Singapore unveils incentives to attract asset managers amid intensifying rivalry with Hong Kong

Singapore just fired its latest shot in the financial cold war with Hong Kong. The Monetary Authority of Singapore (MAS) announced three new measures on August 19 designed to lure and retain top-tier asset managers, a move that reads as a direct response to Hong Kong’s own tax sweeteners rolled out earlier this summer. The package includes a targeted tax exemption on profit-related returns for fund managers, a new hedge fund investment program backed by MAS capital, and an expanded elite talent visa called the ONE Pass Investment Management Track. What Singapore is offering The centerpiece is the tax exemption on profit-linked returns. Rather than slashing headline tax rates across the board, Singapore is zeroing in on the compensation structures that actually matter to senior fund managers: carried interest and performance fees. The second prong is a hedge fund investment program that will channel MAS capital directly into hedge fund managers expanding their operations in Singapore. Then there’s the visa upgrade. The ONE Pass Investment Management Track will revamp how salary assessments work for elite talent applications, specifically accounting for the lumpy, performance-linked ...