Singapore bets big on gold trade in Asia-Pacific push

Singapore on Friday announced plans to boost its position as a gold trading centre as investor interest in storing and trading the precious metal grows across the Asia-Pacific region.

“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,” said a joint statement issued by the Monetary Authority of Singapore (MAS) and the Singapore Bullion Market Association (SBMA).

Already an established financial hub, the island state seeks to position itself as a trusted hub for gold trading in the Asia-Pacific. It plans to do that by developing gold-related capital market products to support price discovery and liquidity, establishing internationally aligned standards for vaulting and logistics and building a clearing system to support over-the-counter trades of large gold bars and kilobars, according to the statement.

The plans were outlined by MAS and SBMA following consultations with industry players under a working group formed in January. At a media briefing, MAS deputy chairman Chee Hong Tat said that a more turbulent global environment has led central banks, corporations and investors to view gold as a hedge against uncertainty, The Straits Times newspaper reported.