Government announces new market initiatives to position Singapore as trusted node in global gold ecosystem

30 July 2026

On 15 June 2026, Deputy Prime Minister and Minister for Trade and Industry, and Chairman of the Monetary Authority of Singapore Gan Kim Yong announced, in a speech at the 9th Asia-Pacific Precious Metals Conference, a suite of initiatives designed to position Singapore as a trusted node in the global gold ecosystem. These include the establishment of an over-the-counter (“OTC”) gold clearing system for Loco Singapore, the introduction of central bank gold vaulting services, the development of gold-related capital markets products, and the removal of the 5% cap on physical investment precious metals under the tax incentive schemes for funds.

OTC gold clearing system

Singapore Exchange (“SGX”) will establish an OTC gold clearing system for Loco Singapore by end-2026, with interbank trading expected to build up from 2027.

This initiative will streamline trade processing, enhance transparency, and support more efficient clearing and settlement, giving market participants greater confidence to transact in Singapore. It will support both large bars and kilobars, enabling standardised settlement during Asian trading hours.

Six bullion banks will participate as clearing members and work with SGX to advance the development of the Loco Singapore gold market, deepen price discovery, and build trading activities.

Central bank gold vaulting services

Mr Gan also announced that the Monetary Authority of Singapore (“MAS”) will introduce central bank gold vaulting services by October 2026. MAS’ gold vaulting services will complement Singapore’s commercial capacity by providing foreign central banks and sovereign entities with a secure option to vault their gold reserves in Singapore, backed by MAS’ institutional standing.

Development of gold-related capital market products

SGX is exploring a physical deliverable gold futures contract, which would enhance price discovery and risk management in Loco Singapore. Mr Gan noted that banks are also keen to develop the use of tokenised gold within the Singapore market, including through collaboration on the Gold Bar Integrity initiative by the World Gold Council and London Bullion Market Association. These initiatives will complement the OTC gold market and support a broader range of investment and hedging needs, thus deepening liquidity, strengthening price discovery, and improving the efficiency of gold as a tradable financial asset over time.

Removal of 5% cap on physical investment precious metals under tax incentive schemes for funds

Lastly, MAS will remove the 5% cap on physical investment precious metals under the tax incentive schemes for funds. This change will enable eligible funds and family offices to diversify their portfolios more flexibly and support greater capital deployment into physical gold in Singapore. MAS will provide further details by September 2026.

Reference materials

The speech is available on the MAS website www.mas.gov.sg.