In 2021, the Finance and Insurance Industry employed about 225,200 thousand people and contributed about 14.6% of Singapore\u2019s nominal Gross National Product (GDP). While this is not a sector that employs the most people nor the highest contributor to GDP, the financial services industry is crucial to Singapore\u2019s aim to one of the key financial centres in Asia.<\/p>\n\n\n\n
According to the Global Financial Centres Index<\/a>\u2019s 32th edition published on 22 September 2022, Singapore ranks as the top financial centre in Asia, overtaking Hong Kong. However, Singapore cannot rest on its laurels but must constantly push forward. Thus, the Financial Services Industry Transformation Map (ITM) 2025<\/a> will set out the growth strategies to develop Singapore further as a leading international financial centre in Asia.<\/p>\n\n\n\n Read Also: <\/em><\/strong>4 Job Sectors In Singapore That Will Do Well In 2022<\/em><\/strong><\/a><\/p>\n\n\n\n The first Financial Services Industry Transformation Map (ITM) was launched in 2017. From 2016 to 2020, the financial services sector grew by an average of 5.7% per annum, exceeding the target of 4.3% per annum. The sector created an average of 4,100 net jobs each year, higher than the target of 3,000 net jobs per annum, affirming the success of the first Financial Services ITM.<\/p>\n\n\n\n In the recently announced Financial Services Industry Transformation Map (ITM) 2025, Singapore aims to grow the industry by 4% to 5% per annum on average and create about 3,000 to 4,000 net jobs on average per year.<\/p>\n\n\n\n To help Singapore achieve these targets, the ITM will cover 5 key strategies: (1) enhance asset class strengths, (2) digitalise financial infrastructure, (3) catalyse Asia\u2019s net-zero transition, (4) shape the future of financial networks and (5) foster a skilled and adaptable workforce.<\/p>\n\n\n\n The Monetary Authority of Singapore (MAS) has identified key asset classes in which Singapore already plays a key regional or global role and will deepen Singapore\u2019s capabilities in these areas:<\/p>\n\n\n\n Businesses already working in these areas can expect continued support and development. Additionally, innovative solutions that develop Singapore\u2019s expertise in these areas will also likely receive support.<\/p>\n\n\n\n Read Also: <\/em><\/strong>[2022 Edition] Top 10 Richest Billionaires In Singapore And How They Earn Their Wealth<\/em><\/strong><\/a><\/p>\n\n\n\n While our financial industry has been strong adopters of technology, there are still areas where technology can unlock new economic value, enhance financial access and inclusion for both businesses and individuals.<\/p>\n\n\n\n Under the financial services ITM, MAS aims to continue leveraging technology with industry partners to:<\/p>\n\n\n\n Digital solutions will continue to play an important role in financial settings and businesses that leverage on technology will continue to thrive.<\/p>\n\n\n\n Just as money is an enabler and tool for individuals, finance can be a lever to catalyse Asia\u2019s development and transition towards net-zero. MAS is working with the industry to develop innovative solutions to scale up sustainable and transition financing.<\/p>\n\n\n\n While relatively new, ESG investing has been a major focus of the finance industry in recent years. This focus is like to continue as finance becomes a means to catalyse the region\u2019s transition to net-zero. Not only will new business solutions be needed to tackle sustainability issues, talent and expertise will also need to be developed to evaluate and scale up sustainable and transition financing.<\/p>\n\n\n\n Read Also: <\/em><\/strong>Financial Benefits For SMEs To Take A Green and Sustainability-Linked Loan<\/em><\/strong><\/a><\/p>\n\n\n\n In recent years, the concept of digital assets has grown as new technologies such as cryptography, distributed ledger technology, and asset tokenisation changed our views on assets (beyond physical and real assets). These can potentially transform financial markets and services, and make financial transactions more seamless, low-cost, and efficient. MAS aims to enhance payments connectivity and build an innovative and responsible digital asset ecosystem by:<\/p>\n\n\n\n While cryptocurrencies and digital token payments are still nascent (and volatile), not being part of the technological changes would be counterproductive to Singapore. Instead, MAS\u2019s various pilot projects in conjunction with the industry players will test the feasibility of applying these technologies while also managing the risks. By being an early adopter, Singapore has a chance of shaping the future of financial networks.<\/p>\n\n\n\n To realise the sector\u2019s potential, a skilled and adaptable workforce (complemented with high-quality global talent) is essential to seize the growth opportunities and drive the transformation. MAS and the Institute of Banking & Finance (IBF) will work closely with the financial industry and tripartite partners to foster a strong workforce. This is not only good news for businesses which will need these workforce talents to meet the industry\u2019s challenges and drive for innovation, but also for individuals. New entrants to the industry as well as seasoned employees will have the opportunity to develop in new growth areas within the industry.<\/p>\n\n\n\n Some of the skills development programme available include: Financial Specialist Scholarship<\/a>, IBF Standards Training Scheme<\/a>, Technology for Finance Immersion Programme<\/a> and Career Conversion Programme<\/a><\/p>\n\n\n\n Read Also: <\/em><\/strong>Here\u2019s How Singapore Companies Can Tap On The Professional Conversion Programme (PCP) To Reskill Your Employees<\/em><\/strong><\/a><\/p>\n\n\n\nThe Finance Services Industry Is Projected To Grow By 4% To 5% Per Annum Between 2021 to 2025<\/strong><\/h3>\n\n\n\n
Enhance Asset Class Strengths<\/strong><\/h3>\n\n\n\n
Digitalisation Of Financial Infrastructure<\/strong><\/h3>\n\n\n\n
Tapping On Finance To Catalyse Asia\u2019s Net-Zero Transition <\/strong><\/h3>\n\n\n\n
Shaping The Future of Financial Networks<\/strong><\/h3>\n\n\n\n
Foster a Skilled and Adaptable Workforce<\/strong><\/h3>\n\n\n\n
The Financial Sector Development Fund<\/a> will provide S$400 million grant funding to the Talent and Leaders in Finance programme from 2021 to 2025 to enable industry professionals to take up good jobs and advance in their careers.<\/p>\n\n\n\nFinancial Services Industry Is A Growth Sector<\/strong><\/h3>\n\n\n\n