e-Conomy SEA 2025 Report: Unpacking Singapore’s Digital Economy Performance in 2025

In our previous blog on Google’s e-Conomy SEA 2025 Report, we briefly discussed the overall SEA digital economy. Of all the ten countries included in the report, Singapore’s digital economy seems to be faring the best as the country cemented its place as Southeast Asia’s AI investment hub by securing $1.31B in private funding. Also, Singapore accounted for $29B of Southeast Asia’s $305B digital economy in 2025. However, the story of Singapore’s digital economy growth goes far beyond this, as we shall find later in this blog.

So, here are the major highlights from Singapore’s digital economy performance in 2025.

1. 7% Growth in Digital Economy

Singapore saw a 7% growth in its overall digital economy from the previous year and reached $29B in GMV from $27B in 2024.

The growth came majorly on the back of upsurge in online media and transport & food, with both these sectors witnessing a 13% and 12% growth, respectively, from the previous year. While e-commerce and online travel also grew, there was only an uptick of 3% and 6%, respectively. However, growth prospects remain bright as Singapore’s overall digital economy is expected to reach $40B-$65B by 2030.

2. $1.31B in Private Funding in the AI Sector

Singapore secured $1.31B in private funding in the AI sector, which accounted for 55% share of the ASEAN-10 AI investments, establishing itself as a major AI investment hub in Southeast Asia.

The Singaporean government is spearheading initiatives to ensure the responsible use of AI across all sectors, including developing new methodologies for testing cultural and linguistic biases in large language models and creating a testing starter kit to manage risks in new generative AI applications. Furthermore, significant investments are being made in developing a skilled AI workforce and attracting top engineering talent to establish Singapore as a leading centre for AI innovation and development.

3. Digital Banks Find Their Niche

In a highly penetrated banking market, Singapore’s five licensed digital banks are demonstrating a viable path to sustainability, with most narrowing their losses in 2024.

These new entrants have successfully carved out niches in areas like SME banking and micro-consumer credit. Their growth is significantly propelled by strategic ecosystem partnerships, which provide access to existing customer bases for cross-selling and transaction data for loan underwriting.

4. Premium Events And Experiences Fuel Tourism Growth

Singapore’s tourism sector is experiencing a significant shift towards higher-value spending, with visitor expenditure reaching an all-time high in 2024.

This surge is fueled by a strategic focus on premium experiences, including world-class entertainment, major sporting events, and high-end gaming, attracting a significant influx of visitors with higher discretionary spending. This momentum is supported by the Singapore Tourism Board’s partnerships with leading international entertainment brands, positioning the nation as a top-choice destination.

5. Video Commerce Market Sees Average Order Values Triple That of SEA

The average order value in Singaporean video commerce market was thrice as much as that of the rest of Southeast Asian market. Also, there was a 125% year-on-year rise in the number of sellers and stores and a 45% year-on-year increase in the volume of transactions.

Wrapping Up

With steady GMV expansion, a booming AI investment landscape, digital banks coming into their own, and a tourism sector powered by premium experiences, Singapore continues to set the benchmark for digital maturity in the region. And with video commerce accelerating rapidly and future GMV projections stretching as high as $65B by 2030, Singapore’s digital economy is far from peaking.

To delve deeper into the report, click here to read the full report.

We’ll be back with more insightful blogs on the e-Conomy SEA 2025 Report. Till then, stay tuned!