MAS launches gold vaulting service with 500-tonne capacity, extends GST waiver to institutional gold services
The Monetary Authority of Singapore on Tuesday launched a gold vaulting service for central banks with capacity to store up to 500 tonnes of gold. MAS and the Ministry of Finance also announced an enhanced GST framework that will waive taxes on wholesale services such as vaulting, refining and broki
The Monetary Authority of Singapore (MAS) on Tuesday (Nov 10) launched a gold vaulting service for central banks, with capacity to store up to 500 tonnes of gold. The service aims to provide foreign central banks, international financial institutions and sovereign entities with a secure option to hold gold reserves in Singapore.
MAS and the Ministry of Finance also said they would introduce an enhanced Goods and Services Tax (GST) framework to waive taxes on some wholesale services related to investment precious metals. GST will not be charged on services between institutional participants, such as vaulting, refining, recasting, assaying and broking.
MAS chairman Gan Kim Yong told reporters that the framework better reflects that gold is predominantly traded among institutional participants and is not for domestic consumption. He added that more details would be shared at Budget 2027. The framework is expected to take effect from April next year.
Mr Gan, who is also Singapore's deputy prime minister, said demand for gold is rising given the increasingly uncertain external environment, and investors and central banks are looking for resilience and diversification. He said Singapore does not aim to replace other gold centres but offers an additional option to central banks.
MAS said the gold will be stored in Singapore's national currency vault, which can store up to 500 tonnes with room to expand as demand grows. The Singapore Exchange and six banks are also working together to complete preparations for the Over-the-Counter gold clearing system by the end of this year, with live trading and market operations expected to start in the first quarter of next year.
Mr Gan said developing Singapore's gold market is a natural extension to the city-state's role as a trusted financial centre. Secure storage will be connected with trading and settlement, so that gold can be held, managed and traded in Singapore. The move will anchor new high-value activities across trading, risk management, custody and professional services, creating good jobs and capabilities while strengthening Singapore's role as a trusted connector between Asia and global gold markets.
