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Singapore-based fund managers have delayed their plans to move to Hong Kong after Singapore introduced new tax exemptions on fund managers' profits and loosened visa requirements for investment professionals on Wednesday, Bloomberg reported, citing people familiar with the matter.
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The Singapore Financial Leaders Network, a Monetary Authority of Singapore-backed platform, hosted a closed-door exchange session on Wednesday evening, during which MAS deputy chairman Chee Hong-tat detailed the measures Singapore is taking to enhance its appeal to asset management companies, with a major focus on significantly reducing the tax burden on hedge fund stars and other fund managers.
The Financial Leaders' Network serves as a platform for Singapore's financial industry leaders to engage with peers and government officials.
The details in the session largely mirrored what media outlets had reported five hours earlier that same day. But the brief statement sparked attention among Singapore's financial sector, as it hinted at tax-exemption policies that might even outdo those in Hong Kong.
However, the specific details of Singapore's tax incentives remain unclear. Chee told the financial leaders in attendance that more details would be announced in the next annual budget, which Singapore typically releases in February.
Some tax consultancies said that, as applications to Hong Kong’s international schools usually close in November, some fund managers with families are under pressure to make a decision as soon as possible.
Meanwhile, some senior fund managers said it is too early to tell which city will offer better benefits, and it is currently difficult to measure the profits they receive under different policies.
