Singapore's Asset Management Industry Hits Record High
Singapore's asset management industry grew for the second year in a row to reach a record high.
At the end of last year, assets under management in Singapore grew 12.2 percent year-on-year to reach a record high of nearly S$6.1 trillion ($4.7 trillion), according to the Singapore Asset Management Survey 2024 by the local financial regulator. This marks the second consecutive year of expansion after dipping in 2022 following the last high of S$5.4 trillion achieved in 2021.
Traditional and alternative sectors both saw assets increase by 16 percent and 14 percent, respectively. Within alternatives, there was growth in private equity and venture capital as well as hedge funds.
Net inflows totaled S$290 billion, up from S$193 billion in the previous year.
VCC Growth
The report also covered data about Variable Capita Companies (VCC) – a legal entity in Singapore for managing one or multiple collective investment schemes, popularly used to establish family offices.
As of 31 December 2024, 1,200 VCCs were incorporated or re-domiciled in the city-state, representing 2,695 sub-funds and managed by 628 regulated fund management companies
2025 Outlook
According to the Monetary Authority of Singapore (MAS), 2025 is expected to face various business challenges, including «digital transformation, cost optimisation and revenue compression amid the economic uncertainties». Nonetheless, the regulator remained optimistic about the region.
«Regardless, the outlook in Asia remains conducive for asset managers seeking growth and diversification into new market opportunities, including private credit and secondaries,» it commented. «MAS will continue to support the asset management industry to navigate these challenges, identify growth opportunities and strengthen their capabilities to grow their Asian franchise.»
