|
Getting your Trinity Audio player ready...
|
Singapore’s digital economy has been on an impressive growth trajectory, with its contribution to the country’s GDP increasing from 13% in 2017 to 17.3% in 2022. This remarkable expansion represents nearly a doubling of the value-added (VA), or economic contribution, surging from S$58 billion to S$106 billion during this five-year period.
The insights into Singapore’s burgeoning digital economy come from the inaugural Singapore Digital Economy (SGDE) report, a collaborative effort between the Infocomm Media Development Authority (IMDA) and the Lee Kuan Yew School of Public Policy. The report aims to provide a comprehensive assessment of the state of Singapore’s digital economy, offering valuable insights into its evolution.
Defining and measuring the digital economy can be a complex task, with different approaches yielding various results. However, the SGDE report adopts a holistic definition that encompasses two vital components.
The first element encompasses the value-added (VA) generated by the Information & Communications (I&C) sector as it produces digital services. This sector has played a pivotal role in Singapore’s economy, contributing significantly to the country’s GDP, with a growth rate that outpaces other sectors.
The second component of the digital economy focuses on how digitalisation enables other sectors. This includes the value-added resulting from digitalisation across the broader economy. The report indicates that digitalisation in non-I&C sectors experienced robust growth, contributing S$73 billion or 11.9% of Singapore’s GDP in 2022, surpassing the overall economic growth rate.
A key factor contributing to this impressive growth is the increased adoption of digital technologies and solutions, especially among Small and Medium Enterprises (SMEs). This adoption rate has risen considerably, from 74% in 2018 to 94% in 2022. Also, the demand for tech professionals has grown significantly, with the number of tech jobs rising from approximately 155,500 to around 201,100 between 2017 and 2022.
The positive trend extends to local talent, with over 70% of tech jobs being held by Singaporeans and Permanent Residents. These tech professionals also enjoy competitive wages, with a resident median monthly wage of S$7,376, compared to the overall resident median wage of S$4,500.
The Chief Executive of IMDA, Lew Chuen Hong, highlights the remarkable growth of Singapore’s digital economy and emphasises the importance of continued efforts to drive digital transformation. He underscores Singapore’s potential to excel in the digital domain and maintain its competitive edge in an increasingly digital world.
The impressive growth of Singapore’s digital economy, as revealed in the SGDE report, showcases the nation’s commitment to embracing the digital era. This thriving economy contributes significantly to Singapore’s GDP, demonstrating the profound impact of technology on the country’s overall economic landscape.
The Information & Communications sector stands out as a driving force, illustrating how pivotal it is in shaping Singapore’s digital future. Additionally, the report highlights the broad-based digitalisation across various sectors of the economy, further strengthening the country’s position as a digital leader.
Besides, the rise in technology adoption among SMEs is a testament to Singapore’s efforts in fostering a digitally resilient business environment. This is essential, considering the critical role SMEs play in Singapore’s economic landscape.
As the demand for tech professionals increases, Singapore’s local workforce stands to benefit from this trend, with the majority of tech jobs held by Singaporeans and Permanent Residents. Singapore’s success in the digital realm signifies the nation’s dedication to remaining competitive on the global stage while offering a robust digital ecosystem for both businesses and individuals.
