Markets | Who's Who Introduction

Singapore is the main distribution centre for physical gold to such south-east Asian countries as Indonesia, Malaysia, Thailand and Vietnam, along with considerable quantities to the Indian sub-continent. Imports, mainly in kilobars, but also ten tola bars for India, were 300-400 tonnes (9.6-2.9 million oz) annually during most of the 1990s. They fell dramatically with the Asian financial crisis of 1997/98 to 167 tonnes (5.4 million oz) in 1998 before recovering to 290 tonnes (9.3 million oz) in 1999 but have since eased to 124 tonnes (4 million oz) in 2001.

The level of bullion flows through Singapore are heavily influenced by demand from jewellery manufacturers located in Indonesia and, to a lesser extent, in Thailand and Malaysia, as well as the size of direct shipments now occurring between 'supplier' countries such as Australia, Indonesia and Switzerland direct to those destination markets, bypassing Singapore as a physical distribution point but still involving Singaporean based banks.

Within Singapore there is a goods and services (GST) tax of 3% on gold sales, but even before this tax was introduced, most local manufacturers had moved their operations to Malaysia or China where labour costs are lower. Singapore itself is a centre for jewellery wholesalers shipping finished goods direct to its Asian neighbours or Dubai. The Singapore Assay Office hallmarks locally made ornaments, although this is not compulsory.

Singapore is a physical market and, although bullion banks such as Credit Suisse First Boston, Standard Bank London and Rothschild are active, along with local banks such as United Overseas Bank (UOB), it has not become a major trading centre.

The Singapore International Monetary Exchange (SIMEX) was established in 1983, offering a 100-ounce futures contract quoted in US dollars, but volumes were always small and there has been no trading since March 1996.