Singapore’s digital economy continues to demonstrate maturity and leadership, setting regional standards for technology governance while navigating global uncertainty. Its GMV is projected to reach $29 billion in 2025, up 7% from 2024, driven by strong momentum in key sectors.
These findings are part of From Digital Decade to AI Reality: Accelerating the future in ASEAN, the 10th edition of an annual e-Conomy SEA report released by Google, Temasek, and Bain & Company.
Transport & Food is expected to grow 12% to $6 billion, while Online Media is set to surge 13% to $3.4 billion. Local commerce is showing accelerated adoption of video commerce, with sellers and stores rising 125% YoY to 80,000, and transaction volume jumping 30% YoY to 45 million.
As a mature financial hub, Singapore’s DFS sector is steadily gaining ground. Digital Lending is forecasted to grow 12% to $30 billion in loan book balance, while Digital Wealth (AUM) is projected to rise 22% to $44 billion in 2025 — driven by licensed digital banks capitalizing on strategic ecosystem partnerships.
Finally, Singapore remains the leading regional AI hub, having secured $1.31 billion in private AI funding — the highest among SEA-6 countries. This strong economic performance is marked by a notable 55% funding growth (H1 2025 vs. H2 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,” said Sapna Chadha, Vice President for Southeast Asia and South Asia Frontier, Google.
“This ensures that the next wave of digital growth is not only fast and far-reaching, but also safe, inclusive, and sustainable for all,”
“Singapore is strengthening its role as a tech and financial hub by emerging as a centre for AI innovation, attracting AI companies across Southeast Asia to establish their regional or global operations here,” said Fock Wai Hoong, Head, Southeast Asia, Temasek.
“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 realised.”
“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,” said Florian Hoppe, Partner, Bain & Company.
“Importantly, it can also play a key role in unlocking funding and the exit environment for the region.”
