Helping more SMEs adopt digital technology

Industry Digital Plans will be developed for more sectors under the SMEs Go Digital programme. Pre-approved solutions for funding support will also be extended to include more advanced Artificial Intelligence-infused and cyber security solutions.

At the same time, enhanced Enterprise Development Grant (EDG) support of up to 70% of eligible expenses will be extended to 31 March 2023, while the Automation Support Package (ASP) to support impactful and large scale automation technologies will be extended to 31 March 2021.

Building stronger digital capabilities

SMEs are challenged by rising costs and lack of familiarity with digital technology, with the current take-up rate for the SMEs Go Digital programme only at 4,000 SMEs and the ASP having helped just over 300 companies. The extension and/or expansion of the schemes are necessary to help these SMEs in their digital transformation efforts.

Tap into available support; explore emerging tech

Local enterprises planning to invest in digital solutions (e.g. Data and Analytics, Artificial Intelligence and cyber security capabilities), automation (e.g. robotics and automated systems), and capability development to improve financial and operational efficiencies (e.g. engaging consultants to review corporate governance, provide tax planning advice, and redesign jobs or work processes) should consider tapping on the financial support extended under Productivity Solutions Grant (PSG), ASP or EDG. SMEs can also take advantage of the enhanced support level under these schemes.

More enterprises need to come onboard

Statistics show that the take-up rate for these schemes is low. The relevant government agencies and the ecosystem should step up efforts in promoting and raising awareness of these schemes to encourage SMEs to invest in productivity initiatives.

Show enterprises what’s in it for them

Success cases of enterprises in various industry sectors could be showcased to encourage business owners to embrace productivity solutions.

Productivity savings from projects supported by EDG should also transform to positive outcomes such as increased wages for existing workers. Ensuring that productivity savings result in benefits to employees is a potential area which the Government may need to monitor and possibly enforce.