Singapore Unveils Tax and Visa Incentives to Strengthen Fund Industry Against Hong Kong Competition
SCMP · 1 SOURCESabout 3 hours ago2 MIN
Summary
Singapore has announced plans to introduce tax exemptions on investment profits for fund managers and ease visa requirements for investment professionals, in a move to strengthen its position against regional rival Hong Kong. The Monetary Authority of Singapore (MAS) and the finance ministry will exempt from tax investment profits earned by managers handling certain funds, including single family offices, with full details to be unveiled in the 2027 budget. MAS also announced a support programme for hedge funds committed to establishing or expanding their presence in Singapore.
Key Points
- MAS and the finance ministry plan to exempt fund managers from tax on investment profits from managing certain funds, including single family offices
- Singapore will make it easier for investment professionals to obtain visas as part of the new incentive package
- The measures aim to address competition from Hong Kong, which is expanding tax-free carried-interest to more fund houses and managers
- The Alternative Investment Management Association warned in July that Hong Kong's proposed tax breaks would widen the tax gap with Singapore
- National Development Minister Chee Hong Tat, who is also MAS deputy chairman, said visibility on government plans is important for firms weighing location decisions
Why It Matters
The timing of Singapore's response highlights the intensifying competition between Asia's two major financial centres as both jurisdictions race to attract fund managers and investment talent. Hong Kong is targeting implementation of its expanded carried-interest tax measures from the 2025-2026 tax year, putting pressure on Singapore to act quickly to maintain its competitive edge in the asset management sector.
The timing of Singapore's response highlights the intensifying competition between Asia's two major financial centres as both jurisdictions race to attract fund managers and investment talent. Hong Kong is targeting implementation of its expanded carried-interest tax measures from the 2025-2026 tax year, putting pressure on Singapore to act quickly to maintain its competitive edge in the asset management sector.