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The Monetary Authority of Singapore (MAS) has launched a central bank gold vaulting service and, together with the Ministry of Finance (MOF), announced an enhanced Goods and Services Tax (GST) framework for wholesale investment precious metal (IPM) gold market activities.
The vaulting service provides foreign central banks, international financial institutions and sovereign entities with a secure option to hold gold reserves in Singapore. MAS 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.
Gold will be stored in Singapore's national currency vault, which can store up to 500 tonnes, with room to expand as demand grows. MAS said the service combines secure, allocated custody, reliable servicing and efficient access to gold market liquidity during Asian trading hours.
The enhanced GST framework builds on existing GST measures for IPM and extends the GST waiver to specified wholesale IPM-related services between institutional participants covered by the framework, such as vaulting, refining or recasting, assaying and broking. The framework is intended to ensure GST treatment supports the growth of wholesale Loco Singapore gold market activities where the gold is not for domestic consumption. It is expected to take effect from April 2027, with further details to be announced at Budget 2027.
Separately, following the memorandum of understanding signed in June, SGX Group and the six founding clearing banks are completing preparations for the over-the-counter gold clearing system by the end of 2026. Industry testing of the clearing system has been completed and the clearing system rulebook will be finalised soon. Live trading and market operations are expected to begin in the first quarter of 2027, and SGX's physically deliverable Gold Kilobar Futures is targeted for launch in the second quarter of 2027.
MAS said the initiatives form part of Singapore's efforts to develop as a trusted and efficient gold trading centre serving the Asia-Pacific region.
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