Date: For Parliament Sitting on 8 September 2026

Name and Constituency of Member of Parliament

Mr Kenneth Tiong Boon Kiat, Aljunied GRC

Question

Mr Kenneth Tiong Boon Kiat: To ask the Prime Minister and Minister for Finance (a) whether the removal of the 5% cap on physical investment precious metals under tax incentive schemes for funds applies to metal vaulted outside Singapore; (b) whether palladium qualifies as investment precious metals and, if not, why not; (c) what criteria determine whether an investment precious metals fund is bona fide; and (d) what role increasing Singapore-based metal vaulting plays in these policies.

Answer by Mr Gan Kim Yong, Deputy Prime Minister and Minister for Trade and Industry (Trade), and Chairman of MAS:

1. The removal of the 5% cap on physical Investment Precious Metals (IPMs) from fund tax incentive schemes provides Singapore-based fund managers and investors with greater flexibility to invest and diversify into IPMs. This will help bring more gold trading activity to Singapore and contribute to the growth of Singapore's gold trading and vaulting ecosystem, even though the 5% cap removal applies regardless of where the IPMs are vaulted.

2. Fund managers or distributors that offer funds (which may include IPM investments) to retail investors must be regulated by MAS. They are expected to have sound investment, risk management and distribution processes when managing or marketing these funds.

3. The fund schemes use the existing Goods and Services Tax definition of IPM, which covers investment-grade precious metals that are akin to financial assets. Palladium is not included as its market is primarily driven by industrial demand.

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