Singapore’s digital economy now makes up nearly one-fifth of GDP, with AI and data skills powering growth across industries.
Singapore’s digital economy surged to S$128.1 billion (US$93 billion) in 2024, accounting for 18.6% of national GDP and creating more than 214,000 tech jobs, according to the latest Singapore Digital Economy Report by the Infocomm Media Development Authority (IMDA). The findings underscore how artificial intelligence (AI) and digital transformation have become cornerstones of the nation’s economic resilience and competitiveness.
Digitalisation Fuels Broad-Based Growth
The report revealed that Singapore’s digital economy expanded by S$12 billion year-on-year, growing from S$116.1 billion in 2023. Digitalisation now contributes nearly S$1 in every S$6 of GDP, driven not only by the tech sector but by widespread adoption across finance, manufacturing, and wholesale trade.
About two-thirds of the total digital economy output came from non-tech sectors, demonstrating that traditional industries are increasingly leveraging digital tools to boost productivity and innovation. IMDA noted, “Singapore’s digital growth is not just driven by tech companies, but by digitalisation across all industries.”
Tech Jobs and Wages on the Rise
Despite global tech layoffs, Singapore’s technology workforce grew from 208,300 in 2023 to 214,000 in 2024, representing 5.3% of total employment. The information and communications sector saw modest growth of 1.1%, while other industries collectively expanded tech hiring by 3.9%, signaling strong cross-sector demand.
Wages for tech professionals also rose sharply, with median monthly pay hitting S$7,950, up from S$7,000 the year before. This 13.6% annual increase far outpaced the overall wage growth of 6.8%, reinforcing the premium placed on digital skills in Singapore’s job market.
AI Leads the Next Wave of Transformation
Artificial intelligence was identified as the fastest-growing domain within the digital economy. Tech roles related to AI, data analytics, and cybersecurity surged, reflecting companies’ growing reliance on automation and machine learning.
- AI-related job postings climbed from 11% in 2019 to 14% in 2024, with the information and communications sector recording a fourfold increase.
- AI adoption among SMEs tripled to 14.5%, while non-SMEs saw usage soar from 44% to 62.5%.
- SMEs leveraging AI under the Productivity Solutions Grant reported an average 52% cost reduction, with AI-driven cybersecurity adopters saving up to 71%.
These figures highlight how AI tools such as ChatGPT, Gemini, and Copilot are no longer confined to large enterprises but are becoming essential for smaller firms aiming to stay competitive.
Shifting Tech Skill Landscape
The demand for specific tech skills has evolved in tandem with digital transformation. Between 2019 and 2024, knowledge of Python and Structured Query Language (SQL) became increasingly sought after, appearing in 24% and 20% of tech job postings respectively.
Conversely, demand for traditional web development skills such as JavaScript, HTML, and CSS declined as modern development platforms automated many coding functions. IMDA attributed this to a maturing tech ecosystem that values scalable cloud and AI solutions over basic web programming.
SMEs Embrace Digitalisation at Record Pace
IMDA found that 95.1% of small and medium-sized enterprises (SMEs) have adopted at least one form of digital solution — from e-payments to data analytics. The agency credited this widespread digital uptake to supportive government initiatives and the accessibility of cloud-based tools.
The trend underscores Singapore’s success in making digital transformation inclusive, ensuring that both micro-businesses and large corporations can harness technology for growth.
Singapore’s digital economy continues to outperform traditional growth metrics, driven by strong AI integration, high-value tech employment, and a digitally empowered SME base. As digitalisation deepens across industries, Singapore’s position as a regional innovation hub appears increasingly secure — with technology now at the heart of its economic identity and global competitiveness.
Sources: CNA (2025) , The Malaysian Reserve (2025)
Keywords: Digital Economy, AI Adoption, Tech Employment, IMDA Report, Singapore GDP, Digital Transformation
