Sector growth doubled to 6.8% in 2024, driven by broad-based expansion in banking, fund management, and insurance.

Value-Add Growth and Sector Performance

Singapore's financial services sector recorded a value-add of S$58.3 billion in 2024, up from S$46.1 billion in 2019, representing a compound annual growth rate (CAGR) of 4.8% over the five-year period, according to public web sources compiled from official data. The sector expanded 6.8% in 2024, more than double the 3.1% growth recorded in 2023, as reported in the Monetary Authority of Singapore's (MAS) annual report released on July 15, 2025.

The average annual growth rate from 2021 to 2024 stood at 4.7%, keeping the sector firmly on track to meet the Industry Transformation Map (ITM) 2025 target of 4% to 5% growth per annum over 2021 to 2025, according to MAS managing director Chia Der Jiun. Financial services contributed approximately 14% of Singapore's gross domestic product (GDP) in 2024, Deputy Prime Minister and MAS chairman Gan Kim Yong said in the central bank's annual report.

Value-Add (S$ billion) (S$B)Source: Orionmano Industries

Broad-Based Expansion Across Segments

Growth in 2024 was broad-based across all major segments, including banking, fund management, insurance, and activities auxiliary to financial services, which largely comprise payments firms.

Assets under management (AUM) in Singapore grew 12.2% year-on-year to S$6.07 trillion, marking the first time the city-state's AUM exceeded S$6 trillion, said Chia. The growth was contributed by both traditional and alternative sectors, namely private equity, venture capital, hedge funds, real estate, and real estate investment trusts. Net inflows into Singapore grew 50% in 2024 from 2023, as fund-raising activities recovered amid improving investment sentiment. The number of fund management companies reached 1,298 by end-2024.

In the banking sector, total assets rose at a 6.8% CAGR over 2021 to 2024. The insurance industry's total assets increased 3.6% to S$456.4 billion in 2024. Foreign exchange average daily traded volumes surpassed S$1.5 trillion in 2024, while the corporate debt market registered strong growth, with total issuance increasing more than 30% from the previous year to exceed S$300 billion.

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

Outlook and Downside Risks

Despite the strong 2024 performance, MAS managing director Chia Der Jiun stated that the financial sector growth is unlikely to continue at the "unusually strong" pace of the last few years. "With the global uncertainty, we do expect global economic activity to come down, and financing activity will also come down," he said at a media conference on July 15, 2025.

A market research firm projects the sector will grow at a CAGR of 4.0% from 2024 to 2029, driven by advancements in digital banking, fintech innovation, and regulatory support.

Key downside risks include an escalation of trade conflict, geopolitical tensions, and heightened concerns from investors over financial and fiscal policy, according to MAS. Chia pointed to areas of uncertainty such as the extent of tariffs, the durability of trade agreements, and whether there will be a recurrence of escalating trade conflicts. He noted that if the worst outcomes do not occur and the global economy is able to adapt to a reasonable level of trade tariffs, then the worst may not happen to financing activity—but the pace of recent years cannot be expected to continue.

Net inflows into Singapore grew 50% in 2024 versus 2023, but fundraising could decelerate if trade disputes deepen. Tariff uncertainties and a potential slowdown in global economic activity may reduce financing activity across the sector.

While 2024 marked a peak in growth, the sector remains structurally resilient with strong AUM pipelines. However, near-term headwinds from global trade tensions and monetary policy uncertainty warrant cautious optimism for the forecast CAGR of 4.0% to 2029.