Vistors to Marina Bay wander on a bridge with a view of the Central Business enterprise District in Singapore on Sunday, 18 June 2023. (Image by Joseph Nair/NurPhoto by way of Getty Pictures) (Image by Joseph Nair/NurPhoto through Getty Images)
Joseph Nair | Nurphoto | Getty Photographs
SINGAPORE — Singapore’s electronic economy contributed to extra than 17% of its gross domestic solution in 2022 — bigger than the 13% logged in 2017, in accordance to a report by the country’s Infocomm Media Growth Authority.
The study, revealed Friday, unveiled that the economic contribution of the digital overall economy to Singapore’s GDP approximately doubled to 106 billion Singapore dollars ($77.5 billion) in 2022, up from SG$58 billion in 2017, according to CNBC’s calculations.
The electronic economic climate is divided into two parts: the facts and communications sector and digitalization in the rest of the economy.
One-3rd of the digital overall economy was driven by the facts and communications sector and two-thirds by digitalization in the rest of the economic climate.
The I&C sector drove digitalization delivering products and services these types of as telecommunications, personal computer programming & IT consultancy, cloud computing and program enhancement.
Digitalization in the relaxation of the economy steps the worth produced from investments and investing in digital capital across all sectors excluding individuals from the I&C sector. They involve economic results as a outcome of corporations investing in electronic systems that build worth these kinds of as get to customers superior, improve small business processes as well as innovate merchandise and providers.
“The enlargement of the electronic economy has occur on the back again of escalating adoption of electronic technologies by enterprises, which in change contributed to the strong advancement of tech manpower,” IMDA explained in the report.
Based on the most recent readily available knowledge, the electronic economies of Estonia, Sweden and the United Kingdom accounted for 16.6%, 15% and 16.1% of their respective GDPs in 2020. Comparatively, Singapore’s electronic financial system executed far better, contributing to 16.7% of its GDP in 2020.
The critical sub-sectors driving double-digit development in the facts and communications sector — at a amount of as significant as 70% — have been game titles, on the internet services, and e-commerce, according to IMDA. They had been pushed by greater adoption for the duration of the Covid-19 pandemic.
The value-increase from digitalization in the relaxation of the economic system amplified from SG$38.6 billion in 2017 to SG$72.8 billion in 2022, driven primarily by sectors in finance and insurance, wholesale trade, and production.
As a final result, the price-incorporate from digitalization as a share of the economy rose steadily from 8.7% in 2017 to 11.9% in 2022, the report claimed.
This is equivalent to an once-a-year compound progress price of 13.5%, which is more rapidly than the 3.8% progress of Singapore’s GDP in 2022. CAGR is a evaluate of expenditure returns, which normally takes into account what an financial investment yields at an once-a-year rate over a specified time period.
Far more companies working with digital technologies
The advancement of digitalization in the rest of the overall economy is driven by additional companies stepping up on their use of electronic technologies.
The technological know-how adoption fee of companies grew from 74% in 2018 to 94% in 2022, in accordance to IMDA’s once-a-year survey.
As a end result, more tech specialists had been deployed across all sectors, with the variety of tech careers expanding from about 155,500 in 2017 to 201,100 in 2022.
“Regardless of the current tech sector lay-offs, the need for tech work opportunities is very likely to continue being resilient, as the digitalization of the economic system deepens,” mentioned IMDA.
“All round, Singapore’s digital economy has been growing strongly and its extended-time period outlook stays optimistic. The Singapore authorities carries on to be dedicated to escalating a aggressive electronic economic climate and fostering a technological know-how-proficient workforce,” reported IMDA.
Deputy Primary Minister Lawrence Wong stated in his spending budget proposal for 2022 that the authorities will invest SG$200 million over the future couple of years into jobs that create digital abilities in corporations and workers.