- Singapore’s digital economy contributed more than 17% of gross domestic product in 2022 – up from 13% in 2017.
- “The expansion of the digital economy is due to the increasing adoption of digital technologies by businesses, which in turn contributed to the robust growth of the technical workforce,” Singapore’s Infocomm Media Development Authority said in a report.
- IMDA said digitalization in the city-state is growing faster than its overall economy.
Visitors to Marina Bay walk across a bridge overlooking the Central Business District in Singapore on Sunday, June 18, 2023. (Photo by Joseph Nair/NurPhoto via Getty Images) (Photo by Joseph Nair/NurPhoto via Getty Images)
Joseph Nair | Photo only | Getty Images
SING`ORE – Singapore’s digital economy contributed to more than 17% of its gross domestic product in 2022 – higher than the 13% in 2017, according to a report from the country’s Infocomm Media Development Authority.
The study released on Friday found that the digital economy’s economic contribution to Singapore’s GDP will nearly increase from 58 billion Singapore dollars in 2017 to 106 billion Singapore dollars ($77.5 billion) in 2022, according to CNBC calculations has doubled.
The digital economy is divided into two parts: the information and communications sector; and digitalization in the rest of the economy.
One third of the digital economy was driven by the information and communications sector and two thirds by digitization in the rest of the economy.
The I&C sector drove digitalization and offered services such as telecommunications, computer programming and IT consulting, cloud computing and software development.
Digitalization in the rest of the economy measures the value generated by investment and spending in digital capital in all sectors except those from the I&C sector. These include economic outcomes that result from companies investing in digital technologies that create value, such as: B. reach customers better, optimize business processes and innovate products and services.
“The expansion of the digital economy is due to the increasing adoption of digital technologies by businesses, which in turn has contributed to the robust growth of the technical workforce,” IMDA said in the report.
Based on the latest available data, the digital economies of Estonia, Sweden and the United Kingdom accounted for 16.6%, 15% and 16.1% of their respective GDP in 2020, respectively. In comparison, Singapore’s digital economy performed better, contributing 16.7% of its GDP in 2020.
According to IMDA, gaming, online services and e-commerce were the key sub-sectors driving double-digit growth in the information and communications sector – at a rate of up to 70%. They were driven by increasing acceptance during the Covid-19 pandemic.
The added value of digitalization in the rest of the economy increased from 38.6 billion Singapore dollars in 2017 to 72.8 billion Singapore dollars in 2022, mainly driven by the finance and insurance, wholesale trade and manufacturing sectors.
As a result, the share of value added from digitalization in the economy has risen continuously from 8.7% in 2017 to 11.9% in 2022, the report says.
This represents an annual compound growth rate of 13.5%, which is faster than the 3.8% growth in Singapore’s GDP in 2022. CAGR is a measure of investment returns that takes into account what an investment will generate at an annual rate over a given period Period generates period.
The growth of digitalization in the rest of the economy is being driven by more and more companies increasing their use of digital technologies.
According to the annual IMDA survey, enterprise technology adoption rates increased from 74% in 2018 to 94% in 2022.
As a result, more tech professionals have been deployed across industries, with the number of tech jobs increasing from about 155,500 in 2017 to 201,100 in 2022.
“Despite recent layoffs in the tech sector, demand for tech jobs is expected to remain robust as the digitalization of the economy advances,” IMDA said.
“Overall, Singapore’s digital economy has grown strongly and its longer-term outlook remains positive. The Government of Singapore remains committed to building a competitive digital economy and fostering a technology-skilled workforce,” IMDA said.
Deputy Prime Minister Lawrence Wong said in his 2022 budget proposal that the government would invest 200 million Singapore dollars over the next few years in projects that build digital skills in businesses and workers.
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