Helping SMEs thrive in today’s digital economy

Singapore remains committed to deepening the digital capabilities of the SMEs that form the backbone of its economy

The digital economy is growing at an unprecedented pace. COVID-19 has accelerated digital transformation globally, transforming business models and consumer behavior. Now, more than ever, digitalization has become a necessity and an opportunity, and it is key for businesses — big, small or micro — to adopt digital solutions to improve their competitiveness and build resilience in a post-pandemic economy.

SMES GO DIGITAL PROGRAM

In Singapore, Small and Medium Enterprises (SMEs) play a critical role in our economy — employing two-thirds of the workforce and contributing to nearly half of the country’s Gross Domestic Product (GDP). With digital technology transforming every sector of Singapore’s economy, a key focus has been to help its SMEs adopt digital technologies and build stronger digital capabilities to improve business operating models and seize new growth opportunities.

In 2017, the Infocomm Media Development Authority (IMDA) launched the SMEs Go Digital program to make the process of going digital simpler for SMEs. The program includes a range of initiatives to help SMEs digitalize at various stages of their growth, from the Start Digital Pack, Industry Digital Plans, Productivity Solutions Grant to Grow Digital. Since its launch, the SMEs Go Digital program has guided over 20,000 SMEs through their digitalization journey.

KICK-STARTING A DIGITAL JOURNEY

Newly-incorporated SMEs or those which have not embarked on their digitalization journey are encouraged to tap on the Start Digital Pack, which was launched in January 2019.

The Start Digital Pack helps these companies get started with foundational digital solutions in five categories — accounting, human resource management systems & payroll, digital marketing, digital transactions, and cybersecurity — at a competitive price. New SMEs can select any two solutions at no cost for at least six months with a minimum 18-month contract period.

To guide Singapore's SMEs on their digital transformation journey, sector-specific Industry Development Plans (IDPs) will provide SMEs with a step-by-step roadmap on the digital solutions to adopt and relevant training for their employees, as they grow their digital capabilities.

To date, IMDA has rolled out 11 IDPs covering 10 Industry Transformation Map (ITM) sectors, for the Environmental Services, Food Services, Logistics, Media, Retail, Security, Wholesale Trade, Sea Transport (Harbour Craft, Ship Agency), Accountancy and Hotel. More IDPs will be developed to cover more ITM sectors.

Digitalization is a key enabler for businesses to improve their competitiveness and productivity both locally and internationally, and COVID-19 has accelerated the need for digitalization exponentially. Against this backdrop, it is befitting that the nation celebrates its 55th year of independence with a renewed focus on deepening the digital capabilities of enterprises so that through collective efforts, they can emerge stronger through this crisis, ready to harness the new opportunities in a digital-first economy.