Sector grew 6.8% in 2024, created 4,400 net jobs annually, and AUM surpassed $6 trillion.

The Monetary Authority of Singapore confirmed that the financial services sector recorded average annual growth of 4.7% from 2021 to 2024, validating achievement of the Industry Transformation Map (ITM) 2025 target of 4% to 5% per annum and highlighting strong job creation and asset management expansion. MAS managing director Chia Der Jiun announced the figure at a July 15 media briefing, stating that the sector is "on track" to meet the target covering 2021 to 2025. Deputy Prime Minister and MAS chairman Gan Kim Yong noted that the sector accounted for approximately 14% of Singapore's GDP in 2024.

Sector Growth Exceeds ITM 2025 Target

The financial services sector grew 6.8% in 2024, more than double the 3.1% growth recorded in 2023, according to data from MAS. This brought the four-year average annual growth rate to exactly 4.7%, placing it within the ITM 2025 target range of 4% to 5% per annum established by Prime Minister Lawrence Wong (then Deputy Prime Minister) in September 2022.

The sector's performance in 2024 was broad-based across banking, fund management, insurance, and activities auxiliary to financial services—which largely comprise payments firms, Chia explained at the briefing. The 6.8% annual expansion represents the strongest single-year growth since at least 2021, when post-pandemic recovery began.

The ITM 2025 target was unveiled by Wong in September 2022 as part of a comprehensive strategy to position Singapore's financial industry for future growth. At the launch, he noted that over 3,000 Singaporeans held senior roles in the financial sector, an increase of more than 80% compared to 2016.

Job Creation Outpaces Expectations

Average annual net job creation in the financial sector from 2021 to 2024 stood at 4,400, exceeding the ITM 2025 target of 3,000 to 4,000 net jobs per annum. More than 90% of these positions went to local workers, according to data presented at the July 15 MAS annual report briefing. This surpasses the previous ITM performance benchmark of 4,100 net jobs created annually.

%Source: Orionmano Industries

The strong local hiring ratio reflects sustained investment in workforce development under the ITM framework, which has focused on reskilling and upskilling programs to prepare Singaporean workers for roles in digital finance, wealth management, and compliance.

Asset Management and Sector Composition

Singapore's assets under management (AUM) grew 12.2% year-on-year to S$6.07 trillion in 2024, marking the first time the figure has exceeded S$6 trillion. The milestone was driven by both traditional and alternative asset classes, including private equity, venture capital, hedge funds, real estate, and real estate investment trusts.

Net inflows into fund management grew 50% in 2024 compared to 2023, as fundraising activities recovered amid improving investment sentiment. By end-2024, the number of fund management companies operating in Singapore reached 1,298.

The growth was broad-based across the financial sector. Banking, fund management, insurance, and payments firms all contributed to expansion, reflecting the diversified nature of Singapore's financial ecosystem. The payments segment, in particular, has seen rapid growth as digital financial services become more embedded in the broader economy.

Outlook and Sustainability

MAS managing director Chia Der Jiun said the central bank expects sector growth to moderate after the "unusually strong" performance years, according to his July 15 remarks. "Looking ahead, we do not expect growth to continue at this pace," he stated, as reported by multiple media outlets covering the briefing.

Despite the expected slowdown, the 2021-2024 average annual growth rate of 4.7% already meets the ITM 2025 target range, providing a buffer against any near-term deceleration. MAS continues to invest in strategic initiatives including digital finance infrastructure, positioning Singapore as a regional hub for philanthropy, and advancing tokenisation of assets—stocks, bonds, and real estate.

These initiatives were core components of the ITM 2025 plan unveiled in 2022, which also included the establishment of a digital platform for small businesses and a continued push to attract global asset managers. The sustained performance through 2024 suggests that structural growth drivers remain intact even as cyclical tailwinds fade.

For institutional investors and industry participants, the data confirms that Singapore's financial sector has achieved its intermediate transformation targets, with AUM crossing a significant threshold and job creation exceeding expectations. The question now is whether the sector can maintain its trajectory toward the 2025 target amid global monetary tightening and geopolitical uncertainty.