Singapore is preparing a new set of measures to attract asset managers, hedge funds and senior investment professionals as competition for global financial talent and capital intensifies.
The Monetary Authority of Singapore (MAS) announced on August 19, 2026, that it plans measures covering three areas: a tax exemption for qualifying profit-related returns from fund management, a new Hedge Fund Investment Programme, and a dedicated Investment Management Track under the Overseas Networks & Expertise Pass, or ONE Pass.
The announcement establishes Singapore’s policy direction, but several important details have not yet been published.
Singapore Plans Tax Exemption for Fund Management Returns
MAS and Singapore’s Ministry of Finance plan to introduce a tax exemption for qualifying profit-related returns received from providing fund management services to qualifying funds.
According to MAS, the measure is intended to strengthen Singapore’s competitiveness as a location for asset management activities. Further details on the tax exemption are expected to be announced in Singapore’s Budget 2027.
The proposal is significant because compensation in parts of the fund management industry can include returns linked to investment performance in addition to conventional salaries and bonuses.
However, the final scope, eligibility requirements and other conditions have not yet been released. The announcement should therefore not be treated as a finalized new tax regime.
MAS Plans New Hedge Fund Investment Programme
Singapore will also establish a Hedge Fund Investment Programme intended to anchor leading hedge fund managers in the country.
MAS said the program will support hedge fund managers committed to establishing or deepening their presence in Singapore.
Details such as the amount MAS could invest, eligibility requirements and how managers will be selected have not yet been announced.
The initiative nevertheless adds another component to Singapore’s effort to attract higher-value asset management activities rather than capital alone.
A New ONE Pass Track Will Target Investment Management Professionals
The third measure has a direct talent mobility component.
MAS and Singapore’s Ministry of Manpower plan to introduce an Investment Management Track under the existing ONE Pass framework to attract senior global investment professionals.
The authorities are also looking at how compensation is assessed for professionals in the sector, where remuneration structures can differ from conventional fixed salaries.
Reuters reported that the planned expansion would make ONE Pass access more suitable for investment professionals. The existing ONE Pass can be valid for up to five years and provides qualifying global talent with flexibility to work for multiple companies.
The detailed criteria for the new track have not yet been released.
Asset Management Is Already a Major Part of Singapore’s Financial Sector
Singapore is introducing the measures from an already significant position in global asset management.
MAS said the asset management industry accounts for around 15% of Singapore’s financial sector output and 13% of its employment. Over the past five years, the industry has grown by an average of 7.5% annually, with assets under management reaching almost S$7 trillion.
Chee Hong Tat, Singapore’s Minister for National Development and Deputy Chairman of MAS, said the government needs to consider developments in the global financial landscape when reviewing its policies.
“The measures that we are announcing today reflect our continued commitment to strengthen Singapore’s value proposition,” Chee said, adding that Singapore intends to remain globally competitive.
Chee also said Singapore does not view its competition with Hong Kong as a “zero sum” contest and believes both financial centers have room to grow.
Hong Kong Competition Adds to the Pressure
While MAS framed the measures around strengthening Singapore’s own asset management proposition, the announcement comes as Hong Kong is pursuing tax changes aimed at attracting fund managers and investment talent.
Reuters reported that Hong Kong’s proposals would expand tax-free treatment of carried interest and could create a significant effective tax difference for some fund managers based in Singapore.
The Financial Times reported that the Alternative Investment Management Association had warned MAS that some hedge fund and private equity members in Singapore were considering moving senior staff to Hong Kong because of the proposed tax treatment there.
Singapore’s latest announcement therefore comes amid a broader competition among financial centers for increasingly mobile fund managers, investment firms and senior financial professionals.
What Happens Next?
For now, the August 19 announcement is important primarily because it shows where Singapore intends to move next.
The tax exemption has been announced, but its detailed conditions are still pending. The Hedge Fund Investment Programme has been confirmed, but its investment and eligibility parameters have not yet been disclosed. And the Investment Management Track under ONE Pass has been announced without its final qualifying criteria.
That distinction matters.
Singapore has not simply introduced a finished package of tax and immigration reforms. It has given the asset management industry advance visibility of measures it intends to implement as it works to remain competitive for global capital, businesses and talent.
For fund managers, family offices and internationally mobile investment professionals, the next major development will be the publication of the detailed rules, particularly the tax provisions expected with Budget 2027.
