Singapore is rolling out tax exemptions and easier visa access for investment professionals as it seeks to strengthen its position as a global asset management hub amid growing international competition.
The Monetary Authority of Singapore (MAS) and finance ministry will introduce tax exemptions on profits earned by fund managers from managing certain funds, including those belonging to single family offices. Further details are expected in next year’s Budget.
National Development Minister Chee Hong Tat, who is also deputy chairman of MAS, said it was important for the government to share its plans with the industry as firms consider where to locate and expand their businesses.
The city-state will also broaden access to its Overseas Networks & Expertise Pass for investment professionals. The pass is valid for up to five years and allows holders to work for multiple companies without having to reapply when changing jobs.
MAS will separately seek to attract hedge funds committed to establishing or deepening their presence in Singapore through a new investment programme, with further details to be announced.
The measures come as Hong Kong steps up efforts to attract fund managers. The Alternative Investment Management Association warned MAS in July that Hong Kong’s proposed tax breaks on performance bonuses could widen the effective tax gap and make the city more attractive.
Singapore’s asset management industry has grown by an average 7.5% annually over the past five years to almost S$7 trillion, according to MAS data.
Reuters
