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SINGAPORE’S RISE AS ASIA’S GOLD HUB

By KOH GUAN HO & LEE LIANG LE, Analysts, Kallanish Index Services

Singapore Bullion Market Associatio-KIS
The centre of gravity in the global gold market is shifting eastward, and Singapore is at the forefront of this movement. Through a collaborative effort between the Singapore Bullion Market Association (SBMA), Enterprise Singapore and the Singapore government, the city-state has rapidly ascended to become Asia’s leading gold hub. This transformation is fueled by a potent combination of strategic tax and infrastructure developments over the past couple of decades, coupled with the recent launch of regional gold reference prices and favourable global geopolitical factors.

Tax advantages pave the way

Singapore’s business-friendly environment, already bolstered by low corporate tax rates, received a further boost in 2012 with the removal of Goods & Services Tax (GST) on investment-grade bullion. This move aligned Singapore with major gold hubs like Switzerland, significantly lowering storage costs and improving cost-efficiency for investors.
Additionally, the Approved Refinery and Consolidator Scheme (ARCS) exempts precious metals refiners and consolidators from GST on imported materials destined for refinement into investment-grade precious metals.

Building a robust infrastructure

Singapore’s commitment to infrastructure development has further solidified its position as a gold hub. A key example is the establishment of its first major LBMA-accredited gold refinery, a partnership with Metalor. This government-supported venture has significantly boosted the region’s gold processing capacity, allowing it to meet rising demand. Following the removal of GST and the establishment of the Metalor refinery, gold import volumes surged from US$1.98 billion to US$16.7 billion between 2012 and 2013.
Singapore’s allure as a gold hub is further bolstered by its ability to attract secure transport and vaulting operators. This is facilitated by the country’s stable business environment and extensive transport networks. Notably, in 2024, Silver Bullion completed The Reserve, a state-of-the-art vault boasting the largest secure storage capacity in Southeast Asia at 15,000 tonnes.
The establishment of Freeports, or Free Trade Zones (FTZ), plays another crucial role in Singapore’s attractiveness. These Freeports allow for the storage and handling of goods without incurring customs duties or sales tax, as long as the goods remain within the Freeport, further enhances Singapore’s appeal. Several vault operators, including Brinks, have capitalised on this advantage by setting up in the Freeport, further reducing their operating costs and increasing operational flexibility.

Transparency Through Gold Reference Prices

Additionally, with the SBMA’s support, Kallanish Index Service (KIS) began publishing daily gold kilobar premiums for loco Singapore, Hong Kong, and Bangkok at 12:30 PM Singapore time in October 2022. These reference prices, compiled from data by active gold market participants, enhance price transparency during Asian trading hours and represent another crucial step in Singapore’s journey towards becoming Asia’s gold hub.

Geopolitical Winds Shift the Tide

External factors have also played a role in Singapore’s rise. While the US dollar remains the world’s primary reserve currency, accounting for 58.9% of global reserves, recent events like the freezing of $300 billion of Russia’s gold and foreign reserves following the 2022 Ukraine invasion, have highlighted the potential dangers of relying solely on the dollar. This has prompted nations to diversify their holdings, reducing their dollar reserves and repatriating their gold. BRICS countries are even considering the possibility of a gold-backed currency to challenge the dollar’s dominance.

Bank of England Gold Holdings (In Thousand Troy Ounces)

Singapore Bullion Market Associatio-KIS
Bank of England, Kallanish Index Services
Traditionally, London has served as the physical gold market’s epicentre. However, concerns about geopolitical instability and inflation are driving central banks to hold their physical gold reserves domestically. As a result, the Bank of England’s gold holdings have decreased by 19.3 million troy ounces (-10.4%) from their peak in 2021 to 167 million troy ounces in June 2024, while countries like China, India, and Singapore have increased their gold reserves significantly. By May 2024, Singapore’s gold reserves had reached 240.80 tonnes, the largest in Southeast Asia.

Singapore’s Foreign Reserves

Singapore Bullion Market Associatio-KIS
Bank of England, Kallanish Index Services
The past decade has also witnessed a shift in gold consumption patterns, with demand moving from the West to the East, driven by the burgeoning demand in Asia’s emerging economies. This trend is expected to accelerate due to rising geopolitical tensions, prompting investors to seek secure locations like Singapore for storing their gold bullion. This shift is reflected in Singapore’s 25.2% year-over-year increase in gold imports, reaching a record 319 tonnes by the end of 2022.

Advantages of Storing Gold in Singapore

As the world’s top maritime city, Singapore serves as a key gateway between East and West. Its proximity to major gold consumers like India and China further enhances its significance. The city-state boasts a thriving financial ecosystem with numerous institutions specializing in precious metals. As a global financial hub, it attracts top talent and fosters continuous innovation within the gold industry.
Singapore’s appeal as a gold storage destination is further bolstered by its stable political and economic environment. Singapore enjoys a well-deserved reputation for its robust legal system, transparent regulatory framework, and strong protection of property rights. This translates into secure business operations and strong asset protection for investors. Singapore consistently ranks among the least corrupt nations globally. This commitment to good governance further strengthens its position as a reliable and trustworthy gold storage hub.

The Next Chapter

With a solid foundation now in place, Singapore’s gold industry is ready to begin its next phase of growth – expansion and regional integration. The SBMA’s recently launched “Forward SBMA 2030” initiative aims to propel Singapore to the forefront of Asia’s gold hub market.
Increasing liquidity within Singapore’s local bullion market is crucial. Encouraging foreign central banks to store their gold reserves in Singapore would boost liquidity, leading to greater market stability, improved price transparency and efficiency.
Fostering stronger collaborations with emerging ASEAN markets like Vietnam and Indonesia is another critical step. Vietnam is actively liberalising its gold market due to rising domestic demand, while Indonesia is working towards integrating gold into its financial system. Developments like these in neighbouring ASEAN markets where future regional demand growth is likely to be strongest, offer significant potential for Singapore.
Obtaining an additional clearing location status for Singapore, allowing it to provide custody, clearing, and settlement services for Asia, would be another boost. This would enable regional traders to deliver excess bars to a location within Asia, significantly reducing costs compared to sending them to London. Additionally, expanding bullion standards for LGD bars to include 9999 or 995 kilobars, commonly traded across Asia, would futher enhance Singapore’s regional appeal.
Through a combination of strategic planning, infrastructure development, and favorable global conditions, Singapore has emerged as a dominant force in the Asian gold market. With its commitment to continuous improvement and regional integration, Singapore is well-positioned to solidify its place as the premier gold hub in Asia for the foreseeable future.

For more information and a free trial, visit www.kallindex.com

Kallanis Index Services

About Kallanish Index Services (KIS):

A subsidiary of Kallanish Ltd, KIS specialises in compiling price indices for commodity markets using a rigorous, data-driven methodology. KIS is independent and impartial, and works closely with market participants to compile the price indices and other essential industry data they need for business success. KIS provides subscribers daily market prices, data and insights for the gold and hydrogen sectors. KIS brings together a dynamic team of analysts based around the world, led by Steven Randall, a founder and former head of The Steel Index. Find out more at www.kallindex.com.

SBMA KIS - LEE LIANG LE photo
LEE LIANG LE is an analyst at Kallanish Index Services, where she specialises in covering the gold market and compiling daily gold kilobar price premiums for Asia. Her background is in finance, with experience in various roles, including brokerage, electronic FX trading and macroeconomic research.
SBMA KIS - Koh Guan Ho Photo
Koh Guan ho is an analyst at Kallanish Index Services, heading up its Asian operations. His main responsibilities include market engagement, research and compilation of the KIS daily gold kilobar price premiums for Asia. His background is in business management.
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Singapore Bullion Market Association Secretariat-Lee-Jia-Yi

Lee Jia Yi

OPERATIONS & ADMIN EXECUTIVE
Before joining SBMA, Jia Yi worked as an Admin & Reporting Officer in her previous role. She holds a Diploma in Business & Social Enterprise from Ngee Ann Polytechnic. Jia Yi is responsible for managing and maintaining physical and digital files in SBMA, supporting invoicing processes, reconciling receivables and payables, coordinating meetings and conferences. Additionally, she will provide support to the team and assist the Business Director in managing the Association’s office operations and general administrative activities.

SECRETARIAT SBMA-Emily-Oh

Emily Oh

OPERATIONS & ADMIN EXECUTIVE
Emily Oh is the Operations & Admin Executive, a seasoned professional who values teamwork and effective communication. She is skilled at adapting to new challenges and takes a proactive and resourceful approach to every task. Before joining SBMA, Emily had experience coordinating international travel arrangements and spearheading community initiatives. Her role at SBMA will be providing operational and administrative support for projects and other matters to the team.

SECRETARIAT SBMA Clara-Chang

Clara Chang

MARKETING & COMMUNICATIONS EXECUTIVE
Clara Chang joins SBMA as the Marketing & Communications Executive, enriching the team with her extensive experience in content creation, social media management, and digital marketing. Prior to joining SBMA, Clara held the position of Marketing Executive at her previous job. She holds two bachelor’s degrees from the University at Buffalo, one in International Trade and another in Geographical Information Science. Her core duties will include maintaining the SBMA website, managing the quarterly Crucible newsletter, among other responsibilities.

SBMA Committee-Photo-john-levin

Mr John Levin

Global Metals
TD Securities
John Levin is the Head of Metal Sales & Trading – APAC at the Toronto Dominion Bank’s Singapore office. Prior to this role, he devoted seven years to leading precious metal sales for the ANZ banking group in his home country, Australia. Notably, from 2009 to 2011, John played a significant role on the management committee of the London Bullion Market Association while serving as the Head of Precious Metals Sales for HSBC Global Banking and Markets in the UK.

SBMA Secretariat-Fabian-Lew

Fabian Lew

MARKETING & COMMUNICATIONS OFFICER

Fabian was a Business Development and Marketing Associate before joining SBMA. He graduated from Singapore Management University with a Bachelor’s degree in Economics.

He has joined SBMA since February, 2022.

SBMA-margare-secretariat

Margaret Wong

BUSINESS DIRECTOR

Margaret Wong, Business Director at SBMA (Singapore Bullion Market Association), brought valuable experience from her previous role at the World Gold Council (WGC). Her tenure at WGC provided her with extensive exposure to the gold community in Singapore and the broader region. This background has been instrumental in establishing strong working relationships within the industry.

Margaret’s role at SBMA encompasses a diverse range of responsibilities. She oversees office management, business support processes, finance, and administrative functions essential for the smooth operation of the team and management committee. Additionally, Margaret handles membership matters, member communications, and addresses public inquiries related to SBMA.

One of Margaret’s key responsibilities is coordinating with the Event Management Company for SBMA’s prestigious annual event, the Asia Pacific Precious Metals Conference. This flagship conference plays a crucial role in the industry, making her involvement pivotal in its success.

Described as resourceful and self-motivated, Margaret Wong brings a wealth of skills and experience to her role at SBMA, ensuring efficient operations and effective engagement within the precious metals community in Singapore and beyond.

SBMA-Albert-secretariat

Albert Cheng

Chief Executive Officer

Albert Cheng joined the World Gold Council in March 1993 as a Regional Manager, becoming Managing Director, Far East in 2003. He retired at the end of March 2015 and was subsequently named its Advisor. He has also been an International Advisor to the Shanghai Gold Exchange since 2002.

His marketing career began with Dentsu Young & Rubicam, Hong Kong in the early 80’s. He began gold marketing in July 1985 when he joined the Royal Canadian Mint as a Regional Manager for Southeast Asia.

He was appointed honorary CEO of SBMA in November 2015. He is responsible for the success and strategic development of SBMA, represents the interests of the Association, and is responsible for all the legal and regulatory aspects of the work of the Association. He is the primary contact for regulators and government bodies on bullion market development.

Ms Pawan Nawawattanasub

Ms Pawan Nawawattanasub

CEO
YLG Bullion Singapore Pte Ltd

Pawan is the CEO of YLG Bullion Singapore and founder of YLG Bullion International. She has almost 40 years of experience in the jewellery industry and established YLG in Thailand in 2003. In 2012, she brought YLG to Singapore. She sits on the Board of Directors of the Thailand Gold Traders Association, the Thailand Futures Exchange’s Arbitration Committee, and the Rotary Bangkok committee. She holds a master’s degree in Political Science.

SBMA-Shaokai-Fan

Mr Shaokai Fan

Head of Asia-Pacific (ex China) and Global Head of Central Banks
World Gold Council
Shaokai Fan is the Global Head of Central Banks at the World Gold Council, responsible for advising governments on gold matters, and enhancing the gold market through engagement, dialogue, and thought leadership. He works directly with central banks and sovereign wealth funds on investment considerations. Prior to this position, Shaokai held multiple roles at Standard Chartered Bank, including Director for Asia Strategic Initiatives and Associate-Director for Public Sector coverage. Shaokai holds a Masters of Public Administration from Columbia University and the London School of Economics, and an undergraduate degree in finance and economics from New York University.

SBMA-Committee-Alan-Liew

Mr Alan Liew

Head of Bullion & Commodities Trading
United Overseas Bank Limited
Alan is Head of Bullion and Commodities Trading for Group Trading in Global Markets, United Overseas Bank (UOB). Alan joined UOB and started the bank’s commodities trading business in 2014, previously he spent eight years in Standard Chartered Bank (SCB) trading both precious and base metals. During his tenure at SCB, he obtained the SGE gold trader licence and was part of the pioneering team for the SGE business and the FX quantitative trading team. Prior to trading, he worked for Monetary Authority of Singapore in the Financial Risk Management Division. He holds a BSc (Hon) in Computer Science at National University of Singapore and a MSc in Financial Engineering at Nanyang Technological University.

SBMA-Committee-Nikos

Mr Nikos Kavalis

Managing Director
Metals Focus Singapore Pte Ltd
Nikos Kavalis is a founding partner of Metals Focus. He has over 20 years of experience in precious metals, having previously worked for the Royal Bank of Scotland and GFMS. Since September 2019, Nikos has been based in Singapore, where he also runs the local subsidiary of Metals Focus.

SBMA-Committee-khun nuttapong

Mr Nuttapong Hirunyasiri

CEO
MTS Gold Global Trading Pte Ltd
Nuttapong Hirunyasiri is the CEO of MTS Gold Group, one of Thailand’s top 10 companies and top 3 bullion companies. He started MTS Gold Group’s first overseas office in Singapore and has been expanding the group business internationally. He focuses on product development and innovation for gold investment, with the aim of being a leader in providing the full suite of gold investment services in the ASEAN region.

SBMA Committee-Photo-Raman-Walia

Mr Raman Walia

Executive Director, Head of Commodities Sales – APAC
JP Morgan Chase Bank N.A.

Raman is Executive Director and Head of Commodities Sales, APAC, for J.P. Morgan. He joined JPMorgan in 2008 in New York, moved to Singapore in 2011, and helped expand the precious metals business in the region. Raman has an MBA from Cornell University, and likes to travel in his spare time.

SBMA Committee-Photo-Andrew-Clarke

Mr Andrew Clarke

Head of Brink’s Global Services
Brink’s Global Services Pte Ltd

Andrew Clarke is the Head of BGS (Brink’s Global Services) for Singapore, Indonesia, Malaysia and Brunei. He has held various leadership positions throughout his career in secure logistics and risk management with Brink’s, which started in Hong Kong in 2010. Andrew relocated to Singapore in 2018 to expand the precious metals line of business along with Brink’s portfolio of services and industries.

SBMA Committee-Photo-Kazuya-Naoki

Mr Kazuya Naoki

Head of Metals, Asia
ICBC Standard Bank Plc, Singapore Branch

Kazuya (Kaz) Naoki is the Head of Metals, Asia of ICBC Standard Bank in Singapore and is responsible for the precious & base metals sales and trading in the region. He joined Standard Bank Plc Tokyo Branch in 2008 and was relocated to its Singapore Branch in 2013 whose controlling stake was acquired by the Industrial and Commercial Bank of China in 2015. Prior to joining Standard Bank, Kaz spent 11 years focusing on commodity trading and risk management with Mitsui & Co in Tokyo, Sydney and London. Kaz has been serving on the SBMA Management Committee since 2016.

SBMA Committee-Photo-Vinh-Nguyen

Mr Vinh Nguyen

Head of Precious Metals, Asia
StoneX APAC Pte Ltd

Vinh Nguyen joined StoneX Group in Singapore at the beginning of 2008 and responsible for its APAC precious metals activities since 2019 until now.

SBMA Committee-KL-Yap

Mr KL Yap

General Manager, Singapore Refining Business Unit
Metalor Technologies (Singapore) Pte Ltd
KL YAP is the General Manager of Metalor Technologies (Singapore) Pte Ltd’s Singapore Refining Business Unit. He joined Metalor in 2013, initially in Refining Sales. In 2014, he became Refining Business Unit Manager, leading the development of a new precious metal refinery. KL was Vice Chairman of SBMA from 2017 to 2021, now serving as Chairman. With a degree in business commerce, finance, and marketing, he brings prior experience from refinery and heavy industries.