Ongoing digitalisation spending, particularly in finance and insurance, and adoption of generative AI sustain robust demand for tech services into 2025.

Singapore's Digital Economy Expands, Led by Financial Sector

Singapore’s digital economy reached S$128.1 billion in 2024, accounting for 18.6% of the nation’s GDP, according to the Infocomm Media Development Authority’s (IMDA) Singapore Digital Economy Report 2025. This marks an increase from 18.0% in 2023 and 14.9% in 2019, representing a S$12 billion year-on-year expansion. Critically, more than two-thirds of the digital economy originated from non-Information & Communications sectors, indicating that digitalisation is broad-based rather than concentrated in pure tech firms. Finance & Insurance stood as the largest contributor among these non-I&C sectors, followed by Wholesale Trade and Manufacturing. The breadth of adoption is underscored by IMDA data showing that 95% of Singapore's SMEs have adopted at least one of six measured digital areas—cybersecurity, cloud, e-payments, e-commerce, data analytics, and AI—confirming that digitalisation now pervades the entire enterprise landscape.

Share of GDP (%)Source: Orionmano Industries

Financial Services Transformation Map Sets Ambitious Growth Targets

The Monetary Authority of Singapore (MAS) launched the refreshed Financial Services Industry Transformation Map (ITM) 2025, targeting value-added growth of 4.0-5.0% per annum and net job creation of 3,000-4,000 positions annually. These targets build on a strong track record: the previous ITM (2016-2020) exceeded its 3,000-job annual target, generating an average of 4,100 net jobs per year, with the financial services sector growing at 5.7% annually—above the 4.3% target. Over the 2016-2020 period, more than 20,000 net jobs were created in financial services, as cited by then-Deputy Prime Minister Lawrence Wong at the ITM 2025 launch.

The ITM 2025 outlines five key growth strategies. The first involves digitalising Singapore’s financial infrastructure and developing digital platforms to improve efficiency in bond issuance, listing and settlement, and funds settlement. A new digital platform connecting SMEs across growth regions will facilitate trade discovery and provide easier access to trade financing. Other strategies include deepening capabilities in key asset classes, catalysing Asia’s net-zero transition, shaping the future of financial networks, and building an innovative and responsible digital asset ecosystem. The plan also emphasises fostering a skilled and adaptable workforce, combining strong local talent with high-quality global professionals.

Emerging Technologies Drive Spending and Talent Demand

Tech spending in Singapore is forecast at S$25.5 billion (US$19 billion) in 2025, representing a 5.6% increase driven by AI adoption, cloud services, and cybersecurity, according to government technology agency GovTech. This spending trajectory is directly fueled by financial sector digitalisation and emerging technology uptake. The MAS expanded its regulatory sandbox programs in 2025, allocating S$300 million to support safe testing of new fintech models. The same year, Singapore approved 18 digital banking players, intensifying competition across both consumer and SME segments and creating further demand for technology infrastructure and services.

Singapore’s fintech ecosystem—home to over 1,000 companies—continues to invest heavily in emerging technologies. In 2025, blockchain, Web3, and AI adoption reached record levels as firms explore new models in payments, lending, and wealthtech, according to industry data from aboveA Capital. Compliance spending among startups grew 12% in 2025, reflecting tighter regulatory requirements that in turn drive demand for regulatory technology (regtech) solutions. Key growth sectors include regtech, embedded finance, and digital wealth management. AI-powered investment advice and virtual assistants have become standard offerings, with embedded finance integrating lending and payments directly into platforms such as ride-hailing and retail apps.

The talent market reflects this intensity. Senior executives from recruitment agencies Michael Page Singapore, Robert Walters Singapore, JobTech, and Randstad Singapore told Channel News Asia that tech talent in the financial industry is in such high demand that many candidates receive multiple job offers and salary increments. A supply-demand mismatch existed even before the pandemic, but COVID-19 saw demand surge amid digital transformation projects and a booming fintech industry, according to Faiz Modak, Senior Manager for Tech and Transformation at Robert Walters Singapore. Singapore now ranks ninth globally and second in Asia in the Startup Genome 2025 report, with its vibrant ecosystem valued at US$144 billion.

With continued government backing through initiatives like the Smart Nation 2.0 vision—built on pillars of Trust, Growth, and Community—and sustained enterprise digitalisation across financial services and beyond, demand for tech services in Singapore is expected to remain robust through 2025 and beyond. The rapid adoption of generative AI, cloud services, and cybersecurity solutions will underpin this demand, while the financial sector’s ambitious transformation targets ensure that technology spending remains a strategic priority rather than a cyclical investment.