SINGAPORE – The number of well-paying jobs in areas such as software and telecommunications is expected to grow to about 80,000 by 2025, under a new road map for the information and communications industry.
Under the refreshed Information and Communications Industry Transformation Map, the sector is also expected to achieve a value-added compound annual growth rate of between 5 per cent and 7 per cent by 2025.
This was announced by Deputy Prime Minister Lawrence Wong at an event celebrating the Singapore Computer Society’s 55th anniversary held at the Shangri-La hotel on Friday.
The map builds on the previous infocomm media Industry Transformation Map, which sought to achieve an annualised growth rate of 6 per cent between 2015 and 2020. It was developed by Digital Industry Singapore, a joint office which supports the growth of the technology sector here.
The refreshed map will focus on specific areas such as IT and online services, which are expected to outperform the rest of the economy, said Mr Wong, who is also Finance Minister.
He noted that the demand for digital services – which spiked during the Covid-19 pandemic – has tapered down, while rising interest rates have constrained investment spending and moderated growth in the tech sector.
Despite this, the medium- to long-term outlook for the tech sector remains bright, he said, noting that rapid advances in areas such as quantum computing and artificial intelligence (AI) would open up new opportunities.
The use of technology such as data analytics and AI here is currently modest, Mr Wong said. Only about one in 10 companies has adopted data analytics, while as at 2021, just about 3.3 per cent had adopted AI.
Mr Wong presented four strategies for growth under the refreshed map, including enhancing efforts to grow Singapore’s ecosystem of tech companies.
Global tech firms will be encouraged not just to establish their regional headquarters in Singapore, but to also do more innovative work here.
Meanwhile, local companies will be provided with more support through programmes such as the Infocomm Media Development Authority’s Open Innovation Platform, where local tech firms are linked to potential customers.
Singapore will also continue to invest in areas such as AI, Mr Wong said.
The country is building up its connectivity infrastructure, and is working to achieve nationwide 5G deployment by 2025, he added.
The first two 5G standalone networks have already achieved 95 per cent outdoor coverage nationwide, ahead of schedule.
“And we are not stopping there. We are already building up capabilities in 6G, so that we can remain at the forefront of communications technology,” he said.
The Republic is also growing its network of digital economy agreements to allow companies here to engage in seamless cross-border digital trade with more countries.
The most critical factor in achieving Singapore’s information and communications ambitions is its people, Mr Wong said.
He encouraged employers to broaden their hiring practices and focus on skills-based assessments rather than just paper qualifications.
As co-chair of the TechSkills Accelerator for ITE and Polytechnics Alliance, the Singapore Computer Society has championed skills-based hiring for polytechnic and Institute of Technical Education graduates, Mr Wong noted.
He said he hopes more companies will join the alliance, which has grown to 15 companies – including Singtel, Google and Oracle – in the eight months since it was launched.
Meanwhile, the Information and Communication Jobs Transformation Map launched in October 2022 will help identify jobs that will be disrupted by emerging technology, and recommend skills which workers can pick up.
Mr Wong said: “Despite the consolidation pressures the industry is presently facing, we can still look forward with confidence as we strive to strengthen Singapore’s competitive positioning as an innovative and trusted digital hub for the region and the world.”
