Singapore launches central bank gold-vaulting, extends GST waiver to wholesale activities

[SINGAPORE] The Monetary Authority of Singapore (MAS) rolled out its gold-vaulting service for central banks and an enhanced GST framework to support wholesale gold market activities on Tuesday (Nov 10).

Gold will be stored in Singapore’s national currency vault, which can store up to 500 tonnes, with room to expand as demand grows, noted MAS.

The gold-vaulting service, which MAS first announced in June, is open to foreign central banks, sovereign entities and multilateral organisations established by governments or central banks.

Meanwhile, Hong Kong is also working to increase its total gold storage capacity by more than 10 times to over 2,000 tonnes by 2030.

“The demand for gold as a reserve asset is growing very fast, given the uncertainty that we are facing today,” said Deputy Prime Minister Gan Kim Yong, who is also chairman of MAS, on Tuesday.

“It’s not a zero-sum game. What Singapore is doing is to offer an additional option to the central banks who are interested in looking for alternative venues to store their gold reserves,” added Gan, noting that the goal is not to replace other gold centres.

THE BUSINESS TIMES INSIGHTS

Powering Asean's Future 2026

Find out how enterprises are navigating power constraints and sustainability targets

ACCESS THE INSIGHTS

MAS said it will also offer gold custody accounts to select Singapore-based bullion banks with expertise and experience in providing gold-related services and trading liquidity to these institutions.

Further measures to boost liquidity

MAS and the Ministry of Finance also introduced an enhanced GST framework to support wholesale investment precious metal gold market activities in Singapore.

Under this framework, GST will not be charged on services between institutional participants, such as vaulting, refining, recasting, assaying and broking, with more details to be shared during Budget 2027.

SEE ALSO

Singapore well-placed to be Asean’s gold-trading hub as regional duties rise: analysts

Gold’s epicentre is shifting to Asia, with prices buoyed by regional demand: analysts 

Singapore to offer OTC gold clearing, central bank vaulting by end-2026 amid gold-hub push

“This will better reflect the fact that the gold is predominantly traded among institutional participants, and is not for domestic consumption,” said DPM Gan, adding that the framework will also support gold market development in the Republic.

Separately, Singapore’s over-the-counter gold clearing system is expected to be ready by end-2026, noted MAS. This follows the memorandum of understanding signed in June by the Singapore Exchange (SGX) and six clearing banks – DBS, Deutsche Bank, ICBC Standard Bank, JPMorgan, OCBC and UOB.

Live trading and market operations are expected to commence in Q1 2027, with gold market liquidity building throughout the year, added MAS.

Meanwhile, SGX’s physically deliverable Gold Kilobar Futures is targeted for launch in Q2 2027.

DPM Gan noted that Singapore’s initiatives to deepen its gold infrastructure will “anchor new high-value activities across trading, risk management, custody and professional services”.

“It will create good jobs and capabilities, while adding depth and resilience to our financial sector, strengthening Singapore’s role as a trusted connector between Asia and global gold markets,” he said.