Tech spending to rise 5.6% to $25.5b in 2025

This expansion is fuelled by the city-state’s rapid adoption of artificial intelligence across sectors.

Singapore’s technology spending is set to grow by 5.6% in 2025, reaching $25.5b (US$19b), according to Forrester’s latest Asia Pacific forecast.

This expansion is fuelled by the city-state’s rapid adoption of artificial intelligence (AI) across sectors and continued investment in digital infrastructure under the government’s Digital Connectivity Blueprint.

Despite mounting regional uncertainty triggered by new US tariffs that threaten to inflate tech costs and curb investment appetite, Singapore is expected to maintain a solid trajectory.

Forrester noted that whilst Asia Pacific's overall tech growth forecast of 6.5% may be revised downward by up to two percentage points, Singapore’s fundamentals remain strong.

Across the region, software and IT services will be the primary growth engines. Software spending is projected to surge 10.4%, whilst tech consulting, system integration, and outsourcing services will rise by 6%. The push is driven by growing enterprise demand for AI capabilities, cloud adoption, and cybersecurity upgrades.

Hardware sectors like computer equipment and communications gear will also recover, with forecasted growth of 3.5% to 5.2%, reversing earlier contractions.

The Asia Pacific market overall is expected to reach $938.1b (US$722b) in tech spending in 2025. Whilst countries like India (11%) and Vietnam (10%) are expected to outperform the regional average, Singapore remains a stable growth leader in the digital-first transition sweeping Southeast Asia.

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