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Digitalisation leads Singapore’s businesses into the future

Dr Biz • Aug 04, 2020

Digitalisation is one of the most important business trends to emerge in recent years, particularly among small and medium sized enterprises (SMEs) in Singapore, where the implementation of new technology has led to game changing efficiencies and innovations. In-fact, Singapore has long taken a lead in the digital field, with the government employing initiatives to help businesses go digital as far back as the year 2000 with the “e-government Action Plan.”

Globally, there is enormous opportunity in digitalisation, with a recent report from international research firm McKinsey and Company revealing that governments alone could generate over S$1.34 trillion of cost savings worldwide just by better using existing technology. In Singapore, it is estimated that digital improvements could add S$13.8 billion to the economy by 2021, with the country’s world-class fixed connectivity combined with its fibre-optic and 4G network penetration making it a front runner in the global digital race.

In-fact, in 2017 Singapore was ranked the most advanced digital economy in Asia in a study by Tufts University and Mastercard. Meanwhile, consultancy firm A.T. Kearney predicts that Singapore, along with Malaysia and Thailand, will be among the world’s top 20 countries for digitalisation come 2025. It adds that if the entire region grasps the opportunity presented by the digital economy, ASEAN could collectively enjoy a S$275 billion boost over the next five years.

World class digital businesses

Singapore’s position as a digital leader has prompted internationally renowned companies to locate cutting-edge technological operations in the country. This includes IT systems giant IBM, which founded its groundbreaking Blockchain Innovation Centre here in Singapore, where it is developing security innovations for the finance and logistics sectors based on blockchain technology.

Ireland-based sustainable building firm Johnson Controls also recently announced its decision to establish a S$50 million lab in Singapore to research and develop artificial intelligence solutions for the built-environment industry. The lab will focus on integrating machine learning and data analytics into smart buildings systems, which can monitor temperatures constantly, helping to optimise energy usage and reduce buildings’ emissions.

Digitalisation isn’t just about state-of-the-art technology, though. In-fact, it can be as simple as improving administrative processes. Accounting is a key pain-point for many business owners and solutions such as Xero, which offers fully integrated, mobile accounting software, can help to automate everyday business tasks. Xero’s features include mobile invoicing, with automatic reminders and online payments, instant reconciliation of bank statements and instant expense management. Accountancy and professional service firms all over the world, including us at Dr Biz, now also integrate their services with Xero, making tax filings a breeze.

Transforming local enterprises

Marketing and food management are other areas that can benefit from digital solutions, helping Singapore’s SMEs to shine. For example, launching an online store through Facebook, or using digital marketing tools provided by WhatsApp and Zalo, can help small businesses to connect with a bigger customer base. These also allow entrepreneurs to launch new businesses from home, without the need for premises. In food management, smart technology in storage areas combined with automated processes can help business owners to improve safety and cut waste.

In recognition of the many benefits that digitalisation presents to Singapore’s SMEs, the government has launched the “SMEs Go Digital” programme, which aims to help businesses build stronger digital capabilities and seize growth opportunities in the new, digital-first economy. Businesses in Singapore can use an online self assessment tool to discover their digital needs and then build an “Industry Digital Plan” to identify the technology solutions and training packages they need.

The Start Digital Pack provides foundational digital solutions in areas including human resources, payroll, digital marketing, digital transactions and cybersecurity, while the “Grow Digital” scheme gives SMEs access to a number of b2b platforms providing groundbreaking solutions. These include eezee.sg, which allows companies to digitise across processes such as approval workflows, contract management and data analytics, as well as SellinAll, which helps Singapore SMEs to connect with customers on e-marketplaces all over the world.

Digitalisation post-Covid-19

Improving digital processes will be key for SMEs when it comes to bouncing back from Covid-19, particularly in the hard-hit food and beverage and retail industries. Companies that can implement increased automation in customer service, payment and food processing, for example, are set to thrive in the post-pandemic environment, where distancing and cleanliness will be paramount. The Digital Resilience Bonus (DRB), another government initiative, is designed to help SMEs in these sectors to emerge stronger after the circuit breaker period.

The DRB is given on top of enhanced digitalisation assistance provided under the SMEs Go Digital programme, and allows for payments of up to S$10,000 to food services and retail enterprises that already use digital solutions for business processes (including PayNow Corporate and e-invoicing), digital presence and data mining and analytics. The DRB bonus is available to most food and beverage outlets, from cafes, restaurants and pubs as well as food, fashion, electronics and homewares retailers. See www.imda.gov for full details of eligibility.

Digitalisation, whether implemented out of necessity or novelty, is an essential and exciting part of growing a business today, and SMEs in Singapore shouldn’t shy away. As highlighted above, the digital economy is providing myriad opportunities to help businesses save time and money while connecting with their customers and boosting their brand. And with all the support available, there is little excuse for companies not to take advantage of these new avenues for growth and development. From accounting to advanced data analytics, the digital world is offering new business solutions every day.

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