Disruption is here to stay, and it's time to face the challenges head-on

DISRUPTION is all around us, and it is gradually making its way to every organisation in every industry, both in Singapore and around the world. The incumbent businesses naturally see it as a threat to their livelihoods, while others relish the many silver linings that disruption can bring, such as new jobs or new opportunities in different sectors.

In his recent National Day Rally speech, Prime Minister Lee Hsien Loong singled out disruption as the "defining challenge" among all the economic issues that Singapore has to contend with to stay ahead of the curve. He said: "Old models are not working, new models are coming thick and fast, and we're having to adjust and to keep up because of technology and globalisation. And the disruption will happen over and over again, relentlessly."

Among the sectors feeling the pain caused by disruption are transport and retail. The widespread use and popularity of private car-hire services Uber and Grab have affected Singapore's taxi industry. The high Internet penetration rate here has also resulted in more people shopping online, which is bad news for the retail industry that now employs 125,000 workers in 16,000 companies. More travellers are also turning to Airbnb for their accommodation needs, instead of staying at hotels or serviced apartments.