Singapore’s asset management industry has continued to demonstrate strong growth momentum, with assets under management growing by 7.5% per year on average over the past five years to almost S$7 trillion. As global competition for capital intensifies, Singapore continues to remain committed to reinforcing its position as a leading asset management hub. In line with this objective, the Monetary Authority of Singapore (MAS), on August 19, 2026, announced a suite of planned measures aimed at sharpening the competitive edge of Singapore’s asset management industry. These initiatives encourage asset managers to anchor their business activities, capital allocation and talent in Singapore.
The initiatives comprise the following:
Tax Exemption for Performance-Related Returns
The MAS intends to introduce a tax exemption for profit-related returns derived from providing fund management services to qualifying funds. Expected to take effect in the Year of Assessment 2027 (i.e., generally, the financial year ended 2026 for non-individuals and the 2026 calendar year for individuals), the incentive will apply to a share of investment profits earned by Singapore-based fund managers and investment professionals through commercial fund arrangements.
Hedge Fund Investment Program
The MAS plans to invest with hedge fund managers that are committed to establishing their presence in Singapore to support the continued growth and development of Singapore’s hedge fund ecosystem, which encompasses ancillary service providers and prime brokerages.
Dedicated Foreign Work Pass Track for Global Talent
To attract top global leaders and investment professionals in asset management, the MAS is looking to introduce a dedicated Investment Management Track under the Overseas Networks & Expertise (ONE) Pass framework. Under this track, the eligibility assessment for ONE Pass may be refined to recognize investment performance–linked returns and fund outcomes in addition to fixed salary components, so that it better reflects established industry compensation structures. Key benefits of the ONE Pass include:
- Flexibility to concurrently start, operate and work for multiple companies
- No requirement to reapply for a work pass when changing employers
- Availability of passes for eligible family members
- The ability for spouses to work in Singapore with a letter of consent
The MAS will release more details on these measures in due course.
How We Can Help
As Singapore continues to enhance its competitiveness to cement its position as a destination of choice for asset management activities, these developments offer exciting opportunities for fund managers looking to establish, expand and deepen their operations in the jurisdiction.
Seeking to enter or grow your footprint in Singapore, or considering Singapore as your next strategic move?
We would be pleased to connect and explore the next steps with you.
With extensive experience and expertise in the MAS's regulatory requirements, our team is well positioned to advise on the relevant licensing framework and ongoing regulatory compliance obligations. We offer end-to-end support, from license application preparation and submission to post-licensing regulatory compliance advisory services, all tailored to meet your specific business needs.
