SMEs to get more help in going digital
In this article (5)
The Government is committed to getting its hands dirty to help more small and medium enterprises (SMEs) transform digitally to stay in business amid disruptive technological innovations.
The Info-communications Media Development Authority (IMDA), the government agency leading the charge, will play sector “chief information officer” to SMEs, providing customised help from funding and consultancy to approving tech products and participating in joint pilots.
This will be available under a new scheme dubbed SMEs Go Digital, targeted at the 200,000 SMEs in Singapore.
During the debate on his ministry’s budget yesterday, Minister for Communications and Information Yaacob Ibrahim said: “It will help raise SMEs’ overall level of digital readiness by giving them step-by-step advice on the technologies to use at each stage of their digital journey.”
The kitty is $80 million over four years from April under this scheme which was first announced two weeks ago by Finance Minister Heng Swee Keat.
SMEs Go Digital aims to defray up to 70 per cent of the cost of technology purchase, capped at $300,000 per SME.
It will replace a seven-year-old iSprint scheme, which provided similar subsidies and basic tech advice, benefiting some 8,000 SMEs.
SMEs Go Digital aims to be more comprehensive than iSprint by also helping SMEs with more advanced needs such as cybersecurity, data analytics and artificial intelligence through a new SME Digital Tech Hub to be set up by September.
In reponse to Dr Yaacob’s announcement, nominated MP Thomas Chua, who is president of the Singapore Chinese Chamber of Commerce and Industry, voiced concern about the prospect of disparate technologies being implemented by different firms.
Specifically, supply chains that connect buyers and sellers must be interoperable.
“This will be available under a new scheme dubbed SMEs Go Digital, targeted at the 200,000 SMEs in Singapore.”
COMMON LANGUAGE
“Applying a standardised system for the industry is like learning a common language to facilitate communication… If not, the transfer of large masses of data could cause system errors,” said Mr Chua.
To this, Dr Yaacob said IMDA will adopt a sectorial approach to ensure systems talk to one another and to accelerate the pace of transformation, especially for the deployment of more sophisticated systems.
Specifically, IMDA will partner influential companies to pilot sector-specific solutions that have the potential to scale up.
It will start with sectors such as retail, food services, logistics and cleaning.
For instance, IMDA has partnered retail store Robinsons to integrate some 200 SME suppliers on a common e-procurement platform for better sales planning and inventory management.
IMDA has also partnered StarHub to target 1,000 SMEs in the food and beverage business, offering them a comprehensive automation package including broadband services, retail analytics, digital ordering and payment systems. StarHub is working with the Tampines Merchant Association for this.
While recognising that SMEs’ digital needs vary widely across and within sectors, Dr Yaacob noted that his ministry is open to feedback to fine-tune the new scheme.
Questions & Answers
Q.What is the primary goal of the new SMEs Go Digital scheme?
What is the primary goal of the new SMEs Go Digital scheme?
The scheme aims to enhance the overall digital readiness of small and medium enterprises by providing them with step-by-step advice on technologies. It replaces the iSprint scheme and offers more comprehensive support, including advanced digital needs.
Q.How much funding is available under the SMEs Go Digital scheme, and what is its financial scope?
How much funding is available under the SMEs Go Digital scheme, and what is its financial scope?
An $80 million fund will be disbursed over four years starting from April. The scheme aims to defray up to 70 per cent of technology purchase costs for SMEs, with a cap of $300,000 per enterprise.
Q.Which specific sectors will IMDA initially focus on for implementing sector-specific digital solutions?
Which specific sectors will IMDA initially focus on for implementing sector-specific digital solutions?
IMDA will begin its focus on sectors such as retail, food services, logistics, and cleaning. This approach ensures systems can interoperate and accelerates digital transformation, especially for sophisticated solutions.
Q.What concern was raised regarding the implementation of different technologies by various firms, and how will it be addressed?
What concern was raised regarding the implementation of different technologies by various firms, and how will it be addressed?
Nominated MP Thomas Chua voiced concern about disparate technologies hindering interoperability within supply chains. Dr Yaacob stated IMDA will adopt a sectorial approach to ensure systems communicate effectively and to accelerate transformation.
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