In a speech at the Asia-Pacific Precious Metals Conference, the Monetary Authority of Singapore set out a package of market infrastructure, custody and tax measures aimed at strengthening Singapore’s role in global and regional gold trading during Asian hours. The update centres on four areas: an over-the-counter gold clearing system for Loco Singapore, central bank gold vaulting services, development of gold-related capital markets products, and looser tax scheme limits for physical investment precious metals. SGX will establish the OTC gold clearing system for Loco Singapore by end-2026, with interbank trading expected to build up from 2027. The system is intended to support trade processing, transparency, clearing and settlement for both large bars and kilobars, and six bullion banks, DBS, Deutsche Bank, ICBC Standard Bank, J.P. Morgan, OCBC and UOB, are due to sign a memorandum of understanding with SGX to participate as clearing members. MAS also said it will introduce central bank gold vaulting services by October 2026 for foreign central banks and sovereign entities, while extending gold accounts to a select group of Singapore-based bullion banks to support related services and liquidity. On market development, SGX is exploring a physically deliverable gold futures contract, while banks are looking at tokenised gold use cases in Singapore, including through the World Gold Council and London Bullion Market Association Gold Bar Integrity initiative. MAS also said it will remove the 5% cap on physical investment precious metals under tax incentive schemes for funds, allowing eligible funds and family offices greater flexibility to allocate to physical gold in Singapore. Further details on that change are due by September 2026. MAS added that it is working to align Singapore’s market practices with relevant global standards, including the London Bullion Market Association Good Delivery framework for large bars and major exchange delivery and settlement standards for kilobars.
Monetary Authority of Singapore2026-06-15
Monetary Authority of Singapore outlines gold market expansion including Loco Singapore clearing by end-2026
In a conference speech, the Monetary Authority of Singapore outlined measures to build Singapore’s gold market infrastructure and position it as an Asian trading and custody hub. The package includes SGX OTC clearing for Loco Singapore by end-2026, MAS central bank vaulting services by October 2026, and the removal of the 5% cap on physical investment precious metals under fund tax incentive schemes. MAS also pointed to work on a physically deliverable gold futures contract, tokenised gold and alignment with global market standards.