Macroeconomic and financial stability

Growth was stronger than expected last year, but the global economy was hit by yet another shock into 2026. 

Singapore’s economy grew by a robust 5% in 2025, reflecting stronger than expected AI-related production and resilient regional trade flows, despite the headwinds of higher US tariffs. Growth in the finance and insurance sector was broad-based, with steady performance in the banking, fund management and security dealing segments.

Just as the global economy appeared to have absorbed the trade shock, the outbreak of conflict in the Middle East in late February introduced a fresh source of uncertainty. The Singapore economy thus far has continued to grow at a firm pace supported by the robust growth in the technology-related sectors.

Amid these external shocks, MAS has focussed on safeguarding Singapore’s continued macroeconomic and financial stability. At the same time, we have stepped up efforts to strengthen the foundations of the financial sector’s growth as a stable and trusted hub for households, businesses and investors.

A responsible and trusted financial sector 

Our commitment to global efforts to combat financial crime has been recognised by the Financial Action Task Force (FATF), which recently published the outcomes of Singapore's mutual evaluation. The FATF affirmed Singapore's strong legal and regulatory frameworks and the robust supervision of our financial sector. We will continue to safeguard our reputation as a trusted and credible financial centre and business and trading hub, while adopting a risk-proportionate regulatory approach so that legitimate businesses and investors can continue to do business with ease and confidence.

Maintaining this trust also means staying vigilant against financial crime. Scams continue to be a concern globally and in Singapore. While Singapore saw a decrease in both scam cases and loss amounts in 2025, the absolute figures remain high and the median loss per case rose. Over the past year, banks have stepped up fraud surveillance and introduced additional safeguards, such as cooling periods for higher-risk activities or for accounts that are rapidly being drained of funds, as well as in-app notifications to help customers verify that an incoming call is indeed from the bank. MAS will continue working with our ecosystem partners to raise anti-scam standards and further bolster the security of digital banking.

A vibrant and connected financial sector 

Last year, MAS embarked on key initiatives to further deepen our capital markets. These align well with the recommendations of the Economic Strategy Review (ESR) Committee to deepen Singapore's role as a centre where capital is raised, structured, deployed and recycled, supporting economic growth in Singapore, the region and beyond.

In November 2025, the Equities Market Review Group completed its review to strengthen the competitiveness of our equities market, and introduced measures to attract quality listings, increase investor interest, strengthen investor confidence and market efficiency, and enhance connectivity with global capital markets.

Complementing these efforts, a Growth Capital Workgroup has been established to develop strategies to strengthen Singapore as a leading centre for growth capital, including in venture capital, private equity, private credit as well as securitised assets. Together, these initiatives aim to strengthen capital formation across both public and private markets, and support promising companies in their growth journey.

More recently, MAS announced plans to strengthen Singapore’s position as a trusted gold trading and clearing centre to serve the Asia-Pacific region. MAS is working closely with the Singapore Bullion Market Association and industry participants on new initiatives to meet the growing demand among investors to vault and trade gold in Singapore.

An innovative and inclusive financial sector 

As AI and digital technologies reshape the economic and financial landscape, MAS has stepped up its efforts catalyse industry wide adoption, so that financial institutions can harness these opportunities safely, responsibly and at scale. To build on our experience of close industry collaboration and help accelerate industry-wide adoption, MAS recently announced the establishment of the Future of Finance Institute (FFI), which will bring together financial institutions, technology firms, researchers and the broader FinTech ecosystem to translate innovation into practical industry capabilities and outcomes. FFI will help lower barriers to technology adoption by developing shared resources, facilitating collaboration, supporting applied research and advancing industry capabilities, while promoting trusted innovation through stronger governance frameworks and risk management practices.

The rapid adoption of AI however, also brings new risks. MAS has also set out proposed guidelines on AI risk management to ensure that relevant safeguards are in place, and has been monitoring cyber risks posed by AI and frontier AI models. MAS has taken a multi-pronged, risk-proportionate approach, informed by close engagement and partnership with the industry, to strengthen the sector's cyber resilience as vulnerability discovery and exploit development become more automated and faster.

Underpinning these development strategies is the need to deepen the capabilities of the Singapore's financial sector workforce to seize the emerging opportunities that AI can bring. Aligned with the ESR's call to develop deeper Singaporean capabilities in growth sectors, MAS and the Institute of Banking and Finance (IBF) have expanded efforts to uplift the financial sector workforce with foundational AI skills, upskill professionals in roles that are augmented by AI, and develop structured pathways to reskill workers in roles that are transformed by AI. To support students in their transition to employment, MAS and IBF recently launched a new Young Talent Programme for AI in Finance, in collaboration with NTU, SMU and key financial institutions, to equip students with applied AI and financial sector skills sought after by financial institutions, while building industry experience through internship and traineeship opportunities.

Last but not least, even as technology advances at a rapid pace, financial institutions will need to increasingly cater to the growing needs of a super-aged population. I am pleased that MAS is working with the Association of Banks in Singapore (ABS) on areas where banks can enhance its service offerings to better serve our seniors. 

With appreciation

As we reflect on a year of meaningful progress, I would like to acknowledge those whose contributions have made it possible.

On behalf of the MAS Board of Directors, I would like to express my appreciation to Mr Heng Swee Keat, who relinquished his position as a member of the MAS Board in January 2026. Over the past 20 years, including in his role as Managing Director from 2005 to 2011, he has steered MAS through the 2008 global financial crisis, overseen key financial sector growth initiatives, and enhanced MAS’ standing in global financial circles. We wish him the best in his future endeavours. I also welcome our new Board Member, Mr Ong Pang Thye.

I would also like to extend my gratitude to the management and staff, as well as our partners, for your hard work over the last year. I am confident that with your partnership, we will be able to build a vibrant and stronger financial centre for Singapore in the coming years. 

Gan Kim Yong
Chairman