The Monetary Authority of Singapore has introduced a package of incentives to lure and retain top-tier asset managers, in a bid to maintain its edge in Asia's asset management sector. The measures, announced on August 19, include a targeted tax exemption on profit-related returns for fund managers, a new hedge fund investment program backed by MAS capital, and an expanded elite talent visa called the ONE Pass Investment Management Track.
Key Incentives
The tax exemption on profit-linked returns is a key component of the package, focusing on carried interest and performance fees that are crucial to senior fund managers. Additionally, the hedge fund investment program will channel MAS capital directly into hedge fund managers expanding their operations in Singapore.
Industry Impact
Singapore's asset management sector currently has nearly S$7 trillion in assets under management, with a growth rate of roughly 7.5% annually over the past five years. The industry contributes around 15% to the financial sector's output and supports approximately 25,000 jobs, with about 80% held by locals.
Competitive Landscape
The move is seen as a response to Hong Kong's own tax reforms introduced in June 2026, which broadened the favorable treatment of carried interest and performance fees to cover a wider range of asset classes. Singapore's approach is notable for its specificity, combining targeted tax relief with direct capital deployment and immigration reform.
