Importance Whereas the Russian economy should be modernized to ensure its further growth and attract investments, it would be reasonable to consider the economic miracle of Singapore, identify key drivers of its robust economic and financial development, including the role of the financial system. Objectives The research determines the key factors of Singapore's economic miracle, especially, the role of the financial system and the financial development policy as part of Singapore's economic modernization. Methods Using methods of systems, comparative and statistical analyses, I reviewed the basic milestones and found key factors of Singapore's economic modernization. Results The article presents the preconditions for Singapore's economic miracle, i.e. the development strategy drawing upon the unique geographical location of the country, and goals of transforming the country into a global trade, transportation and financial center. The strategy also provides for the economy to be flexibly and manually steered; arranging for rapid growth of the financial system and economy, i.e. the financial development policy; supporting the high level of savings and savings ratio during modernization; focus on foreign investments and export-oriented manufacturing. Conclusions and Relevance The development of the national financial sector was not only stipulated in the financial development policy, but also considered as a key driver of Singapore's economic growth. The financial sector progressed as the off-shore banking center and international financial center evolved and the national economic competitiveness was maintained after industrialization was over amid the small scale of economy, limited domestic market, and unavailable natural resources.