Assets managed by fund managers based in Singapore grew by 24 per cent to S$891 billion last year.
Giving this update on Wednesday, Senior Minister Goh Chok Tong also said total assets under management have grown robustly over the last six years.
He added that the sources of funds have diversified to include the Middle East, which has become 'increasingly important', along with South Asia.
Mr Goh, who is also the Chairman of the Monetary Authority of Singapore (MAS), was speaking at the the Nomura Asia Equity Forum.
Funds from the Middle East grew 21 per cent year-on-year, and the figure is 36 per cent for South Asia, according to the 2006 Asset Management Survey conducted by MAS.
57 per cent of the total assets managed in Singapore was invested in Asia.
Singapore has in recent years attracted global asset managers, hedge funds and private banks to set up their headquarters here, including Standard Chartered who set up their global private banking headquarters here in May. - CNA/ch