Tech inclusion will ensure that no one is left behind: analysts

Singapore

THE pace of digital revolution has picked up amid the Covid-19 havoc as disruptive technologies give rise to new business models and jobs in Singapore.

But in the pursuit of new breakthroughs, it is important to ensure that sections of the workforce do not get left behind, said analysts.

While innovation and digitalisation will play a key role in "futureproofing" the economy, the digital economy is "not just about taking existing processes and digitising it", Benjamin Chiang, Asean government and public sector leader at EY, told The Business Times.

There are opportunities to leverage emerging technologies, such as augmented reality and 5G, to innovate and create new business models, which in turn create higher-value jobs, he said.

On this note, Singapore can contribute to the global recovery by taking on a more inclusive and collaborative approach in deepening its tech capabilities.

Deputy Prime Minister Heng Swee Keat, attending the annual Singapore FinTech Festival x Singapore Week of Innovation & TeCHnology (SFF x SWITCH) 2020 virtually on Monday, noted that the pandemic has brought inequalities into sharper relief in many societies, along with intensified geopolitical tensions between major powers and rising risk of technological and economic decoupling.

He added that the crisis has created "a unity of purpose" in startups and businesses from Silicon Valley to Shenzhen, as these players are finding new solutions to cope with Covid-19, and new technologies that will shape a post-pandemic world.

The number of international collaboration and open-access publications grew during the pandemic, a trend that Singapore can be a part of, he said. To avoid widening inequality, the Republic must speed up the time that it takes for the last company and worker to access and benefit from technology.

Greg Unsworth, digital business leader at PwC Singapore, said: "There will always be the fear of jobs being replaced by technology as more tasks become automated."

He told BT that there is a need to continuously support the workforce to upskill and reskill, and to develop the confidence to use technology to enhance their contribution.

But Mr Heng observed that many small and medium-sized enterprises (SMEs) are not making use of digital technologies, much less training their workers for the digital world.

While the government has been helping SMEs access business-to-consumer platforms, digital marketplaces for business-to-business commerce across geographies is more limited.

The Business sans Borders (BSB) initiative was hence started to digitally connect SMEs around the world and expand their markets. Using artificial intelligence, BSB enables SMEs to discover prices and sales opportunities in a much larger global marketplace.

"Some of them will inevitably be disrupted by technology. But many others simply need some help to use technology to raise productivity and boost their value propositions," said Mr Heng.

He also stressed that the foundation for a more inclusive and sustainable post-pandemic future lies in the creation of a more resilient global commons.

A key element of this is stronger governance on the use of technology. Strong governance applies not just to how technology is used, but also to how data is shared as many people transact with different platforms and businesses daily.

Citing finance as an example, he said people bank with different institutions, trade on different platforms, and purchase products from different insurers. "When we need to consolidate our finances, this is often onerous."

To address this pain point, Singapore on Monday launched the Singapore Financial Data Exchange (SGFinDex), the world's first public digital infrastructure that enables a person to sign in using his national digital identity, SingPass, and provide consent to retrieve personal financial information from major banks and government agencies.

With this, citizens can now view their consolidated financial information on a single platform to make more informed and holistic financial decisions. Data from each source is encrypted and transmitted through the system without being stored.

EY Asean financial-services leader Brian Thung told BT that consumers will be more empowered to obtain customised services and products beyond those offered by traditional banks, asset managers and insurers. This will make a play for customer acquisition and retention "more competitive than ever".

As individuals become more accustomed to digital-banking services, SGFinDex has the potential to grow the wealth management industry, said Phillip Securities research analyst Tay Wee Kuang.

But for it to take off, individuals must trust the platform and believe the benefits outweigh the potential risks, said Sam Kok Weng, financial services leader at PwC Singapore.

While successful use cases can build up trust and effect the mindset change needed, financial management is a "relatively private matter" and not many would be that comfortable telling their stories, he added.

Though SGFinDex's success hinges on its adoption rate, it will spur competition within the financial services industry, which benefits individuals in the long term, added Phillip Securities' Mr Tay.

In his address on Monday, Mr Heng said the fintech scene is a key focus in Singapore's continued development as a global financial hub.

Last Friday, four digital bank licences were issued in a move to liberalise the financial industry. "This will strengthen Singapore's financial sector for the digital economy, and improve access for currently underserved businesses and individuals," he said.

A new Asian Institute of Digital Finance has also been launched. One of its first projects is to build a data-sharing platform that can train models to improve credit assessments.

Overall, about 1 per cent of Singapore's gross domestic product is invested in research and development every year. Plans for the next five years will be announced this week, said Mr Heng.

As Singapore creates a more inclusive future, it must also do so in a sustainable manner, he added.

By 2030, the government will deploy at least two gigawatts of solar energy - almost 3 per cent of Singapore's electricity needs; it also aims to phase out all internal combustion engine vehicles in the country by 2040.

Mr Heng pointed out that sustainability initiatives can in turn create opportunities for economic growth.

"We believe that growth and sustainability can go hand in hand, and technology and innovation can offer solutions to achieving both," he said.

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