Overview
- The Monetary Authority of Singapore announced the three-part package on Wednesday that introduces an Investment Management Track under the ONE Pass, a tax exemption for profit‑related returns, and a hedge‑fund investment programme, with measures set to take effect in the 2027 year of assessment.
- The ONE Pass Investment Management Track will adjust salary assessments to recognise lumpy, performance‑linked pay such as carried interest and performance fees so senior investment professionals can qualify despite volatile annual income.
- The targeted tax exemption will apply to a share of investment profits paid to managers for services to qualifying Singapore‑based funds that meet economic substance tests, and further rules will be published at Budget 2027.
- MAS’s new hedge‑fund investment programme will commit public capital to managers that establish or deepen operations in Singapore to help build local capacity and shore up services such as prime brokerage.
- Analysts and industry groups say the package is a timely response to Hong Kong’s tax reforms but warn it may not win decisively without faster implementation, clearer rules for junior hiring and improved access to service providers; Singapore’s asset management industry manages roughly S$7 trillion in assets and supports about 25,000 jobs.