Singapore’s digital economy has nearly doubled in five years reaching S$106 billion, contributing an estimated 17.3 per cent of the country's gross domestic product (GDP) in 2022.
This represents a strong growth from S$58 billion in 2017, when the digital economy's contribution to the GDP was 13 percent.
The numbers are part of the Singapore Digital Economy report compiled by the Infocomm Media Development Authority (IMDA) along with Lee Kuan Yew School of Public Policy at the National University of Singapore.
While there is currently no internationally agreed standard on how to define and measure the digital economy, IMDA defines it as comprising both the value generated by the information and communications (I&C) sector and from digitalisation in the rest of the economy.
IMDA chief executive Lew Chuen Hong said the digital economy is significant and has seen remarkable growth over the years, underscoring how IMDA’s efforts in driving Singapore’s digital transformation are bearing fruit.
IMDA said the I&C sector supplies core digital services and has been the "fastest" growing sector from 2017 to 2022, backed by the strong growth of sub-sectors such as Games, Online Services, and E-commerce.
It has accounted for S$33 billion and 5.4 percent of the overall GDP in 2022, up from S$19 billion and 4.3 percent of GDP in 2017.
Digitalisation in all other non-I&C sectors has also contributed substantially to the economy, registering rapid growth over the same period, it added.
The rising VA from digitalisation across the rest of the economy comes on the back of more firms embracing digital technologies and solutions, it said.
Specifically, the technology adoption rate among small and medium enterprises (SMEs) has also increased.
Further, the report said the demand for tech professionals in Singapore has risen over the years.
Between 2017 and 2022, the number of tech jobs grew to around 201,100 from about 155,500, accounting for an increased share of total employment to 5.2 per cent from 4.2 per cent.
In addition, more than half of the tech jobs in 2022 or around 57 per cent came from the rest of the economy beyond the I&C sector.
“This strong demand for tech professionals continues to benefit the locals, with more than 70 per cent of tech jobs held by Singaporeans and permanent residents,” it added.
IMDA said it will continue to develop the I&C sector and drive digitalisation in future across sectors to ensure enterprises and the workforce remain competitive.
