Singapore Gold News: The Monetary Authority of Singapore (MAS) on Tuesday, November 10, announced the launch of its central bank gold vaulting service, alongside an enhanced Goods and Services Tax (GST) framework for wholesale gold market activities.
The initiatives, announced in collaboration with Singapore’s Ministry of Finance (MOF), are part of the country’s efforts to strengthen its position as a trusted and efficient gold trading centre serving the Asia-Pacific region.
Singapore launches 500-tonne gold vault
The gold will be stored in Singapore’s national currency vault, which has a storage capacity of up to 500 tonnes, with scope for expansion depending on demand.
MAS will also offer gold custody accounts to selected Singapore-based bullion banks with expertise and experience in providing gold-related services and trading liquidity to eligible institutions.
The authority said the initiative would provide an additional sovereign custody option for institutions seeking to hold gold reserves in Singapore.
Singapore announces enhanced GST framework for gold activities
Alongside the vaulting service, MAS and the Ministry of Finance announced plans to introduce an enhanced GST framework covering wholesale investment precious metal (IPM) gold market activities.
Under the proposed framework, GST waivers will be extended to specified wholesale gold-related services between institutional participants covered by the framework.
– Gold vaulting and storage
According to MAS, existing GST measures already exempt the import and local supply of investment precious metals from GST.
Under the existing Approved Refiner and Consolidator Scheme, GST is also waived on investment precious metal-related goods supplied between approved refiners and consolidators for refining activities.
The enhanced framework will extend this treatment to specified wholesale services.
MAS said the changes are intended to support the growth of the wholesale Loco Singapore gold market, where trades are priced, cleared and settled against gold physically stored in Singapore.
Singapore gold clearing system expected in 2027
MAS also provided an update on the development of Singapore’s over-the-counter (OTC) gold clearing system.
Following a memorandum of understanding signed in June, SGX Group and six founding clearing banks are working to complete preparations for the system by the end of 2026.
The six banks are DBS, Deutsche Bank, ICBC Standard Bank, J.P. Morgan, OCBC and UOB.
According to MAS, industry testing of the clearing system has been completed, while its rulebook is expected to be finalised soon.
Separately, SGX is targeting the second quarter of 2027 for the launch of physically deliverable Gold Kilobar Futures.
Why is Singapore expanding its gold market?
According to MAS, the combination of gold vaulting services, enhanced GST measures and new clearing infrastructure is intended to support the development of a deeper and more active gold market in Singapore.
The authority said these initiatives would facilitate price discovery and risk management during Asian trading hours.
The measures are also aimed at strengthening Singapore’s position as a connection point between established international gold trading centres and global liquidity.
The announcement marks another step in Singapore’s efforts to develop its wholesale gold trading ecosystem.