Hedge fund managers consider shift from Singapore to Hong Kong

The Alternative Investment Management Association told the Monetary Authority of Singapore that hedge fund and other alternative asset managers are weighing moves of staff and operations from Singapore to Hong Kong and other lower-tax financial centres. Some members are already in discussions with portfolio managers and senior employees about relocations that could take place within months.

In a letter to the central bank, AIMA warned the reported relocations are not isolated and cited an unnamed global manager that reduced Singapore headcount while expanding in Hong Kong, reversing its earlier status as the firm’s main regional hub. “These are not isolated accounts,” the association wrote.

The industry group urged Singapore to act quickly to protect its competitiveness. AIMA proposed changes including lower personal taxes, grants or relief tied to a firm’s Singapore-based workforce, and clearer immigration and residency rules to help recruit and retain international staff.

AIMA noted some firms have discussed Hong Kong’s proposed tax changes with Singaporean authorities and offered suggestions to ease international hiring. The association flagged rising operating costs in Singapore, including property and education expenses, and said individual taxation has become a key consideration for highly mobile investment professionals.

The group added that roles not requiring a physical presence in Singapore are increasingly being located elsewhere, and that some global managers have stopped considering Singapore for new regional operations.

Hong Kong has rolled out incentives for asset managers, including proposed tax relief on eligible carried interest. The city reported a 20% rise in assets under management in 2025 to a record HKD42.2 trillion, citing strong net inflows.

Singapore has also grown its asset-management sector. Monetary Authority of Singapore data show assets under management rose 53% in the five years to end-2024 to SGD6.1 trillion; MAS Chairman Tharman Shanmugaratnam cited a further rise to SGD6.7 trillion by the end of last year in a June speech.

AIMA warned that competing incentives in Hong Kong, India’s GIFT City, financial centres in the UAE and other jurisdictions are adding pressure on Singapore. The association called for clearer public communication from authorities about planned responses, saying greater certainty could help firms persuade portfolio managers and other senior staff to remain in the country.