Singapore’s Digital Growth: An Opportunity for South Asia

On March 28, 2025, Singapore’s leading trade association in the tech industry launched the TechConnect Asia initiative to connect overseas tech companies with Singapore’s ecosystem. The goal is to build capabilities and strengthen the region through collaboration.

In the last few years, Singapore has worked to establish itself as a leader in regional innovation strategies. Singapore’s digital journey can be summed up as “where policy meets innovation,” through its Smart Nation vision and digital economy strategies seeking to attain further growth in that area. Its digital growth opens an opportunity for other Asian economies to develop a similar capacity and close the gap.

Singapore and Technology: Policies to Foster Digital Innovation

Ranked first in digital infrastructure in the Asian Digital Transformation Index, Singapore’s digital growth is paving a path for other Asian nations to follow with their own digital transformations. Interestingly, alongside its position as a global financial centre, Singapore’s digital economy has grown at an estimated annual rate of 12.9 percent since 2017, contributing over 17 percent of its GDP in 2022 and becoming a pillar of the island’s economy. 

The Singaporean government has played a key role in this journey. Recently, Deputy Prime Minister Heng Swee Keat emphasised the importance of technology, saying,  “The impact of technology is deeper and faster than ever before, but we must work across sectors, across companies, and across borders to navigate this new age.” 

To focus on this, Prime Minister Lee Hsien Loong announced the Smart Nation initiative in 2014, aiming to leverage technology to enhance the quality of life for its citizens, boost business opportunities, and foster a sustainable environment. 

Singapore’s transformation into a smart nation is driven by public-private collaboration and intelligent policy. Through its Smart Nation initiative, the government has invested heavily in digital infrastructure and services, bringing environmental growth and social change to citizens.

Building a Smart Nation: Infrastructure, Governance, & Inclusion

Singapore’s digital transformation has been marked by intelligent public-private collaboration, cutting-edge infrastructure, and sound policy. The government’s digital governance efforts span everything from ultra-fast internet to smart healthcare systems and intelligent transportation networks.

In her book “Managing Chaos: Digital Governance by Design,” Lisa Welchman defines digital governance as a discipline that focuses on establishing clear accountability for digital strategy, policy, and standards. 

Singapore’s approach aligns with this philosophy, focusing on evolving its governance frameworks to keep pace with innovation.   The country is now developing adaptive, ethical, and inclusive digital laws that address technologies like generative AI, quantum computing, and cross-border data flows.

In parallel, Singapore is expanding its AI governance legislation and sustainability-linked tech regulations while pushing for regional harmonisation to cement its status as a trusted digital leader across Asia and beyond.

Building Trust Through Regulation

Singapore’s success isn’t just about being smart; it’s also about being trusted. 

For example, to discourage malicious use and encourage safe use of advanced technology, the Singapore government has taken various initiatives and laws. Acts such as the Computer Misuse (Amendment) Act 2023 and the Cybersecurity Act 2018 prevent the misuse of Singpass (the national digital identity), as sharing credentials would lead to a fine of $10,000 or imprisonment for up to three years or both. The cybersecurity bill empowers agencies such as the Cyber Security Agency to examine Critical Infrastructure Information, request compliance records, and levy penalties in the event of an offence. 

Additionally, to ensure public safety and security, the Personal Data Protection Act affects organisations whose products or services are accessed by children under 18. It ensures responsible data processing, including obtaining permission, providing data protection, and maintaining compliance. The use of personal data in AI systems is also covered. Telecom firms and banks are required to implement anti-scam strategies and promote public awareness of secure online behaviours.

Singapore's digital framework is gradually moving from foundational infrastructure and regulation towards governance of more complex digital ecosystems. With existing laws and strategic policy planning already established, the next phase may involve a greater emphasis on areas such as AI oversight, digital ethics, and international alignment. 

These standards, which focus on data minimisation, pseudonymization, and openness, apply to organisations that use personal data for AI research. Both sets of standards encourage organisations to establish strong legal, technical, and procedural controls, even though they are not legally binding. 

Lessons for South Asia

What can South Asian countries learn from Singapore’s example? 

Similar initiatives are already taking shape across the region. For instance, India is actively working to build a digital ecosystem that mirrors the scale and impact of Singapore’s achievements. Indian ministers and civil servants have met frequently with their Singaporean counterparts for knowledge-sharing sessions, and this influence can be seen within frameworks like Digital India and the growth of digital payment systems. 

Other governments are drawing directly on the public-private frameworks upheld by Singapore, and economies and citizens, especially younger generations, are benefiting. The Philippines and Malaysia are now at the regional forefront of e-commerce retail growth, experiencing annual increases of 25 percent and 23 percent, respectively, based on public-private frameworks and a conducive regulatory environment.

South Asia is also drawing inspiration from Singapore’s technology industry strategies and international cooperation, including its  Double Taxation Agreements (DTAs) with 106 countries and 27 Free Trade Agreements (FTAs). Bangladesh is developing its Smart Bangladesh Vision 2041, which integrates digital infrastructure, public-private collaborations, and regional trade initiatives. This plan draws inspiration from Singapore’s Smart Nation framework. Additionally, businesses in Singapore can benefit from strengthened trade ties with key trading partners through the Regional Comprehensive Economic Partnership (RCEP). 

India also launched the Digital India campaign in 2015, intending to create an inclusive digital infrastructure. There have been notable achievements, especially in digital governance, including the development and implementation of Aadhaar (biometric ID), UPI (real-time payments), DigiLocker, and the Open Network for Digital Commerce, which have significantly impacted service delivery. However, due to its large population and socio-economic divide, India has not been able to achieve its digital transformation goals at Singapore’s pace. 

Bridging the Digital Divide with Shared Strategy

Singapore’s data-driven governance model collects and integrates data from diverse sources to shape policies and improve public services. Countries seeking digital development could implement similar digital literacy programs like Singapore's Silver InfoComm for accessibility. Strong public-private partnerships, involving universities and tech companies, can promote innovation, as exemplified by Singapore. By adopting a centralised approach akin to Singapore's SNDGO, nations can establish frameworks for interoperability, data exchange, and UI/UX guidelines for digital services. 

Singapore’s transformation is driven by a strong public-private partnership, with considerable investment in digital infrastructure advancing economic growth and demonstrating the power of technology. South Asia has seen an increase in business opportunities due to its evolving digital landscape. 

Singapore’s regulatory system offers incentives for tech companies, making it a prime location for business ventures, with 46 percent of Asia’s regional headquarters located there. Southeast Asia’s market of 650 million people presents vast growth potential. To fully capitalise on these opportunities, nations in South Asia should focus on enhancing their regulatory systems and accelerating digital infrastructure development. This will create a competitive, innovation-friendly environment that attracts global ventures. 

Ultimately, businesses looking to expand into the region will benefit from making strategic decisions informed by technological trends in other South Asian nations. 

Stay Ahead of Digital Policy With FiscalNote

Want to stay ahead of digital policy shifts in Singapore and across South Asia? FiscalNote’s solutions help you track policy changes around the world, including developments in Singapore’s technology industry, so you can make informed decisions for your organisation. Learn how to stay updated on global policy developments and get organisational insights by requesting a demo today.