Vistors to Marina Bay stroll on a bridge with a view of the Central Business District in Singapore on Sunday, 18 June 2023. (Photo by Joseph Nair/NurPhoto through Getty Images) (Photo by Joseph Nair/NurPhoto through Getty Images)
Joseph Nair | Nurphoto | Getty Images
SINGAPORE — Singapore’s digital economic system contributed to greater than 17% of its gross home product in 2022 — increased than the 13% logged in 2017, in accordance with a report by the nation’s Infocomm Media Development Authority.
The examine, revealed Friday, revealed that the financial contribution of the digital economic system to Singapore’s GDP practically doubled to 106 billion Singapore {dollars} ($77.5 billion) in 2022, up from SG$58 billion in 2017, in accordance with CNBC’s calculations.
The digital economic system is split into two elements: the data and communications sector; and digitalization in the remainder of the economic system.
One-third of the digital economic system was pushed by the data and communications sector and two-thirds by digitalization in the remainder of the economic system.
The I&C sector drove digitalization offering providers reminiscent of telecommunications, pc programming & IT consultancy, cloud computing and software program improvement.
Digitalization in the remainder of the economic system measures the worth generated from investments and spending in digital capital throughout all sectors excluding these from the I&C sector. They embody financial outcomes because of corporations investing in digital applied sciences that construct worth reminiscent of attain prospects higher, optimize enterprise processes in addition to innovate services.
“The expansion of the digital economy has come on the back of increasing adoption of digital technologies by enterprises, which in turn contributed to the robust growth of tech manpower,” IMDA stated within the report.
Based on the newest obtainable information, the digital 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 digital economic system carried out higher, contributing to 16.7% of its GDP in 2020.
The key sub-sectors driving double-digit progress within the data and communications sector — at a charge of as excessive as 70% — had been video games, on-line providers, and e-commerce, in accordance with IMDA. They had been pushed by elevated adoption in the course of the Covid-19 pandemic.
The value-add from digitalization in the remainder of the economic system elevated from SG$38.6 billion in 2017 to SG$72.8 billion in 2022, pushed primarily by sectors in finance and insurance coverage, wholesale commerce, and manufacturing.
As a end result, the value-add from digitalization as a share of the economic system rose steadily from 8.7% in 2017 to 11.9% in 2022, the report stated.
This is equal to an annual compound progress charge of 13.5%, which is quicker than the three.8% progress of Singapore’s GDP in 2022. CAGR is a measure of funding returns, which takes into consideration what an funding yields at an annual charge over a specified interval.
More corporations utilizing digital applied sciences
The progress of digitalization in the remainder of the economic system is pushed by extra corporations stepping up on their use of digital applied sciences.
The know-how adoption charge of companies grew from 74% in 2018 to 94% in 2022, in accordance with IMDA’s annual survey.
As a end result, extra tech professionals had been deployed throughout all sectors, with the variety of tech jobs rising from about 155,500 in 2017 to 201,100 in 2022.
“Despite the recent tech sector lay-offs, the demand for tech jobs is likely to remain resilient, as the digitalization of the economy deepens,” stated IMDA.
“Overall, Singapore’s digital economy has been growing strongly and its longer-term outlook remains positive. The Singapore government continues to be committed to growing a competitive digital economy and fostering a technology-skilled workforce,” stated IMDA.
Deputy Prime Minister Lawrence Wong stated in his funds proposal for 2022 that the federal government will make investments SG$200 million over the subsequent few years into initiatives that construct digital capabilities in companies and staff.
Source: www.cnbc.com”