Singapore opens gold vaulting service for overseas central banks
An expanded GST waiver for institutional gold services is expected from April 2027, alongside plans for gold clearing and futures launches.
Singapore’s central bank has launched a gold storage service serving sovereign entities, international financial institutions and central banks from abroad. The Monetary Authority of Singapore (MAS) said the initiative supports its efforts to develop the country as a regional centre for gold trading.
Gold deposited through the service will be held at the national currency vault. It can accommodate up to 500 tonnes, and capacity can be increased as demand rises. MAS will also provide custody accounts for selected bullion banks operating in Singapore that have experience supplying these institutions with gold services and trading liquidity.
Separately, MAS and the Ministry of Finance will broaden the GST framework covering wholesale investment precious metals gold. Specified services conducted between institutional participants within the framework will qualify for the waiver, including broking, assaying, vaulting, refining and recasting.
The authorities expect the revised framework to take effect from April 2027, with more details at Budget 2027. The changes are intended to align tax treatment with wholesale Loco Singapore activity involving gold that is not intended for domestic consumption.
Meanwhile, SGX Group is working with six founding clearing banks to finish preparations for an over-the-counter gold clearing system by the end of 2026. Testing is complete and the rulebook is nearing finalisation. Trading and market operations are expected to start in the first quarter of 2027. SGX is separately targeting a launch of physically deliverable Gold Kilobar Futures in the second quarter of 2027.
