Singapore’s digital economy grew to S$144.1 billion in 2025, accounting for 19.3 percent of gross domestic product (GDP), according to the Infocomm Media Development Authority’s Singapore Digital Economy Report 2026. This is an increase from 18.8 percent in 2024 as digitalisation continued to expand across the economy.
Non-information and communications sectors remained the main growth drivers, contributing more than two-thirds of the digital economy. Digitalisation in non-I&C sectors generated S$97 billion in nominal value-added, up 3.6 percent year on year. The I&C sector grew 6.1 percent to S$47.1 billion.
Tech employment grew 3.8 percent to 222,200 jobs in 2025. Growth was faster outside the I&C sector, at 5.3 percent, compared with 1.8 percent within it. AI and data, along with cybersecurity, were among the fastest-growing areas.
Median monthly wage for resident tech workers reached S$8,000, 60 percent higher than the overall resident median of S$5,000.
“Singapore’s digital economy continues to demonstrate encouraging growth as both enterprises and workers embrace new solutions in their digital transformation journeys,” said Ng Cher Pong, Chief Executive of IMDA. “As a result of the strong underlying momentum, our digital economy has now grown to 19.3% of Singapore’s overall economy.”
AI adoption rises
AI adoption broadened among enterprises of all sizes with small and medium-sized enterprises rising from 14.5 percent in 2024 to 23.4 percent in 2025. Adoption among large local enterprises increased from 62.5 percent to 70.4 percent.
The share of those planning to adopt AI within the next 12 months more than doubled from 5.6 percent in 2023 to 12.1 percent in 2025.
Nearly nine in 10 AI-adopting enterprises use commercial off-the-shelf tools. About 28.3 percent customise those tools for enterprise-specific requirements. Two in five are expanding deployment or have fully deployed or integrated AI across their operations.
Productivity and process improvements were cited as a key benefit by 87.6 percent of AI-adopting enterprises, while 44 percent reported lower costs and improved resource optimisation.
Overall digital adoption also remained high, with 96.4 percent of enterprises adopting at least one of six digital areas — cybersecurity, cloud, e-payments, e-commerce, data analytics, and AI.
More AI training
AI use among workers increased to 86 percent in 2026, up from 78 percent in 2025. Among those using AI, 73 percent reported productivity improvements, 69 percent noted better work quality, and 68 percent cited stronger problem-solving capabilities.
Content creation was the most common workplace use case, at 77 percent, followed by process automation and data exploration and analytics.
However, 68 percent of workers said they needed to upskill or reskill in AI, while only 37 percent had attended AI-related training in the previous 12 months. Common barriers included not being nominated by employers, a lack of time and uncertainty over which course to take.
IMDA plans to expand the TechSkills Accelerator programme under the National AI Impact Programme. The programme aims to upskill 40,000 tech professionals over the next three years, including training in advanced AI and agentic AI capabilities. The broader programme will train 100,000 professionals in domain-specific AI skills by 2029, with initial rollout under way in areas including accountancy and law.
“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,” said Ng.
