My Journey With SBMA and the Singapore Bullion Market

By Martin Huxley, Former Chairman & Current Honorary Advisor, SBMA

I moved to Singapore at the start of 2014 to rebuild and grow StoneX’s precious metals franchise in Asia. StoneX enjoyed tremendous success in the period since, which benefitted, and coincided, with the “re-emergence” of SBMA. When I first arrived, there were far fewer active participants, both in number and the range of activities/services provided. People tended to be secretive and refrained from engaging through fear of competition and losing client flow. The bullion business was transacted and dominated by a handful of players and mainly financial institutions. Volumes that “touched” Singapore, however, were not significant.

In the years since, we have established a robust scalable ecosystem, which is capable of servicing the entire industry. In terms of behaviour, whilst there has been an ongoing technology push and a significant switch and boom in electronic trading, there remains an investor base wanting to own physical. This has been further complemented by a big expansion of the wealth management industry in Singapore, which has also raised awareness and interest in the merits of owning bullion as part of a diversified investment portfolio.

SBMA’s first major milestone was to host its own bullion conference in the Lion City, catering specifically for ASEAN, which took place in 2017. It was natural for us to worry whether sufficient interest could be generated, but we were blown away by the response, which extended to delegates joining from 23 countries. SBMA had been very proactive in the years preceding the conference and undertaking numerous initiatives, but for me, our first Asia Pacific Precious Metals Conference in 2017 was the platform and international recognition that “launched” SBMA. Fast forward to 2024, the 7th APPMC is set to be bigger than ever, serving as a robust endorsement for the size, role, and reputation of the Singapore bullion market.

Undoubtedly, there have been challenges. COVID-19, while disrupting momentum, ultimately strengthened the Singapore community. With Asia’s significant role in physical bullion markets, SBMA emerged as a vital contact point for the global industry.

Reflecting on the past decade, some pivotal milestones shaped the Singapore bullion market. The addition of an LBMA-accredited gold refinery, Metalor Singapore, proved crucial and should not be underestimated. Its branded kilobar is globally recognised and KL Yap’s leadership has built trust and attracted bullion flows. SBMA’s first major milestone was to host its own bullion conference in the Lion City, catering specifically for ASEAN, which took place in 2017. It was natural for us to worry whether sufficient interest could be generated, but we were blown away by the response, which extended to delegates joining from 23 countries. SBMA had been very proactive in the years preceding the conference and undertaking numerous initiatives, but for me, our first Asia Pacific Precious Metals Conference in 2017 was the platform and international recognition that “launched” SBMA. Fast forward to 2024, the 7th APPMC is set to be bigger than ever, serving as a robust endorsement for the size, role, and reputation of the Singapore bullion market.

The Journey Continues

Today, Singapore boasts a vibrant bullion community characterised by active collaboration, engagement, and socialisation among its members. This atmosphere has led to an increase in companies establishing activities and offices in Singapore, alongside a notable increase in new local and foreign members joining the SBMA. With Asia’s significant presence in the physical bullion markets, this surge in participation underscores Singapore’s growing prominence as a hub for bullion trading and investment, endorsing SBMA’s role in facilitating connections between the Singapore bullion market and the global arena.

Acting as a first point of contact, SBMA has navigated regulatory and developmental initiatives within the region, enhancing Singapore’s position in the international bullion market. The involvement of Enterprise Singapore, particularly in earlier years, cannot be underestimated and a big factor in SBMA’s success.

Credit has to be given to the SBMA Secretariat, which, despite its modest resources, did a great job in gaining the buy-in and support of its Management Committee, which in turn garnered further interest from its wider membership base. Through its efforts, SBMA has not only elevated its profile across the Asia-Pacific but has also become a pivotal connector bridging the region with the broader international market and regulatory bodies. The combined work of industry participants have proved transformational in delivering an integrated bullion ecosystem in Singapore and regionally.

Reflections: Martin Huxley’s Insights

Q: How Can Singapore Further Cement Its Position as a Leading Bullion Hub?

Singapore’s strengths lie in its strategic location, infrastructure, and political stability. However, the absence of local clearing and custody facilities presents a challenge for the market’s efficiency. Asia accounts for such a significant proportion of global flows. Whilst predominantly a Kilo bar market, it relies upon the 400 oz market for price discovery and inventory. When excess gold exists in the region, there is no option but to ship it back to Europe and recast into 400 oz bars that can then be delivered into the London vaults. Likewise, when demand returns those bars will be recast back to kilo bars and shipped back to Asia. That is not efficient and ideally, we would have delivery and clearing options in the region. Maybe Singapore could in the future become a hub for LBMA Good Delivery clearing?

Q: How Do You See Technology and Innovation Impacting the Bullion Trade and Investment in the Future?

Technology will drive electronic trading, tokenisation, and digitisation, making bullion more accessible to investors. When I joined StoneX, all clients traded by voice. We had an online platform in the early stages of development but there were many that continued to insist clients did not want or need electronic trading. Now, almost all trading seen is via the platform, no manual intervention, and we saw volumes over a few years rise more than tenfold. Going forward, continued advancements in technology will make it easier and more convenient for investors to buy, sell, and trade bullion online, ensuring increased accessibility for a broader range of investors. I would expect this to include instantaneous settlement, fractional ownership, fungible products etc. The World Gold Council’s Gold 247 initiative and vision offers great insight into what is needed.

Q: What Advice Would You Give to Young Professionals Aspiring to Build a Career in the Bullion Market or the Wider Natural Resources Sector?

I have spent the past 25 years focused on bullion and the wider commodity markets. I have lived with my family in three countries during this time, travelled all around the globe, continued to learn and greatly enjoyed the opportunities and experiences. For young and aspiring professionals, embrace opportunities, make an effort to understand clients and commodity flows—why they are happening—and prioritise adding value. Don’t be afraid or worried to ask ‘silly’ questions, as sometimes that is the only way to learn. Lastly, be prepared to challenge and don’t do something just because it has always been done that way.

Q: As We Celebrate SBMA’s 30th Anniversary, What is Your Outlook for the Next Decade in the Singapore Bullion Market?

I believe the outlook for both bullion and Singapore is favourable. There are many uncertainties, risks, geopolitical concerns, and other issues that are supportive for gold. Beyond this there are two key themes in my mind that will greatly influence the market in the coming years being de- dollarization and technology.

SINGAPORE’S STRENGTHS LIE IN ITS STRATEGIC LOCATION, INFRASTRUCTURE, AND POLITICAL STABILITY. HOWEVER, THE ABSENCE OF LOCAL CLEARING AND CUSTODY FACILITIES PRESENTS A CHALLENGE FOR THE MARKET’S EFFICIENCY.

MARTIN HUXLEY was appointed as SBMA’s Honorary Advisor in February 2023. This coincided with his relocating to the UK, where he has since established his own company Global Bullion Solutions Ltd. Prior thereto, Martin was the Global Head of StoneX Group’s precious metal business based in Singapore; leading teams operating out of 7 countries. Martin concurrently served as Chairman of the SBMA from 2017 to 2021, and Vice-Chairman thereafter until his departure. Before StoneX, Martin spent 14 years with Standard Bank, dedicated to the natural resources sector. After moving to HK in 2004, he assumed a number of roles for the Asia region, including Head of Credit Risk, leading the bank’s Structured Commodity Solutions team, and Head of its Structured Finance division.