Singapore AUM up 10.1% at S$6.7 trillion as MAS eyes competitiveness push

[SINGAPORE] Total assets under management (AUM) in Singapore rose 10.1 per cent to S$6.7 trillion as at the end of 2025, on the back of robust market performance and net inflows.

Singapore’s financial sector continued to experience broad-based growth amid a more uncertain global environment, the Monetary Authority of Singapore (MAS) said in its annual report, released on Tuesday (Jul 28).

The financial sector grew 4.3 per cent in 2025. This was slower than 2024’s 6.8 per cent, but “broadly (maintained) the momentum” of an average 4.6 per cent annual growth over the 2021 to 2025 period.

MAS managing director Chia Der Jiun said the authority is also in discussions with industry players on how Singapore’s competitiveness in financial market activities could be improved.

This is amid competition from jurisdictions such as Hong Kong, with the review expected to be completed “shortly”.

“First and foremost, our competitiveness rests on a broader base – on our position as a trusted financial hub with access to a deep and diverse financial ecosystem and talent pool,” Chia said at a media briefing on the report.

“So the measures that we are discussing with the industry are really in the direction of sharpening our competitiveness.”

Banking sector assets rose 3.1 per cent in 2025, easing from “exceptional growth” in 2024, while assets in the insurance industry increased 7.6 per cent to S$493.5 billion.

Total issuances in the corporate debt market also rose 10 per cent to around S$340 billion in 2025.

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Meanwhile, net AUM inflow stood at S$376 billion, up 29 per cent on year. This was driven by a rise in new mandates acquired and managed from Singapore, according to the accompanying asset management survey by MAS, also released on Tuesday.

Singapore’s AUM in the traditional sector grew 9 per cent, compared with 16 per cent in 2024.

AUM in alternatives – including private equity and venture capital, hedge funds, real estate, and real estate investment trusts – rose 0.4 per cent in 2025, from 14 per cent in 2024.

Growth in alternative AUM was down due to the downsizing of one large manager, which was offset by the entry of several new managers.

By source, 76 per cent of Singapore’s funds came from outside the Republic, with 39 per cent from the Asia-Pacific region excluding Singapore.

About 88 per cent of the funds were invested outside of the city-state, with 40 per cent in the Asia-Pacific excluding Singapore.

The total number of licensed fund management companies in Singapore stood at 1,320 as at December 2025, with a net increase of 22 new fund management companies.

As at Dec 31, 1,406 variable capital companies (VCCs) had been incorporated or re-domiciled in Singapore, up from 1,200 a year earlier.

These umbrella or standalone VCCs represented 3,443 sub-funds in 2025, an increase from the 2,695 in 2024.

Central bank operations

For the financial year ended Mar 31, 2026, MAS recorded a net profit of S$20 billion, up from S$19.7 billion a year earlier.

This was driven by investment gains of S$39.8 billion, but partially offset by negative currency translation effects of S$16.4 billion due to a stronger Singapore dollar.

Investment gains were strong as the global economy remained resilient to repeated shocks. Financial markets also performed well, with all asset classes across bonds and equities, as well as developed and emerging markets, posting good returns.

This year’s investment gains were similar to last year’s, and above the 10-year historical average of S$18.3 billion.

The negative currency translation effects were due mainly to the strengthening of the Singapore dollar against the US dollar and the Japanese yen, which helped to dampen the effects of imported inflation.

MAS will contribute S$1 billion to the Consolidated Fund, and return a further S$2.5 billion of its net profit to the government.

Despite the strong results, Chia said the central bank remains cautious about the investment outlook.

“The outlook ahead is uncertain, with continued energy market disruption, rising inflation, and high equity market valuations posing risks to future investment returns.”