The Monetary Authority of Singapore plans to expand gold-storage capacity to
attract foreign central banks and sovereign entities, as part of efforts to
strengthen Singapore’s position as a regional bullion hub and compete with Hong Kong
Kong. The initiative includes providing vaulting services, developing
gold-linked capital market products, and building a clearing system for
over-the-counter gold settlement in collaboration with industry participants.
Institutions such as the World Gold Council estimate central banks now hold
about 18% of all gold ever mined, underscoring the scale of potential demand for
custody services.
Singapore has also formed a working group involving major financial
institutions, as it seeks to challenge established hubs like London and Hong
Kong in gold trading and storage. Officials say the market is large enough for
multiple centers to coexist, with central banks increasingly viewing gold as a
safe-haven asset in an uncertain global environment.
