Singapore Sharpens Its Tax and Immigration Edge in Race for Fund Management Talent

As competition among financial centers for investment talent intensifies, the Monetary Authority of Singapore (MAS) announced on August 19, 2026, three new measures to incentivize fund managers to establish and deepen high-value asset management activities in Singapore. 

Tax Exemption for Profit-Related Returns

Coming on the heels of Hong Kong’s reforms to its preferential tax regime, MAS announced plans for the introduction of a new tax exemption for profit-related returns (i.e., carried interest) arising from the provision of fund management services to qualifying funds. 

The qualifying funds refer to funds that qualify for certain tax incentives schemes, including funds exempted under Sections 13O and 13U of the Singapore Income Tax Act 1947. The funds have to be managed by Singapore-based fund managers as well as meet economic substance requirements, including minimum headcount. 

The tax exemption will apply to qualifying profit-related returns received through commercial fund arrangements, specifically where a share of a qualifying fund’s profits is contractually received by corporate entities, partnerships, or individuals directly or indirectly for the provision of fund management services. The exemption aims to improve the after-tax economics of performance-based remuneration, making Singapore a more attractive location for fund management activities.

The tax exemption is expected to take effect from the year of assessment in 2027. Further details will be announced at Singapore’s Budget 2027.

MAS Hedge Fund Investment Programme

In addition, MAS will introduce a new Hedge Fund Investment Programme to invest with hedge fund managers committed to establishing or deepening their presence in Singapore. For fund managers, the program could provide access to significant capital, support the growth of its Singapore operations, and enhance the manager’s profile with other prospective investors.

MAS will share more details when ready.

ONE Pass Investment Management Track

Finally, a specialized investment management track under the current ONE Pass employment visa framework will be established to cater to global leaders and senior investment professionals who have the potential to contribute or are already contributing significantly to Singapore’s asset management industry. The new track would address a practical issue for investment professionals whose remuneration is typically weighted toward performance-linked returns rather than a fixed monthly salary. 

The ONE Pass employment framework is a five-year employment visa that allows a holder to work for multiple companies or start businesses freely in Singapore. This is in contrast with standard employment visas tied to a single employer. Presently, there is also a S$30,000 monthly salary requirement to qualify for the ONE Pass. 

Under the new investment management track, the assessment of salaries will be enhanced to recognize returns linked to investment performance and fund outcomes, besides fixed monthly salaries. The enhancement acknowledges that such arrangements form a significant and recurring component of compensation for investment professionals and will make the ONE Pass framework more accessible to them.

Key Takeaways 

Taken together, the measures signal a further push by Singapore to compete for investment talent and higher-value asset management activities. 

Fund managers with existing or prospective Singapore operations should watch for further details on these measures as they are expected to influence future fund structuring, employment, and office setup decisions. The details are expected to be announced around February 2027, which is when the Singapore Budget is typically presented.