Singapore – Singapore’s digital economy grew to S$144.1 billion in 2025, accounting for 19.3% of gross domestic product (GDP), up from 18.8% in 2024, according to the Infocomm Media Development Authority (IMDA).
The 2024 figure reflects a revision to S$136.5 billion following refinements to national accounts statistics by the Singapore Department of Statistics. Alongside that growth, AI adoption among small and medium-sized enterprises (SMEs) climbed from 14.5% in 2024 to 23.4% in 2025.
Sectors outside Information & Communications (non-I&C) remained the main growth driver, contributing more than two-thirds of the digital economy. Their nominal value-added from digitalisation rose 3.6% year on year to S$97.0 billion.
The I&C sector, however, expanded at a faster pace. It grew 6.1% year on year to S$47.1 billion in 2025.
Tech employment followed a similar path, rising 3.8% year on year to 222,200 jobs. Growth reached 5.3% in non-I&C sectors, compared with 1.8% in the I&C sector, which shows that demand for tech talent is concentrated outside the tech industry.
AI & Data and Cybersecurity roles number among the fastest-growing positions. Pay also remains strong, with resident tech workers earning a median monthly wage of SGD 8,000 in 2025, 60% higher than the overall resident median of SGD 5,000.
Digitalisation, meanwhile, is now near-universal. Some 96.4% of enterprises had adopted at least one of six digital areas in 2025, up from 95.1% in 2024, and those areas are cybersecurity, cloud, e-payments, e-commerce, data analytics and AI.
Among SMEs, the average number of areas adopted rose from 2.3 to 2.5.
AI adoption is also deepening at the top end of the market. Large local enterprises raised their adoption rate from 62.5% to 70.4%, while the share of non-adopters planning to adopt AI within 12 months more than doubled, from 5.6% in 2023 to 12.1% in 2025.
Enterprises are taking different routes to deployment. Close to 9 in 10 AI-adopting enterprises use commercial off-the-shelf tools, and 28.3% customise those tools for their own needs.
Moreover, 2 in 5 AI-adopting enterprises are expanding deployment or have fully deployed AI across the organisation, a sign of movement from experimentation towards broader implementation.
Businesses also report measurable returns. Among AI adopters, 87.6% cited productivity and process improvement as a key benefit, while 44% pointed to cost reduction and resource optimisation.
Separately, SMEs that adopted AI-enabled, pre-approved solutions through the Productivity Solutions Grant (PSG) reported average cost savings of 49.5% in 2025, based on self-declared business outcomes.
The workforce is moving in the same direction. AI use at work reached 86% of workers in 2026, up from 78% in 2025.
Among those users, 73% cited productivity improvements, 69% reported better work quality and 68% noted stronger problem-solving. Of workers who reported time savings, around 6 in 10 saved up to an hour a day.
Content creation remains the most common use case at 77%. Process automation follows at around two-thirds of workers, while data exploration and analytics account for more than half.
Training, however, has not kept pace with usage. Around 68% of workers recognised a need to upskill or reskill in AI, yet only 37% attended AI-related training in the past 12 months.
Obstacles vary. Around 35% of those who skipped training said their employers had not nominated them, a similar proportion cited a lack of time, and about one in four were unsure which course suited them.
To close the gap, the TechSkills Accelerator (TeSA) is expanding under the National AI Impact Programme (NAIIP). TeSA will upskill 40,000 tech professionals over the next three years, while NAIIP will train 100,000 non-tech professionals in domain-specific AI skills by 2029, with rollout already under way in accountancy and law.
Mr Ng Cher Pong, Chief Executive of IMDA, said, “Singapore’s digital economy continues to demonstrate encouraging growth as both enterprises and workers embrace new solutions in their digital transformation journeys. As a result of the strong underlying momentum, our digital economy has now grown to 19.3% of Singapore’s overall economy.”
“IMDA remains committed to investing in continuous learning — equipping workers with practical, domain-specific AI skills — to ensure our workforce maintains Singapore’s competitive edge,” he concluded.
