Singapore MAS New Gold & Precious Metals Initiatives: 1) Removes 5% Limit on Physical Investment Precious Metals (Tax Incentive Schemes for Funds) to Allow Eligible Funds & Family Offices to Invest, 2) Setup OTC (Over-the-Counter) Gold Clearing System for Loco Singapore in 2026, 3) 6 Bullion Banks on Singapore Exchange (SGX) as Clearing Members (DBS, Deutsche Bank, ICBC Standard Bank, JP Morgan, OCBC & UOB), 4) Launch of MAS Central Bank Gold Vaulting Services by 2026 October, 5) Reviewing Launch of Physical Deliverable Gold Futures Contract, 6) Banks Reviewing Tokenised Gold in Singapore Market

Mr KL Yap, Chairman, Singapore Bullion Market Association (or SBMA)
Mr Albert Cheng, CEO, SBMA
Mr David Tait, Global CEO, World Gold Council
Ms Ruth Crowell, CEO, London Bullion Market Association (or LBMA)
Distinguished guests and industry partners

Introduction

1. Good morning to all of you. Thank you for inviting me to speak at the 9th Asia-Pacific Precious Metals Conference.

2. We meet at a time when the global economic landscape is becoming more contested and fragmented.

a. Capital and goods continue to move across borders, but they now do so amid greater geopolitical uncertainty, sharper policy divergence, and heightened concerns over resilience and security.

b. In this environment, trust becomes a form of infrastructure.

c. Global investors, including institutional and high-net-worth investors, are not only looking for yield and liquidity. They are also looking for places where assets can be held safely, transacted reliably, and governed transparently.

Strengthening Singapore’s role in intermediating global-regional gold flows

3. Gold sits squarely within this broader search for trust and resilience.

a. Throughout history, gold has served as an important store of value, and a strategic reserve asset, particularly in periods of uncertainty.

b. Today, its relevance reflects a growing demand for assets that can help preserve value, diversify risks, and provide resilience across market cycles.

c. Investors are increasingly using gold to strengthen portfolio resilience. Reserve diversification by long-term asset owners such as central banks also anchors long-term gold demand.

4. At the same time, the centre of gravity for gold demand is shifting further towards Asia.

a. Asia accounts for roughly 70% of annual consumer gold demand, and has been a key driver of both consumption and investment flows.

b. China and India were the top contributors to bar and coin demand in 2025. Southeast Asian markets are also active, including in Thailand and Vietnam.

5. However, Asia’s gold market infrastructure has not fully kept pace with this shift in demand.

a. Trading, liquidity and price discovery remain concentrated in established global centres like London and New York.

b. This creates a practical gap in the Asian time zone. Market participants are seeking more efficient ways to access liquidity, manage risk, and settle transactions during Asian trading hours.

c. They are also looking for additional, complementary nodes where gold can be securely stored and reliably transacted.

d. We already see evidence of this demand for Singapore-based solutions.

i. For instance, the LionGlobal Singapore Physical Gold Fund, which invests in gold held in custody in Singapore, has attracted over S$600 million in assets since its launch in November 2025.

6. This is where Singapore can play a meaningful role for Asia, alongside gold centres in other time zones.

a. We are not seeking to replace established centres of gold trading and liquidity. Instead, Singapore can serve as a trusted node in the global gold ecosystem – connecting regional demand with global liquidity, and supporting market activity during Asian hours.

b. Our value proposition rests on two key strengths – connectivity and trust. Our financial centre is deeply connected to global markets, and anchored by strong institutions operating within a robust and progressive regulatory framework.

c. We are well placed to complement the existing global network, by making it easier for participants to trade, clear, settle, store and manage gold in this region.

Building trusted market infrastructure and capabilities

7. To play this role well, we need the right building blocks in place – reliable clearing and settlement systems, secure vaulting, relevant products, and clear standards. This will allow participants to transact with confidence.

a. This has been a key focus for MAS, the SBMA, Enterprise Singapore and industry players, building on earlier industry efforts such as the SBMA’s Project Lion 2 study.

b. The Gold Market Development Working Group, co-chaired by MAS and SBMA, has made good progress since its formation in January this year. It has identified key focus areas across gold product development, vaulting and logistics infrastructure, and an efficient gold clearing system for Loco Singapore.

c. Today, I am pleased to update on four areas of progress, each corresponding to one of these building blocks.

8. First, SGX will establish an over-the-counter (OTC) gold clearing system for Loco Singapore by end-2026, with interbank trading expected to build up from 2027.

a. This is a foundational piece of market infrastructure.

i. By streamlining trade processing, enhancing transparency, and supporting more efficient clearing and settlement, this will give market participants greater confidence to transact in Singapore.

ii. It will support both large bars and kilobars, enabling standardised settlement during Asian trading hours.

b. I am pleased that six bullion banks – DBS, Deutsche Bank, ICBC Standard Bank, J.P. Morgan, OCBC and UOB – will sign an MOU with SGX later today to participate as clearing members.

i. They will work with SGX to advance the development of the Loco Singapore gold market, deepen price discovery and build trading activities.

9. Second, MAS will introduce central bank gold vaulting services by October this year.

a. Singapore already has strong commercial vaulting capacity, with major vault providers offering more than 2,000 tonnes of secure storage.

i. This caters to a range of market participants including bullion banks, institutional and high-net-worth investors.

ii. Industry participants are also prepared to expand this capacity in line with market growth.

b. MAS’ gold vaulting services will complement commercial capacity, by providing foreign central banks and sovereign entities with a secure option to vault their gold reserves in Singapore, backed by MAS’ institutional standing.

c. Beyond secure storage, some foreign central banks and sovereign entities may also be keen to actively manage their gold holdings. MAS will therefore extend gold accounts to a select group of Singapore-based bullion banks, enabling them to better provide gold-related services and liquidity to these entities.

d. This strengthens Singapore’s proposition as a jurisdiction where reserve assets can be securely held, actively managed, and connected to wider market liquidity during Asian trading hours.

10. Third, we are making good progress in developing gold-related capital market products.

a. SGX is exploring a physical deliverable gold futures contract, which would enhance price discovery and risk management in Loco Singapore.

b. Banks are also keen to develop the use of tokenised gold within the Singapore market, including through collaboration on the Gold Bar Integrity initiative by the World Gold Council and LBMA.

c. These initiatives will complement the OTC gold market, and support a broader range of investment and hedging needs. Over time, this can deepen liquidity, strengthen price discovery, and improve the efficiency of gold as a tradable financial asset.

11. Fourth, MAS will remove the 5% cap on physical investment precious metals under the tax incentive schemes for funds.

a. This will allow eligible funds and family offices to diversify their portfolios more flexibly, and support greater capital deployment into physical gold in Singapore.

b. MAS will provide further details by September.

Singapore’s value as a trusted node in the global gold network

12. The gold market works best when liquidity and infrastructure are connected across regions. With an established clearing infrastructure and strong market ecosystem, Singapore can support a more seamless global market across time zones – from Asia, to Europe, to the Americas.

13. To achieve this, we are working to align Singapore’s market practices with relevant global standards.

a. These include standards under the LBMA Good Delivery framework for large bars, as well as delivery and settlement standards adopted by major exchanges such as the Chicago Mercantile Exchange and Shanghai Gold Exchange for kilobars.

b. Such alignment will reduce friction for participants operating across markets, while preserving flexibility to accommodate differences in market structures.

c. Banks and market intermediaries will also play an important role in bridging these markets, through products and services that allow participants to transact efficiently across locations and bar formats.

14. Taken together, these efforts will position Singapore as a strong connector in the global gold ecosystem.

Conclusion

15. Our gold market initiatives are part of a broader effort to strengthen Singapore’s role as a trusted global node for capital, investment and physical trade flows.

a. Asia’s demand for financial services is growing, and so is the need for reliable market infrastructure in this time zone.

b. At the same time, global fragmentation and uncertainty are raising the premium on safe, trusted and credible venues for intermediation.

c. Our initiatives will broaden Singapore’s marketplace, so that institutions and companies can manage investments for the long term, preserve value, and transact with confidence.

d. We will build this through reliable infrastructure, robust standards, deep industry partnerships, and close alignment with international markets.

16. Together with the SBMA, our industry partners, and international counterparts, we look forward to shaping and developing a more connected and trusted global gold ecosystem.

17. Thank you and I wish you a fruitful conference ahead.