Singapore launches a secure service capable of storing up to 500 tonnes of gold for foreign central banks and sovereign institutions. Asia now accounts for 70% of global gold demand.
Singapore announced on Tuesday the launch of a gold storage service for foreign central banks, international financial institutions and sovereign entities, in a bid to strengthen its position in precious metals trading. The Monetary Authority of Singapore (MAS) said the storage facility, located within the city-state's national currency vault, could store up to 500 tonnes of gold, with capacity to expand depending on demand. The service will provide foreign central banks, international financial institutions and sovereign entities "a secure option to hold gold reserves in Singapore", the Authority said in a statement.
It represents “an additional sovereign custody option in Singapore, combining secure and allocated custody, reliable services and efficient access to gold market liquidity during Asian trading hours,” MAS added. Demand has shifted to Asia Asia accounts for "around 70%" of annual consumer demand for gold globally, shifting the "center of gravity" to that region, Singapore Deputy Prime Minister Gan Kim Yong said in June. China and India were the “major contributors to demand for bars and coins” last year, he said.
But the region's gold market infrastructure has lagged, creating a trading deficit in the Asian time zone, according to Gan. MAS and the Singapore Ministry of Finance are also seeking to introduce a new tax framework from April, extending the tax exemption applicable to gold to wholesale services between institutional participants, such as custody, refining, remelting, testing and brokerage.
The move also comes as the Singapore Stock Exchange and six banks prepare to launch an over-the-counter gold clearing system, with live operations expected to begin in the first quarter of 2027, according to MAS.
Machine-translated from French
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