Sector expansion moderated to 4.3% in 2025 amid global headwinds, MAS reports.

Sector Growth Overview: 7.3% Expansion in 2024

Singapore's finance and insurance sector expanded 7.3% in 2024 — more than double the prior year's growth — driven by robust banking credit activity and a 19.7% surge in life insurance premiums, as confirmed by MAS and industry data. The broader financial services sector (which includes additional segments) grew 6.8% in 2024, up sharply from 3.1% in 2023, according to the Monetary Authority of Singapore's (MAS) annual report released in July 2025. Growth moderated to 4.3% in 2025, reflecting weaker global market conditions that particularly weighed on the fund management segment.

Growth Rate (%)Source: Orionmano Industries

The finance and insurance sector's 2024 performance outpaced the broader economy and reflected broad-based strength across banking, insurance, and asset management. The sector accounted for approximately 14% of Singapore's gross domestic product in 2024, according to Deputy Prime Minister and MAS Chairman Gan Kim Yong.

Banking Segment: Sustained Credit Intermediation

Banking was a primary driver of the sector's expansion in both 2024 and 2025, supported by sustained credit intermediation activity amid accommodative financial conditions. According to FPA Financial's February 2026 market review, banks benefited from continued lending demand across business and consumer segments, with low interest rate environments stimulating credit uptake.

MAS expects banking to remain supported by broadly accommodative macroeconomic and financial conditions in 2026. This outlook is underpinned by expectations that the low-interest-rate environment will persist, supporting loan demand and reducing funding costs for financial institutions. However, the pace of credit growth may moderate as global economic uncertainties — particularly trade tariff disruptions — weigh on business confidence and investment decisions.

Insurance Segment: Life Insurance Surges 19.7%

The life insurance segment was a standout performer in 2024, with weighted new business premiums reaching S$5.87 billion — a 19.7% year-on-year increase, according to the Life Insurance Association, Singapore (LIA Singapore) in its full-year 2024 results published February 2025.

Investment-linked plans (ILPs) led the surge, rising 41% to S$2,253 million from S$1,598 million in 2023. More consumers turned to ILPs for wealth accumulation amid economic uncertainty, as these policies combine life insurance protection with potential market-linked returns. Regular premium ILPs, which mitigate market timing risk through dollar-cost averaging, saw particular uptake.

Non-participating products grew 19.2% year-on-year to S$2,189 million. Participating products posted a slight decline of 2.7%, implicitly to S$1,428 million.

Source: Orionmano Industries

The life insurance industry also made progress in narrowing Singapore's protection gap, with total sum assured increasing 3.6% year-on-year for the full year. Approximately 40,000 more Singaporeans and permanent residents were covered by Integrated Shield Plans (IPs) by end-2024, bringing total coverage to 2.97 million lives — approximately 71% of Singapore residents.

MAS Managing Director Chia Der Jiun noted in July 2024 that strong demand for life, health, and wealth protection in Singapore and the region continues to drive robust growth in the local insurance sector. Leading insurers, reinsurers, and brokers are deepening underwriting and advisory capabilities through investments in data analytics, technology, and specialist talent, while expanding product ranges into cyber and climate insurance and insurance-linked securities.

Fund Management and Asset Management: AUM Crosses $6 Trillion

Assets under management (AUM) in Singapore grew 12.2% year-on-year to S$6.07 trillion in 2024, marking the first time the nation's AUM surpassed S$6 trillion, according to MAS's annual report. Growth was broad-based across traditional and alternative asset classes, including private equity, venture capital, hedge funds, real estate, and real estate investment trusts.

Net inflows into Singapore rebounded 50% in 2024 from 2023, as fund-raising activities recovered amid improving investment sentiment. The number of fund management companies reached 1,298 by end-2024, reflecting sustained interest in Singapore as a regional asset management hub.

However, the fund management segment experienced more subdued activity in 2025, reflecting the pullback in global equity markets and heightened uncertainty around trade policies. FPA Financial noted that weaker global market conditions weighed on performance, tempering the strong momentum from 2024.

Outlook: Growth Moderates but Remains Supported

MAS expects the finance and insurance sector to remain supported by broadly accommodative macroeconomic and financial conditions in 2026. The low-interest-rate environment is projected to continue supporting banking activity and insurance demand, while asset management may benefit from eventual market stabilisation.

However, Managing Director Chia Der Jiun cautioned in July 2025 that the "unusually strong" growth rates of recent years are unlikely to persist amid tariff uncertainties and slower global growth. The sector's average annual growth rate of 4.7% from 2021 to 2024 is on track to meet the Financial Services Industry Transformation Map (ITM) 2025 target of 4% to 5% growth between 2021 and 2025.

The financial services sector created net jobs of 4,400 annually between 2021 and 2024, with more than 90% of these positions filled by local workers, according to Chia's July 2025 remarks. As the sector navigates tariff headwinds and global market volatility, sustained investment in talent development, technology adoption, and product diversification will be critical to maintaining resilience and meeting the ITM growth targets through 2026 and beyond.