Singapore's financial services sector averaged 4.7% growth from 2021-2024, meeting the ITM 2025 target of 4-5% per annum, with assets under management surpassing S$6 trillion.

Growth Performance and ITM 2025 Target Achievement

Singapore’s financial services sector recorded an average real value-added growth rate of 4.7% from 2021 to 2024, keeping it firmly on track to meet the Financial Services Industry Transformation Map (ITM) 2025 target of 4% to 5% growth per annum over the 2021–2025 period, according to the Monetary Authority of Singapore (MAS). The sector's performance in 2024 was particularly robust: growth reached 6.8%, more than doubling the 3.1% recorded in 2023. The financial services sector contributed approximately 14% of Singapore's gross domestic product (GDP) in 2024, as stated by Deputy Prime Minister and MAS chairman Gan Kim Yong in the central bank's annual report released on July 15, 2025.

The ITM 2025, first launched by then-Deputy Prime Minister Lawrence Wong in September 2022, set the growth target of 4%–5% average annual real value-added expansion and a net job creation target of 3,000–4,000 jobs per year over the 2021–2025 horizon. With the 2021–2024 average already at 4.7%, the sector has effectively met the growth benchmark ahead of schedule, even as the remainder of 2025 may see lower activity.

Growth Rate (%)Source: Orionmano Industries

Broad-Based Expansion Across Financial Segments

The headline growth figure masks a broad-based expansion across banking, insurance, asset management, foreign exchange, and corporate debt markets, as MAS managing director Chia Der Jiun detailed in his July 15 remarks.

Banking: The banking sector remained resilient, with total assets growing at a compound annual growth rate (CAGR) of 6.8% from 2021 to 2024, driven by sustained lending activity, wealth management demand, and trade finance.

Insurance: Insurance industry total assets reached S$456.4 billion in 2024, representing a year-on-year increase of 3.6%. The expansion reflected continued demand for both life and general insurance products, supported by Singapore's position as a regional insurance hub.

Asset Management: Assets under management (AUM) in Singapore grew 12.2% year-on-year to exceed S$6 trillion for the first time, driven by both traditional and alternative sectors. This milestone underscores Singapore's deepening role as a global wealth management centre, underpinned by high regulatory standards. Chia noted that the wealth management sector experienced particularly strong growth, with Singapore continuing to welcome legitimate wealth while enforcing robust anti-money laundering practices.

Foreign Exchange: Singapore's status as a leading FX hub in Asia was reinforced, with average daily traded volumes surpassing S$1.5 trillion in 2024.

Corporate Debt: The corporate debt market registered strong growth, with total issuance increasing more than 30% year-on-year to exceed S$300 billion in 2024, reflecting robust demand for Singapore-dollar and multi-currency bond issuance.

Chia also highlighted that growth extended to activities auxiliary to financial services, including payments firms, which have expanded rapidly as Singapore consolidates its position as a digital payments gateway for Southeast Asia.

Job Creation and Workforce Composition

Employment outcomes have also exceeded ITM 2025 targets. The average annual net jobs created from 2021 to 2024 stood at 4,400, above the target range of 3,000 to 4,000 per year. Critically, more than 90% of these net jobs went to local workers, indicating that the sector's expansion has directly benefited the resident workforce.

This employment performance aligns with the ITM 2025's emphasis on fostering a skilled and adaptable workforce. The original ITM 2025 target, announced in September 2022, built on the earlier 2017–2020 ITM, which had set a 4.3% average annual growth target and 3,000 net jobs per year. The updated targets reflected both the sector's post-pandemic recovery and MAS's ambition to deepen Singapore's role as a leading international financial centre.

Future Outlook: Moderation Ahead

Despite the strong 2024 showing, MAS has explicitly cautioned that the pace of the last few years is unlikely to persist. Managing director Chia Der Jiun described the 2024 growth rate as "unusually strong" and said it will not be sustained. The central bank expects a slowdown in the coming years, citing headwinds from slower global economic growth and heightened tariff uncertainties stemming from ongoing trade tensions.

The sector's average growth rate of 4.7% over 2021–2024 has already met the ITM 2025 target; the final year of the roadmap period is therefore more likely to see deceleration than acceleration. Chia noted that the financial services sector must brace for a less supportive external environment, which could dampen activity across banking, fund management, and capital markets.

Nevertheless, the sector's diversified strengths—spanning banking, insurance, asset management, foreign exchange, and fintech—combined with Singapore's regulatory robustness and growing role as a gateway for Asian wealth, provide a resilient foundation. While near-term growth may moderate from the 6.8% peak in 2024, the sector is well-positioned to sustain expansion at a more measured pace, consistent with its long-term trajectory as a core pillar of Singapore's economy.