Singapore is stepping up efforts to become a major player in the global gold market, betting that a new central bank vaulting service and tax incentives will help it attract more bullion flows.
The Monetary Authority of Singapore on Tuesday launched a gold vaulting service for foreign central banks and sovereign entities, with an initial capacity of 500 metric tons.
The city-state also plans to introduce tax exemptions for certain wholesale gold-related services such as vaulting, refining, recasting, testing and broking. In June, Singapore unveiled plans for a physical gold clearing system to facilitate the settlement of bullion transactions in the city-state, with operations expected to begin in the first quarter of 2027.
The initiatives mark the country's latest attempt to establish itself as a key bullion hub alongside established centers such as London and Switzerland, as more gold trading activity shifts toward Asia.
But breaking into a market dominated by established trading hubs may prove an uphill battle. For instance, London vaults held about 9,850 metric tons of gold at the end of October, including commercial and central bank storage.