Businesses will need to pivot towards the digital economy as the pandemic forces companies to rethink how they operate, said Senior Minister of State for Trade and Industry Chee Hong Tat.

Mr Chee told Parliament yesterday: "The digital economy will take on greater salience than before."

He added that the Covid-19 outbreak has "compelled businesses in all industries to turn to technology-enabled platforms for safe operations and business continuity".

"Besides shoring up a strong demand for digital solutions in the ICT (information and communications technology) sector, the quickened pace of technology adoption across industries has also transformed business models," said Mr Chee.

Bricks-and-mortar industries, such as retail and food services, have felt the squeeze from falling footfall owing to safe distancing measures. But technology "has enabled these businesses to access broader markets and consumer segments than before", he added.

Associate Professor Lawrence Loh from the National University of Singapore Business School said: "The current emphasis on digitalisation presents new frontiers for existing businesses to tide over the pandemic crisis and... to thrive in future calamities."

Mr Chee said: "As a small and open economy, Singapore's response cannot be to turn inwards. We need to find our new relevance to the world.

"Even as we cope with the immediate challenges, there will be new opportunities that we can seize, we can leverage our strengths and we can ride on the key shifts brought about by the pandemic."