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Singapore to cut fund-management taxes and back hedge fund managers
The Monetary Authority of Singapore also plans an investment programme to provide capital to Singapore-based hedge fund managers and expects details in next year’s budget.
Singapore is moving to strengthen its position as an Asian asset management hub with a package of tax incentives, a new funding programme for hedge fund managers, and easier visa rules for senior industry employees, according to Hedgeweek citing a Financial Times report.
The Monetary Authority of Singapore plans to remove tax paid by investment professionals on profits generated from fund management services, a change intended to extend beyond similar reforms in Hong Kong that focus on carried interest.
Separately, the regulator intends to establish an investment programme that would provide capital to hedge fund managers based in Singapore, while easing visa requirements for senior staff in the fund management industry as competition for talent intensifies across major centres such as Singapore, Hong Kong, London, New York and Dubai.
The changes are coming amid concerns that highly paid professionals could relocate from Singapore to Hong Kong to benefit from that market’s proposed carried interest regime, with industry group Alternative Investment Management Association warning MAS that some members were considering moving senior staff. Hedgeweek reports Singapore has not yet disclosed the size, cost or precise scope of the proposed measures, and that further details are expected in next year’s budget.