Singapore’s Financial Highlights: Key Developments from March 24 to March 30, 2025
Singapore’s financial landscape showcased significant movements during the week of March 24 to March 30, 2025. From robust economic indicators to regulatory updates, it was a dynamic period reflecting both resilience and adaptability in the face of global uncertainties. Below are the most notable financial and economic developments during the week.
1. MAS Maintains Monetary Policy Ahead of April Review
The Monetary Authority of Singapore (MAS) signaled its intention to maintain a cautious stance on monetary policy ahead of its scheduled review in April. Amid global interest rate volatility and persistent inflationary pressures, MAS noted that domestic inflation remains within control, citing stable core inflation at 3.1% year-on-year for February. Analysts expect MAS to keep the exchange rate-based monetary policy unchanged unless there is a significant external economic shift.
2. Singapore’s GDP Forecast Revised Upward
In a positive outlook, the Ministry of Trade and Industry (MTI) revised Singapore’s GDP forecast for 2025 from 1.5%–3.5% to 2.0%–4.0%, citing stronger-than-expected performance in the manufacturing and services sectors. The electronics cluster, in particular, posted a 6.2% year-on-year growth in Q1, driven by demand for semiconductor components. The revisions reflect a renewed confidence in the city-state’s export-led recovery and growing regional demand.
3. SGX Launches New Green Bonds Listing Initiative
On March 28, the Singapore Exchange (SGX) rolled out a new Green Bonds Listing initiative designed to promote sustainable investment inflows. The platform aims to facilitate the issuance and trading of ESG-compliant bonds, supporting Singapore’s transition into a regional green finance hub. More than five institutions, including DBS and Temasek-backed companies, have pledged participation in the new program.
4. Temasek Holdings Eyes Strategic AI Investments
Temasek Holdings revealed its intention to ramp up investments in artificial intelligence (AI) and deep tech sectors. During a closed-door investor briefing, the state-owned investor highlighted plans to allocate over S$1.2 billion across AI startups globally, with a particular interest in generative AI and enterprise applications. This marks a strategic pivot into next-gen technologies following returns plateauing in more traditional sectors last year.
5. Digital Bank Momentum Builds with Higher Customer Acquisition
Singapore’s digital banking sector continued to show momentum, with both Trust Bank and GXS Bank reporting user base milestones. Trust Bank reached over 800,000 customers, while GXS Bank crossed the 600,000 mark. Both institutions have also shown double-digit quarterly growth in deposits and loan activity. Analysts view this as a sign of rising consumer confidence in digital financial services, calling it a “new growth frontier” for fintech in Southeast Asia.
6. REITs Market Sees Rebound on Lower Yield Expectations
Singapore-listed Real Estate Investment Trusts (REITs) saw a mid-week rebound after the U.S. Federal Reserve hinted at a pause in interest rate hikes. The FTSE ST REIT Index climbed 3.4% over the week, ending on a positive note. The office and industrial segments led the gains, with Mapletree Industrial Trust and CapitaLand Ascendas REIT among top performers. Investors are returning to income-generating assets amid expectations of rate normalization in the second half of the year.
Conclusion
The final week of March 2025 reflected the dynamism of Singapore’s financial markets and policy landscape. From proactive fiscal planning and sectoral recoveries to digital innovation and sustainability-focused initiatives, Singapore continues to reinforce its position as a leading Asian financial hub. As we enter Q2, stakeholders remain cautiously optimistic, watching both local initiatives and global developments that may shape the months ahead.
