Tech spending to hit $28b amidst 6% surge

This will be driven by government-led IMDA programmes.

Singapore’s technology expenditure is projected to reach nearly $28b in 2026, representing a 6% increase from the previous year, according to Forrester’s Asia Pacific Tech Market Forecast.

Government-led programs, such as the Infocomm Media Development Authority's (IMDA) programmes to support AI and digital transformation, and the Monetary Authority of Singapore's PathFin.ai, underpins this growth.

Additionally, hyperscaler cloud investment also remains strong, with the Amazon Web Services' (AWS) plan to invest $11.54b (US$9b) through 2028, and Google's $6.41b (US$5b) commitment to expand its Jurong West data centre.

These investments support enterprise cloud adoption, data processing, and advanced technology deployment.

Telecom infrastructure is also scaling to support industrial automation.

Singtel deployed 5G+ with 700 MHz spectrum in 2025 and introduced 5G-enabled automated guided vehicles at PSA Tuas Port, enhancing logistics and smart manufacturing capabilities.

The report, however, noted talent shortages remain the primary constraint on growth. Many employers lack AI-focused training programmes, and government targets include tripling Singapore’s AI practitioner pool by 2029 to address the skills gap.

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Forrester

Infocomm Media Development Authority

MAS

Singtel

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