On 19 August 2026, the Monetary Authority of Singapore (MAS) announced three measures intended to strengthen Singapore's position as a global asset management hub. They comprise a new Investment Management Track under the Overseas Networks & Expertise Pass (ONE Pass), a tax exemption for qualifying profit-related returns from fund management services, and a new Hedge Fund Investment Programme.
The measures are expected to take effect in 2027. The tax exemption is intended to apply from the Year of Assessment 2027, taking into account qualifying earnings for the full 2026 calendar year, with eligibility conditions and implementation details due at Budget 2027.
The more useful way to read the announcement is as a package. It addresses three decisions that determine where substantive asset management activity sits: where senior professionals can work, how performance-linked economics are treated, and whether managers can secure credible institutional capital.
The starting point: a S$7 trillion industry
According to figures released with the announcement, Singapore's asset management industry has grown by an average of 7.5 per cent a year over the past five years to approximately S$7 trillion. It accounts for around 15 per cent of financial-sector output and supports roughly 25,000 jobs, around 80 per cent of them held by locals.
The policy objective is therefore not simply to increase assets under management. It is to anchor investment decisions, senior expertise and the supporting work around them in Singapore. Each measure addresses a different obstacle to doing that.
A work pass test that reflects how senior managers are paid
MAS and the Ministry of Manpower plan to introduce an Investment Management Track under the ONE Pass framework for global leaders and senior investment professionals who can contribute significantly to the sector.
The existing ONE Pass is a personalised pass valid for up to five years. Its standard route generally requires a fixed monthly salary of at least S$30,000. That test does not always fit an industry in which a material and recurring part of senior remuneration may depend on investment performance or fund outcomes.
The new track is set to recognise established performance-linked compensation alongside fixed salary. This is a practical adjustment rather than a lower bar: the track is intended for a small group of accomplished professionals whose expertise uplifts the industry, and the final criteria and evidence requirements have not been published.
A targeted tax exemption, not a general one
MAS and the Ministry of Finance also intend to exempt qualifying profit-related returns arising from the provision of fund management services to qualifying funds.
Qualifying funds' profits received contractually, directly or indirectly, by a corporate entity, partnership or individual for providing fund management services will benefit from new tax exemptions. However, the relevant funds must be based in Singapore and already be required to meet economic substance conditions, including minimum headcount.
These limits are important. This is a targeted exemption, not a general exemption for management fees, salaries, bonuses or investment income. The definitions of qualifying returns and funds, the treatment of different legal arrangements and the interaction with existing fund tax incentives will only become clear when the detailed rules are issued. Because qualifying 2026 earnings may be taken into account, managers should preserve clear records but not assume that a return qualifies for tax exemptions before the legislation and guidance are available.
Anchor capital as an industry-development tool
The third measure is a new MAS Hedge Fund Investment Programme for managers that commit to establishing or deepening their presence in Singapore.
Anchor capital does more than fund a strategy. The due diligence behind an institutional commitment can give other allocators confidence that a credible investor has examined the manager. That can be particularly valuable to an emerging firm.
More hedge fund activity can also support prime brokerage, administration, legal, tax, compliance, technology and recruitment services. The programme's scale, selection criteria and required Singapore commitments have not yet been published. Those details will determine whether it reaches emerging Singapore managers as well as established global firms.
Why the measures matter together
Talent, economics and capital reinforce one another. Experienced leaders build teams and spread expertise; those teams create and oversee enhanced investment activity; capital allows the activity to scale; and the surrounding work supports a deeper professional-services market with increasing capabilities.
The timing is part of the signal. Significant tax measures are usually announced during Singapore's annual Budget, but MAS has set out the direction around six months before Budget 2027. That gives managers earlier visibility and shows a willingness to respond promptly while the final rules are developed.
The breadth may prove more durable than tax competition alone. Singapore is not relying on a lower headline rate. It is combining a more competitive treatment of performance-linked returns with access to senior talent and institutional capital, while retaining economic substance, governance and local capability requirements.
Competition is not necessarily zero-sum. Stronger propositions in both Singapore and Hong Kong can deepen Asia's asset management market and attract more global allocators to the region. Singapore's own appeal rests on political and legal stability, a well-regulated financial system, regional access, ease of doing business and a mature professional-services ecosystem.
What managers can do before Budget 2027
The announcement is a reason to prepare, not to restructure on assumptions. Four areas are worth reviewing now:
Tax, immigration, licensing and employment questions will need to be considered together once the final conditions are available.
How Alpadis can help
Alpadis does not manage money or advise on investments. We support the firms that do. Our Singapore Regulatory Services division works with boutique and mid-sized fund managers on MAS licensing, ongoing regulatory compliance and independent internal audit, alongside the Group's corporate services, accounting and tax capabilities.
For a manager establishing or expanding in Singapore, the operating model matters as much as the structure. The right entities need to sit alongside substantive decision-making, workable governance and controls that can scale. Alpadis can help firms put those foundations in place while, where appropriate, supporting the assessment of tax and immigration details with suitably qualified advisers once further guidance is available.
