Singapore's Digital Economy Grows to S$144.1 Billion as AI Adoption Accelerates

Singapore's digital economy grew to S$144.1 billion in 2025, accounting for 19.3% of GDP, as AI adoption accelerated among enterprises and tech employment rose to 222,200.

News source: Google / CNA:  https://www.channelnewsasia.com/

Singapore's digital economy reached S$144.1 billion in 2025, accounting for 19.3 per cent of the nation's gross domestic product, up from 18.8 per cent in 2024, according to the Infocomm Media Development Authority's Singapore Digital Economy Report 2026. The digital economy grew 5.6 per cent year-on-year, outpacing nominal GDP growth of 3.1 per cent.

Non-Tech Sectors Drive Growth

The bulk of value-added in the digital economy stems from digitalization outside the technology sector. Non-Information and Communications sectors contributed more than two-thirds of the total, worth S$97 billion, up 3.6 per cent year-on-year. Finance and insurance led the charge with S$39.1 billion, followed by wholesale trade at S$29.3 billion. The Information and Communications sector expanded 6.1 per cent to S$47.1 billion.

AI Adoption Accelerates

AI adoption among Singapore businesses continued to grow. Adoption among small and medium-sized enterprises increased to 23.4 per cent in 2025, up from 14.5 per cent a year earlier. Among non-SMEs, the rate rose from 62.5 per cent to 70.4 per cent. The Information and Communications sector had the highest AI adoption rate at 46.8 per cent, followed by professional services at 34.5 per cent and finance and insurance at 27.6 per cent.

"Singapore's digital economy continues to demonstrate encouraging growth as both enterprises and workers embrace new solutions in their digital transformation journeys," said Ng Cher Pong, chief executive at IMDA.

Tech Workforce and Wages

Tech employment grew 3.8 per cent to 222,200 in 2025, with industries outside the ICT sector accounting for 59 per cent of those roles. The median monthly wage for resident tech workers stood at S$8,000 in 2025, 60 per cent higher than the overall resident median of S$5,000.

Demand for AI skills also increased. The share of technology job postings requiring at least one AI-related skill rose to 16.7 per cent in 2025, up from 14 per cent a year earlier. AI use in daily work rose to 85.7 per cent in 2026, from 77.6 per cent a year earlier.

Here is the question The Silicon Review raises regarding this data. Singapore's digital economy has grown to nearly one-fifth of GDP, with AI adoption accelerating across enterprises. When a small city-state's economic future depends so heavily on digitalization, what happens if the AI boom stalls or the talent pipeline fails to keep pace?

FAQ:

Q: How large is Singapore's digital economy?
A: Singapore's digital economy reached S$144.1 billion in 2025, accounting for 19.3% of GDP, up from 18.8% in 2024.

Q: What percentage of Singapore businesses has adopted AI?
A: AI adoption among SMEs rose to 23.4% in 2025, while adoption among non-SMEs reached 70.4%.

Q: How many people work in Singapore's tech sector?
A: Tech employment grew 3.8% to 222,200 in 2025, with 59% of those roles outside the ICT sector.

Q: What is the median wage for tech workers in Singapore?
A: The median monthly wage for resident tech workers was S$8,000 in 2025, 60% higher than the overall resident median.

Q: Which sectors have the highest AI adoption in Singapore?
A: ICT leads at 46.8%, followed by professional services at 34.5% and finance and insurance at 27.6%.