Singapore’s Digital Economy Flourishes: Tech Sector Jobs and Wages Soar
Singapore’s tech sector is experiencing significant growth, resulting in numerous job opportunities and higher wages for employees. The recent release of the Digital Economy Report by Singapore’s Infocomm Media Development Authority (IMDA) provides valuable insights into the size and impact of the tech sector on the country’s economy.
The report reveals that digital services already contribute 17.3 percent to Singapore’s Gross Domestic Product (GDP). This substantial contribution is primarily due to the increasing digitalization of existing services. However, individuals may wonder how these figures directly benefit them.
One of the key takeaways from the report is the significant rise in tech sector employment. With over 200,000 people employed in the sector, there has been a notable increase from the 155,000 employees recorded in 2017. Over the past five years, the sector has achieved an average annual growth rate of five percent, leading to the creation of approximately 9,000 new jobs each year.
Crucially, these tech jobs are well-paying. As of the end of 2022, the median monthly salary for Singapore residents employed in the tech sector was S$7,376. It is worth noting that this figure excludes CPF contributions, indicating that the actual gross salary is even higher. In a direct comparison, tech employees earn nearly 64 percent more than the median wage for the entire economy. Furthermore, their wages have been growing at a faster rate compared to other professions. While the median wage for all professions increased by approximately S$750 between 2017 and 2022, tech employees enjoyed an increase of nearly S$2,000 per month.
Looking ahead, the tech sector’s salary growth shows no signs of slowing down. Considering current inflation and salary trends, it is anticipated that monthly pay in tech will surpass S$7,500 this year and exceed S$8,000 in 2024.
For individuals seeking opportunities in the tech sector, software and application development represent nearly a third of jobs in Singapore’s IT industry. This area has also experienced significant growth in recent years. Additionally, management, product development, and cloud and network infrastructure are sectors experiencing rapid increases in job opportunities. This, accompanied by the global surge in artificial intelligence (AI) and Singapore’s focus on combating online crime, is likely to lead to a surge in demand for AI and cybersecurity professionals from 2023 onward.
Contrary to popular belief, the IMDA report reveals that over 70 percent of employment in the tech sector is held by locals, dispelling the misconception that foreigners dominate IT jobs. Additionally, as the demand for tech professionals continues to rise, the employment of expatriates is expected to contribute to the creation of more jobs for Singaporeans. Businesses need to ensure they have access to the right talent pool, and while Singapore’s labor force is limited, the inclusion of expatriates allows companies to invest locally and subsequently create job opportunities for everyone.
While some sectors may face challenges in 2023, the tech industry does not appear to be one of them. The sector’s growth and thriving job market indicate a positive outlook for the future.
In conclusion, Singapore’s digital economy is flourishing, with the tech sector playing a crucial role. The sector’s growth has resulted in an abundance of well-paying job opportunities and increasing wages for employees. As the demand for tech professionals continues to rise, Singapore remains an attractive destination for individuals seeking rewarding careers in technology.
