Singapore to Become a Global Gold Vault, Storing 500 Tonnes of Gold

Singapore is launching a gold vaulting service for foreign central banks. By offering tax relief on bullion trading and introducing new trading facilities starting in April 2027, the nation aims to strengthen its foothold in the global gold market.

Singapore is preparing to bolster its position in the global gold trading and storage market by launching a new service that allows foreign central banks to securely store their gold. The country also plans to provide tax relief to promote bullion trading. This initiative could see Singapore emerge as a major hub for international gold trading.

Central banks worldwide are increasing the share of gold within their foreign exchange reserves. Amidst economic uncertainty, gold is regarded as a secure reserve asset. By capitalizing on this growing demand, Singapore seeks to solidify its presence in the international gold market.

According to Gan Kim Yong, Singapore’s Deputy Prime Minister and Chairman of the Monetary Authority of Singapore (MAS), several central banks have already expressed interest in this new facility. However, citing confidentiality, he did not disclose the names of any specific countries or banks.

Facility for Foreign Central Banks to Store Gold

The Monetary Authority of Singapore (MAS) has announced the launch of this gold vaulting service, effective November 10, 2026. Under this arrangement, central banks from other nations, international financial institutions, and government entities will be able to securely store their gold in Singapore. The gold will be kept in the nation’s official vault, which currently has a capacity of approximately 500 metric tonnes—a capacity that can be expanded if demand increases.

New Platform for Gold Trading in 2027

Singapore’s ambitions extend beyond mere gold storage. An over-the-counter (OTC) gold clearing system is currently being developed, with live trading and market operations expected to commence in the first quarter of 2027. Additionally, the Singapore Exchange (SGX) is preparing to launch physically-settled gold kilogram futures contracts in the second quarter of 2027.

Increased Competition in Asian Markets

This initiative from Singapore comes at a time when Hong Kong is also striving to establish itself as an international gold trading hub. Other markets, such as Dubai and Shanghai, are also active in this sector. In this context, Singapore aims to secure a more significant role in Asia’s gold trade by introducing new facilities, tax relief, and enhanced trading systems.

Tax Relief Starting April 2027

To promote gold trading, the Singapore government is set to amend its tax regime. From April 2027, the Monetary Authority of Singapore (MAS) and the Ministry of Finance will implement provisions to exempt certain services related to the wholesale trading of investment-grade precious metals from the Goods and Services Tax (GST).

This will cover services such as the secure storage of gold, refining, re-casting, purity testing, and brokerage. Eligible companies and market participants operating at an institutional level will benefit from this relief, which is expected to help reduce transaction costs and foster the expansion of the gold market in Singapore.