The sector contributed 14% of GDP in 2024, with assets under management crossing $6 trillion, and is projected to reach SGD 95.4 billion by 2029.

Singapore's financial services sector grew at a 2.8% compound annual growth rate (CAGR) from 2019 to 2024, but accelerated sharply to 6.8% in 2024—more than doubling the 3.1% recorded in 2023—powered by broad-based gains across banking, wealth management, and insurance. The sector now accounts for 14% of Singapore's GDP, and assets under management crossed $6 trillion for the first time. With a projected CAGR of 4.0% from 2024 to 2029, the sector is forecast to reach SGD 95.4 billion in value by 2029, though headwinds from tariff uncertainties and slowing global growth are expected to temper the pace of expansion.

Current Performance and Growth Trajectory

The financial services sector posted a 6.8% growth rate in 2024, a marked acceleration from the 3.1% recorded in 2023, according to the Monetary Authority of Singapore's (MAS) annual report released on July 15, 2025. Deputy Prime Minister and MAS chairman Gan Kim Yong confirmed that the growth was "broad-based across segments, including banking, fund management, insurance and activities auxiliary to financial services," the latter comprising largely payments firms.

The sector's average annual growth from 2021 to 2024 stood at 4.7%, keeping it firmly on track to meet the Industry Transformation Map (ITM) 2025 target of 4% to 5% growth per annum over 2021 to 2025. 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.

The sector's contribution to Singapore's GDP rose to 14% in 2024, up from 13% in 2023, underscoring its growing centrality to the broader economy. Assets under management crossed the $6 trillion threshold for the first time, a milestone that reinforces Singapore's position as Asia's premier wealth management hub.

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Structural Drivers of Expansion

The sector's 2024 performance was underpinned by both cyclical and structural tailwinds. On the cyclical side, a low-interest-rate environment—driven by expectations that the U.S. Federal Reserve would hold rates steady—encouraged borrowing and sustained loan demand, particularly in the early part of the year. Industry projections from Market Research Singapore, cited in the FPA Financial report, indicate that loan growth is expected to remain resilient before moderating as 2025 progresses, reflecting a more cautious economic outlook.

Structural forces continue to strengthen Singapore's role as a global financial hub. Digitalisation and the growing adoption of artificial intelligence tools are enhancing the sector's capabilities across banking, insurance, and asset management. The embedded finance market in Singapore, which integrates financial services into non-financial platforms, is projected to grow at a CAGR of 23.8% from 2024 to 2029, reaching US$7.85 billion by 2029, according to ResearchAndMarkets.com. This rapid digital transformation is creating new revenue streams and expanding the addressable market for financial services.

The wealth management segment experienced particularly strong growth in 2024. As MAS managing director Chia Der Jiun noted, Singapore continues to be "a trusted and attractive wealth management centre underpinned by high standards of regulation." The combination of political stability, a robust legal framework, and tax advantages has made Singapore an increasingly favoured destination for family offices and private wealth, particularly as regulatory scrutiny tightens in other jurisdictions.

The "other auxiliary activities" segment, which consists largely of payment service providers, is also expected to expand at a steady pace, supported by firm regional consumption and stable payments activity. This diversification across segments reduces the sector's vulnerability to downturns in any single area.

Outlook and Forecast to 2029

The Singapore financial services sector is projected to grow at a CAGR of 4.0% from 2024 to 2029, according to Market Research Singapore, with the sector expected to reach SGD 95.4 billion by 2029. This forecast reflects sustained expansion potential, supported by advances in digital banking, fintech innovation, and regulatory support.

However, MAS managing director Chia Der Jiun has cautioned that the growth pace of the last few years—particularly the 6.8% recorded in 2024—is unlikely to persist. "We do not expect financial sector growth to continue at the pace of the last few years," Mr. Chia said at a media conference on July 15, 2025, citing "unusually strong" growth in recent years. Key risks include an escalation of trade conflicts, geopolitical tensions, and heightened concerns from investors over financial and fiscal policy. "There is still too much uncertainty. There are still a lot of things that we do not know at this point," he added, referencing uncertainties over trade deals, tariffs, and potential trade conflicts.

The MAS is vigilant to the risks of global market volatility transmitting to Singapore, though the central bank has not signalled any change in its regulatory posture. The sector's structural advantages—including Singapore's position as a wealth management hub, its world-class digital infrastructure, and a supportive regulatory environment—are expected to provide a buffer against external headwinds and sustain the 4.0% CAGR through 2029.

The 2021-2024 average growth of 4.7% kept the sector on track to meet the ITM 2025 target of 4-5% per annum. While the pace of expansion is expected to moderate, the sector's trajectory remains positive, underpinned by Singapore's enduring competitive advantages as a global financial centre.

CAGR (%)Source: Orionmano Industries