Singapore Digital Economy Growth Plans
According to the recent “Singapore Digital Economy Report 2023” by the Infocomm Media Development Authority (IMDA) and Lee Kuan Yew School of Public Policy, Singapore’s digital economy contributed over 17% to its Gross Domestic Product (GDP) in 2022, a significant increase from 13% in 2017. This translates to a near doubling of its economic contribution, from SGD 58 billion to SGD 106 billion (USD 77.5 billion) between 2017 and 2022. This growth compares favorably to other similar open economies.
The Information and Communication sector played a leading role, driving one-third of the digital economy’s growth between 2017 and 2022. Key contributors within this sector include online services, games, telecommunication services, IT consultancy, e-commerce, hosting services, IT services, software, and more.
Digitalization Beyond I&C
Significantly, two third of the digital economy stems from digitalization across the rest of the economy. This refers to the value generated from investments and spending in digital across all sectors, excluding those from the information and communication sector. This encompasses aspects like improved customer outreach, optimized business processes, and innovative product and service development.
Technology Adoption on the Rise
The technology adoption rate grew from 74% in 2018 to 94% in 2022. Notably, large enterprises registered higher levels of adoption across various technologies, including cloud computing, data analytics, and AI. Sectors like finance and insurance, and professional services have also adopted digital technologies more extensively compared to industries like construction, real estate, transportation, and storage.
Government Initiatives
The Singapore government is strongly committed to growing a competitive digital economy and fostering a tech-savvy workforce. Singapore Budget 2024 gave nearly USD 3000 to every mid-career worker to learn new things and switch to better-paying jobs. Singapore Budget 2023 aims to enhance the technological expertise of Singaporeans and businesses to enable them to seize opportunities in a digital world. Budget 2022 specifically allocated SGD 200 million to support companies and workers in building their digital capabilities in the years ahead.
Singapore’s Digital Enterprise Blueprint
Launched in 2023, the Singapore’s Digital Enterprise Blueprint serves as a comprehensive strategy to aid Singaporean companies in their digital transformation journey, enabling them to leverage the full potential of the digital economy. Initiatives are rolled out at various levels: national, sectoral, and individual company.
Key Highlights:
• Ensuring the continued relevance of the 20 industry digital plans (IDPs) for SMEs. These plans offer step-by-step guidance for each sector, aiding businesses in identifying suitable digital solutions and training programs to equip their employees with the necessary skillsets at every stage of their digital transformation.
• The Advanced Digital Solutions (ADS) scheme aims to elevate the digital maturity of SMEs. The program provides tailored cybersecurity health plans, national cybersecurity certification assistance, and subsidized cybersecurity consultancy services. These consultants act as virtual Chief Information Security Officers (CISOs) for SMEs, akin to a “CISO as a Service” (CISOaaS) model.
For additional information about Singapore’s thriving digital economy, please contact Commercial Specialist Amelia Yeo.