By Joe Goddard, Senior Consultant, Tribus
For years, Hong Kong and Singapore have competed to attract global investment firms, hedge funds and top financial talent. While both remain leading financial centres in Asia, recent policy changes have intensified that competition.
Hong Kong has introduced significant tax reforms aimed at making the city more attractive to investment professionals, while Singapore is reviewing its own tax framework to ensure it remains globally competitive. Together, these developments could reshape hiring, investment and business expansion decisions across the region.
Tax is one of several factors firms consider when choosing where to establish offices or relocate investment teams. Alongside regulation, access to talent, market infrastructure and quality of life, tax policy can have a direct impact on both operating costs and employee compensation.
For hedge funds, private equity firms, venture capital managers and family offices, relatively small changes in tax treatment can influence where capital—and people—are deployed.
In June 2026, Hong Kong introduced legislation providing a tax exemption on qualifying performance fee income earned by investment managers.
The reforms cover a range of investment vehicles, including:
Hedge funds
Private equity
Venture capital
Private credit
Family offices
Under the new framework, qualifying performance fees can be taxed at 0%, replacing the previous rate of up to 17%.
For highly compensated portfolio managers, the financial impact can be substantial, increasing annual take-home earnings by hundreds of thousands of dollars depending on bonus structures.
The legislation also applies retrospectively from April 2025, providing an additional incentive for firms already operating in the city.
Singapore has traditionally maintained a highly competitive tax environment for investment managers, with qualifying firms already benefiting from preferential tax treatment.
However, following Hong Kong's reforms, the Monetary Authority of Singapore (MAS) confirmed it is reviewing additional measures to strengthen Singapore's competitiveness.
Areas under consideration include:
Further tax incentives for investment firms.
Faster talent entry and work pass processes.
Expanded double taxation agreements.
Measures to reduce operating costs for financial institutions.
These proposals reflect Singapore's determination to remain one of the world's leading destinations for asset management and financial services.
Competition between financial centres extends beyond tax policy alone.
Investment firms evaluate multiple factors when deciding where to expand, including:
Availability of experienced investment professionals.
Regulatory certainty.
Access to institutional capital.
Proximity to clients and regional markets.
Infrastructure supporting quantitative trading and technology.
Hong Kong's recent reforms strengthen its position at a time when it is already attracting renewed investment across hedge funds, private equity and family offices.
Meanwhile, Singapore continues to invest heavily in maintaining its reputation as a stable, globally connected financial hub.
For investment professionals, traders and financial technology specialists, increased competition between Hong Kong and Singapore is likely to create more opportunities rather than fewer.
Both cities continue investing in:
Portfolio managers
Traders
Quantitative researchers
Software engineers
AI and machine learning specialists
Infrastructure and cloud engineers
As firms compete for experienced talent, professionals may benefit from stronger compensation packages, broader career opportunities and greater mobility across the region.
There is no universal answer.
Singapore continues to appeal to firms seeking political stability, regulatory transparency and a highly international business environment.
Hong Kong offers deep capital markets, proximity to mainland China and an increasingly competitive tax framework for investment professionals.
For many global firms, maintaining operations in both locations has become the preferred strategy, allowing them to access complementary strengths across the region.
Hong Kong has introduced tax incentives to strengthen its position as a leading destination for hedge funds, private equity firms, venture capital managers and family offices.
Singapore is reviewing its tax framework and broader competitiveness measures, although any future changes will depend on the outcome of consultations led by the Monetary Authority of Singapore.
Both Hong Kong and Singapore offer excellent career opportunities. The right choice depends on factors such as your area of expertise, preferred asset classes, long-term career goals and lifestyle preferences.
The competition between Hong Kong and Singapore is entering a new phase. Rather than competing solely on reputation, both financial centres are using policy, tax incentives and investment in talent to attract global firms.
For investment professionals and employers alike, that competition is likely to create new opportunities across the APAC region.
At Tribus, we work closely with investment firms, hedge funds and financial technology businesses across both Hong Kong and Singapore. Whether you're considering your next move or building out a regional team, we're here to help you navigate one of the world's most dynamic financial markets.
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