Singapore strengthens its position as a leading asset management hub: Key measures announced by MAS

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Singapore strengthens its position as a leading asset management hub: Key measures announced by MAS On 19 August 2026, the Monetary Authority of Singapore (MAS) announced a package of measures aimed at strengthening Singapore’s competitiveness as a leading asset management hub. The measures are intended to anchor high-value asset management activities in Singapore, deepen the capabilities of the local industry and attract global asset management talent, against the backdrop of increasing competition between regional financial centres.

Singapore strengthens its position as a leading asset management hub: Key measures announced by MAS The announcement comes at a time when Singapore’s asset management industry continues to grow. Assets under management (AUM) reached approximately S$6.7 trillion in 2025, representing a 10% increase from the previous year. Over the past five years, the industry has also grown at an average rate of 7.5% per annum and now accounts for approximately 15% of the output of Singapore’s financial sector.

Singapore strengthens its position as a leading asset management hub: Key measures announced by MAS Against this backdrop, MAS has announced three key initiatives:

Singapore strengthens its position as a leading asset management hub: Key measures announced by MAS a proposed tax exemption for qualifying profit-related returns arising from fund management services;

Singapore strengthens its position as a leading asset management hub: Key measures announced by MAS a new MAS Hedge Fund Investment Programme; and

Singapore strengthens its position as a leading asset management hub: Key measures announced by MAS a new Investment Management Track under the Overseas Networks & Expertise Pass (ONE Pass) framework.

Singapore strengthens its position as a leading asset management hub: Key measures announced by MAS Taken together, the measures address three important considerations for international fund managers looking at where to establish or expand their operations: tax, access to capital and talent.

1. Proposed tax exemption for profit-related returns The first measure is a proposed tax exemption for qualifying profit-related returns arising from the provision of fund management services to qualifying funds.

1. Proposed tax exemption for profit-related returns The proposed exemption is intended to apply to a share of investment profits earned by fund managers and investment professionals that are linked to the performance of the funds they manage. The relevant arrangements would include circumstances where a share of the profits of a qualifying fund is contractually received by corporate entities, partnerships or individuals, directly or indirectly, in return for the provision of fund management services. The proposed exemption would not apply to ordinary salaries, bonuses or other forms of employee remuneration.

1. Proposed tax exemption for profit-related returns The qualifying funds would comprise funds which benefit from Singapore's existing tax incentive regime under sections 13D, 13O, 13OA, 13U and 13V of the Income Tax Act 1947. The funds must continue to be managed by Singapore-based fund managers and satisfy the applicable economic substance requirements.

1. Proposed tax exemption for profit-related returns The proposed exemption is expected to take effect from the Year of Assessment 2027, with further details to be announced at Budget 2027.

2. New MAS Hedge Fund Investment Programme MAS will also introduce a new Hedge Fund Investment Programme under which MAS will invest with hedge fund managers that are committed to establishing or deepening their presence in Singapore.

2. New MAS Hedge Fund Investment Programme The programme is intended to anchor leading global and regional hedge fund managers in Singapore and support the development of the broader hedge fund ecosystem, including ancillary service providers and prime brokerages. Further details of the programme will be announced in due course.

3. New Investment Management Track under the ONE Pass framework The third measure focuses on talent.

3. New Investment Management Track under the ONE Pass framework MAS and the Ministry of Manpower (MOM) will introduce a new Investment Management Track under the ONE Pass framework. The new track is intended to attract global leaders and senior investment professionals who can contribute significantly to Singapore’s asset management industry.

3. New Investment Management Track under the ONE Pass framework The existing ONE Pass framework generally looks at an applicant’s fixed monthly salary. Under the new Investment Management Track, the assessment is expected to be refined to better reflect established compensation structures within the asset management industry, including performance-linked returns and compensation linked to investment performance and fund outcomes.

Key considerations for fund managers As the new measures are developed, fund managers should look out for the detailed eligibility criteria and implementation requirements.

Key considerations for fund managers In particular, managers should monitor:

Key considerations for fund managers eligibility and conditions for the proposed tax exemption;

Key considerations for fund managers the treatment of performance fees, carried interest and profit-sharing arrangements;

Key considerations for fund managers the requirements of the MAS Hedge Fund Investment Programme; and

Key considerations for fund managers the eligibility and remuneration criteria under the new Investment Management Track.

Key considerations for fund managers Fund managers considering establishing or expanding their Singapore presence may wish to review their existing fund structures and performance-related arrangements in light of the new measures, including the potential implications of Singapore’s regulatory and tax framework for arrangements involving offshore entities.

Conclusion MAS’ latest measures reaffirm Singapore’s commitment to maintaining its position as a leading asset management hub by strengthening the tax, capital and talent incentives available to the industry. The detailed rules and eligibility requirements will be important in determining the practical impact of these measures, particularly for managers considering how best to structure their Singapore operations and performance-related arrangements.

Conclusion Fund managers and investment professionals considering establishing or expanding their presence in Singapore should consider reviewing their existing structures and remuneration arrangements in light of these developments. We can advise fund managers on the regulatory, tax and structuring considerations arising from these measures, including the review of existing fund structures and performance-related arrangements and the establishment of appropriate Singapore-based arrangements.

Conclusion Dentons Rodyk thanks and acknowledges Associate Esther Kum for her contributions to this article.

Key contacts Edmund Leow, SC Edmund Leow, SC Senior Partner, SingaporeSingaporeD +65 6885 3613 Email me edmund.leow@dentons.com

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Key contacts edmund.leow@dentons.com

Key contacts I-An Lim I-An Lim Senior Partner, SingaporeSingaporeD +65 6885 3627 Email me i-an.lim@dentons.com

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Key contacts i-an.lim@dentons.com

Key contacts Anne Tan Anne Tan Senior Associate, SingaporeSingaporeD +65 6885 3605 Email me anne.tan@dentons.com

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Key contacts anne.tan@dentons.com

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