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Singapore tax plans spur hedge fund hiring and location reassessments
The Monetary Authority of Singapore said more details are expected in the February budget, as some firms pause moves tied to Hong Kong.
Singapore and Hong Kong are escalating their competition to attract hedge funds and the people who run them, with new tax incentives emerging as the latest factor in decisions about where to base fund managers. Hedgeweek, citing a report by the Business Times, said Singapore unveiled plans to exempt certain performance-related income for fund managers and investment professionals, a move seen as potentially comparable to or better than Hong Kong’s recently proposed carried interest changes.
The update has led some managers and advisers to reevaluate their structures and locations, according to people familiar with the discussions. Executives have sought guidance from tax advisers to assess potential benefits and implications, with the issue discussed among Singapore financial leaders at a private gathering organized through the Monetary Authority of Singapore’s Singapore Financial Leaders Network.
The article also notes the economic stakes for both hubs, each home to an asset management industry valued at more than $5tn. Singapore has not yet provided all details of its proposed tax regime, with Deputy Chairman Chee Hong Tat indicating further information would be released in the government’s next annual budget expected in February.
For some firms, the timing of the tax outcome is affecting practical relocation plans. Hedgeweek said some executives reported that moves to Hong Kong were being reassessed, including because international school applications for the 2027 academic year can close as early as November, prompting some clients to put restructuring and relocation plans on hold while they wait.