Sector grew 6.8% in 2024, AUM crossed $6 trillion; projected to maintain 4.0% CAGR through 2029.

GVA Growth from 2019 to 2029

Singapore's financial services sector achieved a gross value added (GVA) of SGD 112.8bn in 2024, advancing from SGD 92.7bn in 2019 and representing a compound annual growth rate (CAGR) of 4.0% over the five-year period, according to data from the Monetary Authority of Singapore (MAS) Annual Report 2025 and industry estimates from Market Research Singapore. The sector now accounts for approximately 14% of Singapore's GDP, underscoring its central role in the domestic economy. Looking forward, the financial services sector is projected to reach SGD 137.2bn by 2029, maintaining the same CAGR of 4.0% from 2024 to 2029, based on projections from both MAS and Market Research Singapore.

GVA (SGD bn) (SGD bn)Source: Orionmano Industries

2024 Performance: Broad-Based Expansion

The financial services sector's growth momentum accelerated markedly in 2024, with the sector expanding 6.8%—more than double the 3.1% growth recorded in 2023. Deputy Prime Minister and MAS Chairman Gan Kim Yong, speaking at the central bank's annual report release on July 15, 2025, described the growth as broad-based across all major segments, including banking, fund management, insurance, and activities auxiliary to financial services—the category that largely comprises payments firms.

Assets under management (AUM) in Singapore reached a record $6.07 trillion in 2024, up 12.2% year-on-year and crossing the $6 trillion threshold for the first time, according to MAS Managing Director Chia Der Jiun. The growth was supported by both traditional and alternative asset classes, including private equity, venture capital, hedge funds, real estate, and real estate investment trusts. Net inflows into Singapore surged 50% in 2024 from 2023, reflecting improved investment sentiment and recovering fund-raising activity. The number of fund management companies operating in Singapore reached 1,298 by year-end.

Other key metrics underscore the breadth of the sector's expansion. Average daily foreign exchange trading volumes surpassed $1.5 trillion in 2024. The corporate debt market also posted strong performance, with total issuance exceeding $300 billion—an increase of more than 30% compared to the prior year. MAS noted that the sector's average growth rate stood at 4.7% from 2021 to 2024, keeping it firmly on track to meet the Industry Transformation Map (ITM) 2025 target of 4% to 5% growth per annum over 2021 to 2025.

Macro and Structural Tailwinds

Several macroeconomic and structural factors are expected to support the sector's continued expansion. According to Market Research Singapore's February 2026 analysis, the financial services sector should benefit from broadly accommodative macroeconomic and financial conditions in 2026. A low-interest-rate environment, driven by expectations that the U.S. Federal Reserve will hold rates steady, is projected to encourage borrowing and sustain loan demand, particularly in the early part of the year. MAS anticipates that loan growth will stay resilient in early 2026 before moderating later in the year, reflecting a more cautious economic outlook.

The auxiliary activities segment, which includes payment service providers, is expected to expand at a steady pace supported by firm regional consumption and stable payments activity.

Structural forces continue to strengthen Singapore's position as a global financial hub. Digitalisation and the growing adoption of artificial intelligence tools are enhancing the sector's operational capabilities and product offerings. Regulatory support, including the government's Industry Transformation Map, provides a framework for sustained development. According to DBS Research's Singapore 2040 report, finance and insurance contributed an average of 13.8% of GVA during 2020-2024, with the potential to rise to 15% of GVA on average between 2025 and 2040. Singapore ranked fourth in the Global Financial Centre Index (GFCI) 37 as of March 2025, reflecting its status as a highly safe and world-class financial centre hosting a high concentration of banks, asset and wealth managers, and insurers.

Outlook and Risks

Despite the strong performance in 2024, MAS has cautioned that the recent growth pace is unlikely to persist. In its July 2025 annual report, the central bank warned that the industry faces slower global growth amid tariff uncertainties and evolving trade tensions. These headwinds are expected to moderate the sector's expansion trajectory over the near term.

Nonetheless, the financial services sector is projected to grow at a CAGR of 4.0% from 2024 to 2029, underpinned by structural strengths including digital banking innovation, fintech development, and ongoing regulatory support. The sector's resilience has been demonstrated through multiple economic cycles, and its deepening integration with regional and global financial flows provides a buffer against short-term disruptions.

Key risks to monitor include global trade tensions and tariff policies that could dampen economic activity across Asia, as well as interest rate cycles that may affect borrowing costs and asset valuations. MAS's 2024 Financial Stability Review noted that Singapore's banking system has remained resilient with strong capital and liquidity buffers, with domestic systemically important banks well above regulatory minimums for both all-currency and SGD liquidity coverage ratios. The banking sector's funding structure remains healthy, underpinned by stable non-bank deposits constituting more than 80% of total funding.

The sector's ability to sustain its growth trajectory will depend on how effectively it navigates these external headwinds while capitalising on structural advantages. Digitalisation, AI adoption, and Singapore's continued evolution as a global financial intermediary provide the foundation for the projected 4.0% CAGR through 2029, even as global uncertainties temper expectations for a repeat of 2024's outsized performance.