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Services dominate Singapore IT sector

Ross O. Storey | Feb. 24, 2010
Operating receipts up 6.7 per cent in 2008

SINGAPORE, 24 FEBRUARY 2010 Firms engaged in the services sector made up more than two thirds of Singapore's information technology industry in 2008, according to the latest figures from the Singapore Department of Statistics.

The department's latest economic survey series, this time on information and communications services, was carried out in 2009 for the reference year 2008 and released on Monday (22 February 2010). It provides an interesting snapshot of the sector, prior to the global financial crisis.

The report defined information and communications services as comprising publishing activities, motion picture, radio, TV, sound recording and broadcasting activities, telecommunications, information technology and other information services.

In 2008, Singapore's information and communication services industry comprised about 6,800 establishments and employed about 73,900 workers. The Info & Comm services industry generated S$31 billion (US$22 billion) in total operating receipts in that year, a growth of 6.7 per cent over 2007.

Firms with less than 100 workers formed the majority (92.8 per cent) of the Info & Comm services industry, but establishments with more than 200 workers (0.8 per cent) contributed most to total operating receipts (69.7 per cent).

Operating receipts down

The report stated, however, on a per establishment basis, operating receipts decreased by 5.9 per cent to S$4.6 million (US$3 million) in 2008.

In terms of operating receipts and value added, the telecommunications group was the largest contributor, said the report, accounting for 34.5 per cent and 46.1 per cent of the respective totals in the Info & Comm service industry.

The IT services group also contributed a significant 26.7 per cent to the industry's operating receipts and 33.6 per cent to the industry's value added.

The report said that in 2008, remuneration and purchases of goods and materials were among the top five business cost items across all the groups in the Info & Comm industry.

Telecommunications firms continued to record the highest average value added of S$258,900 (US$183,600) per worker, followed by firms in the motion picture, radio and TVF group, which recorded an average value added of S$121,200 (US$86,000) per worker.

 

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