Singapore’s Digital Economy at 18.6% of GDP, up from 14.9% in 2019; Growth fuelled by accelerating digitalisation and AI adoption across sectors and firms
(source : ANI) ( Photo Credit : ani)
Singapore’s digital economy is growing fast, now worth about S$128 billion – roughly 18.6 % of the nation’s GDP. That jump from 18.0 % in 2023 shows how digital tools are becoming a core part of Singapore’s prosperity.
A recent survey by the Infocomm Media Development Authority (IMDA) found that 3 in 4 workers use AI tools at work. Most say AI makes them faster and better at what they do. Small and medium‑sized enterprises (SMEs) are leading the way: 14.5 % of SMEs used AI in 2024, compared with just 4.2 % a year earlier. For larger companies, the leap was even bigger – from 44 % to 62.5 %.
The growth is not just in tech firms. More than two‑thirds of the digital economy comes from non‑Information & Communications (I&C) sectors. Finance & insurance sits on top, followed by wholesale trade and manufacturing. This spread shows that businesses in every industry must embrace digitalisation to stay competitive.
Digital adoption is spreading across firms
- In 2024, 95.1 % of SMEs adopted at least one of six key digital areas: cybersecurity, cloud, e‑payments, e‑commerce, data analytics, and AI.
- The number of digital tools each SME uses has risen to an average of 2.3 from 2.0 in 2023.
- Nearly all SMEs (97 %) adopted a sector‑specific digital solution, up from 85 % in 2023.
These trends underline how digital upgrades are becoming a business priority, not a niche tech trend.
Tech jobs are on the rise
Singapore’s tech workforce grew from 208,300 in 2023 to 214,000 in 2024. Roles in AI & data, cybersecurity and cloud infrastructure are the fastest growing, driven largely by non‑I&C companies.
Tech jobs pay well: the median monthly wage for resident tech workers was S$7,950 in 2024, far above the national median of S$4,860. Skill demand has shifted too—Python and SQL remain key, while web‑development skills have slipped in relative importance. AI expertise, in particular, saw steady job‑posting growth from 2019 to 2024 across finance, manufacturing, and professional services.
AI delivers real savings
SMEs that adopted AI through the Productivity Solutions Grant (PSG) cut costs by 52 % on average. Those that used AI‑powered cybersecurity tools saved 71 % more, proving the high return on AI investment.
Businesses are applying AI across multiple functions. On average, SMEs use AI in three functions, while larger firms use it in five. Common AI use cases include IT support, customer service, and finance & accounting. While most companies start with off‑the‑shelf generative AI tools, more than half are now using custom or domain‑specific AI solutions.
Employees benefit too
The same IMDA survey found that 73.8 % of workers claim they use AI at work, often multiple times a week or daily. AI helps them brainstorm, write, edit, and handle administrative tasks. Employees also report up to 85 % productivity gains and improved work quality. About two‑thirds of firms plan to upskill staff for AI in the next one to two years, and 63 % expect to redesign roles to incorporate AI more fully.
Looking ahead
IMDA’s Deputy Chief Executive, Kiren Kumar, said Singapore will keep expanding support for businesses and talent to harness digitalisation and AI. The agency is also preparing for frontier tech, such as embodied AI, agentic AI, quantum computing and communications, to keep Singapore competitive.
With partnerships across government, industry and the workforce, Singapore is positioning itself as a leading digital economy, deepening enterprise capability, training a future‑ready talent pool, and fostering innovation in emerging technologies.
Source: aninews
Stay informed on all the latest news, real-time breaking news updates, and follow all the important headlines in world News on Latest NewsX. Follow us on social media Facebook, Twitter(X), Gettr and subscribe our Youtube Channel.
