Singapore Introduces New Work Pass Track and Tax Exemptions for Asset Management Talent

Key Takeaways

• The Monetary Authority of Singapore (MAS) has announced a dedicated track under the Overseas Networks and Expertise Pass (ONE Pass) for foreign asset management talent.
• The track complements the standard ONE Pass benchmark of a fixed monthly salary of at least S$30,000, which was introduced when the pass took effect on 1 January 2023.
• Enhanced tax exemptions apply to qualifying funds under Sections 13O and 13U of the Income Tax Act 1947, alongside the Financial Sector Incentive (Fund Management) concessionary tax regime.
• Singapore's asset management industry oversees more than S$5 trillion in assets, according to MAS industry surveys.
• The measures aim to attract senior investment professionals and deepen Singapore's position as a leading Asian asset management hub.

What Has the Monetary Authority of Singapore Announced?

Singapore's asset management sector is a major pillar of the country's financial services industry. In this blog, we examine the new talent pathway and tax measures for fund managers. Singapore's central bank and financial regulator has unveiled a package for the asset management industry. It is one of the fastest-growing parts of the country's financial services sector. The Monetary Authority of Singapore (MAS) announced a dedicated foreign work pass track for asset management talent. The track will help qualifying firms bring senior investment professionals into the country.

The announcement signals a deliberate deepening of Singapore's appeal as a base for global fund managers. In July 2024, MAS reported S$5.4 trillion in assets under management in Singapore. Institutional capital inflows have been sustained. Regional fund operations have expanded. Against this backdrop, the new Singapore work pass for asset management professionals addresses a practical constraint that many firms face: competition for experienced portfolio managers, research analysts and distribution specialists.

Alongside the proposed work pass track, MAS and the Ministry of Finance plan to introduce a tax exemption for qualifying profit-related returns from fund management services provided to qualifying funds, expected from Year of Assessment 2027. Together, the two measures are intended to reinforce Singapore's standing as a leading asset management and fund domiciliation hub in Asia.

How Does the New ONE Pass Track for Asset Managers Work?

The proposed Investment Management Track will sit under the Overseas Networks and Expertise Pass (ONE Pass), a renewable work pass with an initial duration of up to five years. Under the standard criteria, applicants must earn a fixed monthly salary of at least S$30,000. They must have an established employer. Other applicants may demonstrate outstanding achievements. These achievements can be in the arts. They can also be in the sciences.

The asset management track adapts this framework for the fund industry. Subject to published conditions, qualifying asset management firms can sponsor senior professionals onto the track. Firms must manage substantial assets from Singapore. Assessments include firm-level conditions and each individual's track record. This may give established fund managers a firmer pathway to relocate experienced hires. It can help where criteria under other passes are harder to meet.

Subject to published conditions, holders may receive considerable flexibility. Under the current ONE Pass rules, holders may concurrently start, operate and work for multiple companies, while eligible spouses may apply for a Letter of Consent to work in Singapore. MOM will publish the full eligibility conditions and application procedures for the new track, and firms should monitor MOM and MAS updates closely before committing to relocation plans.

What Tax Exemptions Support the Asset Management Industry?

Singapore's asset management tax exemptions operate primarily through the fund incentive schemes under the Income Tax Act 1947. Section 13O (Onshore Fund) supports qualifying funds. Section 13U (Enhanced Tier Fund) does the same. The schemes exempt specified income from designated investments. The investments must be managed in Singapore. Local investment and headcount conditions apply. IRAS's Budget 2024 overview states that related enhancements took effect on 1 January 2025. These schemes are administered jointly by MAS and the Inland Revenue Authority of Singapore (IRAS), and the latest enhancements extend the industry's access to them.

At the corporate level, the Financial Sector Incentive (Fund Management), or FSI-FM, may offer a 10% concessionary rate. It applies only to qualifying income, subject to scheme conditions. A 5% rate is available under the FSI-FM for qualifying fund managers or their holding companies that achieve and maintain a primary listing on a Singapore exchange, subject to dividend, assets-under-management and professional-headcount conditions. Eligibility remains subject to published conditions and case-specific advice. The headline corporate income tax rate remains 17%, making these concessions a significant consideration in structuring fund operations.

Individuals relocating under the new work pass track should also factor personal taxes into their planning. Singapore personal income tax rates are progressive, and newly arrived professionals may wish to review their residency position, given its effect on scope of taxation and available reliefs.

What Do the New Measures Mean for Businesses?

For asset managers already operating in Singapore, the measures reduce a long-standing talent bottleneck. Access to experienced foreign professionals supports product development, particularly in growth areas such as private credit, alternatives and tokenised funds, where regional demand has outpaced the local talent pool. Firms can plan hiring with greater confidence, knowing that a dedicated immigration pathway exists for senior hires.

For managers considering a first presence in the region, the combination of a predictable work pass track and generous fund tax exemptions strengthens the case for Singapore. Setting up a company in Singapore remains straightforward. The city-state offers regulatory clarity. It has an extensive double taxation agreement network. It also has a deep pool of service providers. These strengths continue to attract multinational companies in Singapore. Many establish regional fund operations.

In practice, we help clients across the full lifecycle of such a move, from incorporation and licensing support to tax incentive applications and work pass administration. Businesses evaluating the new track should seek guidance early, as eligibility conditions for both the pass and the tax schemes require careful structuring. To discuss your expansion or hiring plans, speak with our team at 3E Accounting Singapore.

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