MAS introduces gold reserve custody and expanded GST waivers for wholesale bullion services in Singapore.
The Monetary Authority of Singapore (MAS) launched its central bank gold vaulting service on 10 November 2026 and announced an enhanced Goods and Services Tax (GST) framework for wholesale investment precious metal (IPM) gold market activities. Developed in collaboration with the Ministry of Finance (MOF), the initiatives aim to support Singapore’s development as a trusted gold trading centre serving the Asia-Pacific region.
The new vaulting service provides foreign central banks, international financial institutions and sovereign entities with a secure option to hold their gold reserves in Singapore. MAS will also offer gold custody accounts to selected Singapore-based bullion banks with the expertise and experience to provide gold-related services and trading liquidity to these institutions.
Gold held under the service will be stored in Singapore’s national currency vault, which has a capacity of up to 500 tonnes, with provision for future expansion as demand increases. The arrangement offers allocated gold custody, servicing and access to gold-market liquidity during Asian trading hours.
Separately, MAS and MOF will introduce an enhanced GST framework covering specified wholesale IPM-related services between institutional participants. These services include vaulting, refining and recasting, assaying and broking. The framework builds on existing GST measures for investment precious metals and extends the waiver to eligible wholesale service activities.
The revised tax treatment is intended to support the growth of the Loco Singapore gold market, where transactions are priced, cleared and settled against gold physically stored in Singapore. The framework is expected to take effect in April 2027, with further details scheduled for announcement at Budget 2027.
Singapore is also preparing to introduce an over-the-counter (OTC) gold clearing system. Following a Memorandum of Understanding signed in June 2026, SGX Group and six founding clearing banks, namely DBS, Deutsche Bank, ICBC Standard Bank, J.P. Morgan, OCBC and UOB, have been working towards completing preparations by the end of 2026. Industry testing has been completed, while the clearing system rulebook is expected to be finalised shortly.
Live trading and market operations are expected to commence in the first quarter of 2027. Separately, SGX plans to launch physically deliverable Gold Kilobar Futures in the second quarter of 2027.
Together, these measures establish key infrastructure for institutional gold custody, wholesale transactions and clearing, supporting price discovery and risk management during Asian trading hours while connecting Singapore to established international gold markets.
Source: Monetary Authority of Singapore
