Global growth held up in 2024 but the economic environment facing Singapore turned more uncertain as we entered 2025.

Macroeconomic and financial stability

Singapore’s GDP growth came in at a creditable 4.4% last year, and inflation declined in early 2025. Alongside the fall in inflationary pressures, MAS gradually eased monetary policy in January and April. For 2025, GDP growth is expected to slow amid a challenging and uncertain global trade environment, while inflationary pressures are projected to be subdued. MAS remains vigilant over economic and financial market developments, and stands ready to ensure macroeconomic and financial stability in Singapore.

An innovative and inclusive financial centre

The financial sector performed well in 2024. Growth came in at 6.8% in 2024, accounting for about 14% of Singapore’s GDP.  The strong growth was broad based across segments, including banking, fund management, insurance and activities auxiliary to financial services, which largely comprise payments firms. Trading activity was generally elevated during the year amid shifts in global and domestic financial market sentiments, leading to strong growth in net fees and commissions among banks and fund managers. The insurance industry recorded a surge in new premiums among life insurers, while the auxiliary financial services segment benefited from higher cross border transactions associated with greater travel spending. MAS will continue to develop the financial sector’s capabilities in emerging growth areas, to connect global markets, support Asia’s development and serve Singapore’s economy. 

In August 2024, MAS established the Equities Market Review Group chaired by Deputy Chairman Chee Hong Tat, to recommend measures to strengthen the development of Singapore’s equities market. The first set of measures was announced in February 2025, aimed at increasing investor interest, improving attractiveness to quality listings, and fostering a pro-enterprise regulatory stance and strengthening investor confidence. Beyond the measures announced, the Review Group has also been considering and studying other proposals, and expects to make further announcements before end-2025. 

On the FinTech front, MAS is focused on strengthening capabilities in the sector. We have been working in lockstep with the industry over the years to build a robust national payment ecosystem that offers a broad range of options for domestic and cross-border payments. These efforts have culminated in a new payment entity – Singapore Payments Network, also known as SPaN – that MAS and The Association of Banks in Singapore (ABS) are establishing to position the nation’s various payment schemes for future growth. SPaN will consolidate the administration and governance of Singapore’s payment schemes, promoting safe, efficient and innovative payments infrastructure.

MAS has also been working closely with the financial industry to better harness fast-developing technologies such as artificial intelligence (AI) and quantum computing, with a focus on safe and effective adoption of AI by our financial institutions. Project MindForge, a public-private initiative spearheaded by a consortium involving MAS, sets out principles to guide the responsible use of GenAI in the financial sector. MAS continues to support financial institutions in anchoring AI competencies in Singapore, and develop new initiatives to strengthen the AI capabilities of Singapore’s financial sector. I am also encouraged by MAS’ engagement with the industry on quantum developments since the launch of the Financial Sector Technology and Innovation (Scheme) 3.0 Quantum Track, as we are seeing meaningful progress in areas such as quantum key distribution pilots, and sustained interest toward establishing competency centres in Singapore. We are also witnessing initiatives to explore potential applications such as portfolio optimisation and risk simulation that could unlock new opportunities arising from the technologies.

While the path ahead for climate action has become more uncertain, Singapore remains committed to effective climate action. Our approach seeks to develop a competitive low-carbon economy that fosters green innovation and attracts investments. As a leading sustainable finance centre, MAS and Singapore remain committed to supporting the region’s transition to a more sustainable future through the development of innovative solutions to scale the financing needed for this. Progress has been made in developing the Financing Asia’s Transition Partnership, with a new Industrial Transformation infrastructure debt programme established last year. MAS also partnered with the People’s Bank of China and the European Union Directorate-General for Financial Stability, Financial Services and Capital Markets Union to publish the Multi-Jurisdiction Common Ground Taxonomy (M-CGT). The M-CGT compares the Singapore-Asia Taxonomy with the taxonomies of the EU and China, allowing green products aligned with the M-CGT criteria to be distributed across the respective markets.

A robust and trusted financial sector

To strengthen Singapore’s defence against illicit fund flows and ensure that our system remains resilient against increasingly sophisticated criminal tactics, MAS participated in the review of Singapore’s anti-money laundering framework by the Inter-Ministerial Committee, chaired by Second Minister for Finance Indranee Rajah. We also published several risk assessment, strategy and information papers to deepen the collective understanding of risks, set out supervisory expectations, and strengthen AML/CFT controls for organised market operators. These efforts bolster Singapore’s defence against illegal activities and illicit asset flows, detect and deter criminals, while safeguarding our institutions and systems, and ensuring that Singapore remains welcoming to legitimate investors and businesses.

On scams, MAS collaborated with other agencies, and led the financial industry in shoring up defences against scams. Major banks have removed the use of one-time passwords for account log-in for digital token users, and are progressively doing the same for card transactions. In December 2024, MAS and the Infocomm Media Development Authority implemented the Shared Responsibility Framework to strengthen the direct accountability of financial institutions and telecommunications providers to consumers for losses incurred from phishing scams where relevant duties are breached. MAS will continue to promote vigilance and good hygiene practices by consumers.

Strengthening operational and technological resilience was also a priority area for MAS in the past year. In October 2024, MAS, together with ABS and 20 key financial institutions participated in Exercise Raffles VII – a business continuity exercise to test and strengthen the financial sector’s crisis management and operational resilience. MAS and the financial sector will build on the learning points gleaned from this exercise to further reinforce their crisis response and communication strategies, as well as bolster their operational resilience.

Investing in people

To advance our goal of building a trusted and innovative financial sector in Singapore, we need a skilled and adaptable workforce. In October 2024, we announced initiatives to develop more Singaporeans to take on leadership roles. These include enhancements to our leadership development programmes and support for overseas postings, as well as fostering participation in leadership networks. This is in addition to MAS' Talent and Leaders in Finance programme which supports career development across all levels in the financial sector.

Within MAS, we have introduced functional competency frameworks to guide staff in acquiring role-specific competencies to support their career and professional growth. As of 2024, role competencies have been developed for about 27% of staff and we intend to complete this for all roles by end-2027.

With appreciation

As we round up the financial year, I would like to extend my gratitude to the management and staff, as well as our partners, for your hard work and in doing your best for MAS and Singapore. I look forward to working with you in the year ahead, and alongside my colleagues on the MAS Board. The global uncertainty brings challenges, but also opportunities. Together, we can build a stronger and better financial centre for Singapore.

Gan Kim Yong
Chairman