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S$80m war chest to help SMEs tap digital revolution

The plans include establishing a new SME technology hub targeted at local enterprises and introducing programmes to help SMEs build on their digital capabilities.

SINGAPORE — To encourage small and medium enterprises (SMEs) to adopt digital solutions, the Government will provide more than S$80 million in advice and funding. The plans also include establishing a new SME technology hub targeted at local enterprises.

Digital technology has the unique potential to transform businesses large and small across the economy. The first way to strengthen Singapore’s enterprises, especially SMEs, is to help them adopt digital solutions, said Finance Minister Heng Swee Keat during the Budget announcement yesterday.

The SMEs Go Digital Programme will be introduced to help SMEs build on their digital capabilities. The Info-communications Media Development Authority (IMDA) will work with Spring Singapore and other sector lead agencies in this effort.

Elaborating on the programme, Mr Heng revealed that SMEs would get step-by-step advice on the technologies to use at each stage of their growth. “We will start with sectors where digital technology can significantly improve productivity. These include retail, food services, wholesale trade, logistics, cleaning and security,” noted Mr Heng.

Help will also be provided in the SME centres and the new SME tech hub. SMEs can approach business advisers at SME centres for advice on off-the-shelf technology solutions pre-approved for funding support, or connect to info-communications and technology (ICT) vendors and consultants. The more digitally advanced firms can get specialist advice from the new SME tech hub.

Meanwhile, SMEs that are ready to pilot emerging ICT solutions can receive advice and funding support. “We will work with consortiums of large and small firms to help them adopt impactful, inter-operable ICT solutions, to level up whole sectors,” Mr Heng said.

Singapore will also work on strengthening its capabilities in data and cyber security.

“With increased digitalisation, data will become an important asset for firms, and strong cyber security is needed for our networks to function smoothly. The Cyber Security Agency of Singapore will work with professional bodies to train cyber security professionals,” said Mr Heng.

Companies said the additional support will be beneficial to their business operations.

Thirty-year-old wholesale and retail seafood business Sin Hin Frozen Food, which has S$50 million annual turnover, had embarked on the digital push a few years ago, in a bid to capture more customers and promote their branding awareness. With the measures announced yesterday, the firm’s digitalisation efforts would receive a boost, said business development manager Jessica Lie.

“We will consider upgrading our system. This is because we are expanding our business and adopting technology would benefit us as we grow. The initiatives (will) help us enhance our business, from product packaging to social media processes,” Ms Lie added.

Local fashion brand Collate The Label agreed that technology is an enabler for growth.

“We employ a lot of tech into our business. From the front-end to the back-end — the packing and fulfilment systems are integrated to courier companies. This saves about 30 per cent in manpower,” said the e-commerce and retail business’s executive director Moses Lim.

Technology is always changing, said Mr Lim. “It is important to constantly keep up with new technology changes.”

It is important for businesses to innovate, agreed Ms Lie: “Otherwise, it is easy to be forgotten by society.”

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