Singapore ramps up push to become Asia-Pacific’s gold-trading hub amid rising investor demand

[SINGAPORE] Singapore is stepping up efforts to position itself as a regional gold-trading hub, as the authorities move to build market infrastructure and capture growing investor demand for bullion trading and storage.

Plans are under way to develop gold-related capital market products to facilitate price discovery and build liquidity.

This is one of four key focus areas identified by the Monetary Authority of Singapore (MAS) and the Singapore Bullion Market Association (SBMA) to strengthen the Republic’s position as a trusted gold-trading centre serving the Asia-Pacific region, said both bodies on Friday (Mar 27).

The other focus areas include establishing robust, internationally aligned standards for vaulting and logistics, as well as developing a clearing system to support secure and efficient over-the-counter settlement for large bar and kilobar gold trades in the Republic.

MAS will also look to provide vaulting services for foreign central banks and sovereign entities to meet potential demand.

“These four areas are important parts of this gold-trading hub ecosystem that we hope to develop,” said MAS deputy chairman Chee Hong Tat on Friday, adding that the approach mirrors earlier efforts to deepen Singapore’s equity market.

MAS is working closely with industry to understand demand, gather feedback and identify areas for enhancement, he noted.

Such a collaboration would ensure that initiatives rolled out will be of value and help to build on the country’s trusted reputation as an international financial hub.

“We will be able to anchor more investment here in Singapore; and we will be able to attract more activities to be based off from Singapore,” Chee, who is also minister for national development, added.

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He noted that the initiative aims to create a new vertical that complements Singapore’s existing financial offerings. If executed successfully, establishing the Republic as a gold-trading hub in Asia-Pacific could attract more assets for storage and trading.

The key focus areas were developed by a Gold Market Development Working Group that MAS and SBMA established in January 2026, building on detailed discussions and studies with industry participants in 2025.

Further details will be out in the coming months, with updates expected through 2026.

MAS expects these efforts to “foster greater market confidence and position Singapore as a trusted and vibrant regional gold centre, complementing other major gold centres”.

The central bank is also seeking to anchor high-value activities, create good jobs for Singaporeans, enhance the resilience and diversity of Singapore’s financial sector, as well as benefit market participants in the Republic and the region.

MAS-SBMA workgroup

The working group is co-chaired by MAS and SBMA.

It comprises members from DBS, ICBC Standard Bank, JPMorgan Chase, UBS, UOB, Singapore Exchange (SGX) Group and the World Gold Council. This is alongside broader technical workstreams involving banks, vault operators, refiners and trading houses.

Jacky Tai, group head of trading and structuring for global financial markets at DBS, told The Business Times that the bank is already an active participant in the gold market. Its offerings span physical and paper gold capabilities, exchange-traded funds (ETFs) and structured solutions.

“We are exploring how innovative solutions that leverage new technology can be applied to gold-related capital market products,” said Tai.

This could provide more channels for investors to build exposure to this asset class and support MAS’ focus on facilitating price discovery and building liquidity, he added.

As a member of the MAS-SBMA workgroup, DBS provided feedback based on what it saw across its client base.

“We are seeing demand for gold increasing across both private wealth and institutional segments, including growing interest in Singapore-based physical capabilities,” Tai explained.

This surge in interest aligns with a broader trend where Asian investors are increasingly viewing gold as a safe-haven asset amid geopolitical uncertainty, noted Kelvin Ng, head of group global markets at UOB, which is currently the only Singapore-based lender offering physical gold sales and vaulting services to retail customers.

“UOB is well-positioned to meet the robust growth and rising investment flows into gold products across Asean, with our gold custody offerings,” added Ng.

Meanwhile, UBS, another member of the workgroup, told BT that it aims to “better support clients’ demand and provide greater liquidity across time zones” through global connectivity.

The workgroup’s establishment follows Singapore’s first home-grown physical gold ETF, the LionGlobal Singapore Physical Gold ETF, making its listing debut on the SGX on Thursday.

The gold ETF is listed by Lion Global Investors, a subsidiary of Great Eastern Holdings and member of local bank OCBC, and will be traded in both Singapore dollar, as well as US dollar denominations.