According to reports, the fund industry organization the Alternative Investment Management Association (AIMA) has recently written to the Monetary Authority of Singapore (MAS), indicating a growing number of hedge fund firms and asset management companies are actively exploring relocating staff and offices from Singapore to Hong Kong, or to other cities offering tax incentives.
The report states that AIMA's letter cited a leading global asset management firm noting a recent reduction in headcount in Singapore, while the scale of its Hong Kong operations has grown significantly. This situation is the reverse of the scenario several years ago when Singapore served as its regional hub.
The association stated that discussions among its members about leaving Singapore are not isolated cases. Some members are actively communicating with portfolio managers and their teams planning to move in the coming months. AIMA urged Singaporean authorities to promptly introduce strategic countermeasures to maintain competitiveness.
The report previously cited informed sources indicating some asset managers have recently held meetings with the MAS regarding the impact of Hong Kong's tax exemptions and have made suggestions concerning Singapore's recruitment of overseas talent.
AIMA stated it has recently communicated with the MAS on the same issues, calling for a major overhaul of Singapore's incentive measures and tax system. It cited rising costs ranging from property rents to school fees.
The association's suggested measures include lowering tax rates, providing corporate-level grants, offering reliefs linked to Singaporean employee headcount, and providing greater clarity on immigration and residency pathways.
AIMA also noted that besides Hong Kong, India is positioning itself strategically in this area. The United Arab Emirates has put forward a compelling proposition through its financial center integration, and other jurisdictions are also proposing schemes aimed at attracting similar highly mobile talent.
The association's membership includes hedge fund management firms, private equity companies, and other institutions.