Finance Minister Heng Swee Keat, in his Budget speech, stressed on the need to build capabilities and partnerships to bolster innovation in the economy. He said,
Digital technology has unique potential to transform businesses, large and small, across the economy. The first way to strengthen our enterprises, especially small- and medium-sized enterprises (SMEs), is to help them adopt digital solutions.
In the speech, he said the government will be allocating $1.7 billion to accelerate digitization drive in the country. In the wake of recent developments including Brexit and US presidential election, here’s how Singapore is set to move ahead –
SMEs to go digital
Heng Swee Keat announced the SME Go Digital Programme to build digital capabilities of SMEs across Singapore. The Info-communications Media Development Authority (IMDA) will work with SPRING Singapore and other sector lead agencies, to help companies leverage technologies to modernize their services, including retail, food services, wholesale trade, logistics, cleaning, and security.
The initiative will include SME centers where business owners can receive step-by-step tech support at each stage of growth, through the sectoral Industry Digital Plans, beginning with the sectors where technology can increase productivity. The firms which are ready to pilot emerging tech services will be receiving both, financial support as well as advice.
Also, SMEs will continue to benefit from a corporate income tax rebate at 50 percent of tax payable, with a set limit of $18K, hiked up from $14K the previous year. The rebate will continue next year as well, with a reduced rebate of 20 percent of tax payable, capped at $7K. Whereas, the schemes introduced earlier will continue into 2017.
Cyber security – the priority!
Since the government seems adamant on pushing businesses to get more tech-oriented, it’s clear, it’ll work to ramp up the walls against cyber crimes as well. Mr. Heng states,
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 associate with other professional agencies to train cybersecurity professionals.
Tapping global markets
Singapore is encouraging local firms to go global and is keeping $423 million for an International Partnership Fund. It plans to work with the enterprises and co-invest in their global expansion plans. The Finance Minister was quoted saying that the companies need to step into new markets and analyze the customer behavior more deeply if they want to take advantage of the growing consumer class in various Asian cities.
In 2016, a scheme named the International Enterprise (IE) Singapore, helped 37,000 companies to increase their footprints in international markets.
Training for the future
The government will be seen keeping aside a $18.3 million a year for its Lifelong Endowment Fund and Skills Development Fund. It will introduce courses to let Singaporeans strengthen their IT skills using various e-learning and short modular courses.
The ongoing SkillsFuture credit scheme will continue, with subsidies for union members while via Global Innovation Alliance government will roll out initiatives for education.
