SINGAPORE, November 10, 2026 — Singapore has taken a major step towards expanding its position in the international precious metals market by launching a new gold vaulting service designed to attract foreign central banks, international financial institutions and sovereign organisations.

The Monetary Authority of Singapore (MAS) officially introduced the service on Tuesday, allowing eligible international institutions to store their gold reserves in Singapore’s national currency vault. The initiative is part of a broader strategy to develop the city-state into a trusted centre for gold trading, storage and settlement across the Asia-Pacific region.

The move comes at a time when central banks and institutional investors are increasingly looking at gold as a way to diversify their reserves and strengthen financial resilience amid global economic uncertainty.

Singapore’s Gold Vault Can Store Up to 500 Tonnes

Under the newly launched programme, gold reserves belonging to foreign central banks and other eligible institutions will be stored in Singapore’s national currency vault.

According to MAS, the facility has an initial storage capacity of up to 500 tonnes of gold, with the possibility of expanding its capacity as demand increases.

The service will provide secure, allocated gold custody, allowing institutions to maintain ownership of their bullion while benefiting from Singapore’s established financial infrastructure.

MAS will also make gold custody accounts available to selected Singapore-based bullion banks with the expertise and trading capabilities required to serve international institutional clients.

Rising Global Demand Encourages Gold Storage Expansion

Gold continues to play an important role in international finance, particularly during periods of geopolitical uncertainty, currency fluctuations and economic instability.

Central banks around the world hold gold as part of their foreign reserve portfolios because it offers an alternative to traditional financial assets.

Singapore believes its strong reputation for financial stability, institutional reliability and international connectivity makes it an attractive destination for organisations seeking additional locations to store their precious metal reserves.

The new facility is intended to provide another option for international institutions rather than replace established gold-storage centres.

New Tax Measures to Support Wholesale Gold Trading

Alongside the vaulting service, MAS and Singapore’s Ministry of Finance have announced an enhanced Goods and Services Tax (GST) framework designed to support wholesale investment precious metal activities.

The planned measures will extend GST relief to certain services provided between eligible institutional participants.

These activities include gold vaulting, refining, recasting, assaying and brokerage services.

The framework is expected to become effective in April 2027, with further implementation details scheduled to be announced through Budget 2027.

The initiative aims to reduce costs associated with institutional gold transactions and make Singapore more competitive in the international bullion market.

Singapore Prepares for a New Gold Clearing System

Singapore is also developing additional infrastructure to connect physical gold storage with international trading and settlement activities.

The Singapore Exchange (SGX), working with six major banking institutions, is preparing an over-the-counter gold clearing system.

The participating banks include DBS, Deutsche Bank, ICBC Standard Bank, JPMorgan, OCBC and UOB.

Industry testing of the clearing system has been completed, while preparations for its operational launch are continuing.

Live trading and market operations are expected to begin in the first quarter of 2027.

Separately, SGX is targeting the introduction of physically deliverable Gold Kilobar Futures in the second quarter of 2027.

These developments are expected to improve trading efficiency, strengthen market liquidity and support more transparent gold price discovery during Asian business hours.

Singapore Strengthens Its Position in Asia’s Gold Market

The latest initiative reflects Singapore’s broader ambition to expand beyond traditional banking and investment services by developing specialised financial markets.

The city-state already benefits from its strategic location, established financial institutions and connections with major international trading centres.

By combining secure gold storage, institutional trading, clearing services and supportive tax arrangements, Singapore hopes to attract more international participants to its precious metals ecosystem.

Competition in the regional gold market is also increasing, with financial centres such as Hong Kong, Dubai and Shanghai working to strengthen their own bullion trading and storage capabilities.

What the New Initiative Means for the Global Gold Industry

Singapore’s gold vaulting programme could create additional opportunities for international financial institutions seeking secure storage facilities and better access to Asian trading markets.

It may also encourage the development of related professional services, including bullion management, risk assessment, refining and institutional brokerage.

However, the long-term success of the initiative will depend on international participation, market liquidity and Singapore’s ability to build a competitive trading ecosystem.

For now, the launch represents an important development in the country’s financial strategy.

By expanding its gold infrastructure, Singapore is seeking to establish itself as a key connection point between Asian markets and the wider international precious metals industry.