Alvin Tan: More than 80% of Singapore’s financial sector workforce is local, offers highest median incomes

SINGAPORE: More than 80% of Singapore’s financial sector workforce comprises locals, with the industry offering the highest median gross incomes among local workers, Minister of State for Trade and Industry Alvin Tan told Parliament on Monday, 10 March 2025. Between 2018 and 2023, the sector added over 25,000 jobs, with locals filling more than 90% of the net new positions, Tan stated. Singapore is home to over 2,500 licensed financial institutions, employing nearly 200,000 workers in total, he added. Tan, who also sits on the board of the Monetary Authority of Singapore (MAS), was responding to a question from Yio Chu Kang SMC Member of Parliament Yip Hon Weng. Yip had inquired about manpower shortages in the financial sector and how the government ensures a balance between local and foreign workers. MAS “closely monitors” the workforce composition of key financial institutions, Tan said. The authority regularly engages senior management on workforce needs and the development of local talent. To support local finance professionals, Tan highlighted the MAS Talent and Leaders in Finance Programme, a S$400 million initiative offering grants for training at various career stages. He also referenced the Manpower Ministry’s Complementarity Assessment Framework (Compass), which awards points to firms based on the local share of professional, managerial, executive, and technical (PMET) roles. “We will continue to strike a delicate balance, ensuring our financial institutions have access to high-quality foreign talent while steadfastly developing our local talent pipeline,” Tan stated. However, he did not clarify the definition of “locals” in his reply or provide a breakdown of the financial sector workforce by Singapore citizens and permanent residents (PRs). Typically, Singapore classifies local residents as either Singaporeans or PRs.