Actual 2021-2024 performance surpasses MAS projections as sector accounts for 14% of GDP.

Growth Targets and Progress

The Monetary Authority of Singapore’s (MAS) Industry Transformation Map (ITM) 2025 targets for the financial services sector—value-added growth of 4.0%–5.0% per annum and 3,000–4,000 net jobs created annually over 2021–2025—have been validated and exceeded by the sector’s actual performance from 2021 to 2024. According to MAS Managing Director Chia Der Jiun, the sector recorded an average growth rate of 4.7% over this period, placing it squarely within the target range and toward the upper end of projections. Net job creation averaged 4,400 positions per year, with more than 90% of these going to local workers, surpassing the upper bound of the 3,000–4,000 job target.

In 2024 alone, growth surged to 6.8%, more than double the 3.1% posted in 2023. The financial sector contributed 14% of Singapore’s gross domestic product (GDP) in 2024, Deputy Prime Minister and MAS Chairman Gan Kim Yong stated in the central bank’s annual report released on 15 July 2025. Growth was broad-based across banking, fund management, insurance, and activities auxiliary to financial services—which largely comprise payments firms.

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

Net Jobs (thousands) (thousands)Source: Orionmano Industries

Past Performance as Benchmark

The current ITM 2025 outcomes mirror a pattern established by the preceding Financial Services ITM 2016–2020, which also exceeded its own targets. That earlier ITM aimed for value-added growth of more than 4% per annum and the creation of 3,000 net jobs each year. Actual performance from 2016 to 2020 averaged 5.7% growth per annum and 4,100 net jobs per year, according to MAS data. Over the full five-year period, more than 20,000 net jobs were created in financial services, with most positions filled by Singaporeans, as noted by Deputy Prime Minister Lawrence Wong in his opening address at the ITM 2025 launch event on 15 September 2022.

The ITM 2016–2020, first launched in 2017, placed a strong emphasis on innovation, technology adoption, and developing a world-class workforce. Its success established a credible track record for MAS’s medium-term planning framework and set a realistic baseline for the ITM 2025 target-setting. The first ITM’s average growth of 5.7% was 1.4 percentage points above the 4.3% target, while job creation exceeded the target by 1,100 positions annually.

This performance history lends weight to the ITM 2025 projections. The sector has demonstrated that it can deliver above-target outcomes across two consecutive planning cycles, even when external conditions vary—from the trade tensions of 2018–2019 to the pandemic-era disruptions of 2020–2021.

Sector Outlook and Structural Drivers

While 2024 performance was strong, MAS has cautioned that the pace of recent years is unlikely to persist. The central bank warns that the industry faces slower global growth amid tariff uncertainties and a more cautious economic outlook. MAS anticipates that loan growth will stay resilient in the early part of 2026 before moderating as the year progresses.

Nevertheless, the medium-term trajectory remains solid. Market research projections indicate that the Singapore financial services sector is expected to grow at a compound annual growth rate (CAGR) of 4.0% from 2024 to 2029. This rate, while below the 4.7% average of 2021–2024, still signals sustained expansion above broader GDP trends. The auxiliary activities segment, which includes payment service providers, is also projected to expand at a steady pace supported by firm regional consumption and stable payments activity.

Structural forces underpin this outlook. Digitalisation and the growing adoption of AI tools are enhancing the sector’s capabilities and driving productivity improvements. Singapore continues to strengthen its position as a global financial hub, supported by advances in digital banking, fintech innovation, and regulatory frameworks. The banking sector’s resilience is reflected in total assets growing at a 6.8% CAGR from 2021 to 2024. The insurance industry expanded, with total assets increasing by 3.6% in 2024 over 2023 to S$456.4 billion. Singapore also solidified its role as a leading FX hub in Asia, with average daily foreign exchange volumes surpassing S$1.5 trillion in 2024.

The broad-based nature of growth—across banking, fund management, insurance, and payments—provides diversification that cushions against downturns in any single subsector. Together, structural drivers and a medium-term CAGR of 4% suggest that the financial sector will continue to be a key contributor to Singapore’s economy even as global headwinds intensify.