Key facts
- Singapore plans to expand its elite visa program to attract foreign finance professionals.
- Tax exemptions will be offered on profits earned by fund managers from qualifying funds.
- Access to the five-year Overseas Networks & Expertise Pass (ONE Pass) will be broadened for investment professionals.
- The measures aim to strengthen Singapore's position as a regional asset management hub.
- The initiatives are expected to be effective in 2027, with further details in the upcoming budget.
Singapore is set to expand its elite visa program and introduce tax exemptions on certain fund management profits as part of a strategy to bolster its asset management sector and solidify its standing as a leading regional wealth hub. These initiatives come amid intensifying competition from financial centers like Hong Kong.
The Monetary Authority of Singapore (MAS) and the Ministry of Finance announced plans to provide tax exemptions on profits earned by fund managers, including those from single family offices. Further details on these tax benefits are expected to be released in the country's upcoming budget.
To attract top global talent, Singapore will also broaden access to its five-year Overseas Networks & Expertise Pass (ONE Pass) for investment professionals. This visa allows holders to work for multiple companies and switch employers without needing a new pass. The assessment of salary requirements for the ONE Pass may be refined to better align with industry compensation structures, potentially recognizing performance-based returns.
Additionally, a new hedge fund investment program is being developed to encourage funds to establish or deepen their presence in Singapore. These measures are anticipated to become effective in 2027.
Singapore's asset management industry has shown robust growth, expanding at an average annual rate of 7.5% over the past five years to manage nearly S$7 trillion in assets. The sector accounts for approximately 15% of the financial sector's output. While competition with Hong Kong is acknowledged, Minister for National Development Chee Hong Tat stated that the region is large enough for both cities to thrive as financial centers.