Singapore’s digital economy continues to power ahead reaching S$128.1 billion in 2024, or 18.6% of the nation’s GDP, up from 18.0% in 2023 and 14.9% in 2019. According to the Singapore Digital Economy (SGDE) Report 2025 by the Infocomm Media Development Authority (IMDA), the surge reflects how digitalisation and AI adoption are reshaping industries across the nation.
Digitalisation Beyond Tech: All Sectors Go Digital
More than two-thirds of Singapore’s digital economy now comes from non-tech sectors, led by Finance & Insurance, Wholesale Trade, and Manufacturing. This shows how digital growth is being driven by traditional industries embracing innovation to stay competitive.
SMEs Lead the Charge in Digital Transformation
Digital adoption among Singapore’s small and medium enterprises (SMEs) has reached record highs, 95.1% of SMEs have adopted at least one digital area, while 97% now use sector-specific solutions guided by IMDA’s Industry Digital Plans. On average, SMEs now use 2.3 digital tools, up from 2.0 in 2023, marking the strongest increase in years.
Expanding Tech Workforce and Opportunities
Singapore’s tech workforce grew to 214,000 in 2024, up from 208,300 a year prior, with demand for AI, data, and cybersecurity roles accelerating. Tech professionals continue to enjoy strong career prospects, earning a median monthly wage of S$7,950, compared to S$4,860 across all resident workers.
Between 2019 and 2024, employers increasingly sought skills in Python, SQL, and cloud infrastructure, while AI-related expertise surged in demand across all major industries, including Finance, Manufacturing, and Professional Services.
AI Adoption Accelerates Across Businesses
AI has rapidly become a game-changer for Singaporean enterprises. AI adoption among SMEs tripled in just one year, from 4.2% in 2023 to 14.5% in 2024, while 62.5% of non-SMEs now use AI.
Those embracing AI are already seeing results. SMEs using AI-powered solutions under the Productivity Solutions Grant (PSG) achieved average cost savings of 52%, rising to 71% for those using AI cybersecurity tools.
Firms are applying AI across multiple business functions: SMEs in an average of three areas, and larger companies in five. The top uses include IT, Customer Service, and Finance & Accounting.
Most firms (84%) rely on off-the-shelf generative AI tools, while over half have adopted domain-specific AI solutions for HR or accounting, and 44% have implemented custom-built AI systems signalling a growing maturity in AI integration.
AI Empowers the Workforce
IMDA’s survey found that nearly three in four workers (73.8%) now use AI tools at work, primarily for brainstorming (58%), writing (54%), and administrative tasks (42%).
A vast majority (85%) reported higher productivity, time savings, and better work quality, while nearly half said AI enhanced their creativity and one-third used it for learning and skill development.
Employers are also enabling this transformation seven in ten AI users said their organisations support AI use through training (62%), access to paid tools (42%), and clear usage policies (30%).
Shaping Singapore’s Digital Future
IMDA reaffirmed its commitment to strengthening Singapore’s position as a leading global digital economy by deepening enterprise capabilities, fostering innovation in emerging technologies, and empowering the workforce for an AI-driven future.
