Singapore opens national vault to overseas gold reserves
The facility can hold up to 500 tonnes, while a gold-clearing system and tax changes are planned to support the wholesale market.
Foreign central banks, sovereign entities and international financial institutions can now store gold reserves in Singapore under a service launched on November 10 by the Monetary Authority of Singapore (MAS). Its national currency vault has capacity for up to 500 tonnes, with scope for expansion as demand increases.
Deputy Prime Minister and MAS chairman Gan Kim Yong said some overseas central banks had indicated interest. He declined to identify them because discussions were confidential, and described Singapore’s service as another storage option rather than a zero-sum contest with Hong Kong.
The facility adds to commercial vaults in Singapore with capacity exceeding 2,000 tonnes. MAS said selected bullion banks based in Singapore would receive gold custody accounts to serve the institutions eligible for the new service.
Alongside the vault launch, MAS said industry testing was complete for the Singapore Exchange’s (SGX) over-the-counter gold-clearing system. Its rule book is due to be finalised soon. The six banks chosen as clearing members are UOB, OCBC, JPMorgan, ICBC Standard Bank, Deutsche Bank and DBS.
SGX and the banks aim to finish preparations by the end of 2026. Trading and market operations are expected to begin in the first quarter of 2027, covering large gold bars and kilobars. SGX is separately targeting the second quarter of 2027 for its physically deliverable Gold Kilobar Futures contract.
MAS and the Ministry of Finance also plan an enhanced GST framework for wholesale investment precious metals gold activities. Selected services between institutional participants would not attract GST. The framework is expected to start in April 2027, with details due at Budget 2027. MAS said it would support wholesale activity involving gold not intended for domestic consumption.
