The Singapore government has demonstrated its commitment to supporting SMEs with the introduction of the SME Go Digital programme during the Singapore Budget 2017 announcement.
This is welcome news for SMEs, and provides a good start to their digitalisation journey.
In his speech, Minister for Finance Heng Swee Keat announced that the Info-communications Media Development Authority (IMDA) will work with SPRING and other sector lead agencies in this effort.
According to Minister Heng, the SMEs Go Digital Programme will have three components:
a. First, SMEs will get step-by-step advice on the technologies to use at each stage of their growth through the sectoral Industry Digital Plans. The programme will start with sectors where digital technology can significantly improve productivity. These include Retail, Food Services, Wholesale Trade, Logistics, Cleaning and Security.
b. Second, SMEs will get in-person help at SME Centres and a new SME Technology Hub to be set up by IMDA. SMEs can approach business advisors at SME Centres for advice on off-the-shelf technology solutions that are pre-approved for funding support, or connect to Info-communications and Technology (ICT) vendors and consultants. The more digitally advanced firms can get specialist advice from the SME Technology Hub.
c. Third, SMEs that are ready to pilot emerging ICT solutions can receive advice and funding support. We will work with consortiums of large and small firms to help them adopt impactful, interoperable ICT solutions, to level up whole sectors.
To support the programme, the government will also strengthen its capabilities in data and cybersecurity.
“With increased digitalisation, data will become an important asset for firms, and strong cybersecurity is needed for our networks to function smoothly. The Cyber Security Agency (CSA) of Singapore will work with professional bodies to train cybersecurity professionals,” said the Minister.
The Minister announced that more than S$80 million will be allocated for these programmes.
Right direction
“The Go Digital Programme for SMEs is a further step in the right direction as it focuses on embracing digital rather than acquiring technology,” comments Lyon Poh, Head of Digital + Innovation at KPMG in Singapore.
“As we live in an increasingly globalised world, the creative employment of technology is necessary for Singapore to retain its competitiveness as a cutting-edge economy,” says Larry Sim, Tax Partner at KPMG in Singapore·
SMEs can use these incentives to harness the digital space, which will spur value creation and support Singapore’s position as a global hub.
“The measures to strengthen SMEs capability to innovate is a good start and builds on the strength of our agencies. However this is only the beginning as many SMEs are only commencing their innovation journey,” comments Harvey Koenig, Tax Partner at KPMG in Singapore.
“They will need even more help along the way to navigate issues such as working with innovation partners, protecting their intellectual property and commercialising their ideas. SMEs should look to schemes such as the Capability Development Grant and R&D tax incentives to fund their innovation projects.”