Singapore sets out plan to support gold trading amid growing interest
A working group to develop the gold market will focus on areas such as improving Singapore's physical infrastructure for storing and transporting gold.
Deputy Chairman of the Monetary Authority of Singapore Chee Hong Tat speaking to the media on Mar 27, 2026. (Photo: CNA/Abigail Ng)
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SINGAPORE: Singapore will develop measures to strengthen the country's gold ecosystem, deputy chairman of the Monetary Authority of Singapore (MAS) Chee Hong Tat said on Friday (Mar 27) amid growing interest among investors to vault and trade gold here.
In particular, the measures will focus on areas such as improving Singapore's physical infrastructure for storing and transporting gold, and providing gold storage services to foreign central banks and sovereign entities.
The other focus areas are broadening the range of gold-related capital market products, and setting up a clearing and settlement system to ensure the secure transfer of assets such as large bar and kilobar gold.
Large bars are around 12.4kg gold bars, the preferred standard in the London market for institutional trading and settlement, while the 1kg kilobar is the preferred standard in Asian markets.
Mr Chee, who is also National Development Minister, said developing the gold market will add a new pillar to what Singapore is already offering in wealth and asset management.
"If you look at the ecosystem as a whole ... the larger financial services industry ecosystem, this vertical of gold trading actually fits in quite well," he said.
If done well, Singapore can establish itself as a gold trading hub, attract more assets and create more good jobs, he said.
The MAS and the Singapore Bullion Market Association, which established a Gold Market Development Working Group in January this year, jointly announced the focus areas following discussions and studies with industry players.
For example, Mr Chee said the industry gave feedback on demand from foreign central banks for gold storage facilities in Singapore.
Similar services are also offered in cities such as New York.
Safety and security is a primary consideration in this area, and that plays to Singapore's strengths, he said.
"We are seen as a reliable and trusted financial centre. Singapore is a safe and secure place," he said.
CLOSE COMPETITION?
In response to a question about Hong Kong's recent deal with the Shanghai Gold Exchange, Mr Chee said Singapore is used to having competition.
He added that the demand for gold trading has increased given the uncertain global environment, and there is a need for a safe and trusted trading hub in Asia.
"Between Singapore and other financial centres in Asia, for example, Hong Kong, I think the space is big enough for us to coexist and for both cities to be able to grow our respective services," he said.
The clients and the market segments are not completely identical, so there may be competition in some areas and collaboration in others, said Mr Chee.
Asked how the recent sell-off in gold might affect MAS' plans, he said Singapore is not betting on prices going up or down in the short term, but rather creating an ecosystem to make gold trading an activity that can be based here.
He likened it to planting trees and making sure the environment is suitable and attractive.
"Over time, if you make the right investments in the right areas, you grow the ecosystem, the trees will then grow and bear fruit," he said.
The workgroup, which includes banks and is supported by vault operators and a precious metals refinery, will provide more details and updates over the course of the year.
