Singapore has announced plans to expand its position as a key player in global gold trading, driven by growing demand from investors seeking secure storage and investment opportunities. The Monetary Authority of Singapore (MAS) and the Singapore Bullion Market Association (SBMA) outlined these initiatives on March 27, 2026, following discussions with industry stakeholders through a working group established in January.
Key Initiatives to Boost Gold Trading Infrastructure
The plans focus on developing capital market products tied to gold to enhance price discovery and liquidity. They also aim to establish international standards for vaulting and logistics, alongside creating a clearing system to support over-the-counter trades of large gold bars and kilobars. Large bars, standard in London-based institutional trading, weigh 12.4 kilograms (400 troy ounces), while kilobars—1 kilogram—are widely used in Asian markets and accepted for delivery in U.S. Comex gold futures contracts.
The working group includes major financial institutions such as DBS Bank, ICBC Standard Bank, JPMorgan Chase, UBS, UOB, and the Singapore Exchange (SGX). It also involves trading firms like StoneX APAC and YLG Bullion Singapore, along with refinery Metalor Technologies Singapore. MAS is evaluating vaulting services for foreign central banks and sovereign entities, with storage likely to occur in its own facilities.
The authority has identified three additional vault operators—Brink’s Global Services, Loomis International (SG), and Malca-Amit Singapore—to handle commercial demand, including custody for capital market products offering fractional exposure. Examples include the LionGlobal Singapore Physical Gold ETF, which launched on the SGX on March 26.
Context of Regional Competition
Singapore’s efforts come amid heightened competition with other regional hubs like Hong Kong, Dubai, Shanghai, and Hong Kong. In January 2026, Hong Kong signed a deal with the Shanghai Gold Exchange to launch a central clearing system and expand warehousing capacity, aiming to strengthen its gold market. The agreement will formalize governance for the Hong Kong Precious Metals Central Clearing Company, which is set to begin trial operations in 2026.
MAS Deputy Chairman Chee Hong Tat acknowledged Singapore’s experience with financial sector competition but emphasized that the city can coexist with other hubs while growing its own services. He noted that global gold trading centers like London and Switzerland offer established frameworks, which Singapore will study to build on.
Industry Response and Strategic Rationale
Chee Hong Tat highlighted the role of gold as a hedge against economic uncertainty, citing increased interest from central banks, corporations, and investors. He stressed that MAS is not making short-term predictions about gold prices but instead focusing on creating an ecosystem to support long-term trading activities. “This is planting trees in an ecosystem,” he said, emphasizing the need for a robust financial infrastructure.
DBS Bank’s group head of trading and structuring, Mr. Jacky Tai, welcomed the initiative, noting that Singapore’s regulatory environment and stability could attract more physical gold activity. He added that DBS is seeing rising demand across private wealth and institutional sectors, with growing interest in local physical gold products. The bank is exploring how technology can enhance gold-related capital market offerings, including ETFs and structured solutions.
Focused on Long-Term Growth
The working group will refine implementation details over the coming months, with updates expected by 2026. MAS anticipates that these measures will create jobs in vaulting, logistics, trading, relationship management, and research. The initiatives are positioned to reinforce Singapore’s role as a global gold center while deepening its financial ecosystem.
The move aligns with broader trends in the global market, where gold remains a critical asset for hedging against inflation and geopolitical volatility. As Singapore refines its strategy, it aims to solidify its reputation as a trusted hub for gold trading in Asia.