Singapore SMEs to get more help digitalising
To support industry transformation, Singapore plans to build deep enterprise capabilities, deep worker capabilities and encourage strong partnerships, within the country and across the world.
In his Budget 2019 speech, Singapore Finance Minister Heng Swee Keat shared new ways that Singapore would help the more than 200,000 enterprises in the country thrive, beginning with helping startups scale.
Deep enterprise capabilities
Startups received a boost two years back with Startup SG to provide holistic support for startups and entrepreneurs, from co-investments and proof-of-concept grants, to mentorship and physical space.
"Our startup ecosystem is flourishing," Heng said. "There are now over 220 venture capital deals per year in Singapore, worth close to US$4.2 billion1. This is a significant rise from the 80 deals worth US$136 million in 2012.
"Today, more than 150 global venture capital funds, incubators, and accelerators are based in Singapore, supporting startups here and in the region."
To help startups scale up and venture into new markets, Singapore will now provide support in three areas: customised assistance, better financing options, and supporting technology adoption.
"Customised support can enable firms to identify and overcome the unique challenges they face, and scale up quickly," Heng said.
"Enterprise Singapore will launch a Scale-up SG programme in partnership with the private and public sectors. Scale-up SG will work with aspiring, high-growth local firms to identify and build new capabilities, to innovate, grow, and internationalise," Heng revealed.
To further support innovation, the government is launching a two-year pilot Innovation Agents programme, where firms can tap on experienced industry professionals to advise them on opportunities to innovate and commercialise technology. Such experts or innovation agents will have both technology expertise and business experience.
Enterprise Singapore will identify individuals with deep expertise in technology, strong track record in growing businesses, and access to global industry networks. These Innovation Agents will be matched with enterprises that aspire to use technology to improve existing businesses or build new ones.
Innovation Agents will provide mentorship to enterprises to identify innovation opportunities, and facilitate connections to valuable technology and business partners. Depending on enterprises’ needs, Innovation Agents may provide consultation on a one-to-one basis, or on a group basis to groups of enterprises or consortia looking to capture new market opportunities through innovation. The duration of an engagement may vary from a few months to a year, depending on its scope.
Helping SMEs adopt digital technologies
The SMEs Go Digital programme, announced in Budget 2017 and benefiting some 4,000 SMEs to date, will be expanded.
Its key components* are IDPs, pre-approved digital solutions and digital sector projects. Sector-specific IDPs developed by IMDA serve as a guide for SMEs on the digital technologies and skills training programmes that are relevant to them at different stages of growth. As of end-2018, IDPs have been developed for seven sectors: environmental services, retail, food services, wholesale trade, logistics, security and media.
The accountancy, sea transport, and construction sectors will get their own Industry Digital Plans (IDPs), with more sectors to be added later, Heng said. "These will guide SMEs on relevant digital technologies and skills training programmes," he elaborated.
The government will also expand the number and range of cost-effective, pre-approved digital solutions that will be supported under SMEs Go Digital to boost technology adoption among SMEs. Pre-approved digital solutions are identified by IMDA and sector lead agencies and accessible on the whole-of-government (WOG) Business Grants Portal. This year, the solutions are to include artificial intelligence (AI)-infused solutions and cybersecurity solutions. SMEs can apply for the Productivity Solutions Grant (PSG) for funding support of up to 70% of qualifying costs to adopt these solutions.
IMDA also works with key industry leaders to pilot new digital solutions (including platforms) that have the potential to scale and uplift sectors. These are called digital sector projects.
MAS and the Info-communications Media Development Authority (IMDA) will also jointly pilot a cross-border innovation platform for SMEs, known as Business sans Borders, with an artificial intelligence (AI)-enabled marketplace to help SMEs match with buyers and vendors globally.
To help companies in the services sector capture opportunities from digitalisation, the Ministry of Communications and Information launched a three-year pilot of the Digital Services Lab (DSL) in November 2018. The DSL brings together industry and the research community to codevelop digital solutions with sectorwide impact in services sectors, such as logistics, retail and media. Companies participating as demand users and technology solutions providers may apply for funding support of up to 70% of qualifying costs.
This year, the Singapore government will extend the Automation Support Package (ASP) by two years. Introduced in Budget 2016, the ASP supports firms to deploy impactful, large-scale automation, such as robotics, Internet of Things solutions, and other Industry 4.0 technologies. Since its launch, the ASP has helped more than 300 companies to automate their operations and raise productivity.
Originally set to expire 31 March 2019, the ASP encourages companies to embark on large-scale automation projects to achieve significant productivity gains. The support package comprises grant, tax and loan components.
The Agency for Science, Technology and Research (A*STAR) will also extend its operations and technology roadmapping efforts to more companies and sectors.
Additionally, the Ministry of Trade and Industry and relevant agencies are developing a one-stop portal, with a pilot to be launched for the food services sector by Q319. "Businesses will deal with only one point of contact, instead of up to the 14 different ones today," Heng said.
"Learning from these pilots, government agencies will continue to innovate, and improve the ease of doing business."
Enabling people to enjoy good jobs and opportunities
"On the part of the government, we will continue to invest in our people across all stages of their lives, from preschool, to work," Heng said.
There are currently over 100 Professional Conversion Programmes (PCPs) in about 30 sectors. This year, new PCPs relating to Blockchain, embedded software, and prefabrication will be launched to prepare Singaporeans to move into new growth areas.
Digitising trade
To draw greater value from existing trade networks, the government will streamline and digitise trade processes further to enable easier access to overseas markets, and help firms make better use of free trade agreements, including the recent EU-Singapore Free Trade Agreement (EUSFTA).
"We will also be working with partners to facilitate the secure exchange of electronic trade documents, to unlock further productivity gains," Heng said.
Singapore as the Global-Asia Node of Technology, Innovation and Enterprise
"With the centre of economic gravity shifting to Asia, and with the technological depth of our partnerships with the G3 economies, we should position Singapore as 'Asia 101' for global MNCs looking to expand into Asia’s growing markets, and as 'Global 101' for Asian companies ready to go global," Heng suggested. The G3 economies refer to the US, Europe and Japan.
As with the macro strategy, the plan to become the Global-Asia node will focus on investments in research and innovation by Singapore universities, research institutes, and Singapore firms; investments in people; and building global partnerships.
"First, we will continue to invest in R&D to support the push to make innovation pervasive. We have set aside S$19 billion as part of our five-year Research, Innovation, and Enterprise 2020 plan. Our investments in R&D in our universities and research institutes are bearing fruit," Heng said.
"The construction sector, seen as low-tech and labour-intensive, is now using integrated digital delivery2. This makes use of building information modelling (BIM) and other digital technologies, connecting different players working on the same construction projects. This has raised productivity and created new high-value jobs such as 3D modellers. Site productivity has improved by about 15% over the last eight years."
BIM is the DevOps of construction, shortening process cycles by bringing together siloed teams on a digital platform earlier in the process, so everyone can visualise building components even before they are physically created.
Much has been done in research and development, and more activity is expected. "The government will continue to invest in Centres of Innovation at our institutes of higher learning (IHLs) and research institutes, and to support companies in innovation," Heng said.
Enterprise Singapore, for instance, will launch a Centre of Innovation in Energy at NTU, building on earlier investments at the Energy Research Institute at NTU (ERI@N). The centre will collaborate with the Sustainable Energy Association of Singapore to drive industry-led innovation in areas such as energy efficiency, renewable energy, and electric mobility.
"Singapore as a Global-Asia node will bring new opportunities for our people, in new frontiers. The second thrust is to prepare and develop our people to make full use of this node. We are partnering firms to invest in our people, including young Singaporeans, to provide them with opportunities to gain working experience abroad," Heng added.
"To summarise, our economic transformation is progressing well. But, we must persist with our industry transformation efforts. At the same time, the pace of technological innovation is rapid, and global economic weight is shifting towards Asia. We will position Singapore as a Global-Asia node of technology, innovation and enterprise," Heng concluded.
"By giving young Singaporeans overseas exposure, they can develop new skills to better support our firms’ overseas expansion," Heng observed.
The third thrust is to build global partnerships. In Budget 2017, the Global Innovation Alliance (GIA) was launched. There are now nine nodes in global startup hotspots, such as Bangkok, Thailand; Beijing, China; Berlin, Germany; Jakarta, Indonesia, and San Francisco in the US.
"Last year, we held the third edition of the Singapore FinTech Festival. This is now the world’s largest fintech event3. As part of this festival, the Global Investor Summit brought together investors on our Meet ASEAN’s Talents and Champions (MATCH) platform. These investors expressed an interest to invest up to US$12 billion in ASEAN enterprises in fintech, infocommunications technology, and medtech over the next three years," Heng said.
Last year, the Singapore Week of Innovation and Technology (SWITCH) brought together more than 350 exhibitors, and 1,000 promising startups and financiers from 75 countries, Heng said. This year, SWITCH and the Singapore FinTech Festival will be held in the same week in mid-November in 2019 for more impact.
"We can draw in even more entrepreneurs, investors, innovators, from around the world, to explore and collaborate in technology innovation in this fourth industrial revolution," Heng said.
Comments from industry players were generally positive.
Low added that the new PCP will also help more people get crucial upgrades to their skills. "In the security industry, for instance, the traditional role of a security guard has been to patrol a site and watch security surveillance feeds. But video analytics can help optimise the work of security guards, meaning our security workforce must start gaining higher value skills, such as the ability to operate more technical surveillance systems, in order to stay relevant,” he explained.
"Local firms are at different phases of growth and competencies. Customised support programmes such as Scale-up SG and Innovation Agents programmes introduced in this Budget will help high growth local firms in deepening their capabilities, strategising how they should venture in new growth markets and introduce innovative products and services so that they can compete globally," stated Lennon Lee, Entrepreneurial & Private Clients Tax Leader, PwC Singapore.
Alex Lim, ASEAN Director, BMC Software noted, “In today’s digital era we are facing profound and far-reaching changes in the way digital technology is created, managed, analysed, and consumed. In an age of 'more'— more people, using more technology, from more locations, on more devices, for more of the time – businesses are having to adapt in dramatic ways. This can be a challenge for businesses of any size, so we therefore support the important initiatives announced in (February 18's) Budget, which will help more of Singapore’s businesses make the crucial changes required to successfully adopt new technologies and remain competitive in the long-term.”
Leslie Ong, Country Manager, Southeast Asia,
Tableau Software said, “Singapore is entering a digital future where the
adoption of new technologies is becoming vitally important for
businesses of all sizes. This kind of digital transformation can be
daunting for many businesses, who often think technologies such as data
analytics and automation are out of their reach. For instance, many
organisations are sitting on mountains of valuable data that could give
them an edge over competitors, but don’t have the readily available
technology or literacy to harness it.
Said Lim Fang How, Regional Director for Southeast Asia, Zebra Technologies:
"We laud the Singapore government’s efforts to help local businesses
gain competitive edge to contest abroad. The next critical step will be
in ensuring that local businesses have the confidence and knowledge
needed to execute their digital transformation, and to know what the
right technological solutions are to adopt.
"We are excited to see how the Singapore government will be working with various technology leaders and industry associations to equip local businesses with the knowledge and confidence in choosing the right technological solutions to propel them to the next level."
"In an age when the volume of cyberthreats is becoming overwhelming for any IT team, automation can help relieve some pressure, such as dealing with problems at a greater scale and with superior accuracy. However, automation cannot replace cybersecurity professionals still. Another challenge companies are facing is the increasing complexity of cyberthreats. Many are becoming stealthier and more evasive than before. And spotting them requires deep human analysis.
"Therefore, developing threat-hunting and investigation capabilities, and training talents who can perform these tasks would be the top priority. The Singapore government’s role should be to help companies develop such skills, either in-house or via an external service provider who offers managed detection and response (MDR) services,” said Nilesh Jain, VP, Southeast Asia and India, Trend Micro.
Details:
Browse Budget 2019
Hashtag: #SGBudget2019
*Companies can also benefit from other forms of support under the SMEs Go Digital programme, including consultancy services and project management services.
1 Inclusive of spikes in venture capital investments arising from large deals.
2 Integrated digital delivery taps on building information modelling (BIM) to allow architects, engineers, contractors, and facility managers to share information and collaborate. It raises productivity, and creates new, high value jobs such as 3D digital modellers, data analysts, and computational specialists.
3 In 2018, the festival had over 500 exhibitors, 250 speakers, and 45,000 delegates from over 127 countries.
In his Budget 2019 speech, Singapore Finance Minister Heng Swee Keat shared new ways that Singapore would help the more than 200,000 enterprises in the country thrive, beginning with helping startups scale.
Deep enterprise capabilities
Startups received a boost two years back with Startup SG to provide holistic support for startups and entrepreneurs, from co-investments and proof-of-concept grants, to mentorship and physical space.
"Our startup ecosystem is flourishing," Heng said. "There are now over 220 venture capital deals per year in Singapore, worth close to US$4.2 billion1. This is a significant rise from the 80 deals worth US$136 million in 2012.
"Today, more than 150 global venture capital funds, incubators, and accelerators are based in Singapore, supporting startups here and in the region."
To help startups scale up and venture into new markets, Singapore will now provide support in three areas: customised assistance, better financing options, and supporting technology adoption.
"Customised support can enable firms to identify and overcome the unique challenges they face, and scale up quickly," Heng said.
"Enterprise Singapore will launch a Scale-up SG programme in partnership with the private and public sectors. Scale-up SG will work with aspiring, high-growth local firms to identify and build new capabilities, to innovate, grow, and internationalise," Heng revealed.
To further support innovation, the government is launching a two-year pilot Innovation Agents programme, where firms can tap on experienced industry professionals to advise them on opportunities to innovate and commercialise technology. Such experts or innovation agents will have both technology expertise and business experience.
Enterprise Singapore will identify individuals with deep expertise in technology, strong track record in growing businesses, and access to global industry networks. These Innovation Agents will be matched with enterprises that aspire to use technology to improve existing businesses or build new ones.
Innovation Agents will provide mentorship to enterprises to identify innovation opportunities, and facilitate connections to valuable technology and business partners. Depending on enterprises’ needs, Innovation Agents may provide consultation on a one-to-one basis, or on a group basis to groups of enterprises or consortia looking to capture new market opportunities through innovation. The duration of an engagement may vary from a few months to a year, depending on its scope.
Helping SMEs adopt digital technologies
The SMEs Go Digital programme, announced in Budget 2017 and benefiting some 4,000 SMEs to date, will be expanded.
Its key components* are IDPs, pre-approved digital solutions and digital sector projects. Sector-specific IDPs developed by IMDA serve as a guide for SMEs on the digital technologies and skills training programmes that are relevant to them at different stages of growth. As of end-2018, IDPs have been developed for seven sectors: environmental services, retail, food services, wholesale trade, logistics, security and media.
The accountancy, sea transport, and construction sectors will get their own Industry Digital Plans (IDPs), with more sectors to be added later, Heng said. "These will guide SMEs on relevant digital technologies and skills training programmes," he elaborated.
The government will also expand the number and range of cost-effective, pre-approved digital solutions that will be supported under SMEs Go Digital to boost technology adoption among SMEs. Pre-approved digital solutions are identified by IMDA and sector lead agencies and accessible on the whole-of-government (WOG) Business Grants Portal. This year, the solutions are to include artificial intelligence (AI)-infused solutions and cybersecurity solutions. SMEs can apply for the Productivity Solutions Grant (PSG) for funding support of up to 70% of qualifying costs to adopt these solutions.
IMDA also works with key industry leaders to pilot new digital solutions (including platforms) that have the potential to scale and uplift sectors. These are called digital sector projects.
MAS and the Info-communications Media Development Authority (IMDA) will also jointly pilot a cross-border innovation platform for SMEs, known as Business sans Borders, with an artificial intelligence (AI)-enabled marketplace to help SMEs match with buyers and vendors globally.
To help companies in the services sector capture opportunities from digitalisation, the Ministry of Communications and Information launched a three-year pilot of the Digital Services Lab (DSL) in November 2018. The DSL brings together industry and the research community to codevelop digital solutions with sectorwide impact in services sectors, such as logistics, retail and media. Companies participating as demand users and technology solutions providers may apply for funding support of up to 70% of qualifying costs.
This year, the Singapore government will extend the Automation Support Package (ASP) by two years. Introduced in Budget 2016, the ASP supports firms to deploy impactful, large-scale automation, such as robotics, Internet of Things solutions, and other Industry 4.0 technologies. Since its launch, the ASP has helped more than 300 companies to automate their operations and raise productivity.
Originally set to expire 31 March 2019, the ASP encourages companies to embark on large-scale automation projects to achieve significant productivity gains. The support package comprises grant, tax and loan components.
The Agency for Science, Technology and Research (A*STAR) will also extend its operations and technology roadmapping efforts to more companies and sectors.
Additionally, the Ministry of Trade and Industry and relevant agencies are developing a one-stop portal, with a pilot to be launched for the food services sector by Q319. "Businesses will deal with only one point of contact, instead of up to the 14 different ones today," Heng said.
"Learning from these pilots, government agencies will continue to innovate, and improve the ease of doing business."
Enabling people to enjoy good jobs and opportunities
"On the part of the government, we will continue to invest in our people across all stages of their lives, from preschool, to work," Heng said.
There are currently over 100 Professional Conversion Programmes (PCPs) in about 30 sectors. This year, new PCPs relating to Blockchain, embedded software, and prefabrication will be launched to prepare Singaporeans to move into new growth areas.
Digitising trade
To draw greater value from existing trade networks, the government will streamline and digitise trade processes further to enable easier access to overseas markets, and help firms make better use of free trade agreements, including the recent EU-Singapore Free Trade Agreement (EUSFTA).
"We will also be working with partners to facilitate the secure exchange of electronic trade documents, to unlock further productivity gains," Heng said.
Singapore as the Global-Asia Node of Technology, Innovation and Enterprise
"With the centre of economic gravity shifting to Asia, and with the technological depth of our partnerships with the G3 economies, we should position Singapore as 'Asia 101' for global MNCs looking to expand into Asia’s growing markets, and as 'Global 101' for Asian companies ready to go global," Heng suggested. The G3 economies refer to the US, Europe and Japan.
As with the macro strategy, the plan to become the Global-Asia node will focus on investments in research and innovation by Singapore universities, research institutes, and Singapore firms; investments in people; and building global partnerships.
"First, we will continue to invest in R&D to support the push to make innovation pervasive. We have set aside S$19 billion as part of our five-year Research, Innovation, and Enterprise 2020 plan. Our investments in R&D in our universities and research institutes are bearing fruit," Heng said.
"The construction sector, seen as low-tech and labour-intensive, is now using integrated digital delivery2. This makes use of building information modelling (BIM) and other digital technologies, connecting different players working on the same construction projects. This has raised productivity and created new high-value jobs such as 3D modellers. Site productivity has improved by about 15% over the last eight years."
BIM is the DevOps of construction, shortening process cycles by bringing together siloed teams on a digital platform earlier in the process, so everyone can visualise building components even before they are physically created.
Much has been done in research and development, and more activity is expected. "The government will continue to invest in Centres of Innovation at our institutes of higher learning (IHLs) and research institutes, and to support companies in innovation," Heng said.
Enterprise Singapore, for instance, will launch a Centre of Innovation in Energy at NTU, building on earlier investments at the Energy Research Institute at NTU (ERI@N). The centre will collaborate with the Sustainable Energy Association of Singapore to drive industry-led innovation in areas such as energy efficiency, renewable energy, and electric mobility.
"Singapore as a Global-Asia node will bring new opportunities for our people, in new frontiers. The second thrust is to prepare and develop our people to make full use of this node. We are partnering firms to invest in our people, including young Singaporeans, to provide them with opportunities to gain working experience abroad," Heng added.
"To summarise, our economic transformation is progressing well. But, we must persist with our industry transformation efforts. At the same time, the pace of technological innovation is rapid, and global economic weight is shifting towards Asia. We will position Singapore as a Global-Asia node of technology, innovation and enterprise," Heng concluded.
"By giving young Singaporeans overseas exposure, they can develop new skills to better support our firms’ overseas expansion," Heng observed.
The third thrust is to build global partnerships. In Budget 2017, the Global Innovation Alliance (GIA) was launched. There are now nine nodes in global startup hotspots, such as Bangkok, Thailand; Beijing, China; Berlin, Germany; Jakarta, Indonesia, and San Francisco in the US.
"Last year, we held the third edition of the Singapore FinTech Festival. This is now the world’s largest fintech event3. As part of this festival, the Global Investor Summit brought together investors on our Meet ASEAN’s Talents and Champions (MATCH) platform. These investors expressed an interest to invest up to US$12 billion in ASEAN enterprises in fintech, infocommunications technology, and medtech over the next three years," Heng said.
Last year, the Singapore Week of Innovation and Technology (SWITCH) brought together more than 350 exhibitors, and 1,000 promising startups and financiers from 75 countries, Heng said. This year, SWITCH and the Singapore FinTech Festival will be held in the same week in mid-November in 2019 for more impact.
"We can draw in even more entrepreneurs, investors, innovators, from around the world, to explore and collaborate in technology innovation in this fourth industrial revolution," Heng said.
Comments from industry players were generally positive.
Benjamin Low, VP (Asia Pacific), Milestone Systems, commented: “The measures announced in this year’s Budget address two key issues for businesses – the ability to adopt new technologies and ability of people to work with them. For instance, the expansion of the PSG will allow businesses to adopt new technologies which can give them a competitive edge, or reinvigorate struggling sectors such as brick-and-mortar retail."
Low added that the new PCP will also help more people get crucial upgrades to their skills. "In the security industry, for instance, the traditional role of a security guard has been to patrol a site and watch security surveillance feeds. But video analytics can help optimise the work of security guards, meaning our security workforce must start gaining higher value skills, such as the ability to operate more technical surveillance systems, in order to stay relevant,” he explained.
"Local firms are at different phases of growth and competencies. Customised support programmes such as Scale-up SG and Innovation Agents programmes introduced in this Budget will help high growth local firms in deepening their capabilities, strategising how they should venture in new growth markets and introduce innovative products and services so that they can compete globally," stated Lennon Lee, Entrepreneurial & Private Clients Tax Leader, PwC Singapore.
Alex Lim, ASEAN Director, BMC Software noted, “In today’s digital era we are facing profound and far-reaching changes in the way digital technology is created, managed, analysed, and consumed. In an age of 'more'— more people, using more technology, from more locations, on more devices, for more of the time – businesses are having to adapt in dramatic ways. This can be a challenge for businesses of any size, so we therefore support the important initiatives announced in (February 18's) Budget, which will help more of Singapore’s businesses make the crucial changes required to successfully adopt new technologies and remain competitive in the long-term.”
 |
Source: Tableau.
Ong.
|
"Time
is running out for businesses who haven’t started their digital
transformation journey but the measures announced in this year’s Budget will
help more businesses embrace new technologies and help workers upgrade
their skillsets to match the needs of the new digital economy. We look
forward to seeing more of Singapore’s businesses upgrade their
competitiveness as a result.”
"We are excited to see how the Singapore government will be working with various technology leaders and industry associations to equip local businesses with the knowledge and confidence in choosing the right technological solutions to propel them to the next level."
 |
Source: Trend Micro.
Jain.
|
"Therefore, developing threat-hunting and investigation capabilities, and training talents who can perform these tasks would be the top priority. The Singapore government’s role should be to help companies develop such skills, either in-house or via an external service provider who offers managed detection and response (MDR) services,” said Nilesh Jain, VP, Southeast Asia and India, Trend Micro.
Browse Budget 2019
Hashtag: #SGBudget2019
*Companies can also benefit from other forms of support under the SMEs Go Digital programme, including consultancy services and project management services.
1 Inclusive of spikes in venture capital investments arising from large deals.
2 Integrated digital delivery taps on building information modelling (BIM) to allow architects, engineers, contractors, and facility managers to share information and collaborate. It raises productivity, and creates new, high value jobs such as 3D digital modellers, data analysts, and computational specialists.
3 In 2018, the festival had over 500 exhibitors, 250 speakers, and 45,000 delegates from over 127 countries.
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