Singapore’s digital economy grew to S$144.1 billion in 2025, accounting for 19.3% of GDP, up from 18.8% in 2024. At the same time, enterprise AI adoption rose across every business-size group measured by the Infocomm Media Development Authority (IMDA). The headline is growth—but the figures also show that smaller businesses still trail larger ones by a wide margin.
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AI adoption grew, but the business-size gap remains
Between 2024 and 2025, the share of enterprises using AI increased from 14.7% to 23.5%. Adoption among SMEs rose from 14.5% to 23.4%, while adoption among non-SMEs climbed from 62.5% to 70.4%.
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SMEs recorded the slightly larger percentage-point increase, but their adoption rate in 2025 remained 47 percentage points below the non-SME rate. The report’s figures show the size of the gap; they do not, on their own, explain why it exists.
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Digital adoption beyond AI was already widespread. In 2025, 96.4% of enterprises had adopted at least one of six digital areas: cybersecurity, cloud, e-payments, e-commerce, data analytics and AI. SMEs adopted an average of 2.5 areas, up from 2.3 in 2024.
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The digital economy expanded beyond the tech sector
The digital economy grew 5.6% to S$144.1 billion in 2025, while its share of GDP increased from 18.8% to 19.3%. Digitalisation in sectors outside information and communications accounted for more than two-thirds of the digital economy, making non-I&C sectors an important part of the picture.
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Tech employment also rose. The workforce grew 3.8%, from 214,000 in 2024 to 222,200 in 2025. Reporting on the figures identifies AI, data and cybersecurity among the fastest-growing areas, and points to rising demand for tech talent outside the tech sector.
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For resident tech workers, the reported median monthly wage in 2025 was S$8,000, compared with S$5,000 across all occupations for Singapore citizens and permanent residents.
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Workers are using AI more often than they are receiving training
Among surveyed workers, reported workplace AI use rose from 77.6% in 2025 to 85.7% in 2026. But only 36.7% said they had attended AI-related training in the previous 12 months. These are survey findings, not a count of every worker in Singapore.
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One reported barrier points to a role for employers: among workers who had not taken training, about 35% said their employer had not nominated them.
13 The figures indicate a gap between reported workplace use and recent training participation, though they do not establish how much training workers need or how effective it is.
Government targets focus on workers and businesses
The National AI Impact Programme aims to upskill 140,000 tech and non-tech workers by 2029. A separate programme target is to support 10,000 local enterprises over three years in advancing their AI capabilities.
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The report also records benefits among businesses already using AI: 87.6% cited productivity and process improvements, while 44% reported cost reductions and resource optimisation. These are benefits reported by adopting enterprises; they do not show that every business will achieve the same results.
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What the figures do—and don’t—show
The report’s clearest signals are that Singapore’s digital economy grew, enterprise AI adoption increased, and workplace use among surveyed workers became more common. But adoption rates alone do not reveal whether companies are using AI occasionally or integrating it deeply into their operations. The SME–larger-business gap also remains pronounced, while worker training participation trails reported workplace use.
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The figures describe growth and uptake; they do not by themselves settle questions about job displacement, how evenly benefits are shared, or why some businesses adopt AI more slowly.