MAS data confirms sector on track to achieve 4-5% annual growth target; 4,400 net jobs created per year, exceeding expectations.

Sector Growth Aligns with ITM 2025 Projections

Singapore’s finance and insurance sector recorded an average annual growth rate of 4.7% from 2021 to 2024, placing it squarely within the 4% to 5% per annum target range set under the Financial Services Industry Transformation Map (ITM) 2025. The data was confirmed by Monetary Authority of Singapore (MAS) Managing Director Chia Der Jiun in remarks accompanying the release of the MAS Annual Report 2024/2025 in July 2025.

The ITM 2025, launched in 2021, projected the financial sector would grow by an average 4% to 5% per annum over the 2021–2025 period. With four years of actual performance now available, the sector is on track to meet that target, based on the 2021–2024 trajectory.

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

Broad-Based Expansion Across Financial Segments

Growth across Singapore’s financial sector was not concentrated in any single segment, but reflected broad-based expansion across banking, insurance, foreign exchange, asset management, and debt capital markets.

The banking sector demonstrated resilient growth, with total assets expanding at a compound annual growth rate (CAGR) of 6.8% over the 2021–2024 period. This sustained asset accumulation reflects Singapore’s continued role as a regional banking hub, supported by increased lending and wealth management activities.

The insurance industry also registered steady expansion. Total industry assets rose 3.6% in 2024 year-on-year to reach S$456.4 billion. This growth aligns with broader market trends: the Singapore life and non-life insurance market was valued at USD 66.41 billion in 2024, according to industry estimates, and is forecast to grow at a CAGR of 9.71% through 2030, driven by rising consumer awareness, retirement planning demand, and digitisation of insurance products.

Singapore strengthened its position as a leading foreign exchange hub in Asia. Average daily FX trading volumes surpassed S$1.5 trillion in 2024, a milestone that underscores the city-state’s deep liquidity and connectivity to global capital flows.

Assets under management (AUM) in Singapore exceeded S$6 trillion for the first time in 2024, growing 12.2% year-on-year. This growth was driven by both traditional and alternative asset classes. The wealth management segment, closely linked to the asset management industry, also experienced strong expansion. Chia Der Jiun noted that Singapore continues to welcome legitimate wealth while maintaining high regulatory standards, referencing recent enforcement actions against nine financial institutions for anti-money laundering breaches.

The corporate debt market registered particularly strong momentum. Total issuance increased more than 30% in 2024 over the previous year, exceeding S$300 billion. This indicates robust demand from both issuers and investors, supported by Singapore’s established debt capital market infrastructure.

Job Creation Outpacing ITM 2025 Benchmarks

Employment growth in the finance and insurance sector significantly exceeded the ITM 2025 target. From 2021 to 2024, the sector created an average of 4,400 net new jobs per annum, surpassing the ITM target range of 3,000 to 4,000 net jobs per year. Critically, more than 90% of these net new jobs went to local workers, supporting the broader policy objective of developing a skilled domestic workforce.

The ITM 2025 had already committed S$400 million to develop talent in financial services, including reskilling and upskilling initiatives. The actual employment outcomes suggest that the sector has been able to absorb a steady inflow of new workers while maintaining a high local share.

Outlook: Tempered Growth Amid High Uncertainty

While 2024 was a particularly strong year—the sector grew by 6.8%, more than double the 3.1% growth recorded in 2023—MAS has signalled that this pace is unlikely to persist. As Chia Der Jiun stated: "Looking ahead, we do not expect financial sector growth to continue at the pace of the last few years." He cited high uncertainty as a key factor shaping the outlook.

The moderation in growth expectations reflects a combination of global and domestic headwinds. Elevated interest rate cycles in major economies, geopolitical tensions, and slower global trade growth are likely to weigh on financial sector activity. Domestically, the banking sector may see narrower net interest margins as interest rate expectations shift, while the wealth and asset management segments face increased competition and regulatory scrutiny.

Despite these challenges, MAS has continued to develop Singapore’s financial sector competitiveness across three priority areas: fostering responsible adoption of artificial intelligence, supporting Asia’s transition to a low-carbon economy, and enhancing the resilience and security of digital financial services.

Given the 2024 base effect and the expected slowdown, the sector’s ability to sustain growth within the ITM 2025 target range of 4% to 5% per annum over the full 2021–2025 period remains uncertain. Even if 2025 growth falls short, however, the four-year track record of 4.7% average growth and 4,400 net jobs per year indicates that the ITM 2025 framework delivered results broadly consistent with its original ambition.