Singapore to offer tax breaks and improved visa access for fund managers
Singapore will introduce tax exemptions on profits earned by fund managers and make it easier for investment professionals to obtain visas, the Monetary Authority of Singapore announced on Wednesday, 19 August 2026, citing "growing international competition" in the asset management sector. A new investment programme to anchor hedge funds in the city-state rounds out the package. Here is everything announced, what applies from this year, and what waits for Budget 2027.
The announcement at a glance
- Tax exemption on fund managers' profits. MAS and the Ministry of Finance plan to introduce tax exemptions on a share of the profits that fund managers and investment professionals earn when they deliver strong returns for investors in qualifying funds — including funds belonging to single family offices. More details will be released at next year's Budget.
- Applies to income from this year. The exemption is set to cover qualifying personal income generated from the 2026 calendar year, even though the mechanics arrive at Budget 2027 (typically February).
- Easier visas for investment professionals. MAS and the Ministry of Manpower will expand access to the Overseas Networks & Expertise Pass. The pass lasts up to five years and lets holders work for multiple companies at any one time without reapplying when they change jobs; the S$30,000 fixed monthly salary requirement can now be met with other forms of income for senior asset-management executives.
- A hedge fund anchoring programme. MAS will aim to anchor hedge funds "committed to establishing or deepening their presence in Singapore" with an investment programme, with details to be shared later.
Who said what
National Development Minister Chee Hong Tat, who is also deputy chairman of MAS, said it was important to share the government's plans with the industry early so firms can take them into consideration when deciding where to locate and grow their businesses. Noting that asset management accounts for around 15% of the financial sector's output and 13% of its employment, he added: "My colleagues and I will do what it takes to maintain and uphold the competitiveness of our financial services industry."
The industry's reaction was immediate. "Two of Asia's financial centers are going all-in on backing our industry in a big way in the same season," said Kher Sheng Lee, Asia-Pacific co-head of the Alternative Investment Management Association. "As Asia rises as a whole, more global capital will flow here. Asia has never mattered more."
The Hong Kong backdrop
The announcement lands three months after Hong Kong unveiled a bill to cut taxes on performance bonuses and carried interest for individual fund managers — a proposal still moving through its legislature, with lobbying continuing over which asset managers are included. AIMA warned MAS in a July letter that the Hong Kong bill would widen the effective personal tax gap between the hubs and make Hong Kong more attractive to fund talent.
The competitive numbers explain the urgency on both sides. Hong Kong's assets under management grew 20% in 2025 to a record HK$42.2 trillion (about US$5.4 trillion) on surging net inflows, while Singapore's grew 10% to S$6.7 trillion (about US$5.2 trillion). In hedge funds specifically — the segment where personal performance pay matters most — Singapore's managed assets jumped 37% in 2024 to S$327 billion as major global firms expanded locally, but growth slowed to 5% in 2025 just as Hong Kong's rebound gathered pace. Over the past five years, Singapore's asset management industry has grown by an average of 7.5% a year to almost S$7 trillion.
What the exemption is expected to cover
Much of the fine print waits for Budget 2027, but the announced contours are broad. The exemption targets the performance share — the portion of profits managers and investment professionals earn for delivering strong returns, the economics known in the industry as carried interest and performance pay. Coverage is expected to extend beyond hedge funds to professionals at family offices, venture capital firms and a range of other institutions managing qualifying funds. What remains open: the exempt share and any caps, the definition of "strong returns" and "qualifying funds," how the relief applies across employment income versus partnership allocations, and the anti-avoidance boundaries. For a deeper reading of how the measure fits Singapore's existing fund tax architecture — and what managers should do before the details land — see our analysis: Singapore's carried-interest answer.
What it means in practice
| If you are… | What the 19 August package changes |
|---|---|
| A hedge fund weighing Singapore vs Hong Kong | The personal-tax gap argument is being closed from both directions; the anchoring programme adds negotiated support for committed Singapore builds. See the full hub comparison. |
| A portfolio manager or senior investment professional | Performance income from calendar 2026 is intended to qualify, and the ONE Pass route no longer hinges on a S$30,000 fixed salary. |
| A family office | Profits from managing SFO funds were explicitly named — layered on top of the August 2026 SFO rulebook changes. |
| A VC or PE manager | Coverage is expected to reach venture capital and other institutions; the fund-level side was already eased by the closed-end concession in July. |
| Setting up a fund now | The fund-level stack — VCC, 13O/13U — is live today; the personal exemption layers on top when finalised. |
What happens next
Full details of the tax exemption arrive at Singapore's Budget 2027, expected around February. The hedge fund anchoring programme's terms will be shared separately. Hong Kong's competing bill continues through its legislature. We will update this coverage and our regulatory changelog as each lands.
Deciding where to build your fund or team?
Tell us your strategy and where your professionals sit today. We'll walk you through Singapore's current fund-level exemptions and structures, what the 19 August announcements change, and connect you with MAS-licensed CMS fund managers where it's the right fit.
Speak to a specialist →What tax breaks did Singapore announce for fund managers?
On 19 August 2026, the Monetary Authority of Singapore and the Ministry of Finance announced they will introduce tax exemptions on a share of the profits fund managers and investment professionals earn when they deliver strong returns for investors in qualifying funds. Coverage is expected to be broad — hedge fund managers, professionals managing single-family-office funds, venture capital firms and other institutions. Full details will be released at Singapore's Budget in early 2027.
When do Singapore's fund manager tax breaks take effect?
The exemption is set to apply to qualifying personal income generated from the 2026 calendar year — meaning performance income earned this year is intended to benefit — with the scope, conditions and mechanics to be detailed at Budget 2027, which typically takes place around February.
Why is Singapore offering tax breaks to fund managers now?
MAS cited growing international competition in asset management. In May 2026 Hong Kong introduced a bill to cut taxes on performance bonuses and carried interest for individual fund managers, and the Alternative Investment Management Association warned MAS in July that it would widen the effective personal tax gap between the two hubs. Singapore's announcement is a direct competitive response, made early so firms can factor it into decisions about where to locate.
What visa changes did Singapore announce for investment professionals?
MAS and the Ministry of Manpower will expand access to the Overseas Networks & Expertise Pass for investment professionals. The five-year pass lets holders work for multiple companies without reapplying when they change jobs; the previous requirement of a S$30,000 fixed monthly salary can now be met with other forms of income for senior executives in the asset management industry.
What is Singapore's new hedge fund investment programme?
MAS said it will aim to anchor hedge funds that are committed to establishing or deepening their presence in Singapore through a new investment programme, with details to be shared later. It accompanies the tax and visa measures as the third leg of the 19 August package, aimed at an industry segment where Singapore's growth slowed to 5% in 2025 after a 37% surge in 2024.