SG60: From Island Nation to Financial Powerhouse
As Singapore celebrates its 60th anniversary on 9 August 2025, few transformations are as remarkable as the city-state’s journey from a newly independent country to one of the world’s leading financial hubs. finews.asia reflects on the journey – and what lies ahead.
Over six decades, Singapore has built a banking and finance ecosystem that rivals New York and London, while playing a vital role in Asia’s economic development.
Laying the Foundations (1965–1980)
When Singapore gained independence in 1965, it faced the challenge of building a national economy almost from scratch. The government quickly introduced its own currency and laid the groundwork for a modern financial system. In 1971, it established the Monetary Authority of Singapore (MAS) to act as both central bank and financial regulator.
To drive industrial growth, the Development Bank of Singapore (DBS) was created in 1968. Around the same time, the Central Provident Fund (CPF) – originally a basic savings plan – was expanded to support housing, giving citizens both financial security and a stake in the country's future.
By the late 1970s, Singapore had begun attracting international capital, separating domestic banking units (DBUs) from offshore accounts (ACUs). Offshore banking, in particular, boomed, with assets growing at over 70 percent per year during the decade.
Strengthening Local Institutions (1980s–1990s)
In the 1980s and 1990s, Singapore focused on strengthening its domestic banks. Local institutions like OCBC and UOB expanded across Southeast Asia, while DBS cemented its role by acquiring the Post Office Savings Bank (POSB) in 1998, extending its reach to everyday Singaporeans.
In response to regional crises, MAS merged with the currency board in 2002, streamlining monetary functions. By 2006, Singapore had introduced a formal deposit insurance scheme to protect consumers and reinforce trust in the banking system.
Going Global (2000s–2010s)
Having built a stable domestic base, Singapore turned outward. GIC, the country’s sovereign wealth fund, began scaling up global investments, eventually managing hundreds of billions in assets. By the mid-2000s, the financial sector accounted for over 10 percent of GDP.
Singapore’s success was underpinned by its regulatory foresight, political stability, and investor-friendly tax regime. These features attracted global banks and helped position the country as the «Switzerland of Asia.» The model wasn’t accidental – Singaporean leaders had studied Switzerland's system as early as the 1960s and applied those lessons carefully.
Becoming a Digital Banking Leader (2010–Present)
The last 15 years have seen Singapore evolve into a leader in digital finance. DBS, under CEO Piyush Gupta, became a pioneer in mobile banking and AI-driven services, earning multiple «World’s Best Bank» awards. Its success inspired other local banks to digitize and innovate rapidly.
Meanwhile, MAS launched the Singapore FinTech Festival in 2016, now the largest event of its kind globally. In 2019, the regulator began issuing digital banking licenses to encourage competition and future-proof the sector.
These efforts paid off. By 2025, Singapore is ranked the top financial centre in Asia and one of the top three globally.
Magnet for Global Wealth
Over the past five years, Singapore has also emerged as a magnet for private wealth. The number of family offices jumped from around 50 in 2018 to over 1,600 in 2025. Global firms like Citi, J.P. Morgan, Morgan Stanley and UBS continue to expand their regional operations in the city-state.
At the same time, sustainable finance and ESG-linked instruments are becoming mainstream. MAS has introduced green bond frameworks and supports climate finance as part of Singapore’s broader sustainability agenda.
Looking Ahead
As Singapore turns 60, its financial sector is a cornerstone of the national economy – innovative, resilient, and globally respected. Yet challenges remain. Rising geopolitical tensions, system resilience, and digital disruptions will test the country’s adaptability.
Still, if the past six decades are any guide, Singapore will continue to evolve, reinvent, and lead.
