Singapore rolls out new foreign work pass track, tax exemptions for asset management industry

Singapore is enhancing its appeal as a premier asset management hub with the introduction of a new foreign work pass and targeted tax exemptions. The Monetary Authority of Singapore (MAS) unveiled these measures, including the "Investment Management Track" within the Overseas Networks and Expertise (ONE) Pass framework. This initiative is designed to attract global leaders and senior investment professionals who can significantly contribute to Singapore's burgeoning asset management sector.

The asset management industry is a vital component of Singapore's economy, accounting for approximately 15% of the financial sector's output and 13% of its employment. Over the past five years, the industry has seen an average annual growth of 7.5%, managing nearly S$7 trillion (US$5.5 trillion) in assets. Minister for National Development Chee Hong Tat emphasized Singapore's commitment to remaining a "trusted, vibrant, and globally competitive financial hub."

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We want to be able to grow this further as part of our plans to grow Singapore's position as an international financial sector.

To further sharpen its global competitiveness, Singapore plans to refine salary assessments for the new work pass to better reflect industry compensation structures, including performance-linked returns. Additionally, MAS and the Ministry of Finance (MOF) will introduce tax exemptions on profit-related returns for fund management services provided to qualifying funds. These exemptions, expected to take effect from the year of assessment in 2027, are specifically targeted at incentivizing fund managers and investment professionals who deliver strong returns for investors.

MAS will also launch a new hedge fund investment program to encourage hedge fund managers to establish or expand their presence in Singapore. This program aims to support the growth of the local hedge fund investment ecosystem. The government's proactive approach underscores its dedication to strengthening Singapore's value proposition and maintaining its status as a leading international financial center.

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Such funds are already required to meet economic substance requirements, including minimum headcount. This tax exemption is targeted and aimed at sharpening the global competitiveness of Singapore as an asset management hub.