Industry Transformation Map 2025 projects 3,000-4,000 net jobs per year, building on past above-target performance of 5.7% growth from 2016-2020.

Growth Target and Past Performance

The Monetary Authority of Singapore (MAS) projects the financial services sector will grow by an average of 4.0% to 5.0% per annum during 2021–2025 under the Financial Services Industry Transformation Map (ITM) 2025, launched on 15 September 2022 by then-Deputy Prime Minister Lawrence Wong. This target is grounded in the sector's demonstrated capacity to outperform prior benchmarks. From 2016 to 2020, the financial services sector achieved value-added growth of 5.7% per annum, materially exceeding the ITM 2016-2020 target of 4.3% per annum. During the same period, the sector created an average of 4,100 net jobs each year, surpassing the target of 3,000 net jobs per annum.

The ITM 2025 sets a net job creation target of 3,000 to 4,000 per year, a range that is conservative relative to the previous ITM's actual performance but realistic given evolving macroeconomic conditions and the sector's maturation.

Value-Added Growth (% p.a.) (% p.a.)Source: Orionmano Industries

The 4.0-5.0% target range reflects a measured ambition. The lower bound is slightly below the previous ITM's target, while the upper bound approaches the previous plan's actual outperformance. This bandwidth acknowledges sector-specific headwinds—including global monetary tightening cycles, geopolitical fragmentation, and competition from other Asian financial centres—while still setting a credible growth trajectory.

Five Strategic Pillars

The ITM 2025 is built on five key strategies: Enhance Asset Class Strengths; Digitalise Financial Infrastructure; Catalyse Asia's Net-Zero Transition; Shape the Future of Financial Networks; and Foster a Skilled and Adaptable Workforce.

Under Enhance Asset Class Strengths, MAS is working with the financial industry to deepen capabilities in asset classes where Singapore plays a key regional or global role. A central initiative is the development of an industry-led taxonomy for eight priority sectors, providing greater clarity on transition activities and facilitating appropriate financing solutions for corporates. MAS is also enhancing sustainability disclosures and building data utilities, including Project GreenPrint, to streamline companies' ESG data reporting and investors' access to such data.

Digitalise Financial Infrastructure focuses on harnessing technology to develop new business models, enhance operational efficiencies, and enable financial access and inclusion. Key initiatives include building bond market infrastructure to improve end-to-end efficiency in primary bond issuances, listing, and settlement processes; developing an industry funds settlement utility to centralise subscription, redemption, and record-keeping workflows; and launching the SME trade discovery platform Business-sans-Borders to connect small and medium enterprises across growth regions and facilitate trade financing.

Catalyse Asia's Net-Zero Transition involves deploying capital for a greener future. MAS is providing S$100 million in grant funding over 2021–2025 for capability building, green FinTech, climate risk and reinsurance, and solutions for sustainable and transition finance. This grant funding is designed to catalyse private-sector innovation and de-risk early-stage green financial products.

Shape the Future of Financial Networks aims to enhance payments connectivity and build an innovative and responsible digital asset ecosystem. MAS has articulated a clear position: yes to digital asset innovation, no to cryptocurrency speculation. The strategy focuses on building infrastructure that supports legitimate use cases while maintaining robust regulatory guardrails.

Workforce Development and Job Creation

The workforce pillar, Foster a Skilled and Adaptable Workforce, is underpinned by substantial financial commitment. The Financial Sector Development Fund will provide S$400 million in grant funding to the Talent and Leaders in Finance programme over 2021–2025. MAS and the Institute of Banking & Finance (IBF) are working closely with the financial industry and tripartite partners to foster a strong workforce, complemented by high-quality global talent.

The net job creation target of 3,000 to 4,000 per year represents a moderation from the 4,100 per annum achieved during the previous ITM period. This adjustment partly reflects productivity gains from digitalisation and automation, which may reduce headcount growth in certain operational roles even as demand rises for higher-skilled positions in areas such as sustainable finance, data analytics, and risk management. The S$400 million grant funding is directed toward reskilling and upskilling initiatives to equip the local workforce for these evolving roles.

Outlook

If MAS sustains the strategic focus on digitalisation, sustainable finance, and talent development, Singapore's financial services sector is well-positioned to meet or exceed the 4.0–5.0% growth target, reinforcing its status as a leading Asian financial centre. The track record of the previous ITM—exceeding both value-added and employment targets—provides a credible foundation for the current plan. However, execution risk exists: the S$100 million net-zero grant and S$400 million workforce grants must be deployed effectively, and the sector must navigate a more contested competitive landscape, particularly from Hong Kong, Shanghai, and emerging hubs in Southeast Asia. The taxonomy for priority sectors and the digital infrastructure initiatives will be critical barometers of progress over the plan's remaining horizon.