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Benefits abound if SMEs in Asean tap technology

The advent of technology, mechanisation, digital connectivity and digitalisation has benefited the business ecosystem among Association of South-east Asian Nations (Asean) members (SMEs urged to transform their businesses to ride on digital wave; June 20).

The advent of technology, mechanisation, digital connectivity and digitalisation has benefited the business ecosystem among Association of South-east Asian Nations (Asean) members (SMEs urged to transform their businesses to ride on digital wave; June 20).

And Singapore shall be prioritising this feature when we chair Asean next year, as it is vital to member states’ markets.

Small and medium enterprises (SMEs) are an integral part of the Asean economies and make for a large proportion of government investments, especially in the Singaporean context, where domestic demand is set to strengthen.

The development of components like e-commerce and technological integration in key economic sectors would go a long way towards attracting more foreign investment in future and increasing the returns of an array of companies.

With more incentives to spread risk, more SMEs would be willing to invest and grow further. The digital economy’s potential US$1 trillion (S$1.34 trillion) growth would also increase the competitiveness of member states and SMEs.

Unfortunately, companies that do not approach and respond to changes in the business environment in the most effective way will lose out in the process and end up exiting the market.

Embracing technology and structural reforms is therefore of the utmost importance at this stage.

It encourages the growth and potential of research and development, leading to economies of scale and efficiencies, including in the areas of communication, manufacturing and finance.

Moreover, the recent developments in Asean’s business setting would be beneficial to all SMEs.

The digital era can be emblematic of progress in South-east Asia, and it is time to build a foundation for a future in which SMEs can outperform their traditional competitors.

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