Singapore’s 2025 GDP growth “is expected to slow” amid a “challenging and uncertain” global trade environment, while inflationary pressures are “projected to be subdued”, says Deputy Prime Minister Gan Kim Yong in a message accompanying the Monetary Authority of Singapore’s (MAS) latest annual report for the financial year ended March 31.

Global growth “held up” in 2024, writes Gan, who is also MAS chairman, but the economic environment facing Singapore “turned more uncertain” in 2025.

Singapore’s economy grew by 4.3% y-o-y in 2Q2025, extending a growth of 4.1% in 1Q2025, according to data released by the Ministry of Trade and Industry (MTI) on July 14. Singapore’s GDP growth averaged 4.2% y-o-y in 1H2025.

The financial sector performed well in 2024, says Gan. 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,” writes Gan in his message released July 15.

In addition, 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, he adds.

The insurance industry recorded a “surge” in new premiums among life insurers, while the auxiliary financial services segment benefitted from higher cross-border transactions associated with greater travel spending, according to Gan.

“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,” he writes.

Investing in people

Singapore needs a “skilled and adaptable workforce” in order to build a trusted and innovative financial sector, says Gan.

In October 2024, MAS 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,” says Gan.

This is on top of MAS’s Talent and Leaders in Finance programme, which supports career development across all levels in the financial sector, Gan adds.

According to Gan, MAS has introduced “functional competency frameworks” to guide staff in acquiring role-specific skills 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,” says Gan.