Singapore unveils tax incentives to attract global asset managers

Singapore has announced a series of new incentives aimed at attracting and retaining top-tier asset managers, intensifying its competition with Hong Kong for dominance in the regional financial sector.

The Monetary Authority of Singapore (MAS) plans to introduce tax exemptions on qualifying profit-linked returns, such as carried interest and performance fees, starting from the 2027 Year of Assessment. This measure specifically targets senior investment professionals and fund managers. Additionally, Singapore will launch a Hedge Fund Investment Programme to channel MAS capital toward managers expanding their presence in the country, and an expanded ‘ONE Pass Investment Management Track’ to facilitate visas for elite talent by accounting for performance-based compensation structures.

In response, industry participants in Hong Kong are urging lawmakers to expedite their own proposed tax reforms regarding carried interest to maintain the city’s competitiveness as a global wealth management center. Both jurisdictions currently oversee asset management industries valued at over US$5 trillion.