Singapore's central bank has announced new controls for hedge funds managing over S$250 million (£119.5 million) in assets.

Singapore's central bank has announced new controls for hedge funds managing over S$250 million (£119.5 million) in assets.

The Monetary Authority of Singapore (MAS) has also confirmed that funds above that threshold will now require a licence to operate, while those below it will need to maintain base capital of S$250,000.

According to Bloomberg, the MAS said in a statement: "While the authority recognises the usefulness of the exempt fund-manager regime in facilitating the growth of the fund-management industry in Singapore, a review of the regime is timely."

Incentives to lure hedge funds were introduced by the city state eight years ago, but worldwide public anger and suspicion towards the secretive industry has led local authorities to introduce a greater degree of regulation.

Last week, the Alternative Investment Management Association warned the EU not to deviate from G20 proposals for a global approach to tighter restrictions on the operations of hedge funds.