX EXEMPTIONS, HEDGE FUND INVESTMENT
Under the new Investment Management Track, authorities may refine salary assessments to better reflect compensation structures in the industry, including returns linked to investment performance and fund outcomes.
Such returns form a significant and recurring component of compensation for those providing specialised fund management services, besides their fixed monthly salaries.
MAS and the Ministry of Finance (MOF) also plan to introduce tax exemptions for profit-related returns from fund management services provided to qualifying funds.
This tax exemption will apply to a share of investment profits earned by fund managers and investment professionals when they deliver strong returns for investors in qualifying funds. It does not apply to ordinary salaries, bonuses or other forms of employee remuneration, MAS said.
“Such funds are already required to meet economic substance requirements, including minimum headcount. This tax exemption is targeted and aimed at sharpening the global competitiveness of Singapore as an asset management hub,” the central bank said.
The tax exemption will take into account prevailing commercial fund management arrangements, and is expected to take effect from the year of assessment in 2027. Further details will be announced at Budget 2027.
In addition, MAS will introduce a new hedge fund investment programme to invest with hedge fund managers that are committed to establishing or deepening their presence in Singapore.
This programme will support the growth of Singapore’s hedge fund investment ecosystem, including ancillary service providers and prime brokerages, and anchor global and regional hedge fund managers and investment talent, MAS said.
“This set of measures builds on the industry’s positive growth momentum, and will help anchor high-value asset management activities, deepen industry capabilities and attract top asset management talent, amidst growing international competition,” the central bank added.
Asked whether the moves are in response to competition from Hong Kong, Mr Chee said they do not see competition with Hong Kong as “zero-sum”.
“We believe that the region is big enough. There’s enough scope for both cities to grow as financial centres. We do need to take a look at what is happening in the global landscape in reviewing and adjusting our own policies. We don’t think that the competitiveness is anchored only on one factor, say tax, for example, but that is part of the overall consideration,” he said.
He added that the growth from the industry will help to “spread the gains of economic growth to a wider pool of people in our society”.
“Where the economy is able to do well and we are able to grow our economy, the amount of resources that we can then collect will then allow us to do more, to invest in our people, to invest in our infrastructure, and to be able to look after those who are from more vulnerable sectors,” he said.
Source: CNA/er
Sign up for our newsletters
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
About The Author
