Comparative Assessment of Singapore's Proposed Tax Regime Against Hong Kong's Tax Break Bill
Ministry of FinanceSpeakers
Summary
This question concerns whether the Monetary Authority of Singapore (MAS) has assessed Singapore's proposed profit-related returns tax exemption against Hong Kong's June 2026 tax break Bill, including its comparative scope and impact on fund manager relocation. Mr Chua Kheng Wee Louis asked the Prime Minister and Minister for Finance about the projected effects of Hong Kong's Bill on Singapore's assets under management and tax regime breadth. Replying on behalf of the Prime Minister, Minister Gan Kim Yong stated that MAS monitors developments in major financial centres, noting that key features of Singapore's exemption were announced on 19 August 2026 with full details coming at Budget 2027. Minister Gan Kim Yong added that MAS is currently engaging the asset management industry for feedback and clarifications. He emphasized that location decisions depend on multiple factors beyond tax, such as talent and regulatory environments, and the proposed exemption will further strengthen industry competitiveness and support local job creation.
Transcript
5 Mr Chua Kheng Wee Louis asked the Prime Minister and Minister for Finance (a) whether MAS has assessed Singapore's proposed profit-related returns exemption against Hong Kong's Bill gazetted in June 2026 to expand tax breaks; (b) if so (i) how does the scope and tax treatment differ (ii) whether Singapore's regime will be broader or narrower and (iii) what is the projected impact of the Bill on fund manager relocation and assets under management in Singapore.
Mr Gan Kim Yong (for the Prime Minister): The Monetary Authority of Singapore (MAS) closely monitors developments across major financial centres, assesses their implications and implements the necessary measures to enhance Singapore's competitiveness. The key principle and feature of Singapore's proposed tax exemption have been communicated in MAS' announcement on 19 August 2026, and the full details will be announced at Budget 2027. MAS is currently engaging widely with the asset management industry to provide clarifications and hear further feedback.
Asset managers' decisions on where to locate and grow their activities are shaped by a range of considerations, including tax treatment, access to talent, market opportunities, regulatory regime and the operating environment. In recent years, the asset management sector has grown strongly as more fund managers have expanded and set up in Singapore.
This tax exemption, along with the other measures MAS announced on 19 August 2026, will further strengthen the competitiveness of Singapore's asset management industry, so that it can continue to grow well and provide good jobs for Singaporeans.