Refreshed transformation map builds on prior sector outperformance while pushing digitalization and sustainability strategies.

Singapore's Monetary Authority of Singapore (MAS) projects the financial sector to grow by 4.0% to 5.0% in real value-added per annum and create 3,000 to 4,000 net jobs annually over 2021–2025 under the refreshed Financial Services Industry Transformation Map (ITM) 2025, launched on 15 September 2022 by Deputy Prime Minister and MAS Deputy Chairman Lawrence Wong. The targets come after the sector significantly outperformed the previous ITM, which ran from 2016 to 2020, and signal a strategic push to reinforce Singapore's position as a leading Asian financial hub amid global uncertainty, digital disruption, and rising sustainability demands.

Growth Targets and Previous Performance

MAS projects the financial sector to achieve average real value-added growth of 4.0% to 5.0% per annum for 2021–2025, with a midpoint of 4.5%. The net jobs target ranges from 3,000 to 4,000 per year, with a midpoint of 3,500.

These targets build on strong outperformance of the first Financial Services ITM, launched in 2017 as one of 23 sectoral blueprints under the Committee of the Future Economy. From 2016 to 2020, the financial services sector grew by an average of 5.7% per annum—exceeding the original target of 4.3% per annum. The sector created an average of 4,100 net jobs each year, surpassing the target of 3,000 net jobs annually. Over the full five-year period, more than 20,000 net jobs were created in financial services, Wong noted at the ITM 2025 launch.

Growth (%) (%)Source: Orionmano Industries

Jobs (count)Source: Orionmano Industries

The outperformance of prior targets provides a favourable baseline, though the external environment has become markedly more complex. "More challenges have emerged in an increasingly complex external environment," Wong said at the launch, according to Channel NewsAsia.

Five Strategic Pillars of the ITM 2025

The ITM 2025 is structured around five key strategies designed to deliver the growth and employment targets:

Enhance Asset Class Strengths: MAS will work with the financial industry to deepen capabilities in asset classes where Singapore plays a key regional or global role, strengthening the city-state's intermediation function for Asian and global capital flows.

Digitalise Financial Infrastructure: The strategy promotes development of digital platforms and infrastructure, including cross-border payment linkages, distributed ledger technology applications, and asset tokenisation initiatives.

Catalyse Asia's Net-Zero Transition: MAS is collaborating with the industry to scale up sustainable and transition financing solutions, aiming to mobilise capital for Asia's decarbonisation while developing green finance capabilities.

Shape the Future of Financial Networks: This pillar focuses on enhancing payments connectivity and building an innovative and responsible digital asset ecosystem.

Foster a Skilled and Adaptable Workforce: MAS and its tripartite partners aim to develop a strong Singaporean workforce complemented by global talent, with targeted investment in upskilling and leadership development.

Digitalization and Sustainable Finance Initiatives

Under the digitalisation and financial networks strategies, MAS is pursuing several concrete initiatives. These include expanding cross-border payment linkages with regional economies via real-time payment systems and Project Nexus, an initiative for multi-country instant payment connectivity. MAS is also exploring distributed ledger technology in use cases such as cross-border payments, trade finance, and capital markets.

Two flagship projects anchor the digital asset strategy. Project Guardian supports the tokenisation of financial and real economy assets, while Project Orchid enables digital currency connectivity. These sit alongside MAS's broader position of supporting digital asset innovation while discouraging cryptocurrency speculation, as articulated by former Managing Director Ravi Menon.

On sustainability, MAS is working with industry participants to develop innovative solutions to scale sustainable and transition financing for Asia's net-zero transition. This forms a core part of the strategy to position Singapore as a green finance hub, given Asia's significant financing needs for decarbonisation.

Workforce Development and Talent Pipeline

The workforce strategy under ITM 2025 is backed by substantial funding. The Financial Sector Development Fund will provide S$400 million in grant funding to the Talent and Leaders in Finance programme over 2021 to 2025. This programme aims to build workforce competencies in growth areas, with particular focus on developing specialist talent in sustainability and technology.

MAS and the Institute of Banking & Finance (IBF)—working closely with the financial industry and tripartite partners—are tasked with executing the talent strategy. Key priorities include developing leaders through opportunities to acquire expertise, international exposure, and networks to help them succeed in leadership roles. The emphasis reflects recognition of an acute talent shortage in fintech and digital finance, with recruitment firms reporting that the local tech talent pool has been insufficient to meet new business demands, a challenge exacerbated by pandemic-era restrictions on overseas hiring.

The ITM 2025 positions Singapore's financial sector to navigate digital disruption and sustainability demands, with annual reviews likely to track progress against the ambitious growth and employment targets.