Financial services growth was very weak in 2016, at just 1.8%, reflecting slower regional growth and trade. Growth rebounded strongly to 4.9% last year, driven by the strong performance of the fund management segment and steady growth in financial intermediation. The growth momentum has been sustained in the first half of this year and we are looking at another good year for financial services. We remain confident of meeting the 5-year average growth target of 4.3%. We saw a net increase of 7,800 jobs in financial services and FinTech over 2016 and 2017, close to our ITM target of 8,000 jobs. Job growth was mainly driven by the insurance and fund management industries, and to a lesser extent by the banking industry. IT has emerged as a key functional area driving hiring demand across financial services— some of the fastest growing job roles are in software development, cyber security, data analytics, artificial intelligence, and business process engineering. FinTech alone is estimated to have contributed close to 2,000 of the net jobs created during these two years. MAS expects job growth in financial services this year to exceed the ITM target. Let me now take stock of progress in each of the three pillars of the ITM: business strategies 6 / 11  BIS central bankers' speeches  jobs and skills; and innovation and technology. BUSINESS STRATEGIES I will start with our business strategies. Singapore continued to do well in asset management, with assets under management (AUM) increasing by an average 12.7% p.a. over 2016 and 2017.
Maintaining financial stability and trust are central to MAS’ mission. The annual report summarises our many regulatory and supervisory initiatives – to make derivatives markets safer, to enhance cyber security, to promote a good risk culture in our financial institutions. The annual report also devotes two pages of infographics to the enforcement actions MAS has taken against those who breach our regulations or fail to meet our standards. MAS does not tolerate: abuse of our financial system for money laundering or tax evasion; misconduct or manipulation in our securities markets; or mis-selling to consumers who place their trust and money in our financial institutions and their representatives. But being a no-nonsense regulator does not stand in the way of being also businessfriendly. For financial institutions who want to grow their business in Singapore, build up the skills of their employees, or want to innovate or experiment with new technologies, MAS is a happy partner and collaborator. 1 “The Goldilocks Economy – Will the Three Bears Return?”, Speech by Mr Ravi Menon, Managing Director,  Monetary Authority of Singapore, at UBS Wealth Insights Conference, 15 January 2018. 11 / 11  BIS central bankers' speeches