Singapore Budget 2019: SMEs to continue getting up to 70 per cent subsidy to go digital

Small and medium-sized enterprises can continue to look forward to having up to 70 per cent of the cost of more tools such as cyber security and artificial intelligence subsidised, Finance Minister Heng Swee Keat said.
Small and medium-sized enterprises can continue to look forward to having up to 70 per cent of the cost of more tools such as cyber security and artificial intelligence subsidised, Finance Minister Heng Swee Keat said.PHOTO: BLOOMBERG

SINGAPORE - The Government will continue to expand a current initiative to help small and medium-sized enterprises (SMEs) transform digitally to stay in business amid disruptions to their business models brought about by new technologies.

Specifically, SMEs can continue to look forward to having up to 70 per cent of the cost of more tools such as cyber security and artificial intelligence subsidised, Finance Minister Heng Swee Keat said on Monday (Feb 18).

Such help will come under the SMEs Go Digital programme, announced in 2017.

"We will expand the number and range of cost-effective, pre-approved digital solutions that will be supported under SMEs Go Digital to boost technology adoption among SMEs," he said.

So far, the scheme has helped about 4,000 out of 200,000 SMEs in Singapore in basic automation. The Infocomm Media Development Authority (IMDA) has budgeted some $80 million for potential beneficiaries over four years starting from April 2017.

The IMDA will also roll out Industry Digital Plans (IDPs) for the accountancy, sea transport and construction sectors where innovation has been lagging.

Specifically, these IDPs contain a non-intimidating dummies' guide to help SMEs in identified sectors assess their digital readiness and explore opportunities to go digital.

 
 
 
 

Similar IDPs have already been launched for the logistics, retail and wholesale trade sectors.

SMEs Go Digital replaced a more basic seven-year-old iSprint initiative, which provided similar subsidies and basic tech advice, benefiting about 8,000 SMEs.

Separately, IMDA will also jointly pilot a cross-border marketplace with the Monetary Authority of Singapore. To be powered by artificial intelligence, the marketplace aims to help SMEs find global buyers and suppliers.

The Automation Support Package (ASP), announced in Budget 2016, will also be extended by another two years until March 2021. Under the scheme, more than 300 SMEs had better access to loans for qualifying projects, with the Government sharing risks with participating financial institutions and jointly providing up to 70 per cent of the cost of technology projects.

“The ASP supports firms to deploy impactful, large-scale automation such as robotics, Internet of Things solutions and other Industry 4.0 technologies,” Mr Heng said.

Read Mr Heng's full speech.