Let’s face it, the gloves are off. Hong Kong and Singapore are now direct in their competitive race to acquire capital, talent and investment that underpin the asset management industry in the region and, perhaps, the world. It’s a real tug-of-war.

Singapore’s latest package reflects that shift. On 19 August 2026, MAS announced three measures. First, it is proposing a tax break on profit-linked income earned by qualifying fund managers, provided the funds have real operations and sufficient staff in Singapore.

Second, MAS will invest alongside hedge fund managers that commit to establishing or expanding their Singapore presence, helping attract investment talent and grow the wider ecosystem, including prime brokers and other service providers.

Third, Singapore plans to create a new ONE Pass track for senior investment professionals, with greater recognition of performance-based pay to make it easier to attract and retain global talent.

The message is clear. Singapore wants more than assets booked in the city. It wants the fund managers, investment talent and activity behind them.

Singapore’s measures come as Hong Kong moves to broaden tax concessions for privately offered funds, eligible family offices and carried interest, in a bid to attract more funds, family offices and investment talent. 

The proposals have already prompted more interest from overseas managers and family offices looking to establish operations in Hong Kong, highlighting how government policy can influence where businesses and talent choose to locate. 

Singapore’s asset-management industry has grown to almost S$7 trillion, accounting for 15% of financial-sector output and 13% of jobs, with locals making up 80% of its 25,000-strong workforce, according to MAS. Hong Kong’s asset and wealth management industry manages about US$5.4 trillion, according to SFC. 

The more interesting question is what these measures are designed to secure.

It is not simply another billion dollars of AUM. The bigger prize is the activity around the money. The portfolio managers making investment decisions, analysts supporting them, the prime brokers, and other service providers.

That helps explain why governments are becoming more targeted in their approach. Tax incentives can influence where funds are based, but the depth of the wider ecosystem can be just as important when managers decide where to build their next operation.

Ultimately, fund managers will weigh a range of factors, from costs and regulations to access to capital, talent and the wider ecosystem.

Seen in that context, the latest measures are less about a straightforward Singapore-Hong Kong comparison and more about how governments increasingly view asset management – not simply as a source of AUM, but as a generator of high-value economic activity.

Now comes the real test – who can turn policy into lasting advantage?

Submission for Asian Private Banker’s 14th Asset Management Awards closes on 31 August 2026, so please submit your entry before the deadline.