Sector grew 6.8% in 2024, more than double the prior year, as assets under management crossed $6 trillion for the first time.

Sector Growth Performance

Singapore's finance and insurance sector recorded an average annual growth rate of 4.7% from 2021 to 2024, meeting the Industry Transformation Map (ITM) 2025 target of 4% to 5% annual growth over the 2021–2025 period. The sector expanded by 6.8% in 2024 alone, more than doubling the 3.1% growth posted in 2023, according to the Monetary Authority of Singapore's (MAS) Annual Report 2024/2025 released on July 15, 2025.

Deputy Prime Minister and MAS Chairman Gan Kim Yong noted that the sector accounted for approximately 14% of Singapore's gross domestic product (GDP) in 2024, underscoring its outsized role in the broader economy. Growth was broad-based across banking, fund management, insurance, and activities auxiliary to financial services—including payments firms—Gan said at the annual report briefing.

MAS Managing Director Chia Der Jiun confirmed at the same media conference that the 4.7% average growth rate positions the sector firmly on track to meet the ITM 2025 target by year-end 2025.

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

Employment Impact

The sector's expansion translated directly into employment gains. Between 2021 and 2024, the finance and insurance industry created an average of 4,400 net new jobs per annum—exceeding the ITM 2025 target range of 3,000 to 4,000 net jobs annually. Critically, more than 90% of these new positions were filled by local workers, according to Chia's remarks at the July 2025 MAS annual report briefing.

The local hiring share represents a continuation of structural efforts to deepen Singaporean talent pipelines in financial services. Prime Minister Lawrence Wong noted at the September 2022 launch of the ITM targets that over 3,000 Singaporeans held senior roles in the financial sector at that time, an increase of more than 80% compared with 2016.

The 4,400 average annual net hires, combined with the strong local placement rate, suggests the sector has been absorbing domestic labour supply while expanding overall headcount—an outcome that addresses both economic growth and workforce development priorities.

Source: Orionmano Industries

Key Segment Drivers

Growth across individual sub-sectors was notably strong. The banking segment remained resilient, with total assets expanding at a compound annual growth rate (CAGR) of 6.8% over the 2021–2024 period. The insurance industry also expanded, with total assets increasing by 3.6% in 2024 to S$456.4 billion, Chia reported.

Singapore's position as a leading foreign exchange hub in Asia continued to strengthen: average daily FX trading volumes surpassed S$1.5 trillion in 2024, up from prior-year levels. The corporate debt market registered a significant acceleration, with total issuance increasing more than 30% from 2023 to exceed S$300 billion in 2024.

Assets under management—a key indicator of Singapore's wealth management competitiveness—grew 12.2% year-on-year to exceed S$6 trillion for the first time. According to Chia, this growth was contributed by both traditional and alternative asset sectors, including private equity, venture capital, hedge funds, real estate, and real estate investment trusts. The milestone marks a substantial increase from prior years and reflects sustained capital inflows into Singapore's fund management hub.

Outlook and Risks

Despite the sector's strong performance, MAS Managing Director Chia explicitly cautioned that the pace of recent years is unlikely to persist. "Looking ahead, we do not expect the pace of the last few years to persist," Chia stated at the July 2025 press conference, citing heightened tariff uncertainties and slowing global economic growth as key headwinds.

Forward-looking data supports this assessment. FPA Financial's February 2026 market view reported that Singapore's finance and insurance sector expanded by 4.3% in 2025, moderating from 7.3% in 2024. The report noted that growth was driven primarily by banking and insurance segments under accommodative financial conditions, while fund management activity was more subdued due to weaker global market conditions.

The moderation trajectory is consistent with MAS's guidance. The central bank expects the sector to remain supported by broadly accommodative macroeconomic and financial conditions in 2026, but the structural tailwinds behind the sector's post-pandemic surge—including rapid asset accumulation, strong credit intermediation, and favourable currency flows—are likely to ease as global trade tensions and monetary policy uncertainty weigh on international financial markets.

For an industry that now accounts for 14% of Singapore's economy and manages over S$6 trillion in client assets, maintaining growth will require navigating a more complex external environment while continuing to deepen local talent pipelines and digital capabilities.