Singapore’s digital economy grew to S$144.1 billion in 2025, accounting for 19.3% of gross domestic product (GDP), up from 18.8% in 2024, according to the Infocomm Media Development Authority (IMDA).
IMDA’s Singapore Digital Economy (SGDE) Report 2026 said non-Information & Communications (non-I&C) sectors continued to drive most of the growth, contributing more than two-thirds of the digital economy. Nominal value-added from digitalisation in non-I&C sectors rose to S$97.0 billion, up 3.6% year-on-year, while the Information & Communications (I&C) sector expanded to S$47.1 billion, growing 6.1% year-on-year.
Tech employment also increased, rising 3.8% year-on-year to 222,200 jobs in 2025. IMDA said growth in tech roles was led by non-I&C sectors (5.3%), compared with 1.8% in the I&C sector, indicating demand for tech talent is concentrated outside the tech industry. The report cited AI & Data and cybersecurity as among the fastest-growing roles.
IMDA reported that median monthly wages for resident tech workers were S$8,000 in 2025, compared with an overall resident median of S$5,000.
Digital adoption remained widespread, with 96.4% of enterprises adopting at least one of six digital areas in 2025, up from 95.1% in 2024. Among small and medium-sized enterprises (SMEs), the average number of digital areas adopted rose from 2.3 to 2.5.
On artificial intelligence, IMDA reported rising uptake across businesses of different sizes. SME AI adoption increased from 14.5% in 2024 to 23.4% in 2025, while adoption among large local enterprises rose from 62.5% to 70.4%. Among enterprises not yet using AI, the share planning to adopt within 12 months increased from 5.6% in 2023 to 12.1% in 2025.
Among AI-adopting enterprises, close to nine in 10 used commercial off-the-shelf AI tools, while 28.3% customised such tools for enterprise-specific needs. IMDA also reported that two in five AI adopters were expanding deployment or had fully deployed or integrated AI across the enterprise.
IMDA said AI adopters reported a range of business outcomes, with 87.6% citing productivity and process improvements and 44% reporting cost reduction and resource optimisation. The report also said SMEs that adopted AI-enabled, pre-approved digital solutions through the Productivity Solutions Grant (PSG) reported average cost savings of 49.5% in 2025.
Workplace AI use also rose, with IMDA reporting that 86% of workers used AI at work in 2026, up from 78% in 2025. Among AI users, 73% cited productivity improvements, 69% reported better work quality, and 68% noted stronger problem-solving capabilities. IMDA said content creation was the most common use case (77%), followed by process automation (around two-thirds) and data exploration and analytics (more than half).
The report also pointed to a training gap. While around 68% of workers recognised a need to upskill or reskill in AI, 37% attended AI-related training in the past 12 months. IMDA said workers who did not attend training commonly cited not being nominated by employers, lack of time, and uncertainty about which course to take.
To support training, IMDA said it is expanding the TechSkills Accelerator (TeSA) under the National AI Impact Programme (NAIIP). IMDA said TeSA will upskill 40,000 tech professionals over the next three years, and NAIIP will train 100,000 non-tech professionals in domain-specific AI skills by 2029, with rollout underway in sectors including accountancy and law.
Mr. Ng Cher Pong, Chief Executive, IMDA, said: “Singapore’s digital economy continues to demonstrate encouraging growth as both enterprises and workers embrace new solutions in their digital transformation journeys. As a result of the strong underlying momentum, our digital economy has now grown to 19.3% of Singapore’s overall economy. 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.”
The report said future growth will require coordination in areas including digital infrastructure, governance frameworks, workforce readiness, and building public trust in emerging technologies.
You can read the full report here.
