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Nationwide e-invoice system, pilot common parcel locker system to prepare for digital economy

SINGAPORE — The Republic will be the first country in Asia to implement its own national electronic invoicing system, based on a similar process that is widely used in Europe in a bid to prepare local businesses for the digital economy.

These locker sites, to be located at MRT stations or accessible areas that are 250 metres from a residential block, will be run by logistic providers BluPort and SingPost.

These locker sites, to be located at MRT stations or accessible areas that are 250 metres from a residential block, will be run by logistic providers BluPort and SingPost.

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SINGAPORE — The Republic will be the first country in Asia to implement its own national electronic invoicing system, based on a similar process that is widely used in Europe in a bid to prepare local businesses for the digital economy.

In addition, a year-long pilot starting this October will give residents in Bukit Panjang and Punggol access to a nationwide common parcel locker system, making it easier for them to collect their goods if they are not at home to receive them.

Minister for Information and Communications S Iswaran gave updates on these previously-announced initiatives at the inaugural SG: Digital Industry Day held at the Suntec City Convention Centre on Monday (May 21).

For the nationwide e-invoice system, the Government will use the Pan European Public Procurement On-Line (PEPPOL) system, allowing businesses to speed up transactions and minimise errors. The adoption of such an e-invoice system was announced at this year’s Budget. 

That is a preferred mode compared to digitised invoices, which include those in PDF or Microsoft Word formats, as they require “some level of human input to process”, said the Infocomm Media Development Authority (IMDA), the agency that will oversee the implementation of the new system.

Under the PEPPOL system, which is currently used by 10 European countries such as Britain, Germany and Norway, local firms can exchange information with those overseas without any compatibility issues.

Some 45 organisations, including those in the public and private sectors such as the Maritime and Port Authority of Singapore and OCBC Bank, have expressed interest to use the system.

Using this system, instead of sending physical invoices or documents, companies can create and exchange a range of electronic documents, such as electronic orders. Suppliers and buyers can also use the system to request for payments.

This eliminates or reduces several costs, ranging from postage and paper, to manpower. For example, when errors occur, manpower is required to redo all the paperwork. Going electronic makes it easy to redo the process, saving manpower resources, which could be diverted to other tasks.

Mr Iswaran pointed out that while the digital economy “holds much promise, going digital may be daunting for many enterprises, especially given the multiplicity of challenges in today's complex and competitive economic landscape”.

He added: "We want to help all our companies succeed in this transformation, and that's why we are ramping up our efforts to accelerate the adoption of digital technologies."

On that note, the Government is also accelerating the digital transformation for the logistics industry through the Federated Lockers and Collection Points programme, which was first announced by Deputy Prime Minister Tharman Shanmugaratnam in April 2016.

The IMDA said that the move will complement the rapid growth in Singapore e-commerce market — set to be worth S$7.5 billion by 2027 — by raising productivity and improving the quality of jobs for companies dealing with consumer retail.

For a start, there will be 23 locker sites in Bukit Panjang and 39 in Punggol under the pilot programme. These locker sites, to be located at MRT stations or accessible areas that are 250 metres from a residential block, will be run by logistic providers BluPort and SingPost.

Within the Bukit Panjang town, for instance, locker sites will be located at selected MRT stations such as Bukit Panjang, Chinese Garden, Lakeside and Boon Lay. Over in Punggol, there will be locker sites at the Punggol, Sengkang, Buangkok and Hougang MRT stations.

The programme aims to reduce inefficiencies and additional costs incurred from return visits to ensure that parcels reach their customers. IMDA has signed memorandums of intent with 15 logistics firms and industry partners — including Federal Express and Lazada — to participate in the programme.

Mr Tharman had previously noted that IMDA found that the biggest problem local delivery companies face is making door-to-door deliveries and finding that no one is home to receive the goods.

Among other initiatives that will be implemented and ramped up in the coming months include the Open Innovation Platform. The initiative, which allows firms to crowdsource for solution online, will be introduced next month.

In addition, the SMEs Go Digital programme, implemented in April 2017, will be scaled up so that professionals, managers and executives can be trained on digitalisation.

Mr Iswaran noted that such initiatives will place Singapore in good stead “to enhance our competitiveness, and serve as an important global node for technology, innovation and enterprise”.

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