The Monetary Authority of Singapore (MAS) has launched a gold vaulting service for foreign central banks, international financial institutions and sovereign entities as part of efforts to develop Singapore into a regional gold trading centre.
MAS will store the gold in Singapore’s national currency vault, which has a capacity of up to 500 tonnes, with room to expand as demand grows.
MAS will also offer gold custody accounts to select Singapore-based bullion banks with experience in providing gold-related services and trading liquidity to these institutions.
The service provides an additional sovereign custody option in Singapore, combining secure, allocated custody, reliable servicing and access to gold market liquidity during Asian trading hours.
MAS and MOF to extend GST waiver to wholesale gold services
MAS and the Ministry of Finance (MOF) will introduce an enhanced GST framework for wholesale investment precious metals (IPM) gold market activities.
Building on existing GST measures for IPM, the framework extends the GST waiver to specified wholesale IPM-related services between institutional participants covered by the framework.
These include vaulting, refining and recasting, assaying and broking.
The change aims to align GST treatment more closely with wholesale Loco Singapore gold market activities, where participants do not intend the gold for domestic consumption.
MAS and MOF expect the enhanced framework to take effect from April 2027 and will announce further details at Budget 2027.
Gold clearing system set for 2027 launch
SGX Group and six founding clearing banks are working towards completing preparations for an over-the-counter (OTC) gold clearing system by the end of 2026, following a MoU signed in June.
Industry participants have completed testing of the clearing system and will finalise its rulebook soon.
Live trading and market operations are expected to begin in the first quarter of 2027, with the system expected to build gold market liquidity throughout the year.
Separately, SGX is targeting the second quarter of 2027 to launch its physically deliverable Gold Kilobar Futures.
Together, these initiatives will establish the foundations for a deeper and more vibrant Singapore gold market, facilitate price discovery and risk management during Asian trading hours, and strengthen Singapore’s role as a trusted connector to established gold centres and global liquidity.
Featured image credit: Edited by Fintech News Singapore, based on image by MAS
