Singapore’s digital economy gross merchandise value (GMV) is projected to reach $29 billion in 2025, up 7 percent from 2024, driven by strong momentum in key sectors, a report showed Tuesday.
Google, Temasek, and Bain & Company said in its launched the 10th edition of the annual e-Conomy SEA report, Singapore continues to demonstrate maturity and leadership, setting regional standards for technology governance while navigating global uncertainty.
Its GMV transport and food is expected to grow 12 percent to $6 billion, while online media is set to rise 13 percent to $3.4 billion.
Local commerce is showing accelerated adoption of video commerce, with sellers and stores surging 125 percent year on year to 80,000, and transaction volume jumping 30 percent year on year to 45 million.
As a mature financial hub, Singapore’s digital financial services (DFS) sector is steadily gaining ground.
Digital lending is forecasted to grow 12 percent to $30 billion in loan book balance, while digital wealth’s asset under management is projected to rise 22 percent to $44 billion in 2025 — driven by licensed digital banks capitalizing on strategic ecosystem partnerships.
Finally, Singapore remains the leading regional artificial intelligence (AI) hub, having secured $1.31 billion in private AI funding — the highest among Southeast Asia-6 countries.
This strong economic performance is marked by a notable 55 percent funding growth (first half of 2025 versus second half of 2024).
This resilience, coupled with a strong government focus on worker protections and AI governance, cements its position as a vital regional hub for technology and finance.
“Singapore’s strength lies in its dual focus: driving relentless digital innovation while building a robust framework for AI governance,
“As a global hub, its pioneering approach to responsible AI and its stable, mature ecosystem are setting an important benchmark for the rest of Southeast Asia. This ensures that the next wave of digital growth is not only fast and far-reaching, but also safe, inclusive, and sustainable for all,” said Sapna Chadha, Vice President for Southeast Asia and South Asia Frontier, Google.
Fock Wai Hoong, Head, Southeast Asia, Temasek, said Singapore is strengthening its role as a tech and financial hub by emerging as a center for AI innovation, attracting AI companies across Southeast Asia to establish their regional or global operations here.
“Ongoing efforts to strengthen regional cooperation and improve capital market conditions in Singapore will help to ensure that Southeast Asia’s AI ambitions continue to be realized,” he added.
Florian Hoppe, Partner, Bain & Company, said Singapore continues to anchor Southeast Asia’s digital economy.
“Its early momentum in scaling AI capabilities can unlock a broader regional opportunity to turn transformation into lasting economic value and build into another decade of growth ahead,
“Importantly, it can also play a key role in unlocking funding and the exit environment for the region,” he added.
ASEAN’s digital economy poised to surpass $300B in GMV by 2025 – report