Broad-based expansion in banking, fund management, and insurance drove the sector ahead of ITM 2025 targets; MAS warns slower growth likely due to tariff uncertainties.

Growth Performance and ITM 2025 Target

The Monetary Authority of Singapore confirmed that the financial services sector achieved a 4.7% average annual growth rate from 2021 to 2024, slightly exceeding the upper bound of the Industry Transformation Map (ITM) 2025 target of 4% to 5% per annum over the same period (Sources 2, 4). In 2024 alone, the sector grew by 6.8%, more than double the 3.1% growth recorded in 2023 (Sources 3, 4). MAS managing director Chia Der Jiun stated at a July 15, 2025 media conference that the sector is "firmly on track" to meet the ITM 2025 goal (Source 2). The ITM 2025 target was unveiled by Prime Minister Lawrence Wong in September 2022.

The acceleration in 2024 was driven by broad-based expansion across multiple segments. Banking sector total assets grew at a compound annual growth rate of 6.8% over 2021–2024 (Source 4). The insurance industry also expanded, with total assets increasing by 3.6% in 2024 over 2023, to S$456.4 billion (Source 4). Foreign exchange average daily traded volumes surpassed S$1.5 trillion in 2024, reinforcing Singapore's position as a leading FX hub in Asia (Source 4). Activities auxiliary to financial services, including payments firms, also contributed to the overall growth trajectory (Source 2).

Job Creation and Local Employment

Average annual net jobs created for 2021 to 2024 was 4,400, exceeding the ITM 2025 target of 3,000 to 4,000 net jobs per annum (Sources 2, 4). More than 90% of these jobs went to local workers (Sources 2, 4). MAS deputy managing director (markets and development) Leong Sing Chiong noted that the roles spanned "a good spread" from entry-level to mid-career positions, covering both technology and non-technology functions, including portfolio management, relationship management, and business management (Source 3). The ITM 2025 target had originally aimed for over 3,000 Singaporeans to hold senior roles in the financial sector by 2025, up more than 80% compared to 2016 (Source 3).

Net Jobs (per annum) (jobs)Source: Orionmano Industries

Broad-Based Sector Expansion

The sector's growth was not concentrated in a single sub-sector but spread across banking, fund management, insurance, and ancillary services. Banking sector total assets grew at a 6.8% CAGR over 2021–2024 (Source 4). The insurance industry's total assets climbed 3.6% year-on-year in 2024 to S$456.4 billion (Source 4). Foreign exchange trading volumes averaged more than S$1.5 trillion per day in 2024, a threshold noted as a milestone for Singapore's FX market development (Source 4).

Activities auxiliary to financial services—which largely comprise payments firms—also contributed to growth, according to MAS managing director Chia Der Jiun (Source 2). The payments segment has benefited from regulatory frameworks that support digital payments innovation while maintaining risk controls. This diversified expansion pattern is consistent with Singapore's broader strategy to position itself as a multi-asset global financial hub. As referenced in the 2020 Global Financial Centres Index, Singapore was ranked sixth globally in financial sector competitiveness (Source 5). The three major local banks—DBS, OCBC, and UOB—continue to anchor the banking segment, while MAS's licensing of digital banks (including GXS Bank and MariBank) in 2020 has introduced new competitive dynamics (Source 5).

Risk Outlook and Policy Caution

MAS managing director Chia Der Jiun cautioned that the 2024 pace is "unusually strong" and unlikely to persist (Sources 2, 3). He warned that the triggers for a slowdown could include an escalation of trade conflict, geopolitical conflict, and heightened concerns from investors over financial and fiscal policy (Source 2). The sector is expected to face slower global growth amid tariff uncertainties (Source 3). Fundamental shifts from tariffs and other trade restrictive practices, along with geopolitical fragmentation, will bring deeper changes to trade, investment flows, and supply chains, according to Chia (Source 4).

MAS has advised smaller, externally-oriented firms to take early steps to provision for liquidity buffers and diversify their revenue sources, including by tapping on the new Business Adaptation Grant (Source 4). Similarly, households with less stable incomes were advised to plan their finances prudently and avoid taking on large new loan commitments during this period of uncertainty (Source 4). At the macro level, MAS's mandate to secure medium-term price stability will continue to provide an anchor of stability for the Singapore economy amid these uncertainties (Source 4). The central bank remains vigilant to the risks of global market volatility transmitting to Singapore (Source 2).