The financial services sector will remain a growth engine for the Singapore economy with new jobs for financial services professionals being made each year, says a report by Rivkin, the Singapore-based consulting firm.

Citing an announcement by Tan Chuan-Jin, minister of state for manpower and national development, the report said that 8,700 new Singapore work visas were issued to financial services professionals in 2010, up from a mere 3,300 in 2001. In the past decade, an average of 4,500 new employment passes in Singapore were issued to finance services specialists per year, contributing significantly to the over 6,600 personnel hired for the industry locally within the same period. 

The report cites the increase in the demand for private banking, wealth management and related treasury and insurance services as the primary driver for the positive employment trend. In turn, the city-state has attracted many wealth, asset and fund management firms. This is in spite of short term market fluctuations, Rivkin says. 

"Singapore is well-positioned to attract more high value-added activities to its shores. We are optimistic that Singapore's sound legal framework, transparent regulatory strucutre, alignment with international capital standards and growing wealth trend will contribute to the growth of the financial services sector and the hiring trend in the years to come," says Satish Bakhda, head of operations at Rivkin.

In a related study by Contact Singapore, the financial services sector employs 5.4 per cent of the total workforce and contributes to more than 13 per cent of its gross domestic product. Swiss banks have also expanded their private banking services in the area and taken advantage of the its extensive network of tax and free trade agreements.