In brief
On 10 November 2026 the Monetary Authority of Singapore announced a 500‑tonne gold vaulting service that will house reserves for foreign central banks and multilateral organisations. The launch is coupled with a revised GST framework that takes effect in April 2027 to better reflect wholesale gold trading in Singapore’s Loco ecosystem. The initiative positions Singapore as a growing hub for global gold custody.
The Monetary Authority of Singapore (MAS) announced on 10 November 2026 a new gold vaulting service that will allow foreign central banks, sovereign entities and multilateral organisations to store gold reserves within Singapore. The service also provides gold‑custody accounts for selected Singapore‑based bullion banks that have demonstrated expertise in gold trading and liquidity provision.
According to a statement issued by MAS, the national currency vault will initially hold up to 500 tonnes of gold, with the capacity to expand as demand grows. The vault’s secure facilities are designed to meet the stringent security and regulatory requirements of institutional clients seeking a reliable place to hold hard‑currency assets.
MAS said the program targets foreign central banks and multilateral entities "established by governments or central banks" or sovereign entities looking to diversify or secure their gold holdings in a stable jurisdiction. The announcement also highlighted that gold custody accounts will be made available to select local bullion banks that possess experience in gold‑related services and are capable of providing trading liquidity to these institutions.
In tandem with the vaulting launch, MAS and the Ministry of Finance (MOF) will introduce an enhanced Goods and Services Tax (GST) framework for wholesale investment precious metals (IPM) gold market activities. The new regime, set to take effect in April 2027, aims to better reflect the nature of wholesale “Loco Singapore” gold market transactions, where the gold held in vaults is not intended for domestic consumption but rather for international trade and settlement.
“Loco Singapore is a gold trading and settlement ecosystem where trades are priced, cleared and settled against gold physically vaulted in Singapore,” MAS explained in its statement. The updated GST framework will align taxation with this model, promoting greater transparency and encouraging participation from foreign investors and traders who rely on Singapore’s infrastructure for gold settlement.
Strategic Positioning as a Global Gold Custody Hub
By adding a bespoke vaulting service and updating tax policy, MAS is positioning Singapore to strengthen its role as a regional and global hub for gold custody. The combination of a secure vault, experienced bullion banks and an industry‑friendly tax regime is intended to attract more foreign central banks and sovereign institutions to store their gold reserves in the city‑state.
Industry observers note that this move aligns with Singapore’s broader strategy of expanding its financial services offering to include dedicated commodity custody solutions. The focus on gold—a key store of value for central banks worldwide—highlights Singapore’s intent to broaden its financial infrastructure and deepen its integration in global capital markets.
While the launch does not yet include direct quotes from MAS officials, the agency’s announcement provides clear details on capacity, client eligibility and the expected tax changes. These measures are expected to influence the dynamics of global gold storage and trading over the coming years, particularly as resident and non‑resident central banks seek to diversify their reserves amid ongoing geopolitical uncertainties.
As the enhanced GST framework approaches its April 2027 implementation date, MAS and MOF are likely to release further guidance on compliance and the practical impacts on wholesale gold market participants. The new service, coupled with policy reforms, underscores the Monetary Authority’s commitment to maintaining Singapore as a secure and competitive destination for precious‑metal custody and trading in the 21st century.
