MAS Managing Director Chia Der Jiun confirmed the sector's growth aligns with the 4-5% per annum target set in 2022's Industry Transformation Map.
By Rajesh Iyer·April 4, 2026·5 min readOrionmano Industries
MAS Managing Director Chia Der Jiun confirmed the sector's growth aligns with the 4-5% per annum target set in 2022's Industry Transformation Map.
Average Growth Meets ITM2025 Target
Singapore's financial services sector achieved an average annual growth rate of 4.7% from 2021 to 2024, placing it squarely within the ITM2025 target range of 4% to 5% per annum, as announced by MAS Managing Director Chia Der Jiun in July 2025. The Financial Services Industry Transformation Map (ITM) 2025, unveiled by then-Deputy Prime Minister Lawrence Wong in September 2022, established the 4% to 5% annual growth benchmark for 2021-2025. Chia stated that the sector is "on track" to meet the target based on the 2021-2024 average.
Growth accelerated sharply in the most recent year. The financial services sector expanded by 6.8% in 2024, more than double the 3.1% growth recorded in 2023. This strong performance in the final year of the measurement period helped lift the four-year average into the target band. The 2024 figure reflects robust activity across banking, capital markets, and asset management.
Exhibit
Average Growth 2021-2024 vs ITM2025 Target Range
Actual annualized growth of 4.7% sits within the 4%–5% band set by the Industry Transformation Map.
Employment outcomes have also met or exceeded the targets set under ITM2025. The sector created an average of 4,400 net jobs annually from 2021 to 2024, above the ITM2025 target of 3,000 to 4,000 net jobs per year. Critically, more than 90% of these positions went to local hires, according to Chia's July 2025 speech.
The local hiring share underscores the government's emphasis on developing Singaporean talent for high-value financial roles. When the ITM2025 was launched in September 2022, Lawrence Wong noted that over 3,000 Singaporeans held senior positions in the financial sector, representing an increase of more than 80% compared to 2016. The sustained high local hiring proportion through the 2021-2024 period suggests continued upward mobility for Singaporean professionals in the industry.
The job creation figures are particularly noteworthy given the macroeconomic headwinds that emerged during the period, including elevated global interest rates and geopolitical uncertainty that weighed on transaction volumes in certain segments.
Broad-Based Growth Across Subsectors
Growth across the financial services sector was supported by multiple subsectors rather than concentrated in a single vertical. The banking sector demonstrated resilience, with total assets growing at a compound annual growth rate (CAGR) of 6.8% over 2021-2024. This steady expansion reflected loan growth, higher net interest margins in the rising rate environment, and continued wealth management inflows.
The insurance industry also expanded, with total assets increasing by 3.6% in 2024 over 2023 to reach S$456.4 billion. The growth trajectory was supported by both life and general insurance segments, driven by demand for protection products and investment-linked policies.
Singapore's position as a leading foreign exchange hub in Asia continued to strengthen. Average daily FX traded volumes surpassed S$1.5 trillion in 2024, reflecting the city-state's deep liquidity pool and its role as a key node in global currency markets.
The corporate debt market registered a particularly strong performance, with total issuance increasing more than 30% from the previous year to exceed S$300 billion in 2024. This surge reflected robust demand for debt financing across sectors, including green and sustainable bonds, as well as increased issuance by regional corporates tapping Singapore's capital markets.
Assets under management (AUM) in Singapore grew 12.2% year-on-year to exceed S$6 trillion—the first time the country's AUM has crossed this threshold. Growth was driven by both traditional and alternative asset classes, according to MAS. The wealth management sector experienced similarly strong performance alongside the broader asset management industry.
Exhibit
Annual Growth Rates for Key Financial Subsectors
Banking, insurance, corporate debt, and asset management all posted strong gains in the latest periods.
Growth Rate (%) (%)Source: Orionmano Industries
Outlook: Moderation Ahead
MAS expects financial sector growth to moderate after the "unusually strong" years of 2021-2024. Chia highlighted several external risks that could weigh on performance. Smaller firms in the externally-oriented sector face potential revenue and liquidity challenges from reduced orders and should take early steps to provision for liquidity buffers and diversify revenue sources, including through the new Business Adaptation Grant.
On the household front, Chia advised that households with less stable incomes should plan their finances prudently and avoid taking on large new loan commitments during the period of uncertainty. These cautionary notes reflect MAS's broader assessment that the external environment has become less supportive, with global trade tensions and monetary policy uncertainty creating headwinds for Singapore's open economy.
The moderation in growth expectations is consistent with Singapore's broader GDP trajectory. While the financial services sector has outperformed the overall economy in recent years, the easing of interest rate tailwinds and potential slowdown in global capital flows could compress margins and dampen transaction volumes. Nevertheless, the structural drivers that have underpinned Singapore's rise as a financial hub—including rule of law, regulatory credibility, and connectivity to Asian growth markets—remain intact as the sector navigates a more subdued growth phase.
