New MAS tax and visa reforms are reshaping Singapore fund manager hiring – here's what HR leaders in financial services need to know now
The Monetary Authority of Singapore (MAS) has unveiled a package of tax and visa reforms to attract global asset management talent.
Announced on 19 August 2026, the measures include:
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a proposed tax exemption on profit-related returns from fund management services
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a new Hedge Fund Investment Programme
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an updated work pass track for senior investment professionals
The announcement is a direct response to Hong Kong's May 2026 bill cutting taxes on performance bonuses and carried interest. Singapore's Alternative Investment Management Association had warned MAS that several hedge fund and private equity members were considering relocating senior staff to Hong Kong. The prospect of an exodus of high-paid managers prompted the regulatory response.
A new work pass track reshapes Singapore fund manager hiring
The Investment Management Track, developed jointly by MAS and the Ministry of Manpower (MOM), has the most immediate impact on talent acquisition.
The Overseas Networks and Expertise (ONE) Pass is a five-year work pass that allows holders to work for multiple companies without reapplying when they change jobs.
Under the new Investment Management Track, qualifying salary assessments will recognise performance-linked returns alongside fixed monthly pay.
The existing framework generally requires a fixed monthly salary of at least S$30,000. Senior investment professionals often earn most of their compensation through variable performance fees. The revised criteria reflect how asset management roles are actually remunerated.
Firms that align compensation frameworks with the new ONE Pass criteria will be better placed to attract senior global hires. Those that do not risk losing candidates to better-positioned rivals.
Tax relief forces a rethink of total reward benchmarking
The proposed tax exemption takes effect from Year of Assessment 2027. It covers profit-related returns from qualifying fund management arrangements. Full details will be released at Budget 2027.
The exemption is being designed for funds that already meet economic substance conditions, including minimum staffing requirements.
For HR leaders managing total reward frameworks in fund management, this has significant implications:
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Existing compensation benchmarks may need to be revisited ahead of Budget 2027
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The mix of base salary, carried interest and co-investment arrangements adds complexity
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Scenario-planning should begin now, before full eligibility criteria are published
Singapore's labour market remained resilient in Q1 2026, but firms expecting to hire in the next three months fell to 44.6%, according to MOM's Q1 2026 Labour Market Advance Release. The financial services sector led resident employment growth through 2025. The MAS reforms are designed to sustain that trajectory.
Hiring pressure will spread beyond fund management
The effects will extend beyond fund management firms. MAS has confirmed that a stronger hedge fund ecosystem will support growth across ancillary services.
These include:
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prime brokerages
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legal and compliance practices
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risk and operations functions
Each creates secondary demand for specialised talent in an already stretched market. ManpowerGroup's 2026 Global Talent Shortage Survey found that 71% of Singapore employers reported difficulty hiring skilled talent.
Competition for top graduates is also intensifying. Chinese technology firms have intensified campus recruitment at Nanyang Technological University and the National University of Singapore, with salary packages for top-tier doctoral candidates rising sharply.
If Singapore attracts a significant wave of senior international investment professionals, demand for experienced local support talent will follow.
Compliance officers, operations managers and investor relations professionals could all face a tighter hiring environment as a result.
The talent paradox is well documented. As analysis of Singapore's labour market resilience and emerging talent pressures shows, the city-state is growing but selective hiring caution is spreading.
'We do need to take a look at what is happening in the global landscape in reviewing and adjusting our own policies,' said Chee Hong Tat, Singapore's Minister for National Development and Deputy Chair of MAS.
For HR leaders across Singapore's financial services sector, the central question is whether talent strategies can keep pace. Singapore fund manager hiring is being reshaped by policy – and the workforce planning response needs to move at the same speed.
