Singapore Exchange Ltd. Sets Sights on Global Gold Market
In a bold move to challenge the dominance of New York and London in the global gold market, the Singapore Exchange Ltd. is set to introduce a unique offering that could reshape the landscape of gold trading. Starting next month, the Singapore Exchange will launch a physical gold futures contract, marking a significant milestone as the only such contract in Asia. This initiative, spearheaded by the Abaxx Commodities Futures Exchange and Clearing (Abaxx Exchange), will feature a dollar-denominated contract for 1 kilogram of physical gold, deliverable in Singapore.
The decision to introduce this contract comes amid growing concerns over the current state of the gold market, described by Abaxx Exchange CEO Kran as “dysfunctional.” The traditional infrastructure, with London as the hub for physical trading and New York for futures, is reportedly struggling to keep pace with the evolving dynamics of gold trading. Kran emphasizes the need for a gold market in Asia, outside of China, that is not reliant on the US and UK, aiming to mitigate geopolitical risks associated with these regions.
This strategic move is timely, considering the surge in gold prices to a record high of $3,500 per ounce this year, driven by global investors’ concerns over economic growth, diversification away from the dollar, and robust demand from Chinese and other Asian investors. The Abaxx Exchange also aims to break the tradition of the gold market’s weekend closure, aspiring to offer round-the-clock trading throughout the week, pending approval from Singapore’s regulatory authorities. Initially, the contract will adhere to the standard gold trading hours, from Sunday evening to Friday evening London time.
Leadership Transition at Genting Singapore
In other financial news, Genting Singapore, a subsidiary of Genting, announced a significant leadership change. CEO Tan See Leng will temporarily assume the role of acting CEO following the retirement of CEO Lim Kok Thay, effective May 31. Despite stepping down, Lim Kok Thay will assist in the transition process until his full retirement on November 30. This leadership shift comes as Genting Singapore reported a 41% decline in net profit for the first quarter of the 2025 financial year, attributed to a decrease in VIP win rates, the temporary closure of Hard Rock Hotel for renovation and rebranding, and a comparison with a strong performance in the previous year.
The company’s revenue also saw a 20% decrease, with the Singapore Integrated Resort’s casino revenue dropping by 24% and non-casino revenue by 10%. Meanwhile, Lee See Yee, currently the President of Sentosa Development Corporation, will take over as CEO of Sentosa Development Corporation, following her extensive experience within Genting Singapore and her role as President since 2023.
These developments highlight the dynamic nature of the financial and commodities markets, with strategic initiatives and leadership changes poised to influence future directions and opportunities.