Singapore Stones & Metals

Singapore Stones & Metals Industry

The Singapore precious stones and metals industry is an international trading hub driven by its strategic location, tax exemptions, and strong regulatory framework

. The industry is a key player in the global precious metals market, serving as a hub for both trading and wealth preservation

Precious metals sector

This sector is highly developed and is a major component of the industry. Singapore has actively cultivated its role as a global precious metals hub, supported by a complete bullion supply chain.

Market activity

• In 2023, Singapore was the 9th largest importer of precious metals globally, with imports valued at $21.3 billion.

• It was also the 21st largest exporter, exporting $14.2 billion in precious metals during the same year.

• Key trading partners for imports include Switzerland, Thailand, and Japan, while exports primarily go to China, Hong Kong, and Malaysia

Key factors for growth

• Tax exemption: A pivotal moment for the industry came in 2012 when the government exempted Investment Precious Metals (IPM) from the Goods and Services Tax (GST). This significantly boosted trading activity and attracted bullion dealers and storage companies.

• Established infrastructure: The country boasts a well-developed ecosystem that includes:

  • Refining: Singapore is home to a major gold refiner, Metalor Singapore, which serves the Asia-Pacific region.

  • Vaulting and storage: World-class secure storage facilities, like Silver Bullion's The Reserve and Le Freeport, cater to global clients storing physical gold and silver.

  • Logistics: Global secure logistics providers such as Brinks and Malca Amit facilitate the safe and secure movement of precious metals

singapore stones & metals industry

The Singapore precious stones and metals industry is an international trading hub driven by its strategic location, tax exemptions, and strong regulatory framework

. The industry is a key player in the global precious metals market, serving as a hub for both trading and wealth preservation.

Precious metals sector

This sector is highly developed and is a major component of the industry. Singapore has actively cultivated its role as a global precious metals hub, supported by a complete bullion supply chain.

Market activity

• In 2023, Singapore was the 9th largest importer of precious metals globally, with imports valued at $21.3 billion.

• It was also the 21st largest exporter, exporting $14.2 billion in precious metals during the same year.

• Key trading partners for imports include Switzerland, Thailand, and Japan, while exports primarily go to China, Hong Kong, and Malaysia.

Key factors for growth

• Tax exemption: A pivotal moment for the industry came in 2012 when the government exempted Investment Precious Metals (IPM) from the Goods and Services Tax (GST). This significantly boosted trading activity and attracted bullion dealers and storage companies.

• Established infrastructure: The country boasts a well-developed ecosystem that includes:

  • Refining: Singapore is home to a major gold refiner, Metalor Singapore, which serves the Asia-Pacific region.

  • Vaulting and storage: World-class secure storage facilities, like Silver Bullion's The Reserve and Le Freeport, cater to global clients storing physical gold and silver.

  • Logistics: Global secure logistics providers such as Brinks and Malca Amit facilitate the safe and secure movement of precious metals

Precious stones and gems sector

The precious stones sector is a smaller but still significant part of the industry, with a focus on trading and dealing.

Market activity

• In 2023, Singapore was a notable importer and exporter of precious stones. Imports amounted to $174 million, while exports were $161 million.

• Major import sources for precious stones include Mozambique, India, and Zambia. Exports mainly go to Hong Kong, Thailand, and the United Kingdom.

• The sector also includes the trade of luxury items such as jewelry and watches, where the value of precious materials is a key component

Industrial metals sector

Beyond the precious metals trade, Singapore also has an industrial metals sector, though it is smaller in scale. Historically, the country has had a steel industry.

• The industry has a history of steel production, beginning in the 1950s with the country's first steel mill.

• Today, companies like Team-Metal specialize in precision machining of complex components for industries such as medical, life sciences, and electronics.

• Others, such as WM Metals & Alloys, focus on trading and recycling high-quality precious and industrial metal waste

Regulatory framework

To safeguard its reputation as a global financial hub, Singapore enforces strict regulations on the industry to combat money laundering and terrorism financing.

• The Ministry of Law (MinLaw) oversees the sector, requiring dealers of precious stones and metals to register and comply with anti-money laundering and counter-terrorism financing (AML/CFT) laws.

• Dealers must perform customer due diligence and file Cash Transaction Reports (CTRs) for transactions over $20,000.

• Regulatory bodies like the Monetary Authority of Singapore (MAS) also implement notices for financial institutions that deal in precious stones and metals

Industry associations

• The Singapore Bullion Market Association (SBMA) is a key body that promotes the development of the precious metals market through events like the Asia Pacific Precious Metals Conference

The precious stones sector is a smaller but still significant part of the industry, with a focus on trading and dealing.

Market activity

• In 2023, Singapore was a notable importer and exporter of precious stones. Imports amounted to $174 million, while exports were $161 million.

• Major import sources for precious stones include Mozambique, India, and Zambia. Exports mainly go to Hong Kong, Thailand, and the United Kingdom.

• The sector also includes the trade of luxury items such as jewelry and watches, where the value of precious materials is a key component.

Beyond the precious metals trade, Singapore also has an industrial metals sector, though it is smaller in scale. Historically, the country has had a steel industry.

• The industry has a history of steel production, beginning in the 1950s with the country's first steel mill.

• Today, companies like Team-Metal specialize in precision machining of complex components for industries such as medical, life sciences, and electronics.

• Others, such as WM Metals & Alloys, focus on trading and recycling high-quality precious and industrial metal waste

Regulatory framework

To safeguard its reputation as a global financial hub, Singapore enforces strict regulations on the industry to combat money laundering and terrorism financing.

• The Ministry of Law (MinLaw) oversees the sector, requiring dealers of precious stones and metals to register and comply with anti-money laundering and counter-terrorism financing (AML/CFT) laws.

• Dealers must perform customer due diligence and file Cash Transaction Reports (CTRs) for transactions over $20,000.

• Regulatory bodies like the Monetary Authority of Singapore (MAS) also implement notices for financial institutions that deal in precious stones and metals

Industry associations

• The Singapore Bullion Market Association (SBMA) is a key body that promotes the development of the precious metals market through events like the Asia Pacific Precious Metals Conference