Push to encourage SMEs to use high-tech solutions to raise productivity

SINGAPORE — In a push to help small and medium enterprises (SMEs) adopt a high-tech approach to raise productivity and growth, the Government yesterday unveiled a S$500 million, three-year package of information and communications technology (ICT) subsidies.

The funding will be available to help companies adopt ICT-based productivity solutions, pilot emerging technology solutions, and to tap on high-speed Internet connectivity in an age of cloud computing and data analytics, said Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam.

Mr Tharman noted that over the past few years, measures have already been put in place to help businesses embrace technology. For instance, more than 50 F&B operators have adopted a wireless integrated system that has relieved their service staff from manual and repeated tasks.

But the new initiative — dubbed the ICT for Productivity and Growth (IPG) Programme — will massively expand the Government’s attempts to help business go high-tech in the push for growth, with a target to help another 10,000 SMEs adopt “sector-specific proven solutions”, up from the 500 that have already benefited.

Subsidies will be given in a few key areas. Seventy per cent of the qualifying costs of proven ICT-based productivity solutions will be subsidised, as will 80 per cent of qualifying costs of piloting emerging technology solutions. The latter will be capped at S$1 million per firm.

“We will encourage first movers, who can pilot emerging technology solutions that have the potential to transform businesses. These can, for example, include innovations in sensors, data analytics and robotics,” said Mr Tharman.

Fibre broadband access will also be subsidised for SMEs who are already using ICT-based productivity solutions. A 50 per cent subsidy on plans of at least 100Mbps will be given for up to two years, capped at S$120 per month.

SMEs that want to implement free Wireless@SG services at their premises will be given a one-time subsidy of S$2,400 to set up the equipment.

“We will promote high-speed connectivity for SMEs. It is difficult for SMEs to take full advantage of cloud computing and data analytics solutions without high-speed Internet access,” Mr Tharman noted.

Building owners who set new infrastructure for fibre broadband will be subsidised for up to 80 per cent of the costs, capped at S$200,000 per building. This is not a permanent measure, stressed Mr Tharman, who strongly encouraged building owners to take it up within the next three years. He added that the Infocomm Development Authority will consult the industry and building owners to determine the most optimal way to structure the subsidy.

In his speech, Mr Tharman focused on some companies in industries which have had relatively low productivity, but have been able to use technology to do things differently.

He raised the example of Oneberry Technologies, which created a proprietary system of intelligent cameras and surveillance software in place of security guards. Besides more than doubling its own revenue with only a one-third increase in manpower, it has enabled one of its clients to save S$300,000 in three years.

Menswear retailer Marcella was another company that Mr Tharman highlighted. It has used technology to produce bespoke shirts using software to translate customers’ measurements into draft designs, reducing the need for alterations.

“They show us that change is possible and how, if we scale up such changes across whole industries, we can achieve a major impact in overall productivity,” said Mr Tharman.