Banking-sector resilience drove broad-based financial services growth as total assets outpaced the sector’s 4.7% average expansion.

Financial Sector Growth Accelerates in 2024

The Monetary Authority of Singapore confirmed that the banking sector's total assets expanded at a 6.8% compound annual growth rate from 2021 to 2024, underscoring the resilience of a segment that anchors the broader financial industry. The financial services sector grew 6.8% in 2024, more than doubling the 3.1% growth recorded in 2023, according to MAS data released in the central bank's annual report on July 15, 2025.

Deputy Prime Minister and MAS chairman Gan Kim Yong stated that the sector contributed approximately 14% of Singapore's gross domestic product. Growth was broad-based across segments, including banking, fund management, insurance, and activities auxiliary to financial services, which largely comprise payments firms.

The sector's average growth rate from 2021 to 2024 stood at 4.7%, keeping it on track to meet the Industry Transformation Map 2025 target of 4% to 5% growth per annum over the 2021–2025 period. This sustained performance positions the financial sector as a key pillar of Singapore's economic resilience even as external headwinds intensify.

Banking Assets Show Resilient Expansion

Banking sector total assets grew at a 6.8% CAGR from 2021 to 2024, exceeding the broader financial sector's average growth of 4.7% over the same period. MAS deputy managing director for markets and development Leong Sing Chiong described the banking segment's expansion as "resilient."

This pace marks an acceleration from the previous period. Data from MAS indicates that total banking assets grew at a 5.5% CAGR over the 2018 to 2023 timeframe, suggesting that the 2021–2024 cycle represented a step-change in growth momentum for Singapore's banking industry.

Compound Annual Growth Rate (%)Source: Orionmano Industries

Employment and Industry Transformation Targets On Track

Asset growth has translated directly into labour market outcomes. The financial sector generated an average of 4,400 net jobs annually from 2021 to 2024, exceeding the Industry Transformation Map 2025 target of 3,000 to 4,000 net jobs per annum. More than 90% of these positions went to local workers, reflecting the sector's capacity to create quality employment for Singaporeans.

Leong Sing Chiong noted that new roles spanned both technology-related functions, including fintech positions, and non-tech functions such as business, portfolio, and relationship management. This diversification of employment opportunities reflects the structural evolution of Singapore's financial industry, where digital transformation and traditional banking functions are developing in parallel.

The ITM 2025 employment target was set as part of a broader strategy to build a skilled financial workforce capable of supporting Singapore's ambitions as a global financial hub. With the 2021–2024 average exceeding the target range, the sector has demonstrated its ability to absorb talent even amid global economic uncertainty.

Insurance and Other Segments Complement Banking Growth

Banking's strong performance occurred within a broader context of expansion across multiple financial segments. The insurance industry's total assets increased by 3.6% in 2024 over 2023, reaching S$456.4 billion. This growth contributed to the financial sector's 6.8% overall expansion in 2024.

The asset management industry achieved another milestone, with assets under management reaching S$5.4 trillion—a 10% increase in 2024. This growth is consistent with the 10% compounded annual growth rate the asset management segment has recorded over the past five years, according to MAS data.

Singapore's position as a leading foreign exchange hub in Asia was further cemented in 2024, with FX average daily traded volumes surpassing S$1.5 trillion. This segment's expansion reinforces Singapore's role as a critical node in global capital flows, complementing the banking and insurance sectors' growth trajectories.

Outlook

MAS managing director Chia Der Jiun cautioned at the July 15 media conference that the financial sector's recent growth pace is unlikely to persist. He cited slower global growth and tariff uncertainties as factors that could moderate expansion in 2025 and 2026. The trajectory of Singapore's financial sector—and particularly its banking segment—will depend on external demand conditions and policy adjustments in response to ongoing trade frictions.

Despite these headwinds, the 2021–2024 performance has established a strong foundation. The banking sector's 6.8% CAGR, surpassing both the broader financial sector average and its own historical pace, indicates structural resilience. Whether that growth rate can be sustained will test the sector's adaptability in an increasingly uncertain global environment.