There have been amazing changes in Singapore’s digital world, and the country’s digital economy has had a big impact on its economic scene. A new study from Singapore’s Infocomm Media Development Authority (IMDA) has the following main points:
Digital Economy Amazing Changes: E-commerce and social media have both grown a lot
Fourteen years have passed since Singapore’s digital economy started growing quickly. Its share of the country’s GDP has almost doubled. The IMDA study says that the digital economy made up over 17% of Singapore’s GDP in 2022. This is a big jump from 2017, when it only made up 13%.
Breakdown of the digital economy
The information and communications (I&C) sector and digitalization in the economy as a whole make up the two major parts of the digital economy. The I&C sector makes up one-third of the digital economy. It is known for driving digitalization through services like software creation, cloud computing, and IT consulting. The other two-thirds come from attempts to digitalize other industries besides I&C.
Things that are causing digital economy growth
According to the study, one big thing that’s helping the digital economy grow is the rise in businesses using digital technology. In turn, this usage has led to strong growth in the tech workforce.
Comparison and Performance Around the World
When looking at how much them added to GDP around the world, Singapore did better than its peers. Estonia, Sweden, and the UK, on the other hand, had 16.6%, 15%, and 16.1% of their GDPs come from exports in 2020, showing how good Singapore’s situation is.
Key sub-sectors that are boosting growth
Some parts of the information and communications business have grown by more than 10%, and some have grown by as much as 70%. Games, online services, and e-commerce stood out and became more popular quickly during the COVID-19 outbreak.
Effects of digitization on the economy as a whole
It’s clear that digitalization has had an effect on the economy as a whole. For example, the value-add from digitalization has grown a lot in banking and insurance, wholesale trade, and manufacturing. Because of this, the rise in digitalization’s value-added share of the economy has been steady. It rose from 8.7% in 2017 to 11.9% in 2022.
Businesses using tech more and more and job growth
A study by IMDA every year shows that the rate at which businesses adopted technology rose from 74% in 2018 to a very impressive 94% in 2022. Because more people are using technology, more tech workers are needed in all fields. The number of tech jobs is expected to rise from about 155,500 in 2017 to 201,100 in 2022.
What the government is doing and what the future holds
The IMDA is still positive about the future of Singapore’s digital economy, even though the tech sector has been having some problems lately. Deputy Prime Minister Lawrence Wong’s budget plan for 2022 includes SG$200 million for projects that help businesses and workers improve their digital skills. This shows that the government is serious about this.
The main point is that Singapore’s digital economy has not only survived problems but also thrived, which is a good sign for future growth and technology progress.