Singapore Country Commercial Guide
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Digital Economy
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Overview

National Focus and Projected Digital Economy Growth

According to the recent “Singapore Digital Economy Report 2023” by the Infocomm Media Development Authority (IMDA) and Lee Kuan Yew School of Public Policy, Singapore’s digital economy has experienced a significant leap.  In 2022, it contributed over 17% to its Gross Domestic Product (GDP), a substantial increase from 13% in 2017.  The digital sector’s contribution to the Singapore economy surged from S$58 billion (about US$44 billion) to S$106 billion (about US$81 billion) between 2017 and 2022, a growth that stands out even among similar open economies.  This remarkable growth is a testament to the promising future of Singapore’s digital economy.

Singapore’s digital strategy is structured around four principal domains—Digital Economy, Government, Security, and Society.  The inspiring Smart Nation Initiative is at the heart of this strategy, a nationwide movement that unites businesses, government, communities, and citizens to drive Singapore’s digital transformation.  

Central to the digital economy pillar is the Digital Enterprise Blueprint (2024), which focuses on harnessing A.I. to be more competent, integrate digital solutions to scale faster, become safer by enhancing cyber resilience, and upskill workers.  Hence, Singapore fully benefits from digital solutions.

Singapore’s vision for smart government is “digital to the core and serves with heart.” The Digital Government Blueprint (2020) outlines 15 key performance indicators (KPIs) to measure the government’s digital progress.  KPIs include having 70% of eligible government systems hosted on commercial cloud platforms, 90-95% of transactions be completed digitally from end-to-end, projects completed in seven working days by agencies cross-sharing their data, and all public officers having basic digital literacy skills, etc.  

The Digital Government Blueprint (DGB) is a dynamic document continually updated with new policies and initiatives to keep pace with the rapidly evolving tech landscape and global events.  This continuous updating of the DGB clearly indicates Singapore’s unwavering commitment to staying at the forefront of digital innovation and providing stakeholders with the reassurance of Singapore’s dedication to digital transformation.

Singapore’s digital infrastructure centers on making forward-looking investments, taking a holistic view of the digital infrastructure stack, and considering Singapore’s unique circumstances.  Singapore will use nascent technologies to reap future opportunities.  Ultimately, the plan will enhance opportunities for enterprises and people, strengthen society’s trust in the digital economy, and empower communities to connect and improve lives.  The Digital Connectivity Blueprint (2023) has five strategic priorities.  They include:
 
1.  Doubling submarine cable landings within the next ten years;
2.  Building seamless end-to-end 10 Gbps domestic connectivity over the next five years;
3.  Ensuring among the best-in-the-world resilience and security for critical infrastructure;
4.  Creating a roadmap for expanding new green data centers and pushing the sustainability envelope; and
5.  Growing the use of the Singapore Digital Utility Stack to expand seamless digital transactions.

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.  The Digital Readiness Blueprint (2018) outlines Singapore’s recommendations for building digital readiness.

In the future, Singapore will continue to leverage technology to uplift its collective potential, uphold trust in the digital domain, and safeguard its infrastructure.  Over the next five years, more than S$1 billion (about US$760 million) will be committed to A.I. computing, talent, and industry development. Over the same timeline, about S$300 million (about US$228 million) will be used to develop quantum technology.

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

As digitalization occurs across multiple settings and changes our interactions in many ways, Singapore is evaluating its way forward.  It continues to be willing to adjust its approaches to A.I., data protection and privacy, and cybersecurity through consultations, programs, guidelines, regulations, etc.

In 2022, Singapore made a significant stride in the A.I. landscape by the government introducing A.I. Verify, a robust testing framework and software toolkit.  This pioneering initiative was further bolstered the following year with the establishment of the A.I. Verify Foundation, which harnesses the expertise of the global open-source community to advocate for responsible A.I. use.  These milestones underscore Singapore’s unwavering commitment to international collaboration and the ethical deployment of A.I. technologies.  

In January 2024, Singapore unveiled the proposed Model A.I. Governance Framework for Generative A.I. (version II) at the World Economic Forum, seeking feedback from partners.  After extensive stakeholder consultations, the Personal Data Protection Commission (PDPC) released its advisory guidelines on using personal data in A.I. recommendation and decision systems.  Singapore also led the development of the ASEAN Guide on A.I. Governance and Ethics, which was endorsed at the ASEAN Digital Ministers’ Meeting in 2024.  Currently, efforts are underway to guide the use of personal data to train generative A.I. systems, including through the use of Privacy Enhancing Technologies (PETs).

Both the U.S. and Singapore recognize the tremendous potential of A.I. for good use and the need to mitigate the challenges that come with the rapid global proliferation of A.I. To fully realize A.I.’s benefits, both countries have overseen the development of new frameworks—the A.I. Risk Management Framework, developed by the U.S. National Institute of Standards and Technology (NIST) at the U.S. Department of Commerce, and A.I. Verify, created by the Singapore Infocomm Media Development Authority (IMDA) at the Ministry of Digital Development and Information (MDDI).  Both countries completed a mapping exercise between the two frameworks.  Commerce and MDDI will continue cooperating on A.I. to advance an inclusive and forward-looking economic growth agenda and boost A.I. competitiveness for both the United States and Singapore.

In 2023, Singapore experienced disruptions in online government services, banking and payment services, and public healthcare institutions’ websites.  The Cybersecurity Act amendment (2024) was introduced in response to this event, significantly enhancing the cybersecurity of foundational digital infrastructure and other systems and entities beyond critical information infrastructure.  The upcoming Digital Infrastructure Act (DIA) will address broader security and resilience concerns of critical digital infrastructure and services beyond cybersecurity.   

A task force is also exploring non-regulatory measures that will complement Singapore laws and regulations, such as guidance to digital infrastructure and service providers on best practices for security and resilience.  The Cyber Security Agency of Singapore (CSA) developed the Cyber Essentials and Cyber Trust Mark certification programs to recognize organizations with good cybersecurity practices.  These ongoing efforts are a testament to Singapore’s commitment to enhancing cybersecurity and ensuring the resilience of her digital infrastructure.

The U.S. and Singapore have three agreements that expand cybersecurity cooperation for the financial sector, regional capacity building, and military-to-military engagement.  The U.S. Department of Treasury and the Monetary Authority of Singapore’s bilateral Memorandum of Understanding (MOU) on Cybersecurity Cooperation helps our financial sectors be more prepared for and resilient to cyber threats while facilitating bilateral information sharing on cyber threats to financial markets.  The U.S. Cybersecurity and Infrastructure Security (CISA) and CSA of Singapore finalized a bilateral MOU that enhances information exchange on cyber threats and defensive measures, increases coordination for cyber incident response, and enables cybersecurity capacity building across Southeast Asia.  

Despite Singapore’s overall strong record on intellectual property (I.P.) protection and enforcement, infringed goods continue to be trans-shipped through Singapore.  Unauthorized streaming services and third-party illicit streaming devices continue to be used to access pirated content.  However, Singapore is not complacent. The Copyright Act amendment (2021) imposed civil and criminal liability for knowingly making, importing for sale, commercially distributing, or selling illicit streaming devices, and providing a service that enables such devices to access content from unauthorized sources.

Digital Trade Opportunities

Cross-Sector Enabling Technologies

Data Protection and Privacy/Data Security Technologies

Singapore aims to become a trusted global digital and data node, further solidifying its position as an international business hub. The potential is a nearly threefold growth in its digital trust sector, from S$1.7 billion (about US$1.2 billion) in 2022 to S$4.8 billion (about US$3.4 billion) by 2027. Five key trends identified in the “Digital Trust: Unlocking the Next Wave of Growth in the Digital Economy” study by SGTech are:

1. The proliferation of misinformation and its harmful impacts;
2. Growing expectations for privacy and responsible data use;
3. An increase in cybercrime across the Asia Pacific region;
4. The rise of data localization and sovereignty leads to challenges in cross-border data flows; and
5. Increasing demand for digital trust skills and risk management solutions.

Identified opportunities include:

  • The use of Privacy-Enhancing Technologies (PETs) to safeguard data;
  • Embedding privacy into products and services through “privacy by design;”
  • Building cybersecurity resilience for large enterprises and “cyber-as-a-service” offerings for SMEs;
  • Expanding cyber insurance options for businesses of all sizes;
  • Harmonizing data-sharing standards internationally and recognizing Data Trust certificates across borders;
  • Adopting digital identity and permission-based Distributed Ledger Technologies (DLTs) for smoother cross-border interactions;
  • Developing new skills for a digital trust workforce, including consultants, lawyers, trainers, and certification agencies; and Utilizing Governance, Risk, and Compliance (GRC) software


Singapore is a founding Member of the Global Cross-Border Privacy Rules (CBPR) Forum, which enables trusted data flows globally through international data protection and privacy certifications – the Global CBPR System and Global Privacy Recognition for Processors (PRP) System.

Artificial Intelligence

 According to the International Data Corporation’s “Asia/Pacific AI Maturity Study 2024,” which assesses the progress of individual markets in adopting A.I., Singapore is a frontrunner in this technology. Singapore is projected to spend US$4.2 billion (about S$5.5 billion) by 2027 in A.I., with growth expected across infrastructure and applications. The financial industry leads in A.I. spending, particularly in predictive A.I. and Gen A.I. Applications developed include quantitative trading, sales forecasting, customer service, and A.I. robo-advisors that automate investment management and financial advice. The retail sector is also experiencing a boom, with omnichannel businesses investing in A.I. to better understand and engage with customers. The legal industry is an early adopter of Generative A.I. to summarize documents and generate first drafts quickly. Large local enterprises and international firms with regional headquarters in Singapore are planning significant A.I. investments. In 2024, the government announced a S$743 million (about US$568 million) investment over the next five years to enhance national A.I. capabilities, cultivate a more trustworthy and responsible A.I. ecosystem, and ensure the secure implementation of the Singapore National A.I. Strategy 2.0 (NAIS 2.0).  

The Monetary Authority of Singapore (MAS), a key player in developing Singapore’s A.I. ecosystem, recently enhanced the existing A.I. and data grant scheme. This enhancement includes supporting the development of A.I. innovation centers at financial institutions and developing A.I. platforms with industry-wide use cases.

Cybersecurity

According to Statista, the Singapore cybersecurity market’s projected growth will be about US$525 million in 2024. The revenue projection is for an annual growth rate (CAGR 2024-2029) of 8.07%, resulting in a market volume of US$ 773.2 million (about S$1 billion) by 2029. Organizations have implemented some measures to protect their assets based on CSA’s first Cybersecurity Health Report 2023. However, this is insufficient, given the increasing frequency and scale of cyber threats. CSA’s 2023 publication on the cyber landscape reported that Singapore continues to see many ransomware attacks. Although phishing attempts fell last year, cybercriminals are making their phishing attempts appear more legitimate and authentic by leveraging generative A.I.

In addition to the recently passed Cybersecurity (Amendment) Bill, Singapore has updated its Operational Technology (O.T.) Masterplan. The significant changes include the inclusion of non-critical infrastructure, secure deployment to safeguard the entire lifecycle management of the O.T. system, and the need to have a data-driven model to enhance visibility and provide accurate and up-to-date data, analysis of risk, and skills training. These updates underscore Singapore’s serious and comprehensive approach to cybersecurity.

Quantum

The Singapore Government recently announced a S$300 million (about US$228 million) investment to advance the quantum industry. This initiative will strengthen Singapore’s position as a leading hub in developing and deploying quantum technologies over the next five years. Initiatives include:

  • Establishing a new National Quantum Sensor Programme;
  • Setting up a New National Quantum Processor Initiative (NQPI) to enable Singapore to design and build its own practical quantum processor; and
  • Launching the National Quantum Scholarships Scheme (NQSS).
    The Monetary Authority of Singapore (MAS) recently established a quantum track to support financial institutions interested in building quantum capabilities. Numerous grants are available, including for security innovations, preparation for the quantum era, bringing significant impact to business, and quantum talent development.

 

Digital Economy Trade Events:

Cloud Expo Asia/Data Centre World  
October 9-10, 2024

GovWare Conference & Exhibition 
October 15-17, 2024

Singapore International Cyber Week (SICW)
October 14-17, 2024

Singapore Week of Innovation and Technology (SWITCH)
October 28–30, 2024

Singapore Fintech Festival
November 6-8, 2024

TechxSummit 2025
April 2025

Blackhat Asia
April 1-4, 2025

Asia Tech x Singapore (ATxSG) 
May 27-29, 2025