Average annual value-added growth from 2021-2024 aligns with Monetary Authority of Singapore's target range for the sector.

Official Growth Target for 2021-2025

The Monetary Authority of Singapore (MAS) established a 4% to 5% average annual value-added growth target for the finance and insurance sector over the 2021-2025 period, as part of the Financial Services Industry Transformation Map (ITM) 2025 launched in September 2022. The target, announced by then-Deputy Prime Minister and Minister for Finance Lawrence Wong, also included a net job creation goal of 3,000 to 4,000 positions per annum. The ITM 2025 outlined five key strategies: digitalising financial infrastructure, catalysing Asia's net-zero transition, shaping the future of financial networks, fostering a skilled and adaptable workforce, and strengthening Singapore's role as a leading international financial centre connecting global markets. The target built on the prior ITM 2016-2020 performance, during which the sector grew at an average of 5.7% per annum, exceeding its original 4.3% target, and created an average of 4,100 net jobs annually against a 3,000 target.

Actual Performance: On Track to Meet Target

The sector's actual average value-added growth for 2021-2024 registered at 4.7%, placing it squarely within the MAS target band of 4% to 5%, according to remarks by MAS Managing Director Chia Der Jiun in July 2025. Job creation has exceeded expectations: the sector generated an average of 4,400 net new jobs annually over the same period, above the upper end of the 3,000-4,000 target range, with more than 90% of these positions going to local workers. This performance is supported by the Financial Sector Development Fund (FSDF), which from 2021 to 2025 channeled an estimated S$400 million to support the Talent and Leaders in Finance programme, as outlined in the ITM 2025 launch. The programme aims to nurture Singaporean specialists and leaders in finance, ensuring that the sector's workforce development keeps pace with growth.

Growth Rate (%) (%)Source: Orionmano Industries

Broader Sector Indicators

Beyond aggregate growth and employment figures, multiple sub-sector indicators reinforce the sector's health. The banking sector remained resilient, with total assets growing at a 6.8% compound annual growth rate (CAGR) over 2021-2024. The insurance industry also expanded, with total assets increasing by 3.6% in 2024 over 2023 to reach S$456.4 billion. Singapore's position as a leading foreign exchange hub in Asia continued to strengthen, with average daily traded volumes surpassing S$1.5 trillion in 2024. These metrics reflect broad-based expansion across the finance and insurance ecosystem, supporting the view that the sector is not merely meeting headline targets but deepening its capabilities across multiple verticals.

Emerging Growth Drivers: Embedded Finance

Embedded finance represents a particularly high-growth sub-market within the sector. According to a Greensheet market databook published in 2025, the Singapore embedded finance market grew at a robust 10.3% CAGR during the 2021-2025 period. The market is projected to reach US$8.48 billion by 2025, growing at 7.1% annually. Key drivers include high smartphone penetration, widespread adoption of buy-now-pay-later (BNPL) services by consumers, and amendments to the Payment Services Act that provide regulatory clarity for BNPL and wallet providers. These regulatory developments have fostered institutional participation and enabled regional expansion. The impact is evident in the embedding of payments, wealth management, and insurance into lifestyle platforms, with segments such as ticketing and healthcare emerging as new growth vectors. Looking ahead, the embedded finance market is projected to grow at a 5.0% CAGR from 2026 to 2030, reaching approximately US$10.29 billion by the end of the decade, as core segments stabilise and new service categories mature.

The sector's trajectory through 2024 places it on course to meet the ITM 2025 targets, with value-added growth, job creation, and sub-sector benchmarks all aligning with or exceeding MAS projections. However, as MAS Managing Director Chia Der Jiun noted in July 2025, the environment ahead will require navigation of geopolitical fragmentation, tariffs, and trade shifts that will bring deeper changes to trade, investment flows, and supply chains. The sector's resilience will depend on its ability to strengthen connectivity and linkages, diversify revenue streams, and build more resilient business models. Embedded finance and digital infrastructure offer new growth vectors, but the broader macroeconomic headwinds will test whether the sector can sustain its trajectory beyond the current ITM cycle.