MAS Lifts Gold Holdings Cap for Family Offices and Funds

The Monetary Authority of Singapore (MAS) has lifted a constraint on holdings of physical precious metals for investment funds and family offices. This change affects those under Section 13O and Section 13U tax-exemption schemes, who can now hold more gold without losing tax incentives.

When gold prices surged to $5,500 an ounce in January, some family offices and fund managers were forced to reduce their holdings in order to maintain these incentives. However, as of August 1st, this constraint no longer applies.

Industry players believe that higher holdings of physical precious metals can boost Singapore's ambitions to become a major gold hub. While the removal of the 5% cap is seen as positive, it may not trigger a 'gold rush' in the country.