SINGAPORE: Singapore’s digital economy has emerged as a significant contributor to the nation’s Gross Domestic Product (GDP), accounting for a remarkable 17.3 per cent, equivalent to $106 billion in 2022.

Infocomm Media Development Authority released the statistics in collaboration with the Lee Kuan Yew School of Public Policy as part of the inaugural Singapore Digital Economy Report. The report’s release marks the first time official figures have been provided to gauge the impact of the digital economy on Singapore’s GDP.

Over the past five years, Singapore’s digital economy has surged and generated over 200,000 new tech jobs, underlining its role as a pivotal driver of employment and innovation within the country.

One of the most compelling aspects of this transformation is the growth trajectory. The digital economy’s contribution to Singapore’s GDP has skyrocketed from a mere 13 per cent in 2017 to the current 17.3 per cent.

The report divides the digital economy into two distinct categories to accurately assess the digital economy. The first segment evaluates the economic impact of the information and communication sector, a fundamental pillar of the digital economy. In 2022, this sector contributed a staggering $33 billion to Singapore’s economy, a significant surge from the $19 billion it contributed in 2017.

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The second part of the report delves into the economic contribution of digitalization across other sectors within Singapore’s economy. Digitalization accounted for a substantial $73 billion in 2022, marking an impressive increase from the $39 billion recorded five years ago. It now constitutes nearly 12 per cent of the country’s GDP.

This phenomenal growth can be attributed to various sectors’ widespread adoption of digital solutions, with small and medium-sized enterprises (SMEs) taking the lead. SMEs’ technology adoption rate soared from 74 per cent in 2018 to 94 per cent in the past year.

These figures translate into a striking reality: approximately one out of every five to six dollars contributing to Singapore’s economy is derived from the digital economy.

What adds an intriguing dimension to this digital revolution is that the growth is not confined solely to traditional technology companies or sectors. Two-thirds of this surge is attributed to adopting digital solutions across other industries, including finance, trade, and manufacturing.

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With its meteoric rise and substantial contributions to GDP and employment, Singapore’s digital economy is undoubtedly poised to continue shaping the nation’s economic landscape in the years ahead, as evidenced in the insights within the Singapore Digital Economy Report.