The growth of information equipment and services industries in Singapore and Australia is examined in the context of the emerging internationalization of the information economy. The move of Singapore into high‐technology information equipment production is outlined together with the problems caused by competition from industrialized and developing countries. In contrast, Australia's information equipment industry is very small and it is unlikely to expand significantly without a substantial increase in government funding. Growth of the information services industries is providing a major stimulus for Singapore and Australia to shift into the information economy. In particular, the banking and finance industry is a major component in the services area; Singapore is rapidly emerging as an international financial center. The adoption of information technologies is fundamental to the internationalization of this industry.