Asset management has become one of the key growth engines of Singapore’s financial sector.
On 19 August 2026, the Monetary Authority of Singapore (MAS) announced three major initiatives spanning tax incentives, government investment and talent attraction, further strengthening Singapore’s position as a leading global asset management hub.
Asset management has become one of the key growth engines of Singapore’s financial sector.
Over the past five years, the industry has grown by an average of 7.5% annually, with assets under management approaching S$7 trillion. It now contributes around 15% of financial-sector output and 13% of financial-sector employment.
As competition among Asian financial centres intensifies, Singapore is responding across three fronts at once:
tax, capital and talent.
MAS and the Ministry of Finance plan to introduce a tax exemption from 2027 for qualifying returns derived from fund management services.
In practical terms, when a fund performs well, fund managers and investment professionals may receive a share of investment profits linked to that performance.
Under the proposed framework, qualifying performance-linked returns may be exempt from tax.
The incentive does not apply to ordinary salaries, bonuses or other standard employee compensation. It is specifically intended for returns linked to investment performance.
For fund managers and investment professionals, this could make Singapore an even more attractive base for structuring long-term investment activities.
MAS will also introduce a new hedge fund investment programme, investing directly in fund managers that commit to establishing or expanding their operations in Singapore.
This goes beyond regulatory support.
Singapore is putting capital behind its ambition to grow the industry.
The initiative is designed to attract more global and regional hedge fund managers and investment professionals to Singapore, while strengthening the wider local ecosystem — including supporting service providers and prime brokers.
The message is clear: Singapore is not only trying to attract capital.
It wants more of the investment management industry itself to be based here.
MAS and the Ministry of Manpower also plan to introduce a new investment management category under the Overseas Networks & Expertise Pass (ONE Pass) framework.
ONE Pass has traditionally targeted highly paid professionals, individuals with outstanding achievements, and leading talent in areas such as AI and technology.
The new investment management category will specifically target global industry leaders and senior investment professionals who can make significant contributions to Singapore’s asset management sector.
Authorities may also adjust how remuneration is assessed.
Instead of looking only at fixed monthly salary, the framework could recognise income linked to investment performance and fund returns.
For senior investment professionals whose compensation structures differ from conventional salaried roles, this could provide a more complete way of assessing professional value.
As Singapore strengthens its position as an Asian financial centre, these measures signal a broader strategy.
The country is increasing the attractiveness of its asset management industry through three connected levers:
lower tax friction, direct capital support and targeted access to global talent.
From tax incentives and government-backed investment to talent policies and ecosystem development, Singapore is continuing to build an environment designed to attract asset managers, investment professionals and high-net-worth families.
Singapore also sees regional financial competition as more than a zero-sum game.
As MAS Deputy Chairman and Minister for National Development Chee Hong Tat noted:
“We believe the region is large enough for both cities to have ample room to grow in financial services. We do need to watch global developments and adjust our own policies accordingly.”
For high-net-worth families considering Singapore family office structures, asset management arrangements or long-term residency planning, these developments are particularly relevant.
They may be even more significant for clients already involved in fund management, investment management or family wealth management, as Singapore continues to strengthen its appeal as both an asset allocation centre and an operating base.
The three initiatives point in the same direction:
Singapore is creating stronger incentives for senior fund managers and investment leaders to establish a long-term presence in the country.
Government investment and tax incentives could further strengthen Singapore’s fund management ecosystem.
A deeper asset management industry may create more opportunities to connect family office structures, investment planning, business presence and long-term residency arrangements within Singapore.
The significance is therefore broader than any single tax incentive or visa category.
Singapore is continuing to strengthen the infrastructure around capital, talent and long-term wealth management.
For families and businesses considering Singapore, the key is not simply to react to one new policy.
Residency, corporate structures, family offices, banking, tax and investment arrangements often need to be considered together.
SagePartners provides integrated support across areas including:
Employment Pass planning
Singapore company incorporation and corporate structuring
Personal and corporate banking support
Family office establishment
PR and long-term residency planning
Tax and compliance coordination
Cross-border asset and business planning
Our focus is not simply on completing one application.
It is on helping clients understand how each decision connects to the next — and building a Singapore strategy that works as a whole.
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