The new talent war: why Hong Kong and Singapore are raising the stakes for asset managers

Recent policy moves in Hong Kong and Singapore point to a new phase in Asia’s competition for asset management activity – one increasingly focused on attracting the people who drive investment performance.

In Hong Kong, proposed reforms to the carried interest regime have broadened the debate beyond traditional private equity structures, with earlier reports suggesting that the territory was considering favourable tax treatment for a wider range of alternative investment activity.

Singapore has now responded with its own package of measures. The Monetary Authority of Singapore has announced plans for a tax exemption on profit-related returns from fund management activities, a new hedge fund investment programme and an investment management track under the ONE Pass framework for senior investment professionals.

Seen individually, these measures may look like technical tax and immigration changes. Taken together, they reveal a larger strategic contest between Asia’s two leading financial centres.
 

The competition has shifted from capital to talent

For years, the competitive dynamics between Hong Kong and Singapore have centred on familiar themes:

• Tax
• Regulation
• Quality of life
• Political stability
• Access to capital markets

Those factors still matter. But the more decisive contest is increasingly centred on something scarcer than capital itself: people.

The most successful portfolio managers, traders, private equity professionals, private credit specialists, family office executives and quantitative investors are highly mobile. Many can choose where they live, where teams are located and where investment decisions are made.

That mobility is changing the basis of competition. Jurisdictions are no longer simply competing for assets; they are competing for the talent that allocates, manages and grows them.
 

Hong Kong is broadening its proposition

What stands out about Hong Kong's proposals is their breadth.

What began as a set of reforms to enhance Hong Kong’s carried interest regime has evolved into a broader discussion about how the territory can strengthen its position across the alternatives market, including hedge funds, private credit, venture capital and family offices.

That sends a powerful signal.

The direction of travel is clear: Hong Kong is looking beyond individual fund structures and seeking to reinforce its role as a wider alternatives hub.

The debate around proprietary trading firms was particularly notable. Firms such as Jane Street and Citadel Securities represent some of the most profitable and talent-dense organisations in global finance. Even where specific tax concessions do not ultimately extend to these businesses, the discussion underlines how closely governments are now focused on attracting high-value financial talent.
 

Singapore is sharpening its competitive edge

Singapore’s response reflects both the strength of its existing asset management industry and its determination to remain at the forefront of regional competition.

The city-state has spent the past decade building one of the world’s most successful asset management hubs, with assets under management now approaching S$7 trillion ¹.

Against that backdrop, any perceived tax or talent advantage in a competing jurisdiction was always likely to prompt a response.

The new measures are notable because they address the practical economics of senior investment professionals. By focusing on profit-related returns, hedge fund activity and work-pass flexibility, Singapore is signalling that it intends to compete not only on tax, but on the full operating environment for investment managers.
 

Tax incentives are only part of the equation

Of course, taxation alone rarely determines location decisions. Investment firms evaluate a much broader set of considerations:

• Regulatory certainty
• Legal infrastructure
• Access to investors
• Capital raising opportunities
• Availability of skilled talent
• Technology and AI ecosystems
• International connectivity
• Lifestyle and education options

Both Hong Kong and Singapore score strongly across many of these dimensions, which is why the competition between them is unlikely to be settled by one policy announcement alone.
 

What this means for asset managers

For fund managers, traders, family offices and alternative investment firms, these developments create an opportunity to reassess where key functions, people and structures should sit.

As governments compete harder for investment talent, firms may increasingly revisit questions such as:

• Where should portfolio managers be based?
• Where should carried interest and incentive structures sit?
• How should management companies be structured?
• Which jurisdictions offer the most attractive combination of tax, regulation and operational support?

These are no longer purely technical questions. They increasingly shape competitiveness, access to talent and the ability to scale across Asia.
 

How Ocorian supports investment managers

As asset managers, hedge funds, private equity firms, private credit managers and family offices consider their options, the ability to establish, operate and scale efficiently is becoming increasingly important.

Ocorian helps investment managers build and manage the infrastructure needed to operate across Asia and globally, including:

• Fund administration and fund accounting services
• Regulatory and compliance consulting
• Corporate and fiduciary services
• Establishment and ongoing administration of management companies
• Operational setup and structuring support
• Cross-border corporate services and entity management

Whether launching new structures, expanding into Asia or reviewing existing operating models in response to changing tax and regulatory conditions, firms need infrastructure that is robust, scalable and aligned with their commercial objectives.

The competition between Hong Kong and Singapore is intensifying. Neither jurisdiction is likely to “win” outright, but their rivalry is driving innovation, attracting talent and strengthening Asia’s position as a global centre for wealth and asset management.

For asset managers, that creates both opportunity and urgency: now is the time to review whether existing structures, locations and operating models remain fit for purpose.

¹ Assets under management in Singapore climb 10% to $6.7 trillion in 2025 | The Straits Times