Singapore's Digital Economy Grows
The digital economy accounted for 19.3% of Singapore's GDP in 2025, with AI adoption rising to 23.5% among enterprises. The sector's value-added reached S$144.1 billion, a 5.6% year-on-year growth.
Global Newsflix 2 min read
Singapore's digital economy grew to S$144.1 billion in 2025, outpacing the broader economy's growth. This represented a 5.6% year-on-year increase, according to the Infocomm Media Development Authority.
The digital economy accounted for 19.3% of Singapore's gross domestic product in 2025, up from 18.8% in 2024. Non-information and communications sectors drove most of the growth, making up more than two-thirds of the digital economy.
The number of tech jobs in Singapore rose 3.8% to 222,200 in 2025, with roles in AI, data, and cybersecurity among the fastest-growing. The median monthly wage for tech jobs was S$8,000, higher than the overall resident median monthly wage of S$5,000.
AI adoption among enterprises in Singapore increased to 23.5% in 2025, from 14.7% in 2024. The use of AI tools among workers also became more widespread, with 85.7% of workers surveyed reporting that they used AI tools at work in 2026.
The growth in the digital economy was driven by digitalisation efforts across all industries, not just tech companies. The finance and insurance sector remained the largest contributor to growth, followed by wholesale trade and manufacturing.
The Infocomm Media Development Authority said the digital economy's growth shows that digitalisation is becoming more widespread across all sectors. The authority also noted that tech employment growth was led by non-tech sectors, with a 5.3% year-on-year increase.
The demand for tech professionals in Singapore is expected to continue growing, driven by the digitalisation of the economy. The Infocomm Media Development Authority said it will expand the National AI Impact Programme to upskill 140,000 tech and non-tech workers by 2029.
Key facts
- Singapore's digital economy grew to S$144.1 billion in 2025
- AI adoption among enterprises rose to 23.5% in 2025
- The number of tech jobs in Singapore increased 3.8% to 222,200 in 2025
- The median monthly wage for tech jobs was S$8,000 in 2025
Three perspectives
Neutral
The growth in Singapore's digital economy is a positive sign for the country's economic development. However, it also poses challenges, such as the need for workers to acquire new skills to remain relevant. The Infocomm Media Development Authority's efforts to upskill workers will be crucial in addressing these challenges.
Positive
The increase in AI adoption and tech employment in Singapore is a testament to the country's efforts to become a leader in digital innovation. The growth in the digital economy is expected to create new opportunities for businesses and workers, driving economic growth and development.
Negative
The rapid growth in the digital economy may also lead to job displacement and inequality, as some workers may not have the necessary skills to adapt to the changing job market. The Infocomm Media Development Authority must ensure that its efforts to upskill workers are effective in addressing these concerns.
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