The Info-communications (infocomm) industry has grown by 30% to reach a value of S$26 billion last year, as compared to S$20 billion in 1998. This new engine of growth contributed 7 percent, or almost S$11 billion, to Singapore's gross domestic product (GDP)...
Singapore, 21 June 2001 | For Immediate Release
Second Infocomm Survey shows infocomm contributes 7% to GDP
The Info-communications (infocomm) industry has grown by 30% to reach a value of S$26 billion last year, as compared to S$20 billion in 1998. This new engine of growth contributed 7 percent, or almost S$11 billion, to Singapore's gross domestic product (GDP). (Refer to Figure 1 in Annex A) This was revealed in the Second Infocomm Industry Survey (1999-2000) commissioned by the Infocomm Development Authority of Singapore (IDA).
In the survey, the respondents provided their estimated growth figures for their respective business segments. These figures are then taken as an aggregate and averaged. A Compound Annual Growth Rate (CAGR) of 14% from 1999 - 2002 was estimated by the respondents. This reflects their optimism about the industry's growth prospects in the near term.
The S$26 billion infocomm pie (which excludes infocomm-related manufacturing activity) was almost equally divided -- the S$13.37 billion domestic market accounted for slightly more than half of the industry revenue. The export market brought in S$12.56 billion. The survey findings indicate that exports are set to exceed domestic market by 2002. (Refer to Figure 1 in Annex A)
Leading in domestic revenues was the telecommunications sector at 48%, followed by hardware retail at 20% and the IT service and software sector at 29%. (Refer to Figure 2 in Annex A)
For exports, hardware retail led the way with 57%, with telecommunications in second.
Other key highlights of the survey show that the infocomm industry's top five growth areas were e-Business and e-Commerce; Web Design and Development; IT Outsourcing; Mobile and Wireless Communications; and Customer Relationship Management.
"The results of the infocomm survey indicate strong infocomm revenues over the past two years," commented Chief Executive of the IDA, Ms Yong Ying-I, "This is encouraging as it reflects the underlying strength of Singapore's infocomm industry. Notwithstanding the current weak business climate, I remain confident about the long-term growth prospects of the industry. We are on track to achieving our targeted $40 billion infocomm revenue by 2005."
The survey was conducted with the objective of sizing the Infocomm industry, its segments as well as its potential growth areas. Conducted from January to March 2001, it involved 600 respondents from the Infocomm Technology (ICT) database from the Department of Statistics, targeting key decision makes such as CEOs, CFOs and their equivalents.
ISSUED BY CORPORATE COMMUNICATION DIVISION
INFOCOMM DEVELOPMENT AUTHORITY OF SINGAPORE
Notes to Editor:
Notes on Second Infocomm Industry Survey (1999-2000) attached in Annex B.
About Infocomm Development Authority of Singapore
The Infocomm Development Authority of Singapore (IDA) is a dynamic organisation with an integrated perspective to developing, promoting and regulating info-communications in Singapore. In the fast-changing and converging spheres of telecommunications, information and media technologies, IDA will be the catalyst for change and growth in Singapore's evolution into a vibrant global info-communications technology centre. For more information, please visit www.imda.gov.sg.
For media clarification, please contact:
Ms Jennifer Toh
Manager, Corporate Communication
Infocomm Development Authority of Singapore
Phone: +65 6211-0508
Fax: +65 6211-2227
Eliza Rahim or Wong Mei-Hwen
Edelman Public Relations Worldwide
Tel: +65 6733-1110
Fax: +65 6733-5550
ANNEX A: GRAPHICAL REPRESENTATION OF SURVEY RESULTS
Figure 1. Singapore Infocomm Industry Revenue (1998-2000)
Figure 2. Singapore's Domestic Infocomm Industry, 2000
Figure 3. Singapore's Exports Infocomm Industry, 2000
ANNEX B: NOTES ON SECOND INFOCOMM INDUSTRY SURVEY (1999-2000)
The total infocomm industry revenue does not include sales revenues in the electronics or semiconductor manufacturing sector. Companies covered in this survey are infocomm companies, which are direct suppliers in the development and provision of infocomm products and services.
The total infocomm revenue of these companies is broken down into export and domestic revenue. Export revenue refers to sales out of Singapore, whilst domestic revenue refers to sales to the end-users in Singapore, excluding sales to distributors.
In the survey, the infocomm revenue is further segmented into categories of hardware retail, software & IT services, telecommunications and others.
Types of hardware under hardware retail segment includes personal computers/laptops, Personal Digital Assistant (PDA), servers and workstations, storage devices, printers, data communications equipment, telecommunication infrastructure equipment and mobile phones.
Types of software and IT services include software application solutions and development tools, software system infrastructure software, consulting and implementation services, training and education services, supporting services (such as maintenance) and application services providers' services.
Types of telecommunication services include basic fixed line services, including cable, mobile and wireless services and Internet Access Services and Internet Service Provision.
Types of other services include revenues from online advertising, revenues from provision of online education, entertainment, gaming and others.