Market Trends of Singapore ICT Industry
Government Spending aiding Digital Transformation
- The Government Technology Agency of Singapore focuses primarily on digital transformation in the public sector with the most cutting-edge information and communication technology to improve Singaporeans' daily lives. With the continuous development of plans like the Smart Nation initiative, Digital Economy Framework, Digital Government Blueprint, and Industry Transformation Map (ITMs), there is an escalated demand for technology and communication adoption across the nation.
- The Government's investment in ICT would also make it easier for cloud-based systems to be developed and for its industry to leverage data analytics, AI, and sensors. Notably, investments in the cloud, expanded use of AI and sensors, and modernization of ICT infrastructure made by the public sector made it easier to supply digital services to citizens and businesses and respond to COVID-19.
- According to GovTech, the Government would spend SGD 3.8 billion (USD 2.8 billion) by the end of the current financial year on ICT developments this year, which would be used to restructure digital government infrastructure and construct better digital services for people, enterprises and public servants. The Government has invested around SGD 12.6 billion (USD 9 billion) in ICT over the last four years.
- As the Government works to realize the potential of emerging technologies, investments more into initiatives utilizing AI, machine learning, Internet of Things sensors, and data science will more than double from SGD 0.79 billion (USD 0. 57 billion) last year to SGD 2 billion (USD 1.45 billion) this year. An additional SGD 1 billion (USD 0.73 billion) would be spent creating new cloud-based technologies.
- According to GovTech, putting apps on the cloud has improved the Government's ICT infrastructure's agility and resilience while saving the Government between 30% and 40% for each system moved to the cloud.
- According to Govtech, the Singaporean Government spent SGD 3.8 billion (USD 2.8 billion) on information and communications technologies in the current fiscal year. This increased from the financial year 2020 to SGD 0.3 billion (USD 0.22 billion). However, the investment remained stable for the past year.
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Robust 5G Growth
- The fifth generation of telecommunications data, or 5G, has emerged as one of the most important enablers for advancing Singapore's digital economy and connectivity revolution in recent times. Amid the gradual expansion of 5G coverage worldwide, Singapore has become the first country to have independent 5G connections everywhere.
- By 2025, the entire island of Singapore will likely have 5G service. The technology's ultra-high speeds and dependability would lay the groundwork for bandwidth-intensive apps to succeed as 5G becomes more widely used. Businesses may anticipate greater use cases for edge computing to spur new development.
- More than 95% of the island country is covered by Singtel's 5G network nationwide. By the end of 2025, Singapore intends to accomplish this aim exclusively. Singtel was successful in completing these duties three years sooner than anticipated. Singapore has had a well-planned coverage strategy since the nation's debut of 5G.
- Singapore has always embraced forced reinvention as a means of maintaining competitiveness. The government allocated SGD 25 billion (USD18.1 billion) in R&D funding until 2025 to support efforts to maximize the advantages of digitalization. By 2025, 55% of Singapore is expected to have adopted 5G.
- The Singaporean government's statutory body, the Infocomm Media Development Authority (IMDA), which oversees the integrated Infocomm and media sectors, has set up SGD 30 million (about USD 21.7 million) to promote adoption and commercialization. Testbeds are available for companies of all sizes to use to develop, adapt, and commercialize 5G technologies in smart cities, Industry 4.0, healthcare, consumer and government applications, urban mobility, and more.
- Organizations in the country could also think about upskilling personnel to handle information in new ways and leveraging IoT and AI to support data-driven decision-making. Businesses are updating their IT systems and infrastructures to incorporate 5G into their networks and maintain seamless compliance with their security standards.
- The IMDA 5G award is available to Singaporean businesses interested in commercializing and implementing 5G technologies in robotics and IoT, AI and data, and AR/VR. Further, non-Singapore registered companies may join forces with Singaporean businesses to create collaborations and be eligible for the award.
