Singapore's digital economy grows to S$144.1 billion as AI adoption accelerates
Nearly one in four Singapore businesses adopted AI in 2025, up from about one in seven a year earlier, according to the Singapore Digital Economy Report.
Singapore's digital economy expanded to S$144.1 billion (US$112.4 billion) in 2025, growing faster than the rest of the economy, according to the Singapore Digital Economy Report released on October 5. The digital economy accounted for 19.3 percent of the country's gross domestic product (GDP), up from 18.8 percent or S$136.5 billion in 2024.
Non-information and communications (I&C) sectors remained the biggest growth driver, contributing more than two-thirds of the digital economy's value addition, which grew 3.6 percent year-on-year to S$97 billion. The tech employment in Singapore grew 3.8 percent year-on-year to 222,200 in 2025, with AI, data, and cybersecurity roles among the fastest-growing.
AI adoption among all enterprises rose from 14.7 percent in 2024 to 23.5 percent in 2025, with SMEs adopting AI at a similar rate (23.4 percent) as large enterprises (70.4 percent). Almost nine out of ten AI-adopting enterprises use commercial off-the-shelf AI tools, while 28.3 percent customize AI tools to meet their specific needs.
Notably, two in five AI-adopting enterprises are expanding or have fully deployed AI across their operations.
Written by urgent.news from CNA - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
