'Covid catalyst' should spur firms to transform digitally to thrive: Chan Chun Sing

THE Covid-19 crisis has been a "Covid catalyst" in spurring digital transformation, showing that it will allow firms to not only survive but thrive in a crisis, said Minister for Trade and Industry Chan Chun Sing on Tuesday morning at the annual Future Economy Conference and Exhibition (FECE) 2020.

"It will allow us to transcend the tyranny of geography and the size of a small city state like ours," he added, at the digital event co-organised by the Singapore Business Federation (SBF) and the Infocomm Media Development Authority (IMDA).

Mr Chan reiterated the government's warning that there is no returning to a pre-Covid world, and that failing to transform now might mean that Singapore's hub status could be challenged and bypassed.

While digital transformation had been ongoing before the pandemic, its benefits have become even clearer, from serving customers better to being able to access new markets even without a physical presence.

Granted, the process does come with challenges, from uncertainty in the tech war between the United States and China, to worries about having to abandon old methods and learn new ways, said Mr Chan. But firms "must not come to the wrong conclusion to resist digitalisation", he added.

"The faster we adapt, the faster we recover," he said. "We cannot tread water and wait for normalcy to return", for that will mean being overtaken by others, he added. He once more reassured firms that the government will provide help for them to cope, and create enabling conditions to support them in transforming and transiting.

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The two-day event on the theme of "Empowering People & Embracing Digitalisation for Resilience & Resurgence" is the fourth edition of the annual FECE, and the first to be held online, with more than 1,000 registered attendees.

At the event, the SBF and the IMDA renewed a memorandum of intent, reaffirming their commitment to drive digital transformation among the Singapore business community.

This includes three projects: promoting adoption of digital business-to-business technologies such as e-invoicing and e-signatures; helping companies leverage digital economy agreements to operate across borders; and supporting the development of digital platforms, as well as continued outreach to small and medium-sized enterprises.

"The Covid-19 situation has highlighted the need for businesses to adopt digital transformation to remain relevant and competitive. This collaboration between SBF and IMDA seeks to provide relevant support to businesses in their digital transformation efforts, including efforts to push boundaries and to explore new growth markets," said SBF chairman Lim Ming Yan.

This is one of two key efforts on which the SBF is working with the government, said Mr Lim in his welcome remarks. The other is the Emerging Stronger Taskforce, set up earlier this year under the Future Economy Council.

The taskforce has convened seven Alliances for Action, and the SBF is actively involved in these industry-led alliances, in which the private sector works with the government to identify and prototype ideas in a three-month sprint. Beyond these areas, the SBF hopes "that this form of private-public collaboration would serve as a good model to be extended to other sectors subsequently", said Mr Lim.

In a recent engagement session with Mr Chan and taskforce co-chair Tan Chong Meng, SBF council members also provided feedback and views on how Singapore can position for the future, he added. In the next few months, the SBF will be inviting the business community to participate and contribute to various related initiatives.