Singapore’s digital economy has seen significant growth, contributing 17.3% to the country’s GDP in 2022, a notable increase from 13% in 2017, according to a report released by the Infocomm Media Development Authority (IMDA). This growth, which amounts to an economic contribution of approximately S$106 billion, is indicative of the rapid digitalization occurring within the nation.

The inaugural Singapore Digital Economy report highlights key sectors driving this growth, including online services, e-commerce, and gaming. IMDA’s approach aims to provide a holistic view by assessing both the digital services sector and the impact of digitalization across the broader economy.

Despite the challenges of comparing digital economy estimates across different jurisdictions, Singapore’s performance is favorable when matched against similar open economies. For instance, as of 2020, Singapore’s digital economy stood at 16.7%, slightly ahead of Estonia and the UK, which were at 16.6% and 16.1%, respectively.

The infocomm sector itself constituted 5.4% of Singapore’s overall GDP, registering the highest growth rate among sectors at a compound annual growth rate (CAGR) of 10.3% over five years. The report notes that digitalization in the rest of the economy contributed significantly to this growth, accounting for 11.9% of GDP in 2022, up from 8.7% in 2017.

While the technology adoption rate among small and medium-sized enterprises (SMEs) rose to 94% in 2022, there remains a considerable gap in the intensity of technology adoption between SMEs and larger firms. As the digital landscape continues to evolve, it is crucial for Singapore to capitalize on the opportunities presented by its burgeoning digital economy.

The number of tech jobs also increased significantly, reaching 201,100 in 2022, which accounts for 5.2% of total employment. This growth in employment opportunities reflects the expanding digital ecosystem and the country’s commitment to investing in infrastructure and skills training.