Singapore is launching a gold vaulting service for foreign central banks. Tax relief on bullion trading from April 2027 and new trading facilities will strengthen its presence in the global gold market.
Singapore will become the world's gold vault and will store 500 tonnes of gold.
Singapore is now preparing to strengthen its position in the global gold trading and storage market. To this end, the country is launching a new service that allows foreign central banks to store gold safely. Tax-related relaxations are also planned to promote bullion trading. This move could position Singapore as a major hub for the international gold trade.
Central banks around the world are increasing the share of gold in their foreign exchange reserves. Gold is considered a safe reserve asset amid economic uncertainty. Singapore is seeking to capitalize on this growing demand and strengthen its position in the international gold market.
According to Gan Kim Yong, Singapore's Deputy Prime Minister and Chairman of the MAS, several central banks have expressed interest in this new facility. However, he declined to name any countries or banks, citing confidentiality.
Foreign central banks will get the facility to keep gold.
The Monetary Authority of Singapore launched this gold vaulting service on November 10, 2026. Under this scheme, central banks, international financial institutions, and government entities from other countries will be able to store their gold in Singapore. This gold will be stored in the country's National Monetary Vault, which currently has a capacity of approximately 500 metric tons. This capacity can be expanded as needed.
Gold trading will get a new platform in 2027
Singapore doesn't want to limit itself to just gold holdings. An over-the-counter (OTC) gold clearing system is being developed in the country. Live trading and market operations are expected to begin in the first quarter of 2027. Furthermore, the Singapore Exchange (SGX) is preparing to launch physically delivered gold kilogram futures contracts in the second quarter of 2027.
Competition will increase in Asian markets.
Singapore's initiative comes at a time when Hong Kong is also striving to establish itself as an international gold trading hub. Markets like Dubai and Shanghai are also active in this area. Through new facilities, tax relief, and improved trading systems, Singapore aims to gain a greater role in Asia's gold trade.
Tax relief will be available from April 2027
The Singapore government is also planning to make changes to its tax regime to promote gold trading. The MAS and the Ministry of Finance will implement a provision to exempt certain services related to the wholesale trading of precious metals from GST from April 2027.
This will include services such as safekeeping, refining, re-casting, purity testing, and brokerage. This exemption will benefit eligible institutional trading companies and market participants. This could help reduce trading costs and expand the gold market in Singapore.
