Singapore’s Monetary Authority of Singapore has held talks with investment firms about lowering taxes for fund managers, aiming to counter Hong Kong’s plan for a zero‑rate carried‑interest regime.

Industry executives warn that without deeper cuts, portfolio managers may push to relocate to Hong Kong, prompting some Singapore firms to consider opening offices there; MAS says the discussions have intensified.

Hong Kong’s proposed changes would let hedge, private‑equity, venture‑capital, private‑credit and family‑office managers treat a broad range of profits as carried interest at 0 per cent, while Singapore’s special incentive scheme currently taxes such income at 10 per cent versus the standard 17 per cent corporate rate.

MAS may instead reduce costs for investment groups so they can pass savings to staff, a move KPMG’s Darren Bowdern says will make it harder for Singapore but notes many funds already based there are unlikely to move back.