Singapore Financial Services Grew 6% in H1 2021 on Government Stimulus and MAS Digital Push
Post-pandemic recovery supported by fiscal stimulus and digitalisation initiatives including SGQR and digital banking licenses.
By Sofia Martinez·April 13, 2026·4 min readOrionmano Industries
Post-pandemic recovery supported by fiscal stimulus and digitalisation initiatives including SGQR and digital banking licenses.
The Monetary Authority of Singapore (MAS) estimated the financial services sector grew by about 6% in the first half of 2021, its managing director Ravi Menon announced at a briefing, demonstrating that coordinated government stimulus and MAS-led digitalisation initiatives effectively sustained momentum despite ongoing pandemic disruptions. The sector had already outperformed the broader economy in 2020, expanding 5.1% — a pace faster than in 2019 before the COVID-19 outbreak — and continued to create jobs in 2021.
Macroeconomic Support and Government Stimulus
The resilience of Singapore’s financial sector during the pandemic rested on substantial macroeconomic policy support. Senior Minister and Coordinating Minister for Social Policies Tharman Shanmugaratnam noted that domestic-facing industries recovered gradually “on the back of macroeconomic policy stimulus, progressive reopening of the economy and the sustained roll-out of vaccinations,” according to The Straits Times.
MAS’s December 2021 Financial Stability Review confirmed that “support from the government, MAS and the financial industry as well as accommodative financing conditions have kept the household credit risk profile stable.” On the corporate side, lending to small and medium-sized enterprises increased over the course of 2021, “supported by the general improvement in business outlook and accommodative financial conditions,” per the same review. Aggregate economic activity in Singapore had recovered to pre-pandemic levels as of Q3 2021, with firms’ earnings showing a similar trend of improvement, underpinned by the pick-up in external demand and less stringent containment measures relative to H2 2020.
MAS Digitalisation Initiatives Fuel Sector Growth
While fiscal stimulus stabilised demand, MAS pursued an aggressive digital transformation agenda that fundamentally altered the sector’s infrastructure and competitive landscape.
In 2020, MAS awarded digital banking licences to four successful applicants: a consortium of Grab and Singtel; an entity wholly owned by Sea; a consortium of Greenland Financial Holdings, Linklogis Hong Kong and Beijing Co-operative Equity Investment Fund Management; and an entity wholly owned by Ant Group (Straits Times). These licences opened the door for non-traditional players to offer banking services, increasing competition and accelerating digital adoption.
MAS also launched the Singapore Financial Data Exchange (SGFinDex), a digital finance infrastructure that allows Singaporeans to consolidate their financial information from multiple government agencies and financial institutions for more effective financial planning (Straits Times). SGFinDex represented the world’s first use of a national digital ID and online consent system for secure financial data aggregation.
On the payments front, MAS facilitated the creation of the Singapore Quick Response Code (SGQR), a single unified QR code adopted by payment applications that dispenses with the need for multiple QR codes from various payment service providers to be displayed at the payment terminal (MAS SGQR page; Global Legal Insights). This infrastructure rationalised the fragmented e-payments landscape.
On 29 April 2021, MAS and the Bank of Thailand launched the linkage of Singapore’s PayNow with Thailand’s PromptPay, enabling cross-border fund transfers of up to S$1,000 or THB25,000 daily using only a mobile number — the first bilateral real-time retail payment linkage globally (Global Legal Insights). This cross-border payment corridor set a template for subsequent linkages with India’s Unified Payments Interface and Malaysia’s DuitNow QR.
Financial Sector Performance in 2021
The sector’s growth in H1 2021 built on a strong 2020 performance. MAS estimated growth of approximately 6% in the first half of 2021, accelerating from the 5.1% full-year expansion recorded in 2020. Growth was broad-based across banking, insurance, fund management, and payment services (Straits Times). Menon stated, “We expect the financial sector to continue to create good jobs this year as well.”
MAS signalled continued expansion through several strategic priorities. The authority is working actively with industry to develop innovative green finance products and fintech solutions that can mobilise private capital to finance green and sustainable projects in Singapore and the region (Straits Times). MAS’s website confirms it continues to explore digital assets and other technology solutions for the future of financial services (MAS SGQR page).
The Financial Sector Technology and Innovation Scheme (FSTI 3.0) provides funding support for proof-of-concepts, hiring, and business development, reinforcing the ecosystem’s capacity for sustained innovation (MAS FSTI page). These initiatives, combined with the resilience demonstrated during the pandemic, position Singapore’s financial sector to navigate ongoing uncertainties while pursuing growth in green finance, digital assets, and cross-border payment linkages.
