Singapore Exchange is also exploring the relaunch of a physically deliverable gold futures contract
[SINGAPORE] An over-the-counter (OTC) gold clearing system is among initiatives that will be rolled out this year to boost Singapore’s role as a trusted global node for capital, investment and physical trade flows.
The Monetary Authority of Singapore (MAS) will also introduce central bank gold vaulting services by October, said Deputy Prime Minister Gan Kim Yong on Monday (Jun 15) at the Asia-Pacific Precious Metals Conference.
DPM Gan noted that beyond MAS’ vaulting services, some foreign central banks and sovereign entities may be keen to actively manage their gold holdings.
Therefore, MAS will extend gold accounts to a select group of Singapore-based bullion banks to better provide gold-related services and liquidity to these entities, he said.
Separately, the central bank will remove the 5 per cent cap on physical investment precious metals under the tax incentive schemes for funds, with further details to be shared by September, noted DPM Gan.
“This will allow eligible funds and family offices to diversify their portfolios more flexibly, and support greater capital deployment into physical gold in Singapore,” he said.
The measures unveiled by DPM Gan follow MAS and the Singapore Bullion Market Association’s announcement in March that they are working to deepen the Republic’s gold-trading infrastructure.
Gold’s breakneck rally last year was underpinned by continued central bank buying and geopolitical risk hedging. The yellow metal peaked near US$5,500 an ounce in January before retreating in March, as its safe-haven appeal gave way to liquidity needs amid the Middle East conflict.
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