Infrastructure, talent, R&D key to developing digital economy: Minister

Singapore is laying the foundation to support the development of its digital economy and protect users from the potential dangers embedded in the emerging technologies involved.

These include building additional infrastructure, investing in research and development, and growing talent, especially as new technologies like the metaverse and Web 3.0 emerge, Minister for Communications and Information Josephine Teo said at the Singapore Digital Economy Forum held at Raffles Hotel yesterday.

The forum was organised by non-profit organisation Business China to connect international companies and relevant government agencies to support Singapore's smart nation and digital economy vision.

Web 3.0 is the third generation of the Internet, with blockchain as the core technology, which holds the promise that users can own their data, identity and content, Mrs Teo explained.

The metaverse is a front-end revolution affecting how people experience the Internet and engage with one another, using virtual and augmented reality, for instance.

Investments are being channelled to such emerging technologies, with venture capitalists putting more than US$33 billion (S$46 billion) into cryptocurrency and Web 3.0 start-ups last year.

In the first five months of this year, more than US$120 billion has been invested in metaverse technology and infrastructure, according to reports.

This is where the Government steps in to help grow Singapore's economic competitiveness and status as a trusted data hub while ensuring online safety and consumer data protection, Mrs Teo said.

Senior Minister of State for Communications and Information Tan Kiat How, who also spoke at the forum, said in a later address: "As at today, no government has passed laws or formulated regulations, specifically designed to address concerns arising from metaverse.

"So for us in Singapore, I think we have to also be mindful of balancing regulations with allowing innovations and also be sensible and pragmatic about it."

Sandboxes, or environments for testing software, have been launched to look into personal data protection and other issues, he said.

Besides regulations and maintaining online safety, Mrs Teo said, building infrastructure is vital, especially as these emerging technologies require 5G connectivity.

Singapore will also continue to invest in R&D. It is already investing $25 billion over five years in research, innovation and enterprise.

Importantly, it also has to grow talent in these areas.

"Our skills development programmes will be sharpened to enable more Singaporeans to access opportunities created in new digital domains," said Mrs Teo.

The Infocomm Media Development Authority has partnered the Monetary Authority of Singapore and the Singapore Institute of Technology to launch a new Bachelor of Science in Applied Computing, with specialisation in fintech, she added.

Financial institutions such as banks will help to plan the curriculum and ensure its relevance, while students will be trained to acquire tech skills in blockchain and machine learning.

But Singapore must also be open to top talent from all over the world continuing to work with locals in new spheres, Mr Tan said, alluding to Prime Minister Lee Hsien Loong's National Day Rally speech on Sunday, where he talked about attracting and retaining top talent.

Besides global talent, international and regional partnerships are also vital in establishing norms to support data flows while opening doors for businesses, Mrs Teo said, adding that through initiatives like the Singapore-China (Shenzhen) Smart City, businesses in partner countries enjoy greater access to new markets and opportunities.