The Monetary Authority of Singapore is in talks with investment firms to lower taxes for fund managers, after Hong Kong introduced tax incentives to lure money and talent back to its financial hub. Sources say several fund executives have told the Monetary Authority of Singapore that Hong Kong's new tax law changes could prompt more companies to relocate their operations back. One measure the Monetary Authority of Singapore is considering is reducing the tax rate under its investment promotion scheme for fund management businesses, which currently pays a 10% tax rate, lower than the general corporate tax rate of 17%. A further cut would allow firms to pass on more benefits from lower tax costs to fund managers and investment professionals. The move reflects the intensifying rivalry between Singapore and Hong Kong to claim the role of Asia's financial centre.