The Monetary Authority of Singapore (MAS) has launched a new gold vaulting service, allowing foreign central banks, international financial institutions, and sovereign entities to store their gold reserves in Singapore. The service utilizes MAS’ national currency vault, which currently has a capacity of 500 tonnes of gold, with potential for expansion as demand grows. This initiative complements Singapore’s existing commercial vaulting capacity of over 2,000 tonnes, which serves bullion banks, institutional investors, and high-net-worth individuals.
Deputy Prime Minister and MAS chairman Gan Kim Yong highlighted the rising demand for gold as an asset class amid an uncertain global environment. He noted that some foreign central banks have already expressed interest in the service, though discussions remain confidential. Gan emphasized that Singapore’s offering is not in competition with other gold hubs like Hong Kong but provides an additional storage option for central banks seeking alternative venues.
MAS will offer gold custody accounts to a select group of Singapore-based bullion banks with expertise in gold-related services and trading liquidity. The service is expected to support market activity during Asian hours, as gold trading and liquidity are currently concentrated in global centers like London and New York. Industry testing of the Singapore Exchange’s (SGX) over-the-counter gold-clearing system has been completed, with a rule book for the system to be finalized soon.
Six banks, DBS, Deutsche Bank, ICBC Standard Bank, JPMorgan, OCBC, and UOB, have been chosen to participate as clearing members and help develop the local gold market. The clearing system will support over-the-counter trades of large gold bars and kilobars, with live trading and market operations expected to commence in the first quarter of 2027. Additionally, SGX’s physically deliverable gold futures contract, Gold Kilobar Futures, is targeted for launch in the second quarter of 2027.
MAS and the Ministry of Finance will introduce an enhanced GST framework to support wholesale investment precious metals gold market activities in Singapore. Under this initiative, GST will not be charged on select services between institutional participants, such as voting, refining, recasting, assaying, and broking. The framework is expected to take effect from April 2027, with further details to be provided at Budget 2027.