Singapore is evaluating plans to increase its gold storage capacity to accommodate reserves from other central banks, as part of broader efforts to establish itself as an international gold hub.

According to informed sources, the city-state is assessing potential sites, including a plot of land near Changi Airport. The individuals requested anonymity due to the confidential nature of the discussions.

A spokesperson for the Monetary Authority of Singapore responded to inquiries by stating that the central bank "is considering the use of existing facilities for gold storage," but declined to comment on whether vault expansions are planned.

Authorities have jointly announced a plan with local industry groups aimed at developing services and products to facilitate precious metals trading. These include over-the-counter clearing systems and capital market products.

Gold vaults are typically located in secure areas with convenient airport access, enabling efficient air transport of precious metals and minimizing transit times.

Attracting central banks, which hold substantial gold reserves and serve as ultimate providers of liquidity, is crucial to Singapore's strategy. This effort also requires support from established financial institutions acting as market makers. Together, these elements form the foundation of dominant global gold trading centers such as London, where billions of dollars in gold are traded daily.