MAS targets 4-5% annual value-added growth; sector anchored 13.8% of Singapore's GVA from 2020-2024.

Current State and Historical Performance

Singapore's financial services sector generated SGD 78.5 billion in gross value added in 2024, cementing its position as a cornerstone of the city-state's economy. The figure represents a compound annual growth rate of 4.3% from 2020 through 2024, a period that included both pandemic-era disruptions and a subsequent rebound in financial activity.

The sector's contribution to Singapore's overall economy has been remarkably consistent. Between 2020 and 2024, financial services accounted for an average of 13.8% of Singapore's total GVA, according to DBS Bank's "Singapore 2040" report. This share places the industry among the most significant contributors to the nation's economic output, alongside manufacturing and wholesale trade.

Singapore's global financial centre credentials underpin this performance. The city-state ranked fourth in the Global Financial Centre Index (GFCI 37) as of March 2025, hosting a dense concentration of banks, asset and wealth managers, and insurers. The jurisdiction has established itself as Asia's largest foreign exchange trading centre and a prominent fixed income hub, supported by a robust regulatory framework and deep capital markets infrastructure.

The 2024 GVA outcome reflects broad-based growth across banking, insurance, asset management, and fintech subsectors. Wealth management has been a particular driver, with assets under management continuing to expand as Singapore consolidates its role as a preferred booking centre for regional and global capital.

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

Growth Targets and Policy Framework

The Monetary Authority of Singapore has articulated clear growth ambitions for the sector under its Financial Services Industry Transformation Map (ITM) 2025. MAS targets annual value-added growth of 4.0% to 5.0% for the financial services sector, a pace that would sustain the industry's expansion even as the broader economy matures.

The ITM also targets the creation of 3,000 to 4,000 net new jobs, underscoring the sector's role as an employment anchor for skilled professionals. The jobs focus aligns with MAS's broader strategy to develop a strong Singaporean workforce complemented by high-quality global talent.

The policy framework rests on four strategic pillars: digitalising financial infrastructure, catalysing Asia's net-zero transition, shaping the future of financial networks, and fostering a skilled and adaptable workforce. These pillars reflect a recognition that Singapore's financial centre must evolve beyond traditional intermediation into areas such as green finance, digital asset ecosystems, and technology-enabled business models.

MAS's approach to sector development goes beyond headline growth targets. The authority is actively working to address structural weaknesses identified by global benchmarks. Within the GFCI categories, Singapore's ranking in financial sector development lags its performance in other areas of competitiveness, with challenges in attracting new listings and deepening liquidity in the local equities market. Authorities are responding with reforms to listing rules, market-making incentives, and measures to broaden investor participation.

Long-Term Outlook and Sector Transformation

Based on current growth trajectories and MAS's policy support, financial services GVA is projected to reach SGD 98 billion by 2029. This projection assumes the sector sustains a compound annual growth rate of approximately 4.0%, consistent with the lower bound of MAS's target range. At this pace, the sector would add nearly SGD 20 billion in value over five years.

The longer-term outlook is even more promising. DBS Bank's "Singapore 2040" analysis projects that finance and insurance could rise to 15% of Singapore's GVA on average between 2025 and 2040, up from 13.8% in 2020-2024. If this structural shift materialises, and assuming broader GDP growth continues, the financial services sector could exceed SGD 100 billion in GVA by the early 2030s.

Several structural trends underpin this outlook. Singapore's role as a global wealth management hub continues to deepen, with assets under management growing as both institutional and private capital flows into the jurisdiction. The city-state benefits from geopolitical stability, rule of law, and a tax regime that remains competitive despite global tax harmonisation efforts.

The financial advisory market in Singapore has experienced steady growth, driven by changing customer preferences and local circumstances, according to Statista Market Forecast data. Singaporeans are increasingly seeking professional financial advice as awareness of financial planning and wealth management grows. The strong regulatory framework and investor protection measures have fostered a sense of trust and confidence in the financial industry. Government initiatives to promote financial literacy have further encouraged individuals to seek professional advice. With a growing middle class and increasing disposable income, the demand for advisory services continues to rise as individuals seek expert guidance to navigate the increasingly complex financial landscape.

Digitalisation is another powerful tailwind. Singapore has accelerated adoption of advanced technologies including cloud computing, data analytics, and artificial intelligence to support productivity gains in financial services. The country is at the early stages of the AI trend, with significant potential to scale enterprise usage across industries. Small- and medium-sized enterprises in particular have considerable room to expand advanced technology adoption to catch up with larger companies.

Singapore's position as a hub for Asia's net-zero transition also represents a multi-decade growth opportunity. The financial sector is uniquely positioned to deploy capital for green infrastructure, sustainable finance instruments, and transition financing across the region, generating fee income and value-added growth that will compound over time.

The trajectory from SGD 78.5 billion in 2024 toward SGD 98 billion by 2029 and potentially beyond SGD 100 billion in the early 2030s is supported by policy clarity, structural demand drivers, and Singapore's deep integration into global financial flows. Execution risks remain, particularly around equity market depth and competition from other financial centres. But the policy framework and market fundamentals provide a credible foundation for sustained expansion.