Singapore’s digital economy has rapidly evolved from a national initiative to a global benchmark for tech-driven growth. According to the Infocomm Media Development Authority (IMDA), the sector contributed SGD128.1bn ($99.2bn), or 18.6% of GDP, in 2024, nearly one in every six dollars of the country’s economic output. It also provided 214,000 tech jobs, a record number despite global uncertainty in the technology industry, Channel News Asia (CNA) reports.

The findings highlight how Singapore transformed itself from a financial centre into a digital hub where technology is now deeply embedded across all sectors, not only within the traditional IT industry.

Singapore’s emergence as a tech hub is no accident. Over the past decade, the government has rolled out targeted initiatives, such as Smart Nation, SkillsFuture, and the Productivity Solutions Grant (PSG), to accelerate digital adoption. These policies offer firms subsidies to deploy automation, artificial intelligence (AI), and cybersecurity tools, helping even small- and medium-sized enterprises (SMEs) digitalise their operations.

According to IMDA data cited by CNA, SMEs that implemented AI-enabled solutions under the PSG achieved average cost savings of 52%, while those using AI-powered cybersecurity systems saved up to 71%. These results demonstrate a tangible link between public policy, technological investment, and corporate efficiency.

This policy precision has also boosted demand for skilled professionals. As Singapore’s digital economy expanded by SGD12bn year-on-year, the number of tech jobs rose from 208,300 in 2023 to 214,000 in 2024, defying the global slowdown in tech hiring.

One key insight from IMDA’s report is that two-thirds of the digital economy’s value in 2024 came from non-technology sectors. Financial services, wholesale trades, and manufacturing are now among Singapore’s largest tech employers. The shift reflects a structural change in how digitalisation creates value, by embedding data analytics, cybersecurity, and automation inside traditional business processes.

The result is a broader and more resilient labour market for tech professionals. Job growth outside the information and communications sector rose 3.9%, outpacing the 1.1% within core tech firms. This dispersion of demand means that even as global tech giants retrench, Singaporean engineers and analysts can find opportunities in banks, insurers, and logistics companies embracing digital tools.

IMDA’s chief takeaway is clear: “Singapore’s digital growth is not just driven by tech companies, but by digitalisation across all industries.”

AI: The new currency of competitiveness

Perhaps the most defining trend is the surge in demand for AI expertise. In 2019, just 11% of job postings required AI skills; by 2024, that figure had climbed to 14%, driven by adoption across finance, manufacturing, and professional services. The information and communications sector alone recorded a fourfold increase in AI-related listings — from about 1,020 in 2019 to more than 4,030 last year, IMDA Singapore Digital Economy Report 2025 reveals.

The skills most sought-after reflect this pivot. Python and SQL proficiency have become core requirements, appearing in 24% and 20% of postings respectively, while demand for front-end languages such as JavaScript and HTML has declined. This indicates a shift from website building toward data science, cloud computing, and AI engineering, skills that underpin Singapore’s next growth phase.

The country’s education and training ecosystem has responded swiftly. Through SkillsFuture and public-private partnerships, workers can access courses in data analytics, machine learning, and AI system design. Industry observers note that this alignment between employer demand and upskilling supply is what distinguishes Singapore from other regional hubs.

Wages mirror this demand surge. IMDA figures show that the median monthly salary for local tech professionals reached SGD7,950 in 2024, compared with SGD4,860 for overall resident workers. The 13.6% annual wage growth nearly doubled the national average, underscoring how technology skills command a premium in the labour market.

Such pay differentials are likely to widen as AI becomes more embedded in enterprise operations. Companies are increasingly seeking specialists in machine learning operations (MLOps), data security, and AI governance, roles that blend technical knowledge with regulatory and ethical understanding. Analysts say this reflects a broader shift from coding as a service skill to AI as a strategic capability.

Sustaining the momentum

Singapore’s digital economy grew at a compound annual rate of 12% between 2019 and 2024 — faster than nominal GDP growth of 7.3%. Maintaining that momentum will require continued investment in innovation, as well as attracting and retaining global talent. Policymakers are already addressing potential bottlenecks by expanding AI scholarship schemes and easing pathways for specialised foreign professionals.

Yet, long-term success may depend on deepening the domestic talent pool and fostering more home-grown AI startups. With regional economies racing to build their own digital sectors, Singapore’s challenge will be sustaining its first-mover advantage through continued emphasis on skills, trust, and responsible AI deployment.

From data-driven finance to AI-enabled manufacturing, Singapore has built a digital economy where policy, education, and enterprise align. Its story shows that a tech hub is not born from venture capital alone but from strategic governance and inclusive skills development.

As the IMDA report concludes, the city-state’s digital transformation is still gathering speed, proof that when technology policy meets execution, a nation of 5mn can punch far above its weight in the global digital economy.