Singapore is exploring plans to expand its gold storage capacity as it seeks to position itself as a major global bullion trading hub , targeting central bank reserves and institutional flows. Strategic Push Into Bullion Market Authorities are evaluating potential sites — including areas near Changi Airport — to enhance vaulting infrastructure for gold storage , according to sources familiar with the discussions. The Monetary Authority of Singapore confirmed it is considering the use of existing facilities for gold vaulting , though it stopped short of confirming expansion plans. The move aligns with Singapore’s broader ambition to strengthen its role in precious metals trading and financial services . Targeting Central Banks and Institutional Demand A key objective is to attract central banks , which collectively hold around 39,000 tonnes of gold , accounting for roughly 18% of global supply , according to the World Gold...
Singapore’s sluggish initial public offering (IPO) market is looking for a much-needed revival, with real estate investment trusts (REITs) expected to lead the charge in 2025. One potential standout is Nippon Telegraph & Telephone Corp (NTT), which is considering a data-center REIT listing that could be worth as much as US$1 billion. This would be a major boost to the Singapore Exchange (SGX), which is on track for its worst IPO year in over 25 years, with just one IPO recorded so far in 2024.
The REIT sector has shown signs of recovery, with Singapore-based real estate trusts rising 14% during the third quarter of 2024. A global decline in interest rates has made the sector more attractive to investors by lowering borrowing costs and boosting dividend yields. This trend is expected to fuel more fundraising and investor interest in REITs, potentially creating a virtuous cycle for new listings.
“We are constructive on the equity capital markets in Singapore for the fourth quarter and onwards,” said Mrinal Parekh, head of equity capital markets for Southeast Asia and India at BNP Paribas. He noted that investors have already started inquiring about REIT opportunities.
The potential US$1 billion NTT listing would be Singapore’s largest since Netlink NBN Trust’s IPO raised US$1.7 billion in 2017. Data centers are particularly attractive to investors, thanks to the growing artificial intelligence sector, with tenants likely to maintain their leases due to the high costs of relocating.
In September, CapitaLand Integrated Commercial Trust, a major player in the REIT space, raised S$1.1 billion to acquire a 50% interest in a high-end Singapore mall, further illustrating the sector’s growing influence in revitalizing Singapore’s equity capital markets.
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