Singapore (VNA) – Singapore is studying options to expand its gold storage capacity to meet rising demand from central banks as part of efforts to position itself as a gold trading hub in Asia and the world.
Singaporean authorities are assessing several potential sites for new storage facilities, including land near Changi Airport.
In response to media queries, the Monetary Authority of Singapore (MAS) said it is also considering the use of existing facilities for gold storage, but has yet to confirm any plans to expand vault capacity.
Earlier, Singapore announced a plan to develop gold-related capital market products and establish a trusted clearing and settlement system for over-the-counter (OTC) transactions. Gold vaults are typically located near major airports to enable efficient air transport and minimise travel time on roads.
Attracting central banks which hold substantial gold reserves and play a critical role in providing market liquidity is seen as a cornerstone of Singapore’s strategy.
The participation of major financial institutions acting as market makers is also essential, mirroring the structure of London, the world’s leading gold trading centre where billions of US dollars worth of transactions take place daily.
According to the World Gold Council, central banks worldwide hold around 39,000 tonnes of gold, equivalent to nearly 18% of all gold ever mined. Capturing even a small share of these holdings could significantly strengthen Singapore’s position in the regional market, which is currently dominated by Hong Kong (China) – a key gateway for bullion flows into China, the world’s largest gold consumer./.
