Background
The Monetary Authority of Singapore (“MAS”) unveiled, on 19 August 2026, plans for a comprehensive package with three key measures aimed at anchoring top-tier fund managers in Singapore, attracting global investment talent to our market and ultimately reinforcing Singapore’s status and competitiveness as a leading asset management hub.
The MAS has emphasised its aim to incentivise key asset managers to anchor their business activities, capital allocation and talent deployment in Singapore, building on the industry’s strong growth momentum averaging 7.5% per year, to almost S$7 trillion over the last five years.
- Tax exemption for profit-related returns from fund management services
The first measure plans to introduce a tax exemption on profit-related returns that fund managers earn from managing qualifying funds. Qualifying funds are funds that qualify for tax exemption under Sections 13D, 13O, 13OA, 13U, and 13V of the Income Tax Act 1947 and are managed by Singapore-based fund managers.
Tax exemptions will apply when a share of the qualifying fund’s profits is contractually received by various entities within the fund management ecosystem for direct or indirect provision of fund management services (and does not apply to ordinary salaries, bonuses and other forms of staff pay).
- Hedge Fund Investment Program
The MAS also intends to set up a Hedge Fund Investment Programme to invest alongside hedge fund managers who commit to establishing or growing their presence here.
The programme is intended to anchor hedge fund managers and investment talent, but also build up the hedge fund ecosystem, including ancillary service providers and prime brokerages.
- The ONE Pass track
The Ministry of Manpower will be introducing a new Investment Management Track under the Overseas Network and Expertise (“ONE”) Pass framework, which caters to global industry leaders and top-tier investment professionals.
The ONE Pass framework currently caters for top foreign talent in business, arts, sports and academia and research, allowing eligible candidates to enjoy a more flexible pass than the Employment Pass (not sponsored by an employer, and greater flexibility for family passes).
The MAS has alluded that this new Investment Management Track will refine the assessment of salaries to better reflect commonly established compensation structures in the asset management industry, such as recognising returns linked to performance and fund outcomes alongside fixed base salaries.
Further details on the measures will be released in due course, including at the Budget 2027, with the tax exemption measures anticipated to take effect from the Year of Assessment 2027.
If you have further enquiries, please feel free to contact Krithika Gunasingham:
GLOBAL LAW ALLIANCE LLC
3 Phillip Street, #17-01 Royal Group Building, Singapore 048693
Tel: (65) 6533 0800 Fax: (65) 6535 6678
Email: krithika@globalaw.com.sg
The content of this Memorandum is not intended to be exhaustive and does not constitute a complete analysis of the laws relating to this complex area. Its content, therefore, should not be construed to constitute legal advice. Please contact us if you require any further assistance.