SINGAPORE, Nov. 10 (Xinhua) -- The Monetary Authority of Singapore (MAS) on Tuesday announced the launch of its central bank gold vaulting service and an enhanced Goods and Services Tax (GST) framework for wholesale investment precious metals (IPM) gold market activities, in collaboration with the Ministry of Finance (MOF).
The gold vaulting service provides foreign central banks, multilateral organizations established by governments or central banks, and sovereign entities with a secure facility to hold their gold reserves in Singapore, MAS said in a statement.
MAS will also provide gold custody accounts to selected Singapore-based bullion banks with experience in gold-related services and the provision of trading liquidity to these institutions.
Gold will be stored at Singapore's national currency vault, which has a capacity of up to 500 tonnes and can be expanded to meet future demand.
Separately, MAS and MOF will introduce an enhanced GST framework for wholesale IPM gold market activities, building on existing GST measures for IPM.
The framework aims to better reflect the nature of wholesale Loco Singapore gold market transactions, where gold is not intended for domestic consumption. It is expected to take effect in April 2027.
Loco Singapore is a gold trading and settlement ecosystem where trades are priced, cleared and settled against gold physically vaulted in Singapore. ■
