Singapore and Hong Kong compete to cut taxes for investors in escalating financial hub rivalry

Asia’s two premier financial capitals are locked in a tax-cutting arms race, and global fund managers are the ones holding the scorecards. Singapore’s Monetary Authority announced on August 19 that it would exempt certain investment profits from taxation for fund managers, including those running single family office funds. The move came roughly two months after Hong Kong gazetted its own bill expanding tax-free treatment of carried interest and removing caps for private funds and family offices. What Singapore is offering The MAS tax exemptions cover profits from managing qualifying funds, a category broad enough to pull in the single family office crowd that has been flooding into the city-state over the past several years. Singapore is also expanding its Overseas Networks & Expertise Pass, which gives investment professionals a smoother path to working in the country. The full details of how these measures will work in practice are expected to land in the 2027 budget. National Development Minister Chee Hong Tat has emphasized the need for industry visibility in strategic planning, signaling that the government wants fund managers to see Singapore as a long-term home rather t...