Singapore’s Digital Economy Fuels GDP Growth

Singapore’s Digital Economy Fuels GDP Growth: Almost Doubles in Five Years

In a report by Singapore’s Infocomm Media Development Authority, Singapore’s digital economy significantly contributed to its GDP, exceeding 17% in 2022. This is up from 13% in 2017. Furthermore, the total value of this digital economy reached SGD 106 billion in 2022, a substantial increase from SGD 58 billion in 2017.

 

Two Pillars of Singapore’s Digital Economy

Singapore’s digital economy consists of two pillars: the information and communications sector, and broader digitalization across various sectors. The former includes services like telecommunications, IT consultancy, and software development.

 

Global Leader in the Digital Economy Landscape

Compared to other global economies, Singapore stands out. In 2020, its digital economy contributed 16.7% of its GDP, surpassing Estonia, Sweden, and the United Kingdom.

 

Key Sectors Fuel Impressive Growth

Key sectors within the information and communications sector, such as games, online services, and e-commerce, saw impressive double-digit growth rates, especially during the COVID-19 pandemic.

 

Expanding Value Across the Economy

Digitalization in the broader economy increased from SGD 38.6 billion in 2017 to SGD 72.8 billion in 2022, mainly driven by finance, insurance, wholesale trade, and manufacturing sectors. This represented a steady rise from 8.7% in 2017 to 11.9% in 2022, with a strong annual growth rate of 13.5%.

 

Tech Workforce Alignment

The widespread adoption of digital technologies in businesses led to a significant increase in tech jobs, from about 155,500 in 2017 to 201,100 in 2022. Despite recent tech sector layoffs, the demand for tech jobs is expected to remain resilient as Singapore continues to deepen its digitsation efforts.

 

Promising Future Ahead

Singapore’s digital economy has been growing robustly, and its longer-term outlook remains promising. The government remains committed to building a competitive digital economy and a technology-skilled workforce. Deputy Prime Minister Lawrence Wong’s 2022 budget proposal includes a commitment of SGD 200 million for projects to enhance digital capabilities in businesses and workforce.

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