MAS data shows sector growth of 6.8% in 2024 as industry keeps pace with 4-5% ITM 2025 target.

Job Creation Numbers: 4,400 Annual Net Jobs, Over 90% Local

Singapore's financial services sector created an average of 4,400 net jobs annually between 2021 and 2024, with more than 90% of these positions going to local residents, according to data released by Monetary Authority of Singapore (MAS) Managing Director Chia Der Jiun at a July 15 media briefing. The figures, reported by Yahoo Finance, establish a clear benchmark for the sector's employment contribution during the post-pandemic period.

The job creation performance spans a period of significant economic adjustment. From the 2021-2024 window, the sector absorbed the pandemic recovery, tightening labor market conditions, and rising global interest rates. The sustained net hiring—predominantly benefiting Singaporeans and permanent residents—reflects deliberate policy alignment between MAS, the financial industry, and workforce development agencies such as the Institute of Banking and Finance (IBF), which administers career advisory, apprenticeship funding, and salary support schemes under the Financial Services Industry Transformation Map (ITM) framework.

Source: Orionmano Industries

The high local share of new jobs matters for Singapore's broader labor market narrative. As of mid-2024, national unemployment stood at 2.0%, with the finance, insurance, and professional services sectors collectively growing employment by 4.3% year-on-year, according to the Source of Asia Q3 2024 report. The financial sector's ability to channel over 90% of net new roles to locals supports the government's overarching emphasis on developing a skilled resident workforce for high-value PMET (Professional, Managerial, Executive, and Technical) occupations, which are critical given Singapore's lack of natural resources and dependence on human capital.

Sector Growth and Alignment with ITM 2025 Targets

The job creation figures sit within a broader trajectory of robust sector expansion. Singapore's financial services sector grew 6.8% in 2024, more than double the 3.1% growth recorded in 2023, Chia noted in his July 15 speech. This acceleration underscores the sector's resilience amid global monetary tightening and geopolitical uncertainty.

More critically, the compound performance over the multi-year period aligns with the official targets laid out in the Financial Services ITM 2025. The sector achieved an average growth rate of 4.7% from 2021 to 2024, which Chia described as "on track" to meet the ITM 2025 target of 4% to 5% growth between 2021 and 2025. The target was unveiled by then-Finance Minister and now-Prime Minister Lawrence Wong at the ITM 2025 launch event in September 2022.

The sector's growth has been broad-based. Banking assets grew at a 6.8% compound annual growth rate (CAGR) over 2021-2024, per MAS data. The 2024 out-performance—nearly 7%—reflects activity across all segments, including wealth management, insurance, and capital markets, which have benefited from elevated interest rate environments and sustained asset inflows into Singapore as a regional financial hub.

However, Chia explicitly cautioned against extrapolating the 2024 growth rate forward. He noted that the sector's growth should slow in the coming years after an "unusually strong" period. This moderation is expected as global interest rate cycles normalize and base effects diminish. The ITM 2025 target range of 4-5% remains the relevant benchmark, and the sector's performance at the upper end of that range will depend on continued alignment with productivity and upskilling initiatives.

Productivity trends provide context. Singapore's overall labor productivity grew 2.8% in 2023, supported by government grants such as the Productivity Solutions Grant (PSG) and Enterprise Development Grant (EDG), which help financial institutions adopt advanced technologies and improve processes. Nominal median monthly wages rose 5.1% year-on-year in 2024, reflecting both tight labor market conditions and the high-value nature of financial services roles.

Local Talent Ascension in Senior Roles

The high local share of net job creation at entry and mid-levels is reinforced by parallel progress in senior-level representation. At the ITM 2025 launch event in September 2022, PM Lawrence Wong reported that over 3,000 Singaporeans held senior roles in the financial sector as of that date, representing an increase of more than 80% compared to 2016.

This senior-level ascension is a structural underpinning of the broader local hiring statistics. A pipeline that produces locally-hired senior executives—in areas such as relationship management, risk, compliance, and technology leadership—creates positive signaling for workforce development. It also reduces the sector's historical dependence on expatriate talent for top-tier positions, which has been a recurring policy concern given Singapore's reliance on foreign manpower for specialized skills.

The talent development ecosystem is managed jointly by MAS, IBF, and Workforce Singapore (WSG). IBF Careers Connect provides career advisory services to individuals interested in finance careers, including professionals making career switches. Apprenticeship programs offer funding of S$2,000 per month per qualifying hire for priority areas, capped at 12 months, with additional funding for university-equivalent role placements. These programs directly support the ITM 2025 objective of building a deep local talent pool.

The data on senior roles also contextualizes the 90%+ local share of new jobs. If locally-hired talent is progressing to senior levels at an 80% faster rate than half a decade ago, the sector's ability to maintain high local share in net hiring will likely persist, provided growth does not decelerate sharply. However, the expected slowdown in sector growth after 2024 will test whether net job creation of 4,400 annually can be sustained, and whether the local share can remain above 90% as financial institutions potentially shift toward greater specialization and technology-driven roles that may require niche skills not immediately available in the domestic workforce.

The financial services sector's employment performance from 2021-2024 establishes a strong baseline. The combination of robust net job creation, overwhelming local share, and rising senior representation validates the ITM 2025 framework's emphasis on talent development. The key uncertainty going forward is whether the sector can maintain this trajectory amid slowing growth, technological disruption, and global competition for financial talent—a challenge that will define the next phase of Singapore's financial center strategy.