The rapid development of digitalization has driven the trade in services in our country to increase by 1.5 times over the past 10 years | Lianhe Zaobao

In the past 10 years, the rapid process of digitalization has driven the growth of Singapore's service trade by nearly 1.5 times, equivalent to an annual growth rate of 9.4%, significantly higher than the nominal GDP growth rate of 6.2% per year. Economists believe this highlights that service trade is increasingly becoming a more important part of Singapore's economy, especially during the period when U.S. President Trump continuously imposed tariffs on various goods, with the growth of service trade helping to offset some of the negative impacts brought by tariffs. According to data released by the statistics bureau, Singapore's service trade is expected to grow by 8.6% in 2024, with service exports and imports increasing by 9.9% and 7.1%, respectively. The EU-27 and the United States are Singapore's largest service export markets and import sources. International service trade measures the cross-border service transactions between Singapore and its trading partners, including advertising, business consulting, finance, legal, and logistics services. The statistics bureau pointed out that digital transformation has driven the trading of digitally deliverable services, such as financial services, professional services, as well as gaming and streaming services, continuously opening new opportunities for businesses and individuals, enhancing competitiveness, and expanding coverage in the global market. In 2010, service exports accounted for 84% of nominal GDP (not including inflation effects), which has risen to 136% by 2024. Chen Dade, Chief Strategist for Asia at Amundi Wealth Management, stated in an interview with Lianhe Zaobao that service trade has become a more important part of Singapore's economy in recent years, with growth often surpassing that of goods trade and contributing more to GDP. In 2014, service exports accounted for 27% of total exports, and by 2024, this proportion has significantly increased to 43.9%. Chen Dade mentioned that service trade directly drives GDP growth through domestic and overseas demand. Additionally, it also indirectly promotes economic growth through multiplier effects. For example, the increase in business for service exporters brings more opportunities for lawyers and bankers. The higher demand for service exports encourages companies to hire more staff, and employees, through earning income, engage in consumption, further driving the growth of economic activity. Growth of Service Trade Helps Offset Some Tariff Impacts According to preliminary estimates from the statistics bureau, the main markets for Singapore's service exports in 2024 will be the EU-27, the United States, Japan, Australia, and ASEAN. Further Reading [DBS: Singapore at a Critical Moment, Economic Growth Expected to Slow Next Year but with Buffer ![](https://dss0.zbstatic5.com/s3fs-public/styles/article_small_crop/public/articles/2025/12/05/2025120341239781bang1589_0.jpg? The EU's 27 countries are Singapore's largest service export market. Last year, Singapore's service export revenue to this market decreased by 3.6% year-on-year to SGD 67.9 billion, with the three main export services being business management, finance, and transportation. In contrast, exports to the US market surged by 22% to SGD 62.2 billion, mainly in business management, telecommunications, computer and information services, and transportation. The US remains the largest source of service imports for Singapore, with service imports from the US reaching SGD 122 billion last year, an increase of 14.1% compared to 2023. These imported services also primarily include business management, telecommunications, computer and information services, and transportation. Chen Dade said that while Trump continuously imposes tariffs on goods across various sectors, he does not impose tariffs on the service industry, and the growth of our service trade also helps to offset some of the tariff impacts. From the perspective of the service sector, transportation services contribute the most to service trade, with exports and imports accounting for over 30% each. Chen Dade stated that this achievement is attributed to our strategic position as a global logistics hub. The finance and insurance sectors are also major contributors, benefiting from increased investment activities and related fees. Chen Dade pointed out that in the accelerating process of digitalization, information and communications surpassed other sectors in 2022 to become the second-largest contributor to service trade. SME Service Trade: Transportation Accounts for Nearly Half of Imports and Exports The statistics bureau recently released service trade data by different enterprise sizes. The data shows that small and medium-sized enterprises (SMEs) with revenues not exceeding SGD 20 million or fewer than 200 employees had service trade reach SGD 41.01 billion in 2023, with transportation services accounting for 47.3% of exports and 53.8% of imports. Other large enterprises have relatively diversified service trade, including transportation, financial services, business management, and other services. From 2017 to 2023, Asia has been the main export market for SMEs and the largest source of service imports, accounting for 41.2% and 38.4%, respectively. The statistics bureau pointed out that this is due to our geographical proximity to Asian countries Large enterprises mainly import services from the United States, accounting for 40.7%, while service imports from Asia show an upward trend, indicating the increasing importance of the Asian market. Similar to small and medium-sized enterprises, large enterprises also primarily export services to Asia