Refreshed industry transformation map builds on past outperformance and focuses on four strategic pillars plus workforce development.

Growth Targets and Track Record

The Monetary Authority of Singapore's (MAS) Financial Services Industry Transformation Map (ITM) 2025, launched by former Deputy Prime Minister Lawrence Wong on 15 September 2022, projects the financial sector to grow by an average of 4% to 5% per annum during 2021–2025 and create 3,000 to 4,000 net jobs yearly. The refreshed roadmap builds on a proven track record: the previous ITM (2016–2020) achieved real value-added growth of 5.7% per annum—substantially exceeding its 4.3% target—and created an average of 4,100 net jobs per year against a target of 3,000. This outperformance provides the baseline for the current plan's ambitions.

Value (% / thousands)Source: Orionmano Industries

Enhancing Asset Class Strengths and Digitalising Infrastructure

The first strategic pillar of ITM 2025 focuses on deepening capabilities in key asset classes where Singapore already holds regional or global relevance. MAS will work with the industry to strengthen positions in wealth management, insurance, fintech, foreign exchange, and philanthropy. In foreign exchange, the plan aims to broaden and deepen the electronic FX trading ecosystem by anchoring more FX platforms and liquidity takers in Singapore. For insurance, the strategy seeks to catalyse insurance risk advisory and alternative risk transfer solutions to address pandemic, climate, and cyber risks across Asia. The plan also targets building Singapore as Asia's centre for philanthropy through impact monitoring solutions and innovative philanthropy structures, alongside enhancing the variable capital company regime and other fund structures to meet broader industry needs.

The second pillar involves digitalising Singapore's financial infrastructure. MAS will promote the development of digital platforms for improved efficiency in bond issuance, listing, settlement, and funds settlement. A digital platform to connect small and medium-sized enterprises (SMEs) across growth regions is also planned, facilitating trade discovery and enabling easier access to trade financing for participating SMEs. These infrastructure investments aim to reduce transactional friction and enhance Singapore's competitiveness as a digital-first financial hub.

Catalysing Net-Zero Transition and Shaping Future Financial Networks

The third pillar positions Singapore to catalyse Asia's net-zero transition. MAS is working with multilateral development banks, blended finance networks, and philanthropic organisations to explore solutions where concessionary or catalytic capital can reduce risk for private sector players and make climate-related projects more bankable. This approach targets the persistent financing gap for decarbonisation projects in emerging Asian markets by blending public and private capital to de-risk investments that would otherwise remain unviable.

The fourth pillar focuses on shaping the future of financial networks by connecting global markets and supporting Asia's development. A core element is building Singapore as a global digital assets hub—with explicit emphasis on responsible innovation rather than cryptocurrency speculation. As former MAS Managing Director Ravi Menon stated, the regulator's position is "yes to digital asset innovation, no to cryptocurrency speculation." This distinction positions Singapore to capture value from distributed ledger technology and tokenisation while avoiding the volatility and regulatory risks associated with speculative crypto trading. The strategy underscores the intent to serve as Asia's premier financial connectivity node.

Workforce Development and the S$400 Million Commitment

The fifth pillar addresses workforce development through a substantial funding commitment. MAS is dedicating S$400 million in grant funding from its Financial Sector Development Fund to talent development over the five-year period from 2021 to 2025. This funding covers three priority areas: training support for finance professionals at different career stages, development of specialist talent in sustainability and technology fields, and leadership programmes that provide international exposure and networks to help emerging leaders succeed. The overarching goal is to develop a skilled and adaptable local workforce complemented by high-quality global talent, addressing the acute talent shortages noted across Singapore's fintech sector, which hosts over 1,000 companies.

Outlook

The ITM 2025 targets set a measurable roadmap for Singapore's financial sector; actual performance against these targets will be assessed at the end of the five-year period, with the sector's role as a net-zero catalyst and digital hub likely to shape post-2025 strategies. The combination of asset-class deepening, infrastructure digitalisation, green finance leadership, and workforce investment represents a coherent strategy to maintain Singapore's position as Asia's leading international financial centre amidst intensifying competition from Hong Kong and emerging hubs.