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and utilize suitable digital solutions to enhance operational efficiency and productivity.
The SME Go Digital initiative targets specific sectors, offering tailored guidance to find
appropriate solutions, including skill training programs for employers and employees to
better adapt to digital demands in the workplace.
In 2015, Singapore launched SkillsFuture Singapore (SSG) to promote lifelong
learning and enhance the skills and adaptability of Singaporean workers of all ages,
particularly in high-tech, digital transformation, and Industry 4.0 sectors, helping them
stay competitive and contribute more to Singapore’s economic growth. The SSG
collaborates with employers to support workforce development. Notably, Singapore
implements a Skills Development Tax (SDL), a mandatory monthly contribution from
employers to fund the Skills Development Fund (SDF). The SDF, managed by the SSG,
supports workforce enhancement through training grants for employees participating in
courses within the national continuing education and training system (Nguyen et al.,
2025).
Singapore has made significant efforts to enhance the engineering skills within the
public sector and improve the ability of government agencies to adapt to crucial future
technologies. In 2019, Singapore established five capability centers to support the growth
of IT and smart systems. Each center is dedicated to a specific area, such as application
design, development, and deployment, among others. These areas are particularly
integrated into the digital government blueprint and Smart Nation initiatives. The goal is
to develop more innovative products and services that will facilitate Singapore's digital
transformation in the years ahead (GovTech, 2023).
In terms of outcomes, the digital economy contributed S$128.1 billion in 2024,
representing a S$12 billion increase from the previous year. The digital economy
accounted for nearly 20% of Singapore's economic size, up from 18.0% in 2023 and 14.9%
in 2019. From 2019 to 2024, the digital economy grew at a Compound Annual Growth
Rate (CAGR) of 12%, significantly outpacing the overall economic growth rate of 7.3%.
When analyzing sector composition, two-thirds of the digital economy's value comes from
digitalization in non-information and computer sectors such as manufacturing, wholesale
trade, and finance and insurance. The remaining one-third is driven by core tech services
like telecommunications, computing, and software. In Singapore, 95.1% of SMEs have
adopted at least one digital area, such as e-payment, cloud, or cybersecurity, while 73.8%
of employees reported using AI tools at work, primarily for brainstorming, writing, and
administrative tasks. Regarding connectivity, 99% of households have internet access, and
the mobile penetration rate is approximately 170%. As a result, on a global scale,
Singapore ranked 3rd in the IMD World Digital Competitiveness Ranking in 2023 (MDA,
2025).
Table 1. Singapore’s RDTII 2025 overall score and pillars’ scores
Score Differences from Differences from
(ranging from low compliance Asia-Pacific subregional
Index score
costs (zero value), to high average average
compliance costs (one value)) compliance costs compliance costs
Overall score 0.28 -24% -32%
Tariffs and
trade defence 0.00 -100% -100%
Public 0.04 -89% -91%
procurement

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