The growth of information equipment and services industries in Singapore and Australia is reviewed in the context of the emerging internationalization of the information economy. Both Singapore and Australia have an important connecting role in the international information economy because they are closely linked to major industrialized countries and to countries within the region. Singapore's information equipment industry faces numerous problems, including: 1. limited production because of protectionism in industrialized nations, 2. dependence on transnational corporation strategies, and 3. rivalry from newly industrialized countries. Australia's information equipment industry is very small and it is unlikely to grow significantly without a substantial increase in government funding. Growth of the information services industries will provide a major stimulus for both countries to move into the information economy. This is particularly true of the banking and finance industry. Singapore will soon be an international financial center.