How the Digital Economy’s Rapid Expansion Contributes to Singapore’s GDP
In 2022, Singapore’s digital economy made a significant contribution of 17.3% to the country’s GDP, up from 13% in 2017, marking an impressive growth in just five years. This surge was primarily driven by the booming sectors of online gaming, e-commerce, and digital services, all of which saw robust double-digit growth rates, with some reaching as high as 70% annually. The total economic contribution of the digital economy increased to S$106 billion from S$58 billion over this period.
According to the Infocomm Media Development Authority (IMDA), the report includes two main components: the direct contribution of the infocomm sector and the influence of digitalisation across other sectors of the economy. The infocomm sector alone accounted for 5.4% of GDP in 2022, growing by 8.6%, while digitalisation in industries such as finance, insurance, and manufacturing helped boost the broader economy’s digital contribution to 11.9%, up from 8.7% in 2017.
An interesting trend highlighted by the report is that over two-thirds of the growth in the digital economy has come from sectors outside of traditional tech companies. The report also notes a remarkable rise in technology adoption among small and medium-sized enterprises (SMEs), with 94% of SMEs adopting digital technologies in 2022, up from 74% in 2018.
The expansion of the digital economy has not only led to more tech-related jobs—201,100 tech jobs in 2022, a 29.3% increase since 2017—but also created new opportunities for both large and small businesses. With further growth expected, Singapore is positioned to continue leveraging its digital transformation to compete on the global stage.
