MonetaryAuthorityOfSingapore News & Analysis

Singapore Launches 500-Ton Central Bank Gold Vault as Market Entry

Singapore announced a new gold vaulting service for foreign central banks and sovereign entities with an initial capacity of 500 metric tons. The Monetary Authority of Singapore also plans to introduce tax exemptions for wholesale gold-related services like vaulting, refining, recasting, testing, and broking. Additionally, Singapore intends to start operating a physical gold clearing system in the first quarter of 2027 to facilitate bullion transaction settlements. This initiative aims to position Singapore as a global bullion hub, competing with established centers such as London, where vaults hold around 9,850 metric tons of gold, and Hong Kong, which benefits from its proximity to China, the largest gold market. Despite these plans, experts note that Singapore is late to enter the market and faces challenges competing with existing hubs, especially Hong Kong, which is also expanding its gold storage and clearing infrastructure. The new vault, operated by Singapore's central bank, offers a sovereign custodian alternative for foreign monetary authorities differing from commercial vaults already present in the city-state. This development could appeal to financial institutions seeking secure physical gold storage. The effort underscores Singapore's push to capture more gold flows as the gold trading market shifts more towards Asia.