Singapore Opens Gold Storage Service to Foreign Central Banks
Singapore’s Monetary Authority of Singapore (MAS) launched a gold vaulting service for foreign central banks and sovereign institutions on November 10, as the country seeks to strengthen its position as a regional precious metals trading centre.
The service provides foreign central banks, international financial institutions and sovereign entities with an option to store their gold reserves in Singapore. The facility has a storage capacity of up to 500 tonnes.
Gold held through the service will be stored on an allocated basis at Singapore’s national currency vault. Individual gold bars will be assigned to customers and recorded separately, allowing institutions to maintain ownership records of their holdings.
Eligible customers will be able to deposit gold, transfer holdings through book-entry arrangements and withdraw their reserves. The gold deposited must meet the London Bullion Market Association’s Good Delivery standards.
MAS said the service would be supported by security and operational controls covering storage, access and the recording of gold movements. Eligible bullion banks operating in Singapore may also apply for accounts, subject to regulatory assessment and due diligence.
Alongside the launch, MAS and the Ministry of Finance announced an enhanced Goods and Services Tax framework for wholesale investment precious metal activities. The changes will extend tax relief to certain services between institutional market participants, including vaulting, refining, recasting, assaying and broking.
The measures are intended to support institutional gold trading and reduce the tax costs associated with wholesale transactions.
Singapore has been developing its precious metals market through infrastructure and regulatory changes. The new service adds a dedicated gold custody option for official institutions seeking secure storage in the Asia-Pacific region.
