The fund management segment in Singapore grew by 5.1% in 2025, supported by accommodative financial conditions and improving market sentiment.

The fund management segment in Singapore expanded by 5.1% in 2025, reflecting a structural shift toward Asia-focused asset management hubs amid easing domestic financial conditions and rebounding market sentiment. This growth follows a 12% surge in total assets under management (AUM) to S$6.07 trillion in 2024—a figure that underscores Singapore’s deepening role as a capital aggregation and deployment centre for the region—and sets the stage for continued, if more measured, expansion through 2026.

Growth Drivers: Financial Conditions and Inflows

The 2025 expansion was anchored by a sharp easing in Singapore's financial conditions. According to the Monetary Authority of Singapore's Financial Stability Review, the Domestic Financial Conditions Index (FCI) moved from mildly accommodative (−0.20% of GDP trend deviation in Q3 2023) to actively supportive (+0.09% in Q3 2025). The 3-month compounded SORA declined from 3.59% in Q3 2024 to 1.72% in Q3 2025, while 10-year SGS yields fell from 2.82% to 1.95% over the same period. Investment-grade credit spreads compressed from 78.8 bps to 61.3 bps.

The Straits Times Index rose 17% year-to-date through Q3 2025, reaching an all-time high of 4,222.8 points. Bank lending to nonbank residents expanded 6.8% year-on-year in the first nine months of 2025, up from 5.2% growth in 2024, according to the ASEAN+3 Macroeconomic Research Office (AMRO). Money supply (M2) grew 9.5%.

Net inflows into Singapore-domiciled funds jumped 50% year-on-year to S$290 billion in 2024, per the MAS Singapore Asset Management Survey (July 2025). This inflow momentum carried into 2025, sustaining AUM growth despite global uncertainty around tariff policy and interest rate trajectories.

Structural Shift: Private Markets and ESG

The composition of Singapore's asset management market is reshaping toward higher-margin, longer-duration strategies. Private markets—private equity, venture capital, private credit, and real assets—grew by roughly 14% in 2024, reaching close to S$789 billion, according to Resource Group Holdings' market analysis. As public market valuations compress and Asia’s growth story becomes more selective, private markets are an increasing focus of allocation decisions.

ESG overlays now apply to nearly half of all institutional portfolios in Singapore. This is not branding; it reflects evolving risk management expectations from regulators, asset owners, and next-generation wealth holders across Asia-Pacific.

The following chart illustrates the trajectory of AUM growth and the sharp acceleration in net inflows that have underpinned the fund management segment's performance:

SGD Trillion / SGD Billion (%)Source: Orionmano Industries

Note: 2022-year AUM and net inflow figures are estimated from published growth rates; 2023 and 2024 are MAS-reported.

Open Architecture and Cross-Border Capital

Singapore’s fund management ecosystem remains structurally global. Approximately 77% of AUM originates from outside Singapore, and nearly 88% is invested globally, per Resource Group Holdings. This positions Singapore less as a domestic wealth market and more as a control centre for Asia-focused and international strategies—a distinction that is increasingly recognised by Hong Kong-based managers reassessing regional hub strategies.

Cross-border wealth flows into Singapore have accelerated. According to Boston Consulting Group's Global Wealth Report 2025, Singapore recorded one of the fastest growth rates among global financial centres in 2024, with inflows from China, India, Southeast Asia, and increasingly the Middle East.

Family Office Expansion

The number of single-family offices in Singapore rose from approximately 400 in 2020 to more than 2,000 in 2024, per the Fullerton Fund analysis citing MAS data. Momentum through 2025 and into 2026 suggests further growth. Ultra-high-net-worth families are increasingly outsourcing investment decision-making—not because they lack sophistication, but because modern portfolios demand institutional-grade governance across private markets, alternatives, cross-border assets, and succession planning.

Outlook to 2026

The outlook for Singapore’s fund management segment is steady rather than spectacular. Asia remains a core diversification destination, particularly as private markets mature and secondary opportunities deepen. There is growing optimism around an Asian equities recovery driven by fundamentals rather than momentum, per Resource Group Holdings.

However, risks are tilted to the downside. The IMF's 2025 Article IV Consultation notes that escalating trade uncertainty could re-tighten financial conditions. The IMF projects a small negative output gap for Singapore in 2025, widening further in 2026, with growth held back by tariff uncertainty. AMRO's December 2025 assessment flags potential risks to external-oriented sectors amid a challenging global environment and notes persistent capital inflows that may keep the Singapore dollar NEER stronger than desired—potentially compressing export-driven fund flows.

Domestic financial conditions remain supportive for now, with interest rates at multi-year lows. But the trajectory of US monetary policy, tariff escalation, and China's economic recovery will determine whether the 5.1% growth rate can sustain or accelerate through 2026.