Gan Kim Yong: Singapore must accelerate financial hub efforts

Intensifying Competition for Financial Hub Status

Deputy Prime Minister Gan Kim Yong declared on 14 October 2026 that Singapore must accelerate its efforts to compete effectively as a global financial centre.

Speaking during an interview with Bloomberg Television's Haslinda Amin at the New Economy Forum in New Delhi, Gan acknowledged the persistent rivalry with established wealth management hubs worldwide, including London, Dubai, Hong Kong, and New York.

He emphasised the necessity for Singapore to enhance its speed and diligence, positioning itself to capitalise on evolving global supply chains and investment flows. This proactive stance is deemed essential for the island nation to sustain its significant role in the international financial landscape.

Regulatory Agility in Wealth Management

A key element of Singapore's strategy involves ensuring its regulatory framework remains current and supportive of wealth management operations. Gan highlighted the nation's capacity for rapid regulatory adjustments as a distinct strength, allowing it to adapt swiftly to market demands and competitive pressures.

This agility is crucial as the global financial sector experiences shifts in capital allocation and investor preferences. To this end, Singaporean regulators announced a series of measures in August 2026, specifically designed to bolster the asset management industry and maintain the city-state's appeal to international investors and fund managers.

Incentives for Asset Managers

Among the initiatives introduced in August 2026, policymakers are considering potentially lucrative tax exemptions for individual fund managers.

These incentives aim to attract and retain top talent and capital within Singapore's asset management sector, directly addressing competition from other financial centres that also seek to draw high-net-worth individuals and institutional funds.

By refining its fiscal policies, Singapore seeks to reinforce its value proposition as a preferred location for managing substantial global wealth, thereby strengthening its overall financial ecosystem against international rivals.

Pursuing Cross-Border Green Energy Trading

Beyond traditional financial services, Deputy Prime Minister Gan also articulated Singapore's strategic interest in developing cross-border electricity trading, driven by the growing global demand for green energy solutions. This ambition aligns with broader regional sustainability goals and could position Singapore as a key node in a future low-carbon energy network.

However, Gan cautioned that implementing a comprehensive Association of Southeast Asian Nations (ASEAN) energy grid presents a substantial challenge, requiring extensive collaboration among member countries. He estimated that such an undertaking would likely span multiple decades, indicating a long-term vision rather than an immediate prospect.

Implications for Regional Capital and Infrastructure

The DPM's statements indicate that Singapore's financial sector will continue to see targeted policy adjustments aimed at attracting and retaining capital, with the August 2026 regulatory changes for fund managers serving as a near-term focus.

Investors and wealth managers should closely monitor the effectiveness and uptake of these tax exemptions, as their success will be a key indicator of Singapore's ability to solidify its competitive edge against regional and global rivals.

Concurrently, the long-term pursuit of an ASEAN energy grid, while facing a multi-decade implementation horizon, signals a future direction for regional infrastructure investment.

This suggests that capital flows into green energy projects and related infrastructure development across Southeast Asia could see gradual, sustained growth over the coming decades, warranting attention from long-term infrastructure investors.