Singapore's digital economy grows to S$144.1 billion as AI adoption accelerates

Singapore's digital economy expanded to S$144.1 billion in 2025, driven by the rapid adoption of artificial intelligence (AI). Nearly one in four businesses in Singapore now uses AI, a notable increase from just one in seven a year earlier. The digital economy now constitutes 19.3% of Singapore's GDP, up from 18.8% in 2024, according to the Singapore Digital Economy Report released by the Infocomm Media Development Authority (IMDA). This growth outpaces the broader economy's growth, which was 3.1% year-on-year.

The non-information and communications (I&C) sectors remain the biggest contributors to the digital economy, accounting for more than two-thirds of its value. These sectors saw a 3.6% year-on-year increase in digital value-added to S$97 billion. Meanwhile, the I&C sector itself expanded by 6.1% to S$47.1 billion in 2025. This digital expansion has translated into increased tech employment, which grew by 3.8% to 222,200 in 2025, with roles in AI, data, and cybersecurity leading the way.

AI adoption continues to accelerate, with the adoption rate among all enterprises rising from 14.7% in 2024 to 23.5% in 2025. Small and medium enterprises (SMEs) have also seen a significant rise in AI adoption, from 14.5% in 2024 to 23.4% in 2025. Large local enterprises increased their AI adoption from 62.5% to 70.4%. Despite this progress, about 68% of workers recognize the need to upskill or reskill in AI, yet only 37% have attended AI-related training in the past 12 months, indicating a gap between workers' ambitions and their access to training.