Singapore opens gold vault service for central banks

Singapore has launched a gold storage service for foreign central banks, international financial institutions and sovereign entities, with capacity for 500 tonnes of gold in the city-state's national currency vault.

The Monetary Authority of Singapore said Tuesday that the facility could expand if demand grows. It said selected Singapore-based bullion banks that serve those institutions will be offered gold custody accounts.

MAS said the service is part of a push to build Singapore's role as a precious-metals trading hub in Asia. Singapore already has commercial vaulting capacity of more than 2,000 tonnes for bullion banks, institutional investors and wealthy clients.

The authority said Singapore and its finance ministry will expand tax waivers for specified wholesale gold-market activities, including storage, refining, assaying and broking, expected from April next year. MAS also said the Singapore Exchange and six founding clearing banks are preparing an over-the-counter gold clearing system, with live trading expected in the first quarter of 2027.

Singapore Deputy Prime Minister Gan Kim Yong said in June that Asia accounts for roughly 70 percent of annual consumer gold demand worldwide, with China and India the top contributors to bar and coin demand last year.