Monetary Authority of Singapore launches Central Bank Gold Vaulting service

The Monetary Authority of Singapore (MAS) announced he launch of its central bank gold vaulting service, and an enhanced Goods and Services Tax (GST) framework for wholesale investment precious metal (IPM) gold market activities with the Ministry of Finance (MOF).

MAS’s central bank gold vaulting service provides foreign central banks, international financial institutions, and sovereign entities with a secure option to hold gold reserves in Singapore. MAS will also offer gold custody accounts to select Singapore-based bullion banks with expertise and experience in providing gold-related services and trading liquidity to these institutions.

Gold will be stored in Singapore’s national currency vault, which can store up to 500 tonnes, with room to expand as demand grows. The service provides an additional sovereign custody option in Singapore, combining secure, allocated custody, reliable servicing and efficient access to gold-market liquidity during Asian trading hours.

MAS and MOF will introduce an enhanced GST framework to support wholesale IPM gold market activities in Singapore, which builds on existing GST measures for IPM. It extends the GST waiver to specified wholesale IPM-related services between institutional participants covered by the framework, such as vaulting, refining/recasting, assaying, and broking.

This will ensure that the GST treatment better reflects and supports the growth of the wholesale Loco Singapore gold market activities where the gold is not for domestic consumption. The framework is expected to take effect from April 2027, and further details will be announced at Budget 2027.

Following the Memorandum of Understanding signed in June, SGX Group and the six founding clearing banks are working closely together to complete preparations for the Over-the-Counter gold clearing system by end-2026. Industry testing of the clearing system has been completed and the clearing system rulebook will be finalised soon.

Live trading and market operations are expected to commence in the first quarter of 2027, with gold market liquidity building throughout the year. Separately, SGX’s physically deliverable Gold Kilobar Futures is targeted for launch in the second quarter of 2027.