Singapore’s Digital Economy Reaches S$144.1 Billion as Enterprise AI Adoption Surges

Singapore’s digital economy reached S$144.1 billion in 2025, growing 5.6% year over year and accounting for 19.3% of the country’s GDP. The latest figures from the Infocomm Media Development Authority (IMDA) also show that enterprise AI adoption accelerated sharply, while demand for technology workers increasingly came from industries outside the traditional tech sector. CNA

The numbers point to a broader shift: AI is becoming part of everyday business operations, but workforce training is not keeping pace with adoption.

1. Enterprise AI Adoption Jumps to 23.5%

AI adoption among Singapore enterprises increased from 14.7% in 2024 to 23.5% in 2025. Adoption among SMEs rose from 14.5% to 23.4%, while large local enterprises increased from 62.5% to 70.4%. CNA

Among businesses with at least 10 employees, Singapore’s AI adoption rate reached 34.6%, compared with an OECD average of 20.3%.

AI use is also moving beyond experimentation. Nearly nine in 10 AI-adopting enterprises use commercial off-the-shelf tools such as ChatGPT, Claude, Gemini and Microsoft Copilot. Meanwhile, 28.3% customise AI tools, and about two in five AI-adopting businesses are expanding deployment or have fully integrated AI into their operations. CNA

Source: IMDA figures reported by CNA. CNA

2. Tech Jobs Are Growing Outside the Tech Industry

Singapore’s technology workforce increased 3.8% to 222,200 workers in 2025, up from 214,000 in 2024. Roles related to AI, data and cybersecurity were among the fastest-growing technology occupations. CNA

Importantly, non-information and communications (non-I&C) industries are driving much of this demand. Tech employment in these sectors grew 5.3%, compared with 1.8% in the I&C sector.

Non-I&C industries employed 130,900 tech workers, representing about 59% of Singapore’s total technology workforce. The median monthly wage for resident tech workers also reached S$8,000, compared with S$5,000 for resident workers overall. CNA

This means technology skills are increasingly relevant to finance, professional services, wholesale trade and other industries—not only companies whose primary business is technology.

3. Workers Are Using AI Faster Than They Are Being Trained

AI adoption is also visible at the individual worker level. In 2026, 86% of workers reported using AI at work, up from 78% in 2025.

Common workplace applications include content creation, process automation, data exploration and analytics. Among workers reporting benefits from AI, 73% cited productivity improvements and 69% reported better work quality. CNA

However, a significant training gap remains. About 68% of workers recognised a need to upskill or reskill in AI, but only 37% attended AI-related training during the previous 12 months.

Among workers who did not receive training, around 35% cited a lack of employer nomination, while a similar proportion cited lack of time. About one in four were uncertain about which course to take. CNA

4. Singapore Is Expanding AI Skills Programmes

To address the skills gap, IMDA is expanding the TechSkills Accelerator (TeSA) under the National AI Impact Programme (NAIIP).

The programme aims to upskill 40,000 tech professionals over three years in advanced AI capabilities. The NAIIP also plans to train 100,000 non-tech professionals in domain-specific AI skills by 2029. These are programme targets, not completed outcomes. CNA

The approach reflects an important change in how AI skills are being developed: businesses increasingly need people who can apply AI within specific professions, rather than only specialist AI engineers.

What Readers Should Know

• Singapore’s digital economy reached S$144.1 billion in 2025, equivalent to 19.3% of GDP, while enterprise AI adoption rose to 23.5%. CNA
• Technology demand is increasingly coming from non-tech industries, which employed about 59% of Singapore’s tech workforce and recorded faster tech-employment growth than the I&C sector. CNA
• The biggest challenge is skills development: 68% of workers recognised a need for AI upskilling, but only 37% received AI-related training in the previous year. CNA

Conclusion

Singapore’s latest digital-economy figures show that AI is becoming increasingly embedded in both businesses and the wider workforce. The digital economy is growing, technology jobs are spreading across non-tech industries, and enterprise AI adoption is rising rapidly.

The next challenge is workforce capability. Closing the gap between AI usage and access to effective training will be important if Singapore wants businesses and workers to keep pace with the country’s accelerating digital transformation.

Sources and Further Reading

• Singapore’s digital economy grows to S$144.1 billion as AI adoption accelerates — CNA
• Singapore Digital Economy Report 2025 — IMDA
• Singapore’s digital economy grows by S$12 billion, as tech jobs climb to 214,000 — CNA