Budget 2017: How best to help SMEs go digital

THE government's latest efforts to help SMEs use digital technology to grow should be a welcome initiative. Last year, almost half of the 1,100 businesses polled by the Singapore Business Federation said that they would like to see increased support for technological change. Only 39 per cent of businesses polled after last year's Budget said that they had embarked on some form of technological change or adaptation in their business models

In his 2017 Budget Speech, Finance Minister Heng Swee Keat announced the SMEs Go Digital Programme. This has three components. First, through the sectoral Industry Digital Plans, SMEs will receive advice on how digital technology can raise their productivity. Second, through a new SME Technology Hub established by the Infocomm Media Development Authority (IMDA) and 12 SME Centres supported by Spring Singapore, SMEs could be introduced to off-the-shelf technology solutions. Third, SMEs that are ready to adopt new IT solutions could receive funding support.

How these initiatives will be implemented is key. Here, some lessons can be drawn from previous government initiatives targeted at our SMEs.