Budget 2024: Start-ups hope for support in digitalisation, upskilling and overseas expansion
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Start-ups are hoping for initiatives to support them in digitalisation, upskilling and expanding into overseas markets.
ST PHOTO: SHINTARO TAY
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SINGAPORE – Singapore’s start-ups are seeking more government support in the light of global challenges and rapid technological advancements that may render workers obsolete.
They hope Budget 2024, to be delivered on Feb 16,
Mr Kelvin Tan, chief executive of fintech start-up audax, noted that digital transformation in banking has advanced at an unprecedented rate in the past few years.
To keep abreast of the developments, 2024’s Budget should have initiatives aimed at improving the open banking ecosystem and facilitating digital transformation for traditional banks, he said.
He added that he would also like to see more opportunities for the upskilling of the fintech workforce.
“Singapore has established itself as a leading fintech hub in the region. To maintain this position, the Government needs to continue providing funding and support to the sector with readily available courses subsidised with SkillsFuture Credit and course fee relief from Iras (Inland Revenue Authority of Singapore),” he said.
“By providing support to Singaporean individuals who are acquiring in-demand skills in the digital sector, the Government can nurture and promote innovation in the fintech workforce, enabling Singapore to scale more nascent businesses and ensure its long-term growth in the industry.”
Backed by SC Ventures, the investment arm of Standard Chartered Bank, audax operates as a digital banking technology solutions provider for banks and financial institutions. It is seeking to complete a Series A funding round by the first half of 2024.
Mr Tan also highlighted that workers in fintech are cautiously navigating the artificial intelligence (AI) landscape, as they are aware of the technology’s potential impact on their roles.
The Government and industry will play pivotal roles in equipping workers with the necessary skills to leverage AI effectively, as well as in helping them change their mindset about the technology.
“Rather than solely focusing on upskilling, efforts should also emphasise educating workers on AI’s benefits,” Mr Tan said.
“Government initiatives could prioritise accessible and high-quality AI training programmes by subsidising training costs and facilitating easy access to resources. Empowering workers with AI knowledge contributes to the innovation and growth of the fintech industry and will advance Singapore’s position as a global tech hub.”
Dr Ramesh Rajentheran, co-founder and CEO of Singapore-based healthtech start-up MiyaHealth, said sourcing the right tech talent is the biggest challenge for start-ups here.
“The local software developer pool has some limitations in terms of skill set… We would welcome any initiatives that broaden the local talent pool so that we can add to our team here,” he said.
MiyaHealth, which provides AI-powered healthcare and insurance technology services, has plans to expand into overseas markets such as Vietnam, Thailand and the Middle East by 2025. The company is seeking a Series A funding round in the first quarter of 2024.
“Given the nature of our product and our global ambitions, support in terms of overseas market studies and introductions will also be helpful,” Dr Rajentheran added.
Dr Ali Hasnain, co-founder and CEO of deep tech company Curium, said that more support is needed for growth-stage start-ups like his.
Growth-stage start-ups grapple with challenges such as understanding their market, identifying suitable partners and expanding their customer base, especially when they are seeking to break into overseas markets.
Hence, it is beneficial for them to have support in connecting with local advisers and industry experts, on-the-ground networking, and linking to the local venture capital scene, Dr Hasnain said.
Dr Hasnain, whose start-up develops AI-sensing capabilities for autonomous systems such as self-driving vehicles, added that the rising cost of living in Singapore presents a challenge for start-ups in attracting suitable talent.
“More support to alleviate the rising cost of living will be instrumental in helping us attract exceptional talent,” he said.
There are currently several support mechanisms that start-up founders in Singapore can access.
They include the Startup SG Founder scheme, which provides mentorship and a capital grant of $50,000 to first-time entrepreneurs with innovative business ideas. Start-ups are required to commit $10,000 as a co-matching fund to the grant.
Additionally, government agencies such as Enterprise Singapore also organise competitions and business matching events for start-ups to connect with potential investors and other companies.
Mr Ryan Ong, co-founder and CEO of Fogo Fungi, an agritech start-up growing mushrooms indoors for human consumption,
However, he added that brick-and-mortar start-ups like Fogo Fungi can suffer from high operating costs such as rent, and their product time to market can be long.
He said: “More access to government grants would significantly assist new agritech start-ups to defray these costs.”
Mr Ong would also like to have support in developing local talent for his sector.
According to him, there is a lack of local talent to work towards Singapore’s 30 by 30 goal, which aims to build the agri-food industry’s capability and capacity to sustainably produce 30 per cent of the nation’s nutritional needs locally by 2030.
He added: “We believe that in order for the industry to advance at a quicker pace, there must be educational or financial support to groom local talent. Otherwise, there needs to be better support for start-ups in this field to bring in experts from overseas.”
Mr Patrick Lim, CEO of the Action Community for Entrepreneurship, said that the poor fund-raising environment over the past two years has impacted both early- and late-stage start-ups in Singapore. He suggested that Budget 2024 could explore measures to enhance talent access, alleviate rising business costs, and create more market opportunities to support start-ups.
He added: “Any new initiatives encouraging collaborations between large corporations and start-ups would also benefit start-ups in validating their product market fit and help them scale up more quickly.
“In addition to short-term Budget measures, it’s important that the Government helps Singapore’s start-up ecosystem maintain its competitiveness in the long run amid emerging operational and global challenges.”