The economic impact of the information sector in Singapore

The information sector, delineated as encompassing activities associated with the production and dissemination of information goods and services, is recognised as a dynamic growth sector in developed as well as newly-industrialising countries. Using an input-output methodology, this paper attempts to measure the magnitude and assess the economic impact of the information sector in Singapore. The results are found to be favourable although a number of caveats may be raised regarding its apparent import dependency and foreign exchange earning capability, which has turned from positive to negative over the ten-year period 1973–83. Other issues are also raised concerning the institutional framework, both domestic and international, necessary to support the sector both efficiently and flexibly. Policy implications are drawn from the results of the input-output analysis to consolidate and reinforce current policies to promote information technology in Singapore.