“Rising Property Costs May Slow Singapore’s Tech Sector Expansion “

SINGAPORE: Singapore’s technology industry has seen rapid growth, attracting top talent worldwide. However, recent data suggests that escalating property prices could challenge its trajectory.

A report from CBRE highlights a 5% increase in tech employment in Singapore from 2019 to 2023, positioning the country as a leading hub for tech professionals. Singapore Business Review notes that tech roles now make up an estimated 30% of the workforce, with between 200,000 and 300,000 professionals employed in the sector.

This success is largely due to Singapore’s developed tech environment, supportive regulations, and robust access to capital. Yet, the high cost of doing business—such as an average annual office rent of approximately US$104 (S$141.60) per square foot and an average software engineer salary of about US$100,000 (S$136,152)—poses challenges.

Despite these costs, Singapore remains attractive for venture capital, securing roughly 5.5% of global VC tech funding in 2023, amounting to around US$20 billion spread across approximately 400 deals, with 81 focused on artificial intelligence.

CBRE notes that the availability of a highly skilled workforce is a primary factor driving tech companies to Singapore. However, rising property and salary costs are encouraging some companies to consider alternative markets where expenses are lower, potentially drawing business away from Singapore.