(KPL/VNA) Singapore is set to become a leading gold centre as trading shifts east, according to the World Gold Council (WGC).

Shaokai Fan, head of Asia-Pacific and global head of central banks at the WGC, said that one key reason is that gold consumption in major emerging economies is rising, and a majority of these markets are concentrated in Asia.

Singapore’s proximity to these central banks, which are actively purchasing gold, is another factor, he told the Asia Pacific Precious Metals Conference held recently in Singapore.

Singapore is in close proximity to about 25% of the world’s gold mining supply centres such as China, Australia, Indonesia, the Philippines, Papua New Guinea, and Laos.

The need to source for an official gold reserve centre has become a growing concern for central bankers around the world, especially against the backdrop of a volatile geopolitical climate, Fan said.

He added that Singapore could become a “truly viable alternative” to London and New York as a hub for central bank gold vaulting.

The removal of Goods and Services Tax (GST) on investment gold in Singapore and the establishment of good delivery refineries here have bolstered Singapore as a leading hub for gold trading, Fan stated.

Since October 2012, Singapore has exempted the GST, also known as a sales tax, from investment grade precious metals.

KPL