Net inflows jumped 50% year-on-year to S$290 billion in 2024, setting the stage for 2025 expansion amid mildly accommodative financial conditions.

2025 Growth Anchored by Record 2024 Net Inflows

Singapore’s fund management segment grew 5.1% in 2025, supported by accommodative financial conditions and improving investor sentiment that boosted net flows into the city-state’s asset management ecosystem. The growth builds on a record 2024, when assets under management (AUM) rose 12% to reach S$6.07 trillion according to the Monetary Authority of Singapore’s Asset Management Survey published in July 2025. Net inflows into Singapore-domiciled funds surged 50% year-on-year to S$290 billion in 2024, as fundraising activity recovered amid improving investment sentiment from the prior year.

The number of fund management companies operating in Singapore reached 1,298 by the end of 2024, reflecting continued interest from global and regional asset managers in establishing or expanding their Asia-Pacific hubs in the city-state. The 2025 growth rate of 5.1%, while more moderate than the prior year’s double-digit expansion, represents continued momentum in a sector that has seen AUM climb from S$5.42 trillion in 2021 to S$6.07 trillion in 2024.

Assets Under Management (S$ trillion)Source: Orionmano Industries

Financial Conditions Remain Mildly Accommodative

The 2025 growth trajectory was reinforced by financial conditions that turned mildly accommodative over the past year, providing a supportive backdrop for portfolio rebalancing and capital deployment. The Monetary Authority of Singapore’s Domestic Financial Conditions Index (FCI)—which measures the deviation of financial conditions from GDP trend—stood at +0.09 in Q3 2025, up from -0.20 in Q3 2023 and +0.04 in Q3 2024. A positive FCI reading indicates conditions supportive of growth.

The shift reflects a broad-based easing in monetary conditions. The 3-month compounded Singapore Overnight Rate Average (SORA) fell from 3.69% in Q3 2023 to 1.72% in Q3 2025, as MAS shifted away from its tightening cycle. Long-term government bond yields followed suit, with 10-year SGS yields declining from 3.15% to 1.95% over the same period. Lower borrowing costs and improved liquidity supported investor appetite for risk assets.

Equity markets responded positively. The Straits Times Index (STI) rose from 3,239 points in Q3 2023 to 4,223 points in Q3 2025, reflecting improved corporate earnings sentiment and capital inflows. Credit conditions also tightened meaningfully: investment-grade bond spreads, as measured by the CEMBI Broad Diversified Investment Grade Singapore Spread, narrowed from 133.8 basis points in Q3 2023 to 61.3 basis points in Q3 2025, indicating reduced perceived credit risk and stronger demand for Singapore-issued debt.

% point deviation from GDP trend (%)Source: Orionmano Industries

Alternatives and Family Offices Drive Structural Growth

Beyond the cyclical tailwinds from accommodative financial conditions, Singapore’s fund management expansion is increasingly structural, anchored by the growth of alternative assets and the family office ecosystem. Alternative assets—including private equity, venture capital, private credit, and real assets—grew by approximately 14% in 2024, reaching close to S$789 billion. This segment continues to outpace traditional asset classes, reflecting broader investor demand for illiquid, higher-yielding strategies and Singapore’s deepening role as a regional private markets hub.

The family office channel has been a particularly powerful driver of AUM growth. The number of single-family offices in Singapore exceeded 2,000 in 2024, up from approximately 400 in 2020. Ultra-high-net-worth families are increasingly outsourcing investment decision-making to professional asset managers, seeking institutional-grade governance across private markets, alternatives, cross-border assets, and succession planning. This trend, combined with cross-border wealth inflows from China, India, Southeast Asia, and increasingly the Middle East, has positioned Singapore as one of the fastest-growing wealth management centres globally, according to Boston Consulting Group’s Global Wealth Report 2025.

Singapore’s role as an intermediation hub rather than a domestic market is underscored by the structure of its capital flows. Approximately 77% of AUM in Singapore originates from outside the country, and nearly 88% is invested globally. This positions the city-state less as a domestic wealth market and more as a control centre for Asia-focused and international investment strategies—a distinction that has grown sharper as Hong Kong-based managers increasingly recognise Singapore’s advantages.

Looking ahead, AUM growth in 2026 may moderate as global uncertainties—including geopolitical tensions, potential trade disruptions, and the risk of a global economic slowdown—weigh on investor sentiment. However, Singapore’s structural advantages—a deep alternatives ecosystem, an expanding family office platform, and an accommodative regulatory and fiscal policy environment—should sustain steady inflows. As private markets mature and secondary opportunities deepen, and as Asia’s growth story becomes more selective, Singapore is well-positioned to continue capturing a disproportionate share of regional and global capital flows.