Singapore announces fund-manager tax incentives as Hong Kong rivalry intensifies

Singapore announced three measures on Aug. 19 to strengthen its position as an Asian asset-management hub amid competition with Hong Kong: a proposed tax exemption for qualifying profit-linked income, a Monetary Authority of Singapore program to invest in hedge-fund managers establishing or expanding locally, and the ONE Pass Investment Management Track. Quantedge Capital CEO Suhaimi Zainul-Abidin said the hedge-fund allocation could matter more for its sovereign-adjacent status and signaling effect than for the capital itself, particularly if it involves rigorous due diligence and long-duration capital. Singapore's fund industry has nearly S$7 trillion in assets under management, has grown by about 7.5% annually over the past five years, contributes around 15% of financial-sector output and supports approximately 25,000 jobs, about 80% held by locals. The measures follow Hong Kong's June 2026 expansion of favorable tax treatment for carried interest and performance fees across a wider range of asset classes. Details on Singapore's exemption, including the meaning of "strong returns," the exempt portion and qualifying funds, are due in the 2027 fiscal budget.

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