According to "Singapore writes support for a gold and silver hub into law", the markets for physically traded gold will shift further from the paper-traded west to the east, joining Hong Kong and wider China. The intent is to foster a refining and trading industry in Singapore. The tax exemption will also encourage gold's use as money in Singapore, both for trading and for saving. The Singaporean initiative to bring trading closer to the physical asset will allow traders and investors to reduce re-hypothecation and other paper derivative counter-party risk, which appears to be increasing in western markets.
I acknowledge Wealth Cycle's article "Singapore writes support for a gold and silver hub into law".