Strong market performance and a 50% jump in net inflows drove assets under management to a record S$6.07 trillion, with both traditional and alternative sectors posting double-digit growth.

The S$6 Trillion Milestone: Growth Drivers

Singapore’s asset management industry crossed the S$6 trillion mark for the first time in 2024, growing 12.2% year-on-year as strong market returns and a sharp rebound in net inflows reaffirmed the city-state’s position as Asia’s leading wealth management hub. Total AUM stood at S$6.07 trillion as of December 31, 2024, up from S$5.41 trillion in 2023, according to the Monetary Authority of Singapore’s (MAS) Singapore Asset Management Survey 2024, released on July 15, 2025. The headline growth outpaced the global average, marking a recovery from the previous year’s subdued fundraising environment.

Two primary drivers powered the milestone. First, robust market performance across asset classes contributed significantly: global markets delivered healthy returns across bonds and equities in both developed and emerging markets. Second, net inflows grew 50% year-on-year to S$290 billion, as fundraising activities recovered amid improving investment sentiment from 2023. A negative currency translation effect of S$3.4 billion—caused by the strengthening of the Singapore dollar against the US dollar—partially offset these gains, alongside the net cost from MAS’s money market operations to manage banking system liquidity and other expenses totalling S$8.3 billion.

The financial sector demonstrated broad-based strength, with trading activity elevated amid shifts in global and domestic financial market sentiments, resulting in higher net fees and commissions among banks and fund managers. The corporate debt market saw total issuance increase more than 30% to exceed S$300 billion.

Traditional and Alternative Sectors Both Expand

Growth was balanced across conventional and alternative asset classes. Traditional AUM increased by 16% in 2024, while alternative AUM rose 14% to reach S$1.39 trillion. Alternative AUM was led by growth in assets managed by private equity, venture capital, and hedge fund managers, driven by both net inflows and asset value recovery.

Private equity and venture capital AUM climbed 20% to S$789 billion, cementing its position as the largest alternative sub-sector. Hedge fund assets rose 37% to S$327 billion, up from S$239 billion in 2023. Real estate-related assets saw a downturn: REIT AUM declined 15% to S$115 billion from S$136 billion, while direct real estate AUM fell 6% to S$158 billion from S$168 billion. Private credit investments grew 21% year-on-year, reflecting increased investor appetite for direct lending strategies.

Source: Orionmano Industries

Singapore’s Role as a Global Asset Management Gateway

Singapore continues to function as a critical intermediary for global capital flows, with 77% of AUM sourced from outside the country and 88% of total AUM invested globally. Discretionary AUM accounted for more than half of total AUM in 2024, indicating sustained confidence among international investors in local fund management expertise and decision-making capabilities. The share of discretionary AUM has consistently exceeded 50%, reflecting the deepening of Singapore’s asset management ecosystem.

The number of fund management companies reached 1,298 by end-2024, up from prior-year levels, as global managers continued to establish or expand regional footprints in the city-state. The 2024 MAS survey drew 1,364 respondents, covering banks, finance and treasury centres, Capital Markets Services licensees (including REIT managers), financial advisers, insurance companies, and exempt entities. The survey methodology adjusts for double counting among reporting entities that may have reported the same AUM mandates, such as fund-of-funds managers investing with Singapore-based asset managers.

MAS Managing Director Chia Der Jiun, in remarks on the MAS Annual Report 2024/2025, noted that alongside the broader asset management industry, the wealth management sector experienced strong growth, underpinned by high standards of regulation. Singapore continues to be a trusted and attractive wealth management centre, though MAS has signalled its expectation that financial institutions uphold sound and risk-proportionate anti-money laundering and counter-financing of terrorism practices, following recent regulatory actions against nine financial institutions for AML breaches.

Outlook: While 2024’s record AUM reflects strong momentum, headwinds including currency volatility, elevated global interest rates, and a cyclical downturn in real estate may temper growth in 2025, though continued inflows into private credit and hedge funds could sustain Singapore’s competitive edge.