Overview
- The policy package announced on Monday removes a 5% cap on physical precious‑metals allocations for eligible funds and family offices, opening the way for larger institutional and private allocations into gold held in Singapore.
- The Monetary Authority of Singapore will offer central‑bank gold‑vaulting services starting in October to allow foreign central banks and sovereign entities to store reserves in Singapore's vaults.
- The Singapore Exchange will build an over‑the‑counter Loco Singapore clearing system by year‑end with six founding clearing members: DBS, Deutsche Bank, ICBC Standard, JPMorgan, OCBC and UOB.
- SGX is exploring a physically deliverable gold futures contract to strengthen local price discovery and hedging while banks rollout complementary services such as tokenised physical gold and institutional custody.
- Officials and market bodies say the measures leverage Singapore’s existing vault capacity and regulatory framework to shift more trading and settlement into Asian hours and to compete directly with Hong Kong and Western hubs.