THE FINANCIAL SECTOR:
PERFORMANCE AND GROWTH
     
Content Page
Modest Recovery in 2003
Financial Market Activity
 
MODEST RECOVERY IN 2003
 
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Structure of Financial Sector    
 
Singapore’s financial sector saw a modest recovery in 2003 as improvements in the global economic environment and a turnaround in equity markets lifted the various segments. The financial services sector grew 3.7%. The growth was strongly supported by the Asian Currency Unit (ACU) segment, while foreign exchange (FX) trading, stock broking and fund management also performed well. This marked a sharp reversal to the 6.3% contraction in value-added in 2002. Nevertheless, the financial sector saw mixed performance in the finance companies and insurance segments.

Loans to non-bank customers in both the domestic and offshore banking segments grew at 6.3% and 7.3% respectively, buoyed by household loans and the regional economic recovery. In the financial markets, stock market activity rose 94.6%, reaching a monthly average trading volume of 18.1 billion in 2003. FX turnover grew a strong 24.5% to a daily average of US$119.4 billion. Activity in the fund management industry was also boosted by larger Asian equities mandates from institutional investors.