Digital economy contributed 17.3% to Singapore’s GDP, over 200,000 tech jobs in 2022

SINGAPORE: Singapore’s digital economy contributed 17.3 per cent to economic growth and more than 200,000 tech jobs in 2022, according to new data released on Friday (Oct 6).

The figures – the first official measure of the size of Singapore’s digital economy – were published in a report by the Infocomm Media Development Authority (IMDA) and Lee Kuan Yew School of Public Policy.

Across various metrics, the report shows that Singapore’s digital economy expanded over the five-year period between 2017 and 2022.

The digital economy’s contribution to gross domestic product growth went up from 13 per cent to 17.3 per cent – in nominal terms, almost doubling from S$58 billion (US$42 billion) to S$106 billion.

This compares “favourably” with other similar open economies like Estonia, Sweden and the United Kingdom, IMDA said in a press release.

The digital economy has grown at a compound annual growth rate of 12.9 per cent per year since 2017, outpacing the overall economy.

The number of tech jobs also increased from about 155,500 to 201,100 over the five-year period. This meant the share of tech professionals out of total employment went up from 4.2 per cent to 5.2 per cent.

The strong demand for tech workers benefits local workers, said IMDA. More than 70 per cent of tech jobs are held by Singaporeans and permanent residents, and they command competitive wages.

Tech professionals earn a resident median monthly wage of S$7,376, excluding employer Central Provident Fund (CPF) contributions and bonuses. This is up from S$5,512 in 2017.

It is significantly higher than the overall resident median monthly wage, which is S$4,500 excluding employer CPF contributions. That figure increased from S$3,749 in 2017.

Roles in software and applications, such as software and developer engineers, make up most of the tech jobs with significant growth.

But roles are also growing in cloud computing, network and infrastructure, management and product development.

“Despite the tech layoffs in 2022/2023 which affected Singapore as well as other tech hubs globally, tech professionals will likely remain in demand as the economy digitalises,” the report stated.