Key Drivers Behind the Rapid Expansion of Singapore’s Digital Economy
In 2022, Singapore’s digital economy contributed 17.3% to the nation’s GDP, a substantial increase from 13% in 2017, according to a report by the Infocomm Media Development Authority (IMDA). This growth represents a nearly doubling of the sector’s value, reaching S$106 billion from S$58 billion in five years. The rise was driven by sub-sectors such as online gaming, e-commerce, and digital services, which collectively saw double-digit annual growth rates of up to 70%.
IMDA’s report offers a detailed view of the digital economy, considering both the direct contributions of the infocomm sector and the indirect contributions from digitalisation across other sectors. The infocomm sector itself grew by 8.6% in 2022, contributing 5.4% to the GDP. Moreover, the digitalisation efforts across other industries, particularly in finance, insurance, and manufacturing, helped raise the broader economy’s digital contribution to 11.9%, up from 8.7% in 2017.
This growth highlights the importance of digitalisation beyond traditional tech firms, with over two-thirds of the digital economy’s expansion coming from non-tech sectors. Additionally, the adoption of digital technologies among small and medium-sized enterprises (SMEs) reached 94% in 2022, showing a marked improvement from 74% in 2018.
The report also notes that Singapore’s digital economy is poised for further expansion, with technology adoption continuing to spread across industries and creating new opportunities for both large and small businesses alike. The growing number of tech-related jobs—201,100 in 2022, up from 29.3% since 2017—further underscores the nation’s evolving digital landscape.
