Banking, fund management, and auxiliary services all expanded above 4% in 2025, while DBS projects wealth businesses CAGR of 5–6% through 2040.

Singapore's finance and insurance sector grew 4.3% in 2025, moderating from 7.3% in 2024, but underlying banking and wealth management segments show sustained momentum supported by accommodative macroeconomic conditions. The deceleration reflects a normalisation from the post-pandemic rebound year, while core activities—credit intermediation, fund management, and auxiliary financial services—continued to expand at healthy rates. The sector's resilience reinforces Singapore's position as Asia's leading financial centre, with long-term structural drivers from wealth management and large-scale infrastructure investment providing a clear growth trajectory through 2030.

2025 Sector Performance and Segment Breakdown

According to FPA Financial's February 2026 market view, the finance and insurance sector expanded by 4.3% in 2025, moderating from the 7.3% recorded in 2024. Growth was driven primarily by the banking and insurance segments, supported by sustained credit intermediation under accommodative financial conditions and robust performance in life insurance.

Banking grew by 4.4% in 2025, underpinned by strengthening domestic credit intermediation. Loans to residents rose 6.1%, driven by a turnaround in lending to the manufacturing sector, although this was partially offset by weaker loans to business services. Consumer lending, including housing loans, also picked up during the year. Externally, loans to non-residents increased 3.4%, supported by stronger lending to the Americas.

Auxiliary financial services expanded by 5.0% in 2025, led primarily by payment players benefiting from higher spending in the region. The fund management segment grew 5.1% for the year, as accommodative financial conditions and improving sentiment boosted net flows into managed products.

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

Wealth Management and Capital Markets as Growth Engines

Wealth management and capital markets activity are emerging as the primary long-term growth engines for Singapore's financial services sector. DBS Bank, in its 2026 Outlook and Strategy report, projects that banks' wealth businesses will grow at a CAGR of 5–6% through 2040, cementing Singapore's role as Asia's leading financial centre alongside the strengthening of capital markets.

Several major asset managers have set ambitious growth targets that underscore this trajectory. Keppel has stated a funds under management (FUM) target of SGD 200 billion by 2030, with a near-term target of SGD 100 billion by 2026, according to Maybank KE's Singapore Market Outlook 2026 report. Key drivers include organic fundraising for flagship funds, expansion with Aermont Capital, strategic co-investments with private funds, and opportunistic M&A.

iFAST, the wealth management platform, aims to achieve SGD 100 billion in assets under administration (AUA) by 2028–2030, driven by its Hong Kong ePension business, according to DBS's analysis. The Singapore Exchange (SGX) is positioned to benefit from capital market strengthening, with DBS projecting double-digit EPS growth for the exchange operator.

The wealth management push is complemented by broader capital market reforms and large-cap restructuring among Singapore's government-linked companies (GLCs), which have been focused on balance sheet management, capital returns, and value unlocking since early 2020.

Macroeconomic and Infrastructure Backdrop

The financial services sector's growth is underpinned by strong macroeconomic fundamentals and a multi-year infrastructure boom. Singapore's GDP grew 5.0% in 2025, with 4Q25 GDP accelerating to 6.9% year-on-year, according to the Ministry of Trade and Industry via FPA Financial.

Maybank KE forecasts construction output growth to accelerate to +6% in 2026, with the sector growing above +5% per annum until 2030. A robust pipeline of mega-projects—including Changi Terminal 5, the Tuas Megaport, the North-South Corridor, HDB housing, integrated resorts, climate projects such as Long Island, and the Deep Tunnel Sewerage System—will sustain building activity. These mega-projects alone could cost more than SGD 100 billion and last until 2030 or beyond.

Infrastructure development extends into energy and data infrastructure. Some 300 hectares of Jurong Island land have been allocated as a global test bed for clean fuel and low-carbon energy development. Another 20 hectares will be set aside to host Singapore's largest green data centre park, with a capacity of 700 MW. These projects will attract significant financial flows for financing, advisory, and investment services.

The Monetary Authority of Singapore is expected to maintain accommodative policy settings in 2026, though risks of tightening exist if inflation persists, according to Fitch Solutions' March 2026 analysis. Falling mortgage rates are driving up sales and prices of private properties, further supporting credit intermediation activity.

Outlook to 2030: Sustained Growth Trajectory

With accommodative monetary conditions, a robust pipeline of infrastructure investments, and sustained demand for wealth management, the Singapore financial services sector is positioned to achieve a CAGR of approximately 5% through 2030, though risks from global trade tensions and potential MAS tightening warrant monitoring.

The Singapore financial services market is forecast to grow from USD 9.3 billion in 2026 to approximately USD 11.3 billion by 2030, representing a CAGR of 4.0% over 2026–2030. Wealth management and banking are expected to remain the primary growth drivers, supported by low interest rates and regional capital flows into Singapore.

Fitch Solutions identifies rising risks of monetary policy tightening, noting that while MAS is expected to maintain all policy settings in 2026, risks are heavily tilted towards a tightening move in April. Even under a scenario of prolonged conflict in the Middle East, policy responses would keep both headline and core inflation close to Fitch's current forecast of 1.8% on average over 2026. If MAS does tighten, the Singapore dollar is likely to end 2026 at a stronger level than the current base case of SGD 1.28/USD.

Maybank KE's analysis emphasises that the combination of political stability, policy and regulatory clarity, downside protection from fiscal intervention capacity, and domestic resilience through a construction boom positions Singapore as a safe haven and "relatively certain winner." This should continue to drive global capital flows to Singapore, sustaining the financial services sector's growth momentum through the decade.

Overall sector growth is underpinned by Singapore's political stability, regulatory clarity, and infrastructure boom. The financial services sector's ability to intermediate these flows—through banking, wealth management, fund management, and auxiliary services—will determine whether the 4.0–5.0% CAGR forecast materialises over the 2026–2030 period.