Singapore Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in singapore, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Digital Economy
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Overview

National Focus and Projected Digital Economy Growth

Singapore embraces innovation to drive positive social and economic impact. Singapore consistently ranks as one of the world’s top network-ready nations, thanks to ongoing investments in ICT infrastructure, training programs, research and development (R&D) support, legislation, a highly skilled workforce, minimal cultural and language barriers, and an ecosystem that fosters innovation. 

According to the Singapore Digital Economy Report 2024 by the Infocomm Media Development Authority (IMDA), Singapore’s digital economy continues to thrive, contributing US$84.5 billion, or 17.7% of the nation’s Gross Domestic Product (GDP). From 2018 to 2023, the digital economy experienced a robust compounded annual growth rate (CAGR) of 11.2%, nearly double the national GDP growth rate of 5.8%.

Over 94.6% of SMEs have adopted at least one of the six key digital areas such as cybersecurity, cloud computing, e-payment, e-commerce, data analytics, and artificial intelligence (AI), reflecting a 0.5% increase from 2022. The most digitized general business functions include accounting, document management, and digital marketing.   

Looking ahead to 2025, Singaporean corporations are expected to increase technology spending, particularly in areas such as AI, cloud computing, and cybersecurity, driven by government initiatives and a commitment to digital transformation. The 2025 budget includes a US$2.2 billion top-up to the National Productivity Fund (NPF) to enhance high-value investment and enterprise innovation in emerging areas like artificial intelligence and quantum computing, as well as a US$111.9 million Enterprise Compute Initiative aimed at accelerating AI adoption to improve productivity and decision-making and drive enterprise transformation.

Regulations in Singapore’s digital economy are reviewed regularly and updated to keep pace with technological advancements, evolving business models, and changing people’s needs. This adaptability ensures that the digital economy remains robust and responsive. Singapore takes a whole-of-government approach to enhance the security and resilience of the digital domain and minimize risk and disruption to Singapore’s digital space. The aim is for all stakeholders to build a safe, secure, and resilient digital space to ensure trust and confidence in the digital future. As part of Total Defense, Digital Defense requires Singaporeans to practice good cybersecurity habits, guard against fake news and disinformation, and consider the impact of their actions on the community.

Singapore aims to build a safe and inclusive society where Singaporeans are empowered and equipped with skills to harness opportunities and benefit from digital developments. Numerous programs ensure that Singaporeans have digital access and life-long digital literacy skills.  In the future, Singapore will continue to leverage technology to uplift its collective potential, uphold trust in the digital domain, and safeguard its infrastructure.  

Singapore is a competitive market.  Major digital players are represented here through their own offices or by partners.  They include Microsoft, AWS, Apple, Salesforce, IBM, Mastercard, Palo Alto, and Google.
 

Market Challenges

Regulatory Environment

Digital Trade Barrier

The U.S. and Singapore have established three agreements to enhance cybersecurity cooperation in the financial sector, boost regional capacity building, and facilitate military-to-military engagement. The bilateral Memorandum of Understanding (MOU) between the U.S. Department of Treasury and the Monetary Authority of Singapore on Cybersecurity Cooperation strengthens the preparedness and resilience of both financial sectors against cyber threats while promoting information sharing regarding cyber risks to financial markets. Additionally, the U.S. Cybersecurity and Infrastructure Security Agency (CISA) and Singapore’s Cyber Security Agency (CSA) have finalized an MOU that enhances the exchange of information on cyber threats and defensive measures, improves coordination for cyber incident responses, and fosters cybersecurity capacity building throughout Southeast Asia. 

Although Singapore has a strong track record in intellectual property (IP) protection and enforcement, instances of infringed goods being transshipped through Singapore persist. Unauthorized streaming services and third-party illicit streaming devices continue to be used to access pirated content. However, Singapore is not complacent. The amendment to the Copyright Act in 2021 introduced civil and criminal liabilities for anyone knowingly making, importing for sale, commercially distributing, or selling illicit streaming devices, as well as providing services that allow such devices to access content from unauthorized sources. Police raids and cease-and-desist letters have been issued to offending shop owners, resulting in a significant reduction in the number of physical stores offering illegal devices. A precedent was established in Singapore’s battle against piracy with the October 2024 conviction of an individual and his two companies for selling illegal streaming devices. The convicted parties faced maximum fines of up to US$74,627 for individuals and US$149,254 for companies, along with a 10-month jail sentence. The Deputy Public Prosecutor is pursuing a jail term and a fine for the company/person involved in a second case. 

In 2024, Singapore’s Ministry of Law (MOL) and the Intellectual Property Office of Singapore (IPOS) held a public consultation to discuss exceptions for bypassing digital access control measures (ACMs) for lawful, non-infringing uses. Consequently, new a regulation—the Copyright (Access Control Measures – Prescribed Exceptions) Regulations—will come into effect in 2025. While MOL and IPOS did not introduce a new exception for computational data analysis, which would protect copyright owners and licensing models for AI training data, they retained the existing exception for assistive technologies specifically for individuals with print disabilities. New exceptions were introduced for libraries, museums, and archives for preservation or replacement, as well as for administrative uses by public institutions. These changes aim to strike a balance between IP protection and reasonable, socially beneficial uses of content within Singapore.


Digital Trade Opportunities

Cross-Sector Enabling Technologies

Artificial Intelligence

Singapore is one of the world’s leading AI-powered economies. The country’s innovative AI initiatives, such as the world’s first AI governance framework and the toolkit AI Verify, alongside its refreshed National AI Strategy (NAIS 2.0), demonstrate its ambition to be a global hub for AI. According to an Access Partnership report titled “Economic Impact Report: Strengthening Singapore’s AI Leadership with Google” (2024), Singapore expects AI to contribute approximately US$30.1 billion to its economy, representing about 30% of the nation’s GDP by 2030. There are also expectations for a tripling of AI experts between 2023 and 2026. 

According to Access Partnership’s 2024 Consumer Survey, generative AI is already widely utilized in Singapore. About 55% of consumers use generative AI tools in their everyday lives, with 60% of working individuals incorporating generative AI into their professional tasks. Furthermore, 84% of individuals aged 18-35 are currently using AI tools, including generative AI. A poll conducted by Ipsos in 2024 found that 78% of Singaporeans are eager to learn more about AI.

The Singapore Digital Economy Report 2024, published by IMDA, reveals that companies adopting AI have shown significant improvements in productivity and processes. For example, DBS Bank reported a notable economic impact of US$276 million in cost savings and added value from AI in 2023 alone. They utilized AI to enhance credit risk assessments for small and medium-sized enterprises (SMEs), facilitate career development planning for employees, monitor transactions in real time for irregularities and potential fraud, and employed their AI-enabled virtual assistant to manage and respond to customer inquiries more efficiently. Additionally, Coca-Cola’s Singapore plant harnessed AI and machine learning, achieving a 28% increase in throughput, a 70% boost in labor productivity, and a 34% reduction in Scope 2 emissions. 

In addition to major companies like OpenAI and Databricks selecting Singapore as their preferred base for regional headquarters, the city-state has seen a surge in AI-related initiatives, accelerators, hubs, centers of innovation, and collaborations. Notable examples include the US$31 million Lilly Digital Health and Lilly Centre for Clinical Pharmacology Digital Health Innovation Hub, which accelerates the research and development of AI-powered digital health technologies, and a strategic collaboration between Grab and OpenAI that focuses on enhancing accessibility, customer support, and mapping capabilities. 

This partnership also piloted the ChatGPT Enterprise for Grab employees to improve productivity. Furthermore, Google Cloud’s AI Trailblazer Initiative supports organizations in developing generative AI solutions that address real-world challenges. The Tribe, Digital Industry Singapore (DISG), and Nvidia’s Ignition AI Accelerator offer a four-month curriculum to prepare startups for the market. IBM and the National University of Singapore (NUS) are set to launch an AI Research and Innovation Centre to provide NUS students with access to IBM’s advanced AI infrastructure and open-source models, thereby accelerating AI research and driving innovation. 

In 2024, government AI initiatives included the Generative AI Sandbox and the AI Verify Project Moonshot. The Generative AI Sandbox allows SMEs to access a variety of generative AI solutions to enhance their marketing, sales, and customer engagement efforts, featuring 13 generative AI solutions. Project Moonshot acknowledges the challenges surrounding AI system security and helps enterprises by providing a user-friendly testing toolkit designed to address common security and safety issues associated with large language models. It is noted as one of the world’s first open-sourced tools integrating red-teaming, benchmarking, and baseline testing in one platform. 

While AI holds tremendous potential for positive impact, it can also be misused to enhance scams, fraudulent content, malware, phishing emails, deepfake videos, and more. The rise of AI has introduced both new challenges and solutions in the fight against scams, requiring defenders to evolve AI-driven strategies to outsmart and stay ahead of attackers. Integrating AI into cybersecurity offers hope in the ongoing battle to protect users from online scams and data poisoning. Singapore has made significant efforts to harness the potential of AI while addressing its associated risks. A comprehensive approach has been adopted for the responsible management of AI development, involving nation-wide policies, industry-level initiatives, and enterprise-level guidelines. Key developments in 2024 include: 

  • Model AI Governance Framework for Generative AI (“GenAI”)
  • AI Playbook for Small States
  • Digital Enterprise Blueprint
  • Guidelines and Companion Guide on Securing AI Systems
  • Proposed Guide to Synthetic Data Generation
  • Advisory Guidelines on the Use of Personal Data in AI Recommendation and Decision Systems

The Monetary Authority of Singapore (MAS) published an information paper in 2024 titled “Cyber Risks Associated with Generative AI.” The purpose of this paper is to increase financial institutions’ awareness of the key cyber threats posed by generative AI, as well as the associated risks and appropriate mitigation measures. This publication is part of Project MindForge, a collaboration between MAS, financial industry participants, and technology partners aimed at developing a risk framework for the responsible use of generative AI in the financial sector.

Specific Industry Sub-Sectors

Cybersecurity

Singapore aims to establish itself as a trusted global digital and data hub, further solidifying its status as an international business center. However, the Thales Digital Trust Index 2025 reported an overall decline in trust across all sectors in Singapore. 22% of consumers indicated a decrease in trust, attributing this to personal data breaches experienced over the past year. As a result, 85% of customers in Singapore have abandoned a brand in the last 12 months. In 2024, Singapore ranked 8th globally as a threat source destination, rising from 12th place in 2022. Kaspersky’s findings indicated that attack numbers have surged over the past three years, escalating from 11.1 million in 2022 to 21.9 million in 2024.

Verizon’s 2025 Data Breach Investigations Report (DBIR) found that in the Asia-Pacific (APAC) region, system intrusions now account for 80% of all breaches, reflecting a 39% increase. This highlights the rapidly evolving threat landscape faced by organizations in Singapore and the broader region. Notably, the presence of malware surged to 83% in 2025, with ransomware accounting for 51% of breaches, while hacking incidents dropped slightly to 67%. The most common breach method involves stolen credentials, which are present in 55% of cases. This pattern, characterized by hacking using stolen credentials and followed by the installation of ransomware, remains prevalent. 

Despite the technological sophistication of many attacks, the human element continues to be a significant vulnerability. Social actions contribute to 25% of breaches, with 40% of those involving pretexting and 34% involving prompt bombing, a new threat variety. The threat actor profile in APAC is predominantly external, with nearly 100% of breaches attributed to outside actors. Among these, 80% are categorized as organized criminal groups, while 33% involve state-affiliated actors. Global trends identified in the report are particularly relevant for organizations in Singapore, including a 34% increase in vulnerability exploitation, particularly focusing on zero-day exploits that target perimeter devices and virtual private networks (VPNs). Furthermore, the involvement of third parties has doubled, underscoring the risks associated with supply chains and partner networks, disproportionately impacting small and medium-sized enterprises (SMEs). 
 
The Singapore Police Force’s “Mid-Year Scams and Cybercrime Brief 2024,” published in August 2024, revealed an 18% increase in scams and cybercrime incidents during the first half of the year, totaling 28,751 cases compared to the same period in the previous year. Scams made up 92.5% of these cases, with 26,587 incidents, marking a 16.3% increase in the first half of 2023. The total monetary loss due to scams rose by 24.6%, reaching at least US$385.6 million in the first half of 2024 in the same period the previous year. 

In 2024, Singapore ranked 8th globally as a threat source destination, rising from 12th place in 2022. Kaspersky’s findings indicated that attack numbers have surged over the past three years, escalating from 11.1 million in 2022 to 21.9 million in 2024. According to Statista, the Singapore cybersecurity market is estimated to be worth US$574.4 million in 2025 and is expected to grow to US$773.2 million (+34.6%) by 2029. Revenue is projected to experience a compound annual growth rate (CAGR) of 7.72% between 2025 and 2029. Cyber solutions will hold the largest market share, with a projected volume of US$321.1 million in 2025. 

Companies interested in entering the Singapore cybersecurity market should be aware of the laws and guidelines introduced or published in Parliament in 2024. These focus on security, data protection, online criminal activities, digitally enabled scams, and the use of emerging technologies. They include:

  • Operational Technology Cybersecurity Masterplan
  • Cybersecurity (Amendment) Act
  • Safe App Standard
  • Advisory Guidelines on Children’s Personal Data in the Digital Environment
  • Online Criminal Harms Act
  • Protection from Scams Bill

The MAS has released notices and guidelines promoting responsible cyber management, including the Notices on Cyber Hygiene (FSM-N06) and the Notices on Technology Risk Management (FSM-N21) in 2024. The Notices on Cyber Hygiene establish mandatory requirements for entities and individuals providing financial services, such as operators of designated payment services, merchant banks, and insurance agents. They also outline best practices, including the application of appropriate security patches, the implementation of adequate security standards, the use of malware protection, and the execution of multi-factor authentication. 

The Notices on Technology Risk Management require financial service providers to make reasonable efforts to maintain high availability of their critical systems. Specifically, the maximum unscheduled downtime for each critical system should not exceed four hours within any 12-month period. Additionally, providers must notify MAS within one hour of discovering an IT security incident that significantly impacts their operations or services.

Institutions should consider implementing the following measures: 

  • Adopt a Service-Centric Approach: Strengthen operational resilience by focusing on service delivery.
  • Implement an End-to-End Strategy: Enhance the availability and continuity of digital services through comprehensive measures.
  • Diversify Disaster Recovery Drills: Move beyond routine, scripted IT disaster recovery exercises by incorporating unscripted elements into regular drills.
  • Maintain a Comprehensive IT Inventory: Keep an updated inventory of IT components and map third-party dependencies to mitigate potential supply chain risks.
  • Inventory of Cryptographic Solutions: Track cryptographic solutions utilized across operations to prioritize replacements, especially as they are vulnerable to quantum attacks.
  • Develop a Multi-Layered Scam Response: Address emerging scam campaigns by using AI for fraud detection, implementing phishing-resistant authentication, and fostering greater information sharing regarding new scam typologies.
  • Enhance Customer Education: Invest in customer education to improve awareness, gain trust and protect data and privacy.
     

Quantum 

Singapore is actively working to develop its quantum market with the goal of becoming a leading industry hub. This effort is driven by the National Quantum Strategy (NQS), which has been allocated US$224 million in funding from Singapore’s Research, Innovation, and Enterprise 2025 plan. The NQS builds upon Singapore’s previous investment of US$298.5 million in quantum research over the past two decades. The strategy aims to enhance scientific research, develop engineering capabilities, foster a strong talent pipeline, and promote partnerships within the industry. According to the Boston Consulting Group, the quantum sector is projected to generate between US$450 billion and US$850 billion in economic value globally by 2040. Several U.S. organizations are involved in the quantum sector in Singapore, including Quantinuum, Keysight, IBM, AWS, Google, and JP Morgan. Additionally, U.S. investors such as IQT, Shasta Ventures, and 500 Startups are active in the region. 

State investor Temasek has invested in U.S. startup PsiQuantum, which aims to build the world’s first utility-scale commercial quantum computer by 2027, as well as in French startup Pascal. Moreover, there are ten local quantum startups focused on areas such as communication, simulation, photonics, and sensors. In Singapore, there are currently 200 quantum researchers and 150 PhD candidates contributing to the field. Their work centers on developing quantum sensors for applications in positioning, navigation, timing, remote sensing, and biomedical sensing and imaging. 

Key initiatives in the quantum sector include: 

  • Hybrid Quantum Classical Computing (HQCC) 1.0
  • National Quantum Computing Hub (NQCH)
  • Financial Sector Technology & Innovation Scheme (FSTI) Quantum Track
  • Quantum Engineering Programme (QEP)
  • National Quantum Scholarships Scheme
  • National Quantum Safe Network (NQSN)
  • National Quantum Sensor Programme (NQSP)
     

Financial Technologies 

Singapore is the leading financial services hub for Asia, excluding China. Approximately 150 foreign banks operate within Singapore, alongside six local banks. Additionally, Singapore is home to many non-bank financial institutions, both domestic and foreign, including firms in financial advisory, asset management, insurance, and capital markets. 

Singapore has a local FinTech industry with over 1,300 companies, US$4.1 billion worth of investment and over 50 innovation labs. The leading sectors for funding are banking technology (21%), blockchain in financial services (20%), and investment technology (18%). This market is continually reinventing itself to adapt to geopolitical events and economic shifts. In a recent FinTech survey, “Fintech’s State of Play 2.0,” it was found that 78% of firms have recalibrated their business models over the past three years. This adjustment includes introducing new products and services, changing target markets, and enhancing operational efficiency to maintain their competitive edge and profit margins. Recently, companies have increasingly turned to emerging technologies and integrated innovations into their service offerings. The survey also indicates that 43% of FinTech companies recognize the need to prioritize the adoption of AI, blockchain, and other emerging technologies in the near future, with plans to focus on AI technology within the next 3 to 5 years. 

In 2024, MAS enhanced the existing AI and data grant scheme under the Financial Sector Technology and Innovation (FSTI) 3.0 program by allocating up to US$74.6 million to support developments in quantum and artificial intelligence capabilities within the financial sector. AI is increasingly transforming how financial institutions operate, automating investment strategies, and enhancing fraud detection. Examples include AI-driven robo-advisors offering tailored financial advice, AI-powered fraud detection systems monitoring transaction patterns to block suspicious activities in real-time, enhanced identity verification using machine learning for electronic Know Your Customer (eKYC), and AI-driven chatbots improving customer service. According to a survey by PwC, 69% of senior executives plan to use generative AI for cyber defense in the next 12 months, with platforms incorporating their large language models alongside their cybersecurity solutions. Additionally, 25% of executives surveyed in PwC’s 27th annual global CEO survey intends to reduce their workforce by 5% or more in 2024, attributing this decision to the impact of generative AI. 

In February 2024, MAS issued an advisory to all financial institutions in Singapore regarding the risks associated with quantum computing. A quantum track has been established within the Financial Sector Technology and Innovation Scheme (FSTI 3.0), consisting of grants to support technology centers, innovation, security, and talent development. Quantum computing can optimize investment portfolios through faster and more accurate predictive models, develop quantum-resistant encryption algorithms crucial for securing future financial transactions, enhance cryptography for cryptocurrencies to withstand decryption attempts and prevent fraud and money laundering by analyzing vast amounts of data and identify anomalies that may indicate risks associated with anti-money laundering and combating the financing of terrorism (AML/CFT). 

Blockchain technology continues to evolve as a key driver of innovation in the FinTech sector. Its decentralized nature allows for more secure and efficient financial transactions, making it particularly beneficial for cross-border payments, digital identity verification, and decentralized finance (DeFi) solutions. Asset tokenization represents a significant advancement, potentially enabling a broader range of financial products to be available to a wider audience of investors. Innovations like DeFi and asset-backed tokens are expected to enhance value propositions further, attracting both individual and institutional investors.

While blockchain, generative AI, and quantum computing have immense potential to transform FinTech, their combined capabilities serve as an equally powerful catalyst. Together, these technologies can address key challenges in financial services while unlocking new opportunities for enhanced security, improved fraud detection, and optimized financial operations. The integration of these three technologies will push the boundaries of financial services, resulting in faster, more secure, and more intelligent solutions than ever before. Digital assets are becoming increasingly significant within the FinTech space. The growth of Web3 companies, which has risen from 5% to 16% of the ecosystem between 2022 and 2024, underscores the growing importance of digital assets. Regulatory clarity from MAS has been a crucial driver of this sector’s expansion.
 

Digital Economy-related Trade Events


Gitex Asia 
April 8-9, 2026

Blackhat Asia
April 21-24, 2026

Milipol Asia-Pacific / TechxSummit 2026
April 28-30, 2026

Asia Tech x Singapore (ATxSG) / (Previously known as CommunicAsia/BroadcastAsia/SatelliteAsia)
May 27-29, 2025

Cloud Expo Asia/Data Centre World  
October 8-9, 2025

GovWare Conference & Exhibition / Singapore International Cyber Week (SICW)
October 20-23, 2025

Singapore Week of Innovation and Technology (SWITCH)
October 29-31, 2025

Token2049
October 1-2, 2025

Singapore Fintech Festival
November 12-14, 2025