Singapore has unveiled a package of incentives to entice asset managers, responding to tax breaks being introduced by regional rival Hong Kong and the global talent battle. The MAS said it will remove the tax paid by investment professionals on profits from fund management services.

The regulator also plans to set up an investment programme to provide hedge fund managers operating in Singapore with capital, while loosening visa requirements for senior fund‑management staff. Chee Hong Tat, Singapore’s minister for national development and deputy chair of the MAS, noted the need to review policies amid competition from hubs such as London, New York and Dubai, and Hong Kong’s “big bang” carried‑interest tax reforms.

Although the MAS did not detail the size of the investment or the cost of the tax breaks, people familiar with the measures said the exemptions could cover a broader group of investment workers than those in Hong Kong. Singapore also hopes its open access to AI models from both China and America will give it an edge over Hong Kong, where many US models are restricted. Over the past five years, the city‑state’s fund industry has grown 7.5% annually, pushing assets under management to nearly S$7tn ($5.5tn), accounting for 15% of financial‑services output and 13% of employment.