Singapore is weighing tax cuts for investment companies as it battles regional rival Hong Kong to attract talent. Investment professionals worry that Hong Kong’s sweeping tax changes could see high‑paid portfolio managers relocate to the Chinese territory.

In recent months, the Monetary Authority of Singapore (MAS) has spoken with industry leaders about maintaining Singapore’s competitive edge. Discussions cover a broad set of measures, including lowering the cost of doing business for investment groups.

Fund executives have warned that unless Singapore’s already competitive tax rates are cut even lower, portfolio managers are likely to push for relocations to Hong Kong. A number of Singapore firms are saying they need to set up Hong Kong offices or create arrangements where certain members can work there.

Such a shift would reverse a years‑long trend that followed the COVID‑19 pandemic, during which tens of thousands of white‑collar expats left Hong Kong for the city state amid political unrest and a perceived heavy‑handed pandemic response.