Sector grew 4.3% in 2025, moderating from 7.3% in 2024, as fund management lagged due to weaker global markets.

Singapore's financial services sector posted an estimated net operating revenue of SGD 68.5 billion in 2025, reflecting resilient performance despite global trade tensions and a slowdown in fund management activity. This figure, equivalent to approximately USD 52.8 billion, encompasses the banking, insurance, and fund management segments, which together form a cornerstone of Singapore's economy.

Headline Revenue Estimate for 2025

Net operating revenue for Singapore's financial services sector is estimated at SGD 68.5 billion (USD 52.8 billion) in 2025, according to industry projections. This estimate covers the full spectrum of financial services, including banking, insurance, and fund management. The sector's performance was supported by accommodative financial conditions that sustained credit intermediation, alongside robust growth in life insurance. The projection draws on aggregate industry data and forward-looking assessments of the finance and insurance sector's trajectory through the year.

Sector Growth Trajectory

The finance and insurance sector expanded by 4.3% in 2025, moderating from 7.3% in 2024, according to the FPA Financial Singapore Financial Services Market View report published in February 2026. Growth was driven mainly by the banking and insurance segments, which benefited from sustained credit intermediation under accommodative financial conditions and robust performance in life insurance. In contrast, the fund management segment saw more subdued activity, reflecting weaker global market conditions.

Revenue (SGD billion)Source: Orionmano Industries

Macroeconomic and Policy Context

The sector's 2025 performance was underpinned by favourable financial conditions. The 3-month compounded Singapore Overnight Rate Average (SORA) declined over the course of 2025, lowering borrowing costs and supporting loan growth across the economy. Total loans by commercial banks to residents rose 1.5% month-on-month to SGD 886.1 billion in December 2025, up from SGD 873.1 billion in November. Business loans increased 2% month-on-month to SGD 538.7 billion, while consumer loans grew 0.8% month-on-month to SGD 347.4 billion. Loan growth was likely supported by the lower interest rate environment and the easing of US tariff concerns in the second half of 2025, according to the FPA Financial report.

Independent economist Song Seng Wun observed that growth in business loans remained consistent with Singapore's economy performing better than expected in 2025, as cited in the FPA Financial report. Life insurance posted robust performance, contributing to overall sector growth.

Monetary Authority of Singapore (MAS) Managing Director Chia Der Jiun, in remarks on the MAS Annual Report 2024/2025 delivered in July 2025, noted that tariffs and other trade-restrictive practices, along with geopolitical fragmentation, would bring deeper changes to trade, investment flows, and supply chains. He advised firms to strengthen connectivity and linkages, diversify revenue streams, and build more resilient business models. Specifically, he highlighted that smaller firms in the externally-oriented sector could face risks to revenue and liquidity from reduced orders and should take steps early to provision for liquidity buffers and diversify revenue sources, including by tapping on the new Business Adaptation Grant.

The Singapore Business Federation's National Business Survey 2025 (Budget Edition) underscored favourable sentiment in the sector: banking and insurance recorded the highest revenue expectations among all sectors surveyed, with a sub-index score of 60.8, well above the overall average of 53.7. Profitability expectations in banking and insurance also ranked among the highest across sectors.

Outlook and Risk Factors

Looking ahead to 2026, MAS expects the finance and insurance sector to remain supported by broadly accommodative macroeconomic and financial conditions, according to the FPA Financial report. A low-interest-rate environment is anticipated to persist, continuing to sustain credit demand and asset valuations.

However, risks remain elevated. Global trade fragmentation, the potential for tariff escalation, and weaker external demand pose headwinds. EnterpriseSG, in its January 2026 media briefing, forecast that Singapore companies would grow annual revenue by SGD 12.3 billion through its supported projects in 2025—down from SGD 14.5 billion in 2024—and create 10,000 skilled jobs, compared to 12,300 in the prior year. EnterpriseSG Chairman Lee Chuan Teck described 2025 as a "very turbulent" year, noting that the government had braced itself "for the worst" following the announcement of US Liberation Day tariffs. He observed that many capability-building projects were software-related, costing less and reaping fewer gains.

MAS's Chia Der Jiun similarly flagged that smaller externally-oriented firms face revenue and liquidity risks from reduced orders, recommending early provisioning for liquidity buffers and diversification of revenue sources.

Against this backdrop, Singapore's financial services sector enters 2026 with an estimated net operating revenue of SGD 68.5 billion for 2025, a level that reflects both the sector's resilience and the moderating growth trajectory. While the macroeconomic environment remains uncertain, the sector's performance has held up relatively well compared to broader economic challenges. MAS's cautious optimism for 2026—tempered by persistent tariff and geopolitical risks—frames the outlook for the year ahead.