KUALA LUMPUR, Sept 28 (Bernama) -- Bursa Malaysia ended marginally lower on Monday amid selling activity as the market lacked fresh catalysts to spur investors’ buying interest, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.60 points, or 0.09 per cent, to 1,670.02, from Friday’s close of 1,671.62. The benchmark index, which opened 0.93 of-a-point higher at 1,672.55, moved between 1,668.61 and 1,674.11 throughout the trading session. Market breadth was negative as losers surpassed gainers 748 to 388, while 517 counters were unchanged, 1,271 untraded and 91 suspended. Turnover slipped to 3.11 billion units worth RM2.40 billion from 4.07 billion units valued at RM2.69 billion on Friday.
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 Council.
Securing even a small share of these reserves could significantly enhance Singapore’s regional and global influence in bullion markets.
Central banks are particularly attractive clients due to their large, stable holdings and liquidity role, forming the backbone of established hubs like London.
Building a Competitive Ecosystem
Singapore is also working with industry players to develop a full-service bullion ecosystem, including:
- Over-the-counter (OTC) clearing systems
- Capital market products linked to gold
- Enhanced trading and settlement infrastructure
These initiatives aim to replicate elements of major global hubs and strengthen Singapore’s end-to-end capabilities in precious metals markets.
Logistics Advantage Supports Growth
Gold vaults are typically located near major airports to ensure secure and efficient transportation.
Singapore’s strategic location and strong connectivity via Changi Airport make it well-positioned to serve as a regional gateway for bullion flows, particularly in Asia.
Competing With Regional and Global Hubs
Singapore’s push comes as it seeks to challenge established centres:
- London — the world’s dominant gold trading hub
- Hong Kong — a key gateway for bullion flows into China
With China being the largest consumer of gold globally, capturing regional trade flows could significantly boost Singapore’s market share.
Investor Takeaways
- Singapore is exploring expanding gold storage capacity to attract central bank reserves.
- The initiative supports ambitions to become a leading global bullion trading hub.
- 39,000 tonnes of gold held by central banks represent a major opportunity.
- Development of OTC clearing and capital market products will strengthen ecosystem depth.
- Singapore aims to compete with London and Hong Kong in the global precious metals market.
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