The service aims to provide foreign central banks, international financial institutions, and sovereign entities with a secure option to hold gold reserves in Singapore.
A stock photo of gold bars. (Photo: iStock)
A stock photo of gold bars. (Photo: iStock)
SINGAPORE: The Monetary Authority of Singapore (MAS) on Tuesday (Nov 10) launched its gold vaulting service for central banks with capacity to store up to 500 tonnes of gold.
MAS and the Ministry of Finance also said they would introduce an enhanced Goods and Services Tax (GST) framework, to waive taxes on some wholesale services related to investment precious metals.
For example, GST will not be charged on services between institutional participants, such as vaulting, refining, recasting, assaying and broking.
"This will better reflect the fact that the gold is predominantly traded among institutional participants and is not for domestic consumption," MAS chairman Gan Kim Yong told reporters, adding that more details would be shared at Budget 2027.
CNA Games
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
Show More
Show Less
MAS said the framework is expected to take effect from April next year.
The gold vaulting service aims to provide foreign central banks, international financial institutions and sovereign entities with a secure option to hold gold reserves in Singapore.
Its launch comes after MAS said it would develop measures to strengthen Singapore's gold ecosystem as interest grows.
On Tuesday, Mr Gan, who is also Singapore's deputy prime minister, said demand for gold is rising given the increasingly uncertain external environment, and investors and central banks are looking for resilience and diversification.
"Singapore does not aim to replace other gold centres and gold vaulting services," he said. "We are an additional option that is offered to the central banks."
Central banks are looking for alternatives and more options to strengthen resilience, so Singapore's services could meet that demand, he said, though he declined to share confidential details about entities that have expressed interest in storing gold here.
Monetary Authority of Singapore chairman Gan Kim Yong speaking to reporters on Nov 10, 2026. (Photo: CNA/Syamil Sapari)
Singapore has strong credibility among financial institutions and central banks, and is in a strong position to serve this need, he added.
A DBS white paper published on Tuesday said one in four central bank respondents were actively evaluating Asian hubs as potential storage locations for official gold reserves.
About half of the asset managers and banks surveyed said state-backed gold infrastructure had increased their institutions' interest in Asian hubs, added DBS.
The white paper noted that global gold demand surpassed 5,000 tonnes in 2025, reaching a record US$555 billion in value, according to the World Gold Council. Asia accounted for more than half of physical bar and coin investment, and jewellery demand.
"Consequently, stronger regional infrastructure could deepen liquidity during Asian trading hours, facilitate local clearing and settlement, and support greater trading in gold bar formats," said DBS.
MAS said the gold will be stored in Singapore's national currency vault, which can store up to 500 tonnes, with room to expand as demand grows.
The Singapore Exchange and six banks are also working together to complete preparations for the Over-the-Counter gold clearing system by the end of this year.
Live trading and market operations are expected to start in the first quarter of next year.
Mr Gan said developing Singapore's gold market is a natural extension to the city-state's role as a trusted financial centre.
Secure storage will be connected with trading and settlement, so that gold can be held, managed and traded in Singapore.
The move will anchor new high-value activities across trading, risk management, custody and professional services, said Mr Gan.
"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.