Singapore digital economy surges to $144.1b, now 19% of GDP

AI adoption amongst small and medium-sized enterprises increased to 23.4%.

Singapore’s digital economy grew to $144.1b in 2025, accounting for 19.3% of gross domestic product, as non-Information & Communications (non-I&C) sectors remain the dominant growth driver.

According to IMDA’s Singapore Digital Economy Report 2026, the value-added from digitalisation in the non-I&C sectors grew to $97b, representing a growth of 3.6% year on year (YoY).

Meanwhile, the Information & Communications (I&C) sector expanded to $47.1b, growing by 6.1% YoY over the same period.

This expansion in both I&C and non-I&C sectors is reflected in tech employment, which grew 3.8% YoY to 222,200 in 2025.

Amongst the fastest-growing roles are those in artificial intelligence (AI) & Data and Cybersecurity, areas where all enterprises have been increasing investment.

AI adoption amongst small and medium-sized enterprises increased to 23.4%, whilst adoption amongst large local enterprises rose to 70.4%.

The report noted that close to nine in 10 AI-adopting enterprises are using commercial off-the-shelf AI tools, whilst 28.3% customise such tools for their enterprise-specific needs.

Notably, two in five are expanding deployment or have fully deployed or integrated AI across the enterprise, moving towards broader implementation across their operations.

Amongst workers, 86% of workers use AI at work in 2026, up from 78% in 2025. Additionally, 73% cited productivity improvements, 69% reported better work quality, and 68% noted stronger problem-solving capabilities.

To support workers, IMDA is expanding the TechSkills Accelerator (TeSA) under the National AI Impact Programme (NAIIP) to strengthen AI capabilities.

For the tech workforce, TeSA will upskill 40,000 professionals over the next three years, equipping them with AI skills needed to become full-stack developers with agentic AI.

On the non-tech workforce, NAIIP will train 100,000 professionals in domain-specific AI skills by 2029, with rollout already underway in accountancy and law.

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