Despite a contraction in the overall economy amid Covid-19, the financial services sector grew by 5.1 percent in 2020. In the first half 2021, the sector grew by an estimated 6 percent.
The banking industry was supported by strong fee income growth, and the insurance industry expanded strongly on the back of robust demand for single-premium life insurance products, while the payments industry grew significantly with the adoption of e-payments by businesses and individuals, Monetary Authority of Singapore (MAS) managing director Ravi Menon said on Wednesday.
Assets under management in Singapore grew by 17 percent year-on-year, to S$4.7 trillion ($3.5 trillion) as at end-2020, driven by strong inflows into traditional and alternative investment strategies as well as valuation gains across major asset markets, Menon said at a the MAS annual report virtual media conference.
Fintech Growth
Investments in fintech firms based in Singapore reached a record S$1.4 billion ($1.04 billion) in 2020, up more than 30 percent from 2019. The sector also raised more than S$650 million in the first quarter of 2021
Financial services and fintech created 2,500 jobs last year, and is expected to create 6,500 jobs in 2021, with strong demand in areas such as technology, wealth management, corporate banking, and insurance, MAS said.
Financial Performance
MAS made a net profit of S$5.2 billion for the financial year 2020-21, after deducting S$1.9 billion of expenses for domestic money market and other operations; and contributing S$1.1 billion to the government’s Consolidated Fund as payment in lieu of corporate income tax.
MAS will return half of the profits, or S$2.6 billion to the Government and the remainder will be added to MAS’ reserves.
Focus Areas
MAS also said it has started reviewing the industry transformation map targets for the next five years, after exceeding both the value-added and employment targets for 2016–2020.
It said it would focus on technology, sustainability and jobs.
