Singapore’s digital economy reached S$144.1 billion in 2025, accounting for 19.3% of gross domestic product, up from S$136.5 billion and an 18.8% share in 2024. According to the Infocomm Media Development Authority’s Singapore Digital Economy Report 2026, the sector recorded year-on-year growth of 5.6%, outpacing the 3.1% expansion in nominal GDP. Enterprise AI adoption and worker AI use also increased across the economy.
Digitalisation outside the Information & Communications sector remained the larger contributor. Nominal value-added from digitalisation in non-I&C sectors reached S$97.0 billion, growing 3.6% year on year, while the I&C sector reached S$47.1 billion. Base digital adoption deepened across the wider economy in parallel, with 96.4% of enterprises having adopted at least one of six digital areas in 2025, up from 95.1% in 2024.
AI adoption moves into wider deployment
AI adoption across all enterprises rose from 14.7% in 2024 to 23.5% in 2025. Among SMEs, adoption climbed from 14.5% to 23.4%, while large local enterprises advanced from 62.5% to 70.4%. Interest among businesses that had yet to adopt AI also increased, with 12.1% stating in 2025 that they planned to use AI within the next 12 months, up from 5.6% in 2023. Uptake varied considerably by sector, led by the I&C industry at an adoption rate of 46.8% in 2025, followed by Professional Services at 34.5% and Finance & Insurance at 27.6%. Among firms that had not yet adopted AI, the most common barrier remained a perceived lack of need because of their small business scale.
Businesses were also at different stages of deployment. Close to nine in 10 AI-adopting enterprises used commercial off-the-shelf AI tools, while 28.3% customised commercial tools for their own needs. In addition, two in five were either expanding AI deployment or had fully deployed or integrated AI across the enterprise.
Productivity and process improvement was the most commonly cited benefit, reported by 87.6% of AI-adopting enterprises, while 44% cited cost reduction and resource optimisation. Separately, SMEs that adopted AI-enabled, pre-approved digital solutions through the Productivity Solutions Grant reported average cost savings of 49.5% in 2025. The figure was based on applicants’ self-declared business outcomes after adopting the digital solutions.
Worker use rises faster than training
AI use at work increased from 77.6% of surveyed workers in 2025 to 85.7% in 2026. Among AI users, 73% cited productivity improvements, 69% reported better work quality and 68% noted stronger problem-solving capabilities. Content creation was the most common workplace use case at 77%, followed by process automation among around two-thirds of workers and data exploration and analytics among more than half. Around one-third of AI-using workers said they spent less time on tasks, with around six in 10 of this group saving up to an hour a day.
Training participation remained lower than the share of workers who believed they needed additional AI skills. While around 68% recognised a need to upskill or reskill in AI, 37% had attended AI-related training in the previous 12 months. Among workers who had not attended training, around 35% said their employers had not nominated them, a similar proportion cited a lack of time and about one in four were unsure which course to choose.
IMDA said it is expanding the TechSkills Accelerator under the National AI Impact Programme to strengthen AI capabilities across the workforce. TeSA will upskill 40,000 tech professionals over the next three years, equipping them with advanced AI skills to become full-stack developers with agentic AI capabilities. NAIIP will separately train 100,000 non-tech professionals in domain-specific AI skills by 2029, with rollout already under way in sectors including accountancy and law.
Tech employment grows outside the I&C sector
Singapore’s tech workforce grew 3.8% year on year to 222,200 in 2025. Growth was led by non-I&C sectors at 5.3%, compared with 1.8% in I&C, with non-I&C industries accounting for 59% of tech professionals. AI & Data and Cybersecurity were among the fastest-growing tech occupations. Tech occupations also continued to command higher wages, with the median monthly wage for resident tech workers standing at S$8,000 in 2025, 60% above the overall resident median of S$5,000.
Demand for AI skills increased alongside tech employment. The share of tech job postings requiring at least one AI skill rose from 14.0% in 2024 to 16.7% in 2025, while postings requiring at least two AI skills increased from 4.9% to 7.6%. The increase was recorded across both I&C and non-I&C sectors, including Finance & Insurance, Professional Services and Manufacturing.
