Singapore Fund Managers Face Growing Competition from Hong Kong Tax Reforms

Singapore fund managers could face increasing competitive pressure unless tax incentives are strengthened, with the Alternative Investment Management Association warning that portfolio managers and investment professionals are actively considering relocating to Hong Kong and other lower-tax jurisdictions.

In a letter to the Monetary Authority of Singapore, AIMA said the trend extended beyond isolated cases, with member firms holding active discussions about relocating staff within months.

The warning follows Hong Kong's plans to broaden tax concessions for global fund managers, including making qualifying carried-interest income tax-free.

Hong Kong's assets under management increased 20% to a record HKD42.2tr during 2025, while Singapore managed SGD6.7tr.

AIMA urged Singapore to enhance its competitiveness through lower taxes, targeted grants, greater immigration certainty and incentives linked to local employment.

The debate highlights intensifying competition between Asia's leading wealth management centres to attract alternative investment managers, hedge funds and family office capital.