Asset Management Race
Singapore Unveils New Tax Incentives and Measures to Attract Global Asset Managers Amid Competition
Key Points
Global asset-management talent competition is highlighted by hubs such as London, New York and Dubai, underscoring Singapore's need to remain competitive in a mobile workforce.
MAS plans a hedge fund capital-seeding program to anchor high-value activity and attract capital to Singapore's asset-management ecosystem.
Industry chatter indicates several major global hedge funds are conducting feasibility studies and engaging with Singapore authorities to establish a significant presence under the new regime.
In addition to tax exemptions, the policy would exempt a share of profits on fund-management services for qualifying funds and broaden the exemption to cover a wider range of alternative investment strategies, aligning with Hong Kong’s carried-interest reforms.
The measures are slated to become effective in 2027, with details to be announced in the 2027 Budget, and include a strengthened ONE Pass investment-management track alongside salary-assessment refinements for top investment professionals.
Singapore is rolling out tax breaks and incentives to keep asset managers from fleeing to Hong Kong. The Monetary Authority of Singapore (MAS) announced plans to exempt individual fund managers — including hedge fund traders — from taxes on profits tied to fund-management services, according to Bloomberg and Financial Times.
The moves are a direct response to Hong Kong's own aggressive tax cuts on carried interest — the share of profits that fund managers earn. Singapore Minister Chee Hong Tat said the competition is "not zero-sum," but the race to dominate Asia's asset-management landscape is clearly heating up, Financial Times reported.
What Singapore Is Actually Offering Fund Managers
The MAS package has three main parts. First, tax exemptions on profits from fund-management services for qualifying funds. Second, a broader exemption covering a wider range of alternative investment strategies like private equity and hedge funds. Third, a new capital-seeding program to attract hedge funds and anchor high-value activity in Singapore, according to The Edge Malaysia.
The measures are set to take effect in 2027. Full details will come with the 2027 Budget announcement. The package also includes a strengthened ONE Pass visa track for senior investment professionals, plus changes to how salaries are assessed for top talent, Bloomberg reported.
Hong Kong's Carried-Interest Cuts Forced Singapore's Hand
Hong Kong moved first. It slashed taxes on carried interest — a key form of pay for private equity and hedge fund managers — to lure firms away from Singapore. Carried interest is the cut of investment profits that fund managers keep, often taxed at high rates. Hong Kong's reforms made it a cheaper place to run a fund, Streamline Feed reported.
Singapore's new framework is designed to match and broaden that offer. By covering a wider range of alternative investment strategies, MAS is trying to close the gap. Industry groups had warned that without action, staff and capital could start moving to Hong Kong, Financial Times reported.
Global Talent War Puts Pressure on Every Financial Hub
Singapore is not just fighting Hong Kong. London, New York, and Dubai all compete for the same small pool of top fund managers. These professionals are mobile — they move where taxes are low and rules are clear. That global competition is a key reason MAS acted now, according to Financial Times.
Industry chatter suggests several major global hedge funds are already running feasibility studies. They are talking to Singapore authorities about setting up a significant presence under the new regime, Streamline Feed reported. The capital-seeding program is seen as a key draw — it puts real money behind Singapore's pitch.
What Still Needs to Happen Before 2027
The 2027 timeline leaves a gap. Full details are not yet public. Industry groups are calling for clarity fast, warning that uncertainty itself can push firms to make decisions in favor of rival cities. Talent does not wait — neither do capital flows, Bloomberg noted.
MAS says the goal is to deepen Singapore's asset-management capabilities and attract senior personnel for the long term. Minister Chee's "not zero-sum" framing signals Singapore wants to grow the overall pie — not just steal managers from Hong Kong. But with billions of dollars and thousands of jobs at stake, every policy detail will matter, The Edge Malaysia reported.
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