Singapore's economy presents a dual reality. On one hand, the country's GDP growth remains sluggish, with economists expecting a modest expansion of 0.4% in the third quarter of 2023 [233aba0d]. Manufacturing, a key growth engine, has experienced its 11th consecutive contraction, with a significant plunge of 12.1% in August [233aba0d]. These figures highlight the persistent weakness in Singapore's GDP growth and the challenges faced by the country's economy [233aba0d]. On the other hand, Singapore's digital economy has shown remarkable growth, nearly doubling in size over the past five years and contributing more than 17% to the city's GDP in 2022 [bf126430]. This growth has led to the creation of over 200,000 tech jobs, with locals accounting for over 70% of these positions [bf126430]. The digital economy is divided into the information and communications sector, which is the fastest-growing, and digitalization in the rest of the economy [bf126430]. Singapore's digital economy has outperformed other countries such as Estonia, Sweden, and the UK in terms of its contribution to GDP [bf126430]. Despite the challenges in its traditional economy, Singapore's digital economy presents a positive outlook and has been a significant driver of growth and job creation [bf126430].
According to a report by market intelligence firm IDC, Southeast Asia is projected to lead in digital economy growth at 15.8% for the next five years, outpacing the United States and the EU [f864f740]. The report highlights the potential of increased regional connectivity and trade, driven by cross-border e-commerce revenue and offline tourism spending [f864f740]. Private and public sector efforts are expected to inject $232.4 billion in fresh cross-border revenue into the Southeast Asia, South Korea, and Japan (SEAKJ) economies from 2022 to 2027 [f864f740]. Cross-border e-commerce revenue is also predicted to grow by 70% to $148.1 billion by 2027 [f864f740]. The report provides a guide for businesses to engage in cross-border commerce and tap into available initiatives and tools [f864f740]. 2C2P, a global payments platform, aims to empower businesses to navigate the evolving payment landscape in Asia and encourages businesses to unlock the potential of Asia's digital economies [f864f740]. The company offers comprehensive payment solutions to help businesses seize opportunities in the region [f864f740]. The report emphasizes the importance of digital payments in shaping the future of businesses and lifestyles in Asia [f864f740].
The internet economy in Southeast Asia is projected to grow by 11% year-on-year in 2023, a decrease from the 20% growth seen in the previous year. The region's internet economy is expected to be valued at $295 billion by 2025, lower than the previous estimate of $330 billion [e144fa17].