The sector's average annual job creation exceeded the Industry Transformation Map 2025 target of 3,000–4,000, driven by broad-based growth across banking, insurance, and payments.

Job Creation Exceeds ITM Targets

Singapore's financial services sector created an average of 4,400 net jobs per year from 2021 to 2024, with more than 90% filled by local workers, outperforming the official Industry Transformation Map (ITM) 2025 target of 3,000–4,000 net jobs per annum. MAS Managing Director Chia Der Jiun confirmed the figures in remarks on the MAS Annual Report 2024/2025, published via the Bank for International Settlements (BIS) Review in July 2025.

The sector's average annual growth rate of 4.7% from 2021 to 2024 is on track to meet the ITM 2025 target of 4%–5% growth per annum over the same period, according to MAS data. The financial services sector accounted for approximately 14% of Singapore's GDP in 2024, as reported by Deputy Prime Minister and MAS Chairman Gan Kim Yong in the central bank's annual report.

%Source: Orionmano Industries

The ITM 2025 target was unveiled by then-Finance Minister Lawrence Wong in September 2022, alongside data showing that over 3,000 Singaporeans held senior roles in the financial sector—an increase of more than 80% compared to 2016. The current trajectory places the sector comfortably ahead of its employment benchmarks, with net job creation exceeding the upper bound of the target range by 10%.

Sector Growth Drivers

Growth was broad-based across banking, fund management, insurance, and activities auxiliary to financial services—which largely comprise payments firms, according to Chia Der Jiun's remarks at a July 15 media conference reported by The Straits Times.

The banking sector demonstrated resilient growth, with total assets expanding at a compound annual growth rate (CAGR) of 6.8% from 2021 to 2024. The insurance industry also expanded, with total assets increasing 3.6% year-on-year in 2024 to S$456.4 billion. Singapore continued to strengthen its position as a leading foreign exchange hub in Asia, with FX average daily traded volumes surpassing S$1.5 trillion in 2024.

The financial services sector grew 6.8% in 2024, more than double the 3.1% growth recorded in 2023, according to MAS data cited by Yahoo Finance. This acceleration reflected strong performance across all major segments, with banking and fund management leading the expansion. The sector's contribution to GDP—approximately 14% in 2024—underscores its structural importance to Singapore's economy, comparable to manufacturing and wholesale trade.

The auxiliary financial services segment, which includes payment firms, has been a significant contributor to job creation, reflecting Singapore's push to become a regional fintech hub. The broad-based nature of growth across both traditional and emerging financial subsectors has supported diversified employment opportunities for local workers.

Outlook and Risks

Despite the sector's strong performance, MAS has signaled that growth is expected to moderate after "unusually strong" years. Chia Der Jiun noted in his July 2025 remarks that fundamental shifts in the global economy will begin to take shape in the months and years ahead, with tariffs, trade-restrictive practices, and geopolitical fragmentation bringing deeper changes to trade, investment flows, and supply chains.

Key risks identified by MAS include an escalation of trade conflict, geopolitical fragmentation, and heightened investor concerns over financial and fiscal policy. The central bank remains vigilant to global market transmissions affecting Singapore, with Chia stating that MAS' mandate to secure medium-term price stability will provide an anchor of stability for the Singapore economy during this period of uncertainty and fundamental change.

The potential for sustained higher tariffs and disruption to global supply chains poses particular risks to Singapore's financial sector, given its role as a regional intermediation hub. The sector's strong dependence on cross-border capital flows and trade finance makes it vulnerable to fragmentation of global financial architecture.

MAS has emphasized that Singapore's economy and businesses will need to navigate these changes by strengthening connectivity and linkages, diversifying revenue streams, and building more resilient business models. The central bank's focus on medium-term price stability is intended to provide a stable foundation for continued investment and job creation, even as external headwinds intensify.

The moderation in growth expectations does not signal a reversal of the sector's trajectory, but rather a normalization after a period of exceptional expansion. The ITM 2025 targets remain within reach, and the sector's demonstrated ability to create high-quality jobs for local workers provides a buffer against potential downturns. However, the shift from the elevated growth rates of 2020–2024 to a more constrained environment will test the resilience of business models across banking, insurance, and emerging financial services subsectors.