S'pore eyes role as major gold trading hub in partnership with ICBC Standard, JPMorgan Chase & others

The Monetary Authority of Singapore (MAS) and Singapore Bullion Market Association (SBMA) are reviewing new ways to enhance Singapore's position as a major gold trading hub in the Asia Pacific, the organisations said in a media release on Mar. 27.

This will meet the growing interest among investors to vault and trade gold in the country, they said.

The review areas were developed by a Gold Market Development Working Group, established in January 2026, upon consultation with key players in the gold trading industry, who highlighted their importance to grow the gold trading ecosystem and support trading activities.

The working group comprises key private sector stakeholders, including local and foreign banks like DBS, UOB, ICBC Standard and JPMorgan Chase.

Areas of review

Four key focus areas in this review were unveiled by National Development minister and MAS' deputy chairman Chee Hong Tat during a media doorstop on Mar. 27.

The first focus is in how Singapore can broaden the range of all related capital market products offered from Singapore, which will give investors more options and help to deepen liquidity in the market.

Secondly, the working group is looking at setting up a "trusted and efficient clearing and settlement system", Chee said.

This is an infrastructure that will support gold trading in Singapore.

Third, the enhancement of physical infrastructure, such as vaulting and logistics services, will be considered to ensure services provided in Singapore are in line with international standards.

Lastly, Singapore is also exploring, based on industry feedback, the demand from other foreign central banks and sovereign entities who may want to store their gold in Singapore, said Chee.

The working group is looking at how it can help to provide such services.

A long-term investment

"These four areas are important parts of this global trading hub ecosystem that we hope to develop, and the way in which we want to embark on this review," Chee added.

He compared such a review to that done by the MAS' Equities Market Review Group, which was set up in August 2024 to study ways to strengthen the local stock market.

"We want to work very closely with the industry so that we understand what are some of the industry demand feedback and potential areas that we can enhance.

And also we want to make sure that we do this close collaboration with the industry, so that whatever we roll out in the end will be of value to them."

It will also help to build on Singapore's trusted reputation as an international financial hub, he said, adding that it "plays to our strengths" and contributes to a more attractive financial centre.

MAS and SBMA added: "Our goal is to anchor high-value activities here, create good jobs for Singaporeans, enhance the resilience and diversity of Singapore’s financial sector, and benefit market participants in Singapore and the region."

Responding to a question on why the government has chosen to embark on this review amidst a recent sell off in gold, which is not an interest-yielding asset, Chee said that it is a long-term "investment" to build capabilities and ensure that the ecosystem as a whole is attractive, rather than a short term goal.

If successful, Singapore's establishment as a gold trading hub in Asia and the increased storage and trade of gold assets locally can help to create new opportunities and activities, he added.

Top image via Mothership & Canva