SINGAPORE — Building on the Smart Nation initiative, Singapore can tap the opportunities offered by the digital economy by encouraging all sectors to adopt technologies.

Strong capabilities in digital technologies that can be applied across all sectors — particularly data analytics and cyber security — have to be built, the Committee on the Future Economy (CFE) stated in its report released yesterday.

Some of the ideas it pitched ranged from training full-time national servicemen to develop “deep, niche” skills in cyber security to helping small and medium enterprises (SMEs) go digital by providing them with expertise and financial support.

“Data will be an increasingly important source of (a) comparative advantage, and we need to improve our ability to use it productively in the economy,” the committee said. Riding the wave would help small and big businesses reach global markets effectively, it added.

The Government and industry players can come together to set up joint laboratories to train data scientists and promote innovation, and to conduct research in areas of interest through the partnership.

Underpinning this would be the development of appropriate and flexible regulatory frameworks, which promote innovation and enable the adoption of technology.

The CFE said, “We should recognise, treat and develop data in ways similar to how we would treat more conventional assets such as property and human capital.”

It proposed setting up a dedicated programme office to support enterprises in using data as an asset. This office could provide industry-specific regulatory guidance and co-develop flagship data science projects to spur adoption.

More data could be shared with the private sector, although the committee noted the need to balance privacy and security concerns.

By going digital, companies can seek new revenue opportunities, manage business compliance costs, become more manpower-lean, and scale up their operations. These are areas that would benefit SMEs, and the authorities must step in to help them, the committee said.

One way would be for the Government to defray the initial investment cost of pilots involving new technologies which could help smaller players increase sales or reduce manpower. This would allow potential solutions to be piloted before being deployed to other companies.

To speed up digital adoption for SMEs, the committee suggested tapping national initiatives such as the National Trade Platform, a next-generation trade and logistics IT ecosystem, which will replace the TradeNet and TradeXchange in 2018. Companies may then gain insights from the data on this platform, it said.