In brief
Singapore’s Monetary Authority of Singapore announced it will provide a central bank gold vaulting service for foreign central banks, multilateral organisations and sovereign entities. The service will be housed in the national currency vault, with gold custody accounts for selected bullion banks. An enhanced GST framework for wholesale gold transactions will take effect in April 2027.
On November 10, the Monetary Authority of Singapore (MAS) announced it would open a gold vaulting service, providing a secure facility for foreign central banks, multilateral organisations and sovereign entities to hold their gold reserves in Singapore.
According to a statement released by MAS, the new service will allow international issuers to store gold at Singapore’s national currency vault, which can hold up to 500 tonnes and may be expanded to meet future demand.
About the Gold Vaulting Service
MAS said it will also offer gold custody accounts to selected Singapore‑based bullion banks that have experience in gold‑related services and can provide trading liquidity to these institutions.
The vaulting arrangement aligns with Singapore’s strategy to reaffirm its position as a global gold custody hub, which has grown its presence in the world of precious‑metal reserves in recent years.
New GST Framework for Wholesale Gold Market
Simultaneously, MAS announced an enhanced Goods and Services Tax (GST) framework for wholesale investment precious‑metal (IPM) gold market activities, in collaboration with the Ministry of Finance.
The updated regime is designed to better reflect the nature of wholesale transactions within the Loco Singapore gold market ecosystem, where gold is not intended for domestic consumption.
Under the Loco Singapore system, trades are priced, cleared and settled against gold physically vaulted in Singapore, according to MAS.
The new GST rules will build on existing tax measures for IPM and are expected to take effect in April 2027.
MAS emphasised that the enhanced framework will support Singapore’s expansion of services related to gold markets, while preserving the efficient and secure handling of gold assets.
Foreign central banks that participate will benefit from the highly secure environment of Singapore’s sovereign vault, which incorporates state‑of‑the‑art security protocols and monitoring systems.
No domestic consumers will directly access the gold stored in the vault, ensuring it remains strictly for institutional clients such as central banks and sovereign wealth funds.
Singapore-based bullion banks participating in the service will receive gold custody accounts, allowing them to add liquidity and market depth for clients needing to trade or store gold in Singapore.
The introduction of combined vaulting and GST measures reinforces the government’s commitment to maintaining high standards of financial infrastructure and regulatory oversight.
Officials noted that the vault’s 500‑tonne capacity is large enough to meet current demand and that it can be expanded should international demand grow, allowing Singapore to adapt to global market shifts.
Central banks and governments looking to diversify their gold holdings will therefore have an attractive, physically secure alternative in Singapore.
Meanwhile, the enhanced GST framework may encourage greater participation in wholesale gold trading by reducing tax complexity for market actors beyond domestic consumption.
MAS stated that the framework can support the continued development of the Loco Singapore ecosystem by offering a clearer tax structure for wholesale participants.
Both the vaulting service and the new GST rules together aim to consolidate Singapore’s role as an international hub for gold custody and trading infrastructure.
The announcement was made at a press event held by the Monetary Authority in Singapore’s financial district.
MAS spokesperson highlighted that the service is part of Singapore’s broader strategy to deepen its offerings in global financial services and to attract more international capital flows.
Central bank officials attending the launch expressed confidence that Singapore’s gold custody facilities would provide reliable, secure storage for their reserves.
In summary, the Monetary Authority of Singapore has launched a gold vaulting service for foreign central banks, multilateral organisations and sovereign entities, alongside an updated GST regime for wholesale gold market activities, expected to take effect in the following year.