MAS strengthens Singapore’s position as leading asset management hub.
The Monetary Authority of Singapore (MAS) has announced a package of three measures aimed at strengthening Singapore’s position as a leading asset management hub, amid growing competition from other regional centres. The package includes a proposed tax exemption for profit-related returns, a new Hedge Fund Investment Programme and a dedicated work pass track for senior investment talent. For fund managers and investment professionals with a presence or plans to expand in Singapore, the changes touch on tax treatment, capital access and talent mobility alike.
Tax exemption for profit-related returns
MAS and the Ministry of Finance plan to introduce a tax exemption for profit-related returns earned from providing fund management services to qualifying funds under Sections 13D, 13O, 13OA, 13U or 13V of the Income Tax Act. The exemption targets the share of profits that corporate entities, partnerships or individuals receive, directly or indirectly, for fund management services, rather than ordinary salaries or bonuses. Qualifying funds already need to meet economic substance requirements, including minimum headcount. The exemption is expected to take effect from the Year of Assessment 2027, with further details to follow at Budget 2027.
New Hedge Fund Investment Programme
MAS will introduce a Hedge Fund Investment Programme under which the government will invest alongside hedge fund managers committed to establishing or deepening their presence in Singapore. Beyond anchoring individual managers and investment talent, the programme is intended to support the wider hedge fund ecosystem, including prime brokerages and other ancillary service providers. MAS has not yet released further operational details of the programme.
Investment Management Track under the ONE Pass
MAS and the Ministry of Manpower intend to introduce a new Investment Management Track under the Overseas Networks & Expertise (ONE) Pass framework, aimed at global leaders and senior investment professionals in asset management. The track may refine how salary is assessed for eligibility, recognising compensation structures common in the industry, such as returns linked to investment performance and fund outcomes, alongside fixed monthly salary.
This would shift eligibility away from a purely fixed-salary assessment towards one that reflects how senior investment professionals are typically paid, potentially opening the track to candidates whose compensation leans more heavily on performance-linked returns.
Why it matters for fund managers
Singapore’s asset management industry accounts for around 15% of the financial sector’s output and 13% of its employment, having grown at an average of 7.5% a year over five years to reach close to SGD 7 trillion in assets under management. The sector employs close to 25,000 people, roughly 80% of them Singaporeans or permanent residents, across roles from portfolio management to risk management.
Taken together, the measures signal MAS’s intent to keep Singapore competitive on tax treatment, capital access and talent mobility as regional competition intensifies. Fund managers with a presence or plans in Singapore should factor the pending changes into their 2027 planning.
