Commonwealth adopts Living Lands Charter, launches Blue Charter project incubator

Commonwealth leaders have officially adopted the Living Lands Charter: A Commonwealth Call to action on Living Lands (CALL), which commits all 54 member countries to safeguarding global land resources while taking coordinated action on climate change, biodiversity loss and sustainable land management.

The non-binding agreement was announced today at the conclusion of the 2022 Commonwealth Heads of Government Meeting in Kigali, Rwanda, along with the final communiqué. It is the culmination of nearly two years of intense consultation, engagement and negotiation with member countries, United Nations Rio Conventions, and other relevant stakeholders.

Applauding the initiative, the Commonwealth Secretary-General, the Rt Hon Patricia Scotland QC, said: “The Living Lands Charter is a testament to our commitment to the people of the Commonwealth, and to the Commonwealth principles of transparency, consensus, and common action.

"It helps to encapsulate our combined effort to hold the global average temperature increase to 1.5°C. It seeks to catalyse the global political momentum for enhancing climate action, building resilience, reducing biodiversity loss, and arresting land degradation.

“Our Call to Action on Living Lands seeks to propel sustainable land management by supporting the 54 Commonwealth member countries to prevent biodiversity loss and desertification while reducing emissions, enhancing resilience and promoting sustainable development.”

The Living Lands Charter recognises that the vulnerabilities of our ecosystems to land degradation, biodiversity loss and climate change are closely interrelated and need to be considered collectively. It seeks to strengthen synergies and coordinated action at national, regional and global levels, of relevant actions under the three Rio Conventions — namely, the United Nations Convention on Biological Diversity (UNCBD); the United Nations Convention to Combat Desertification (UNCCD), and the United Nations Framework Convention on Climate Change (UNFCCC). The Secretariats for the three Rio Conventions have expressed their full support for the charter.

Heads recognised the need of taking a principled approach to the Living Lands Charter and active cooperation with a range of partners to share knowledge, expertise, success stories, and good practices in sustainable land management, while incentivising investment flows and technological innovation.

They also underlined the critical guardianship provided by indigenous peoples and local communities in protecting land and vital ecosystem services, and recognised the land and resource rights of these communities, in accordance with national law and international instruments.

All countries agreed to voluntarily dedicate a ‘Living Land’ in their respective country to the future generations, in line with the Strategy set for the UN Decade on Ecosystem Restoration.

An implementation plan for the charter will be developed and presented to members.

Source: CHOGM. Commonwealth adopts historic Living Lands Charter.

A separate initiative was launched the same day (June 25) to support Commonwealth ocean states in cultivating and scaling up projects that protect the marine environment while also tackling climate change.

With 47 out of 54 Commonwealth countries bordering the sea - including 25 small island developing states or ‘large ocean states’ - the Commonwealth Blue Charter Project Incubator will assist governments in developing pilot projects that accelerate their transition to sustainable and inclusive maritime development and conservation, while mitigating and adapting to climate change.

The initiative is supported by an initial contribution from the Commonwealth Fund for Technical Cooperation, with matching commitments from various partners – currently amounting to £400,000, with more expected in the coming year. Focusing on proof-of-concept and small-scale projects in particular, the incubator will be managed by the Commonwealth Secretariat, in close cooperation with member countries and Commonwealth Blue Charter Action Groups.

The project aims to address the dearth of financial support for ocean action worldwide, with Sustainable Development Goal 14 (Life under water) receiving the least funding globally among all the SDGs. Small island and coastal states are particularly affected, with even fewer funding options for typically marginalised groups, including women, youth, indigenous peoples and local communities.

Deputy Secretary-General of the Commonwealth, Dr Arjoon Suddhoo, said: “Commonwealth member nations are stewards of more than one third of the global ocean within national jurisdictions. Our island states have many times more ocean area than land… The pandemic over the past year has underlined how mutually reliant we all are upon one another. We now know that decisive joined-up, cooperative, multilateral actions are the only way to tackle global ocean challenges. There is no doubt that we need to redouble our efforts.”

Head of Oceans and Natural Resources at the Commonwealth Secretariat, Dr Nicholas Hardman-Mountford added: “The ocean sustains the lives and livelihoods of billions on this planet but its core life-support functions are critically threatened by climate change, pollution and unsustainable exploitation. Yet, the ocean continues to be eclipsed in climate financing discussions. SDG 14 is the least funded of any of the sustainable development goals. For ocean investments to be sustainable Governments need to be supported to lead on the projects they know are most needed in their context. The Blue Charter Project Incubator will uniquely enable governments to develop a pipeline of bankable projects to mobilise ocean financing where it is needed the most.”

Ocean Governance Adviser and Blue Charter programme lead, Dr Jeff Ardron noted: “There are many very good ocean incubators out there already, but none address the needs of governments. The Blue Charter Project Incubator fills that critical gap.”

All Commonwealth member countries will have access to the project incubator. Among the many services it offers, the incubator will provide mentoring and technical support to governments on the development of ocean-related pilot projects that build social, ecological and climate resilience, while also facilitating project partnerships with non-governmental entities. It will review proposals, leverage seed funding for projects and encourage planning for sustainability and scaling up initiatives, including at the regional level. Support will also be provided through unique customised tools, including machine learning.

Project ideas that ‘dare to be different’, offering innovative and cooperative solutions, while also engaging women, youth, indigenous peoples and local communities, will receive particular attention.

This new initiative continues the significant track record of practical solutions delivered by the Commonwealth Secretariat under the Commonwealth Blue Charter – an agreement by all 54 countries made in 2018 to work collaboratively to address global ocean challenges. It is implemented by 10 action groups, led by 16 champion countries.

Over the past four years, more than 450 officials from 40 countries have been trained in 10 topic areas. Members have benefited from 13 online learning courses and 15 resource toolkits on various themes, such as mangrove restoration and blue carbon, or carbon sequestered by ocean and coastal systems.

In addition, more than 60 case studies illustrating good and best practices have been published by the Secretariat and shared to Commonwealth member states. An online database of more than 200 online training opportunities, and another database of more than 100 marine funding opportunities have been launched.

The long-term goal of the Commonwealth Blue Charter is to build on its track record of supporting countries through capacity-building, towards small-scale project development and eventually mainstream impact, with enhanced financial support via a potential dedicated ‘action fund’.

The Living Lands Charter was released alongside a final wide-ranging communiqué by leaders, including on specific items on climate change.

In the communiqué, heads underscored that the “urgent threat of climate change” exacerbates existing vulnerabilities and presents a significant threat to COVID-19 recovery efforts. Developing countries, least developed countries and small island developing states were particularly at risk of their development gains being reversed.

Heads renewed their commitment under the Paris Agreement to keep the rise in global average temperature to well below 2 degrees Celsius above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5 degrees Celsius, also reflecting the Glasgow Climate Pact.

Leaders recognised that this requires “rapid, deep and sustained reductions in global greenhouse gas emissions”, including reducing global carbon dioxide emissions by 45% by 2030 relative to the 2010 level and to net-zero around mid-century, as well as deep reductions in other greenhouse gasses. They further recognised that enhanced support for developing country parties will allow for higher ambition in their actions.

Leaders deeply regretted that the goal of developed country parties to jointly mobilise US$100 billion per year by 2020 had not yet been met. They called on developed countries to fully deliver on the US$100 billion goal urgently and through to 2025 and emphasised the importance of transparency in the implementation of their pledges. They welcomed the increased pledges made to date, including through the Climate Finance Delivery Plan: Meeting the US$100 Billion Goal.

Heads recognised the role of the Commonwealth Climate Finance Access Hub in assisting developing country members with human and institutional capacity to mobilise climate finance for enhanced climate action, including through the development of bankable projects and robust climate policies, amongst other support.

Singapore asks the public to be proactive in digital defence

Source: Tableau. Minister Maliki addresses the audience.

Guest-of-honour and keynote speaker Singapore Senior Minister of State for Defence & Foreign Affairs Dr Mohamad Maliki Bin Osman discussed digital defence in a digital age at Tableau Software’s 5^th annual Public Sector Day. 

In his speech the minister addressed the inter-connectedness brought about by digital technology, which has made us more vulnerable to cyberattacks, disinformation campaigns and fake news. He outlined examples of the economic damage, as well as the social and political disruption, that such scourges have had internationally and domestically, and called on all Singaporeans to recognise their role as the first line of defence against threats. 

"Digital Defence means being vigilant against threats from the digital domain, and being ready to respond to cyberattacks and disinformation. We must have effective recovery plans to be resilient in the face of cyberattacks and challenges. The Singapore government has taken steps to safeguard our networks and systems through implementing the Cybersecurity Act and building up a strong core of cybersecurity professionals. We have also initiated campaigns to enhance digital literacy and raise Singaporeans’ awareness of the threat of disinformation," he noted.

On the individual level, the minister called for inclusivity and proactiveness.  "At the individual level, you can contribute to Digital Defence by practicing good cyberhygiene to protect your personal and work-related data. Also, when encountering questionable information online, you should also use good judgement to identify efforts to spread untruths and actively correct any deliberate online falsehoods," he advised.

"All Singaporeans, as individuals, community groups, and businesses, need to recognise that we are the first line of defence against such threats from the digital domain."

Finally, he asked the audience to encourage and enable the less digitally-savvy to acquire basic digital skills, and to remember that our society is multilingual. "It is only when we cater to the diverse needs of our citizens, that can we stride into the digital age together, as a nation," he said.  

Leslie Ong, Country Manager, Southeast Asia, Tableau Software, commented: "Businesses have known for some time that data holds the key to success, and now the Singapore government is leading by example to show how analytics can lead to real public benefit and social impact. To make this happen, the government is creating communities of data users across departments to help make the public sector more responsive and mission-ready."

Hashtag: #TableauPSDay

Enterprise-friendly Budget 2019 for Singapore

To support industry transformation, Singapore plans to build deep enterprise capabilities, deep worker capabilities and encourage strong partnerships, within the country and across the world.

In his Budget 2019 speech, Singapore Finance Minister Heng Swee Keat shared new ways that Singapore would help the more than 200,000 enterprises in the country thrive, beginning with helping startups scale.

Deep enterprise capabilities

Startups received a boost two years back with Startup SG to provide holistic support for startups and entrepreneurs, from co-investments and proof-of-concept grants, to mentorship and physical space.

"Our startup ecosystem is flourishing," Heng said. "There are now over 220 venture capital deals per year in Singapore, worth close to US$4.2 billion¹. This is a significant rise from the 80 deals worth US$136 million in 2012.

"Today, more than 150 global venture capital funds, incubators, and accelerators are based in Singapore, supporting startups here and in the region."

To help startups scale up and venture into new markets, Singapore will now provide support in three areas: customised assistance, better financing options, and supporting technology adoption.
"Customised support can enable firms to identify and overcome the unique challenges they face, and scale up quickly," Heng said.

"Enterprise Singapore will launch a Scale-up SG programme in partnership with the private and public sectors. Scale-up SG will work with aspiring, high-growth local firms to identify and build new capabilities, to innovate, grow, and internationalise," Heng revealed.

To further support innovation, the government is launching a two-year pilot Innovation Agents programme, where firms can tap on experienced industry professionals to advise them on opportunities to innovate and commercialise technology. Such experts or innovation agents will have both technology expertise and business experience.

Enterprise Singapore will identify individuals with deep expertise in technology, strong track record in growing businesses, and access to global industry networks. These Innovation Agents will be matched with enterprises that aspire to use technology to improve existing businesses or build new ones.

Innovation Agents will provide mentorship to enterprises to identify innovation opportunities, and facilitate connections to valuable technology and business partners. Depending on enterprises’ needs, Innovation Agents may provide consultation on a one-to-one basis, or on a group basis to groups of enterprises or consortia looking to capture new market opportunities through innovation. The duration of an engagement may vary from a few months to a year, depending on its scope.

More support for companies

While the the Monetary Authority of Singapore (MAS) has simplified the regulatory regime for venture capital managers and launched a US$5 billion private markets programme to encourage global private equity players to deepen their presence here, the pool of "smart, patient" capital (editor's note: capital that is invested for the long term, and which brings with it knowhow) will be grown further.

Since 2010, Singapore has invested S$400 million through two rounds of fund injections for the Co-Investment Programme (CIP) to invest in small and medium sized enterprises (SMEs) alongside the private sector. This has catalysed about S$1.3 billion of additional funding for SMEs, Heng said.

This year, an additional S$100 million is earmarked to establish the SME Co-Investment Fund III. "As part of the CIP, it will catalyse investment in Singapore-based SMEs that are ready to scale up. We expect that this will bring in at least S$200 million of additional funding," Heng said.

Temasek Holdings will participate as a co-investor in SME Co-Investment Fund III. Qualifying investee companies must have their key management functions and headquarter activities based in Singapore, and have revenues of up to S$500 million. The fund will be managed by Heliconia Capital Management, which can be reached at enquiries at heliconiacapital.com.

When it comes to loans, local banks have been supportive. DBS provides a Business Capabilities Loan for innovative SME projects; UOB has financial support for technology investments and overseas ventures, and OCBC finances new SMEs which lack the track record typically required for credit assessment. "To catalyse these further, we will enhance the accessibility of loans," Heng said.

Existing financing schemes offered by Enterprise Singapore will be streamlined into a single Enterprise Financing Scheme that will cover trade, working capital, fixed assets, venture debt, mergers and acquisitions, and project financing. This will be launched in October this year, with businesses able to apply for it via participating financial institutions.

The same Enterprise Financing Scheme will provide stronger support for companies that have been incorporated for under five years. "The government will take on up to 70% of the risk for bank loans to these young companies, compared to the current 50% under most existing loan schemes²," Heng said.

The SME Working Capital Loan scheme is to be extended till March 2021. "Since its launch in June 2016, the scheme has catalysed more than S$2.5 billion of loans. We expect the extension to catalyse a further S$1.8 billion. Support for working capital will be folded under the Enterprise Financing Scheme from October," Heng said.

Helping SMEs adopt digital technologies

The SMEs Go Digital programme, announced in Budget 2017 and benefiting some 4,000 SMEs to date, will be expanded.

Its key components* are IDPs, pre-approved digital solutions and digital sector projects. Sector-specific IDPs developed by IMDA serve as a guide for SMEs on the digital technologies and skills training programmes that are relevant to them at different stages of growth. As of end-2018, IDPs have been developed for seven sectors: environmental services, retail, food services, wholesale trade, logistics, security and media.

The accountancy, sea transport, and construction sectors will get their own Industry Digital Plans (IDPs), with more sectors to be added later, Heng said. "These will guide SMEs on relevant digital technologies and skills training programmes," he elaborated.

The government will also expand the number and range of cost-effective, pre-approved digital solutions that will be supported under SMEs Go Digital to boost technology adoption among SMEs. Pre-approved digital solutions are identified by IMDA and sector lead agencies and accessible on the whole-of-government (WOG) Business Grants Portal. This year, the solutions are to include artificial intelligence (AI)-infused solutions and cybersecurity solutions. SMEs can apply for the Productivity Solutions Grant (PSG) for funding support of up to 70% of qualifying costs to adopt these solutions.

IMDA also works with key industry leaders to pilot new digital solutions (including platforms) that have the potential to scale and uplift sectors. These are called digital sector projects.

MAS and the Info-communications Media Development Authority (IMDA) will also jointly pilot a cross-border innovation platform for SMEs, known as Business sans Borders, with an artificial intelligence (AI)-enabled marketplace to help SMEs match with buyers and vendors globally.

To help companies in the services sector capture opportunities from digitalisation, the Ministry of Communications and Information launched a three-year pilot of the Digital Services Lab (DSL) in November 2018. The DSL brings together industry and the research community to codevelop digital solutions with sectorwide impact in services sectors, such as logistics, retail and media. Companies participating as demand users and technology solutions providers may apply for funding support of up to 70% of qualifying costs.

This year, the Singapore government will extend the Automation Support Package (ASP) by two years. Introduced in Budget 2016, the ASP supports firms to deploy impactful, large-scale automation, such as robotics, Internet of Things solutions, and other Industry 4.0 technologies. Since its launch, the ASP has helped more than 300 companies to automate their operations and raise productivity.

Originally set to expire 31 March 2019, the ASP encourages companies to embark on large-scale automation projects to achieve significant productivity gains. The support package comprises grant, tax and loan components.
The Agency for Science, Technology and Research (A*STAR) will also extend its operations and technology roadmapping efforts to more companies and sectors.

Additionally, the Ministry of Trade and Industry and relevant agencies are developing a one-stop portal, with a pilot to be launched for the food services sector by Q319. "Businesses will deal with only one point of contact, instead of up to the 14 different ones today," Heng said.

"Learning from these pilots, government agencies will continue to innovate, and improve the ease of doing business."

Enabling people to enjoy good jobs and opportunities

"On the part of the government, we will continue to invest in our people across all stages of their lives, from preschool, to work," Heng said.

There are currently over 100 Professional Conversion Programmes (PCPs) in about 30 sectors. This year, new PCPs relating to Blockchain, embedded software, and prefabrication will be launched to prepare Singaporeans to move into new growth areas.

The Career Support Programme, begun in 2015, will be extended for another two years. The programme provides wage support for employers to hire eligible Singaporeans who are mature and retrenched, or are in long-term unemployment.

Heng said the current rise in foreign workers for the services sector is unsustainable. "We need to act decisively to manage the manpower growth in services, and encourage our companies to revamp work processes, redesign jobs, and reskill our workers. Our workforce growth is tapering, and if we do not use this narrow window to double down on restructuring, our companies will find this even harder in the future.

"Relying on more and more foreign workers is not the long-term solution – other economies are developing too. What we need is to have a sustainable inflow of foreign workers to complement our workforce, while we upgrade our Singaporean workers and build deep enterprise capabilities in these sectors. We must enhance the complementarities of our local and foreign workers," he said.

The workforce quota is thus to be adjusted for the services sector in January 2020. For the sector, the Dependency Ratio Ceiling (DRC) will be cut in two steps, from 40% to 38% on 1 January 2020, and to 35% on 1 January 2021. The S Pass sub-DRC requirements for the services sector will also be reduced in 2020 and 2021.

The DRC is the maximum permitted ratio of foreign workers to the total workforce that a company in the stipulated sector is allowed to hire. At the time of writing, the DRC for the Manufacturing sector is 60%. This translates to 60% of a manufacturing company’s total workforce - the sum of local workers, S Pass and Work Permit holders - may consist of S Pass and Work Permit holders.

To support firms as they adjust to these changes, the 70% funding support level for the Enterprise Development Grant, slated to expire 31 March 2020, is now extended to 31 March 2023.
The Productivity Solutions Grant is likewise extended, and its scope expanded to support up to 70% of the out-of-pocket cost for training.

"Transitional manpower flexibilities can be considered if firms need more resources in the short term to transit to new operating models," Heng clarified.

He also said that firms can bring in foreign workers with specialised skills that are in demand globally, on a case-by-case basis, provided that they still face a shortage after having given fair consideration to Singaporeans.

An earlier-announced increase in foreign worker levy rates for the Marine Shipyard and Process sectors will be deferred for another year.

Digitising trade

To draw greater value from existing trade networks, the government will streamline and digitise  trade processes further to enable easier access to overseas markets, and help firms make better use of free trade agreements, including the recent EU-Singapore Free Trade Agreement (EUSFTA).

"We will also be working with partners to facilitate the secure exchange of electronic trade documents, to unlock further productivity gains," Heng said.

Singapore as the Global-Asia Node of Technology, Innovation and Enterprise

"With the centre of economic gravity shifting to Asia, and with the technological depth of our partnerships with the G3 economies, we should position Singapore as 'Asia 101' for global MNCs looking to expand into Asia’s growing markets, and as 'Global 101' for Asian companies ready to go global," Heng suggested. The G3 economies refer to the US, Europe and Japan.

As with the macro strategy, the plan to become the Global-Asia node will focus on investments in research and innovation by Singapore universities, research institutes, and Singapore firms; investments in people; and building global partnerships.

"First, we will continue to invest in R&D to support the push to make innovation pervasive. We have set aside S$19 billion as part of our five-year Research, Innovation, and Enterprise 2020 plan. Our investments in R&D in our universities and research institutes are bearing fruit," Heng said.

"The construction sector, seen as low-tech and labour-intensive, is now using integrated digital delivery³. This makes use of building information modelling (BIM) and other digital technologies, connecting different players working on the same construction projects. This has raised productivity and created new high-value jobs such as 3D modellers. Site productivity has improved by about 15% over the last eight years."

BIM is the DevOps of construction, shortening process cycles by bringing together siloed teams on a digital platform earlier in the process, so everyone can visualise building components even before they are physically created.

Much has been done in research and development, and more activity is expected. "The government will continue to invest in Centres of Innovation at our institutes of higher learning (IHLs) and research institutes, and to support companies in innovation," Heng said.

Enterprise Singapore, for instance, will launch a Centre of Innovation in Energy at NTU, building on earlier investments at the Energy Research Institute at NTU (ERI@N). The centre will collaborate with the Sustainable Energy Association of Singapore to drive industry-led innovation in areas such as energy efficiency, renewable energy, and electric mobility.

The current local and overseas internship programmes at IHLs will be combined into a single Global Ready Talent Programme with have enhanced funding support for students interning overseas with Singapore firms. Additionally the programme will support high-growth Singapore firms to send Singaporeans with up to three years of working experience for postings in key markets such as Southeast Asia, China, and India.

"Singapore as a Global-Asia node will bring new opportunities for our people, in new frontiers. The second thrust is to prepare and develop our people to make full use of this node. We are partnering firms to invest in our people, including young Singaporeans, to provide them with opportunities to gain working experience abroad," Heng added.

"To summarise, our economic transformation is progressing well. But, we must persist with our industry transformation efforts. At the same time, the pace of technological innovation is rapid, and global economic weight is shifting towards Asia. We will position Singapore as a Global-Asia node of technology, innovation and enterprise," Heng concluded.

"By giving young Singaporeans overseas exposure, they can develop new skills to better support our firms’ overseas expansion," Heng observed.

The third thrust is to build global partnerships. In Budget 2017, the Global Innovation Alliance (GIA) was launched. There are now nine nodes in global startup hotspots, such as Bangkok, Thailand; Beijing, China; Berlin, Germany; Jakarta, Indonesia, and San Francisco in the US.

"Last year, we held the third edition of the Singapore FinTech Festival. This is now the world’s largest fintech event⁴. As part of this festival, the Global Investor Summit brought together investors on our Meet ASEAN’s Talents and Champions (MATCH) platform. These investors expressed an interest to invest up to US$12 billion in ASEAN enterprises in fintech, infocommunications technology, and medtech over the next three years," Heng said.

Last year, the Singapore Week of Innovation and Technology (SWITCH) brought together more than 350 exhibitors, and 1,000 promising startups and financiers from 75 countries, Heng said. This year, SWITCH and the Singapore FinTech Festival will be held in the same week in mid-November in 2019 for more impact.

"We can draw in even more entrepreneurs, investors, innovators, from around the world, to explore and collaborate in technology innovation in this fourth industrial revolution," Heng said.

Supplementing worker incomes on the low end

The Workfare Income Supplement (WIS) scheme, which provides cash payouts and CPF top-ups for workers whose earnings are in the bottom 20%, will be enhanced.

From January 2020, the qualifying income cap will be raised from the current S$2,000 to S$2,300 per month. The maximum annual payouts will also be increased by up to S$400. Older workers will see higher increases in payouts. Heng gave the example of workers aged 60 and earning S$1,200 a month today. Under the revised WIS, they will receive S$4,000 per year from WIS, or almost 30% of their wages.

The enhanced WIS is expected to benefit almost 440,000 Singaporeans. The changes will apply for work done from 1 January 2020 onwards.

The older workforce

In response to the greying workforce, with about 25% of the workforce aged 55 or more, Singapore has set up a Tripartite Workgroup to study the concerns of older workers. The committee reviews policies such as the retirement and re-employment age, and the CPF contribution rates of older workers. Recommendations are expected later in 2019.

To support employers in hiring older Singaporean workers, the government had introduced the Special Employment Credit (SEC) scheme in 2011, and later an Additional SEC (ASEC) scheme.

"I am happy that companies have responded by hiring older workers, tapping on their experiences, and supporting them in upgrading their skills," Heng shared. "With a tighter labour market, and more Singaporeans choosing to work longer, more companies will be hiring older workers.

"The government will study better forms of support to continue to help workers to remain productive, earn more, and save more for retirement."

The SEC and ASEC are to be extended to 31 December 2020. "Our aim is to help Singaporeans fulfil their potential at each stage of life," said Heng.

Comments from industry players were generally positive.

Source: PwC. Woo.

"The Singapore government is willing to make a longer term investment to further compel business to improve productivity. The reduction to the DRC is the necessary medicine in the medium term. It will force enterprises to further invest in new technology, reskill their existing workforce, and reduce the reliance on cheaper foreign labour," said Chris Woo, Tax Leader, PwC Singapore.

"The re-calibration of foreign manpower policy is a timely wake-up call to the services sector that industry re-design transformation is central; undue reliance on cheap foreign labour will soon be a thing of the past. Businesses will need to accelerate industry transformation with a focus on automation, redesigning worker skillsets and employing older Singapore workers," added Girish Vikas Naik, Global Mobility Director, PwC International Assignment Services.

Benjamin Low, VP (Asia Pacific), Milestone Systems, commented: “The measures announced in this year’s Budget address two key issues for businesses – the ability to adopt new technologies and ability of people to work with them. For instance, the expansion of the PSG will allow businesses to adopt new technologies which can give them a competitive edge, or reinvigorate struggling sectors such as brick-and-mortar retail."

Low added that the new PCP will also help more people get crucial upgrades to their skills. "In the security industry, for instance, the traditional role of a security guard has been to patrol a site and watch security surveillance feeds. But video analytics can help optimise the work of security guards, meaning our security workforce must start gaining higher value skills, such as the ability to operate more technical surveillance systems, in order to stay relevant,” he explained.

"Local firms are at different phases of growth and competencies. Customised support programmes such as Scale-up SG and Innovation Agents programmes introduced in this Budget will help high growth local firms in deepening their capabilities, strategising how they should venture in new growth markets and introduce innovative products and services so that they can compete globally," stated Lennon Lee, Entrepreneurial & Private Clients Tax Leader, PwC Singapore.

Alex Lim, ASEAN Director, BMC Software noted, “In today’s digital era we are facing profound and far-reaching changes in the way digital technology is created, managed, analysed, and consumed. In an age of 'more'— more people, using more technology, from more locations, on more devices, for more of the time – businesses are having to adapt in dramatic ways. This can be a challenge for businesses of any size, so we therefore support the important initiatives announced in (February 18's) Budget, which will help more of Singapore’s businesses make the crucial changes required to successfully adopt new technologies and remain competitive in the long-term.” 

Source: Tableau.

Ong.

Leslie Ong, Country Manager, Southeast Asia, Tableau Software said, “Singapore is entering a digital future where the adoption of new technologies is becoming vitally important for businesses of all sizes. This kind of digital transformation can be daunting for many businesses, who often think technologies such as data analytics and automation are out of their reach. For instance, many organisations are sitting on mountains of valuable data that could give them an edge over competitors, but don’t have the readily available technology or literacy to harness it. 

"Time is running out for businesses who haven’t started their digital transformation journey but the measures announced in this year’s Budget will help more businesses embrace new technologies and help workers upgrade their skillsets to match the needs of the new digital economy. We look forward to seeing more of Singapore’s businesses upgrade their competitiveness as a result.”

Said Lim Fang How, Regional Director for Southeast Asia, Zebra Technologies: "We laud the Singapore government’s efforts to help local businesses gain competitive edge to contest abroad. The next critical step will be in ensuring that local businesses have the confidence and knowledge needed to execute their digital transformation, and to know what the right technological solutions are to adopt.

"We are excited to see how the Singapore government will be working with various technology leaders and industry associations to equip local businesses with the knowledge and confidence in choosing the right technological solutions to propel them to the next level."

Source: Trend Micro.

Jain.

"In an age when the volume of cyberthreats is becoming overwhelming for any IT team, automation can help relieve some pressure, such as dealing with problems at a greater scale and with superior accuracy. However, automation cannot replace cybersecurity professionals still. Another challenge companies are facing is the increasing complexity of cyberthreats. Many are becoming stealthier and more evasive than before. And spotting them requires deep human analysis.

"Therefore, developing threat-hunting and investigation capabilities, and training talents who can perform these tasks would be the top priority. The Singapore government’s role should be to help companies develop such skills, either in-house or via an external service provider who offers managed detection and response (MDR) services,” said Nilesh Jain, VP, Southeast Asia and India, Trend Micro.

Details:

Browse Budget 2019

Hashtag: #SGBudget2019

*Companies can also benefit from other forms of support under the SMEs Go Digital programme, including consultancy services and project management services. 

1 Inclusive of spikes in venture capital investments arising from large deals.

2 The enhanced support for young companies will be reviewed by 31 March 2021.

3 Integrated digital delivery taps on building information modelling (BIM) to allow architects, engineers, contractors, and facility managers to share information and collaborate. It raises productivity, and creates new, high value jobs such as 3D digital modellers, data analysts, and computational specialists.

4 In 2018, the festival had over 500 exhibitors, 250 speakers, and 45,000 delegates from over 127 countries.

Three new initiatives to help Singapore companies digitalise

New initiatives have been introduced in Singapore to help enterprises - particularly the small and medium-sized enterprises which are the backbone of the economy - digitalise further. The three initiatives were announced by Singapore's Minister for Communications and Information, S Iswaran at an industry networking session this morning.

Minister Iswaran delivering the opening address.

The Infocomm Media Development Authority (IMDA) and Enterprise Singapore have launched Start Digital, an initiative of the SMEs Go Digital programme. Start Digital will enable new SMEs to get a headstart with two foundational digital solutions for free. Costs are waived for a minimum of six months.

IMDA also launched a B2B e-invoicing network which will enable companies, including SMEs, to adopt e-invoicing to increase productivity and enjoy faster payment collection cycles. Electronic invoicing or e-invoicing is the automated creation, exchange and processing of payment requests between suppliers and buyers using a structured digital format.

The third initiative, the Data Protection Trustmark (DPTM), launched by IMDA and the Personal Data Protection Commission (PDPC), will help organisations, including SMEs, build consumer confidence in their data protection policies and practices, thus enhancing business competitiveness. Start Digital

New SMEs can select any two free foundational digital solutions from five categories of core business functions. The software is pre-approved by IMDA, and provided by industry partners:

- Accounting,

- Human resource management system & payroll,

- Digital marketing,

- Digital transactions and

- Cybersecurity.

Peter Ong, Chairman of Enterprise Singapore said, “The Start Digital initiative arms SMEs with digital tools right at 'birth' - at the point when they are just starting to shape their organisational DNA, develop operational processes, undertake staff training and make other business decisions. Starting digital will help them start right and position well for growth, resilience and productivity. As many young SMEs take this first digital step, the impact on our enterprise landscape and economy can be great.”

Tan Kiat How, Chief Executive of IMDA, said, “A digital-first mindset is essential for businesses that want to stay relevant and competitive in the digital economy. I am heartened to see the industry coming together to offer innovative digital solutions to help our businesses on their digital transformation journey.”

There are six Start Digital partners: DBS, Maybank, OCBC, Singtel, StarHub and UOB.

“We are pleased to support the Start Digital initiative by providing the full range of solutions to help SMEs accelerate their digital journeys. With the right tools and strategy, SMEs can take proactive steps to scale up and importantly, stay safe online since cybersecurity is a critical issue for any company regardless of size. We look forward to partnering SMEs as they step up their digitalisation efforts,” said Andrew Lim, MD, Business Group at Singtel.

Said Samuel Tsien, Group CEO of OCBC Bank: “The digital journey for SMEs is not only critical to their success, but also a more complex one than for consumers. When we polled our SME customers in January 2018, 65% said they needed to go digital to stay relevant – and 50% had already begun the journey.

"This is why the Start Digital programme for SMEs is both timely and vitally important.  From digitalising HR functions to accounting, from marketing to supply chain management, OCBC – as a leader in the SME segment – has been working closely with SMEs to ensure that their digital transformation is seamless, convenient and sustainable. We are pleased that the Singapore government is giving its support in making ‘going digital for SMEs’ even simpler.”

"SMEs can significantly improve efficiency and outreach by digitising their operations. Whether it is their internal processes, banking or marketing, all can and should be transformed. Unlike large companies, individual SMEs often lack the resources to do this on their own. It takes a village to help them change and as the World’s Best Digital Bank and the World’s Best Bank for SMEs, DBS is pleased to be part of this journey," said Piyush Gupta, CEO of DBS Bank.

Start Digital details:

Participating SMEs will need to commit to using the software for a minimum of 18 months, with costs waived for the first six months and priced at rates set by the Start Digital software provider for the remaining period. All software under the scheme is priced at under S$50 per month per software.

SMEs can continue to obtain support from other SMEs Go Digital initiatives as they grow and require more advanced digital solutions. They can also refer to the Industry Digital Plans (IDP) to assess their digital readiness and take up suitable pre-approved solutions.

Network under Nationwide E-invoicing Network

To further raise productivity and efficiency of our business ecosystem, including SMEs, a nationwide network has been launched to enable companies to send and receive e-invoices based on the well-established Pan-European Public Procurement On-Line (PEPPOL) standard. This allows companies to better track their invoices, reduce operating costs and improve payment collection cycles. In addition, Singapore companies will now be able to start exchanging e-invoices via the network with other similarly-connected parties.

The new network is part of the Nationwide E-invoicing Framework that was announced by IMDA in May 2018. As Singapore’s PEPPOL Authority, IMDA sets any relevant domestic rules and specifications, and has also appointed IMDA subsidiary Singapore Network Information Centre (SGNIC) to operate the Service Metadata Publisher (SMP), a directory service required for PEPPOL to work. The SMP lists all the companies registered on the Singapore PEPPOL network and allows Access Points (APs) to look up companies before sending them e-invoices. The SMP service will be offered as a free service by SGNIC.

As Singapore’s PEPPOL Authority, IMDA is also responsible for the certification of local AP providers. Companies or e-invoice service providers will need to connect to the PEPPOL network through certified APs. IMDA has already certified an initial batch of 11 AP providers. These APs include both local and overseas service providers which offer a wide range of services to meet various business requirements.

There are an additional 10 APs who have started the process of becoming an AP and more are expected over time.

André Hoddevik, OpenPEPPOL Secretary General noted, “We are happy to see the central role Singapore has given the PEPPOL approach in their national strategy for e-invoicing.

“With IMDA as the first PEPPOL Authority outside of Europe, the official launch of the PEPPOL eDelivery Network in Singapore is a big milestone for OpenPEPPOL.

"We appreciate that Singapore now serves as an example for other countries outside of Europe that are considering strategies to support domestic and cross-border e-invoicing.”

“In today’s international context where each country has its own legislation and e-invoicing rules are becoming increasingly complex, Esker strongly supports the global movement to standardise exchanges.

“Throughout the years, PEPPOL has been one of the best examples of standardisation and Esker supports Singapore’s move to facilitate its national e-invoicing. As an official certified PEPPOL Access Point, Esker is ready to help companies in Singapore implement e-invoicing and streamline their processes,” said Jean-Michel Bérard, CEO & Founder, Esker, which is headquartered in France.

"The adoption of a standards based e-invoicing network will lead to greater efficiencies and gain access to International opportunities for Singapore businesses. This is yet another step on the road to transform Singapore into a digital economy,” said Dr Chong Yoke Sin, Chief of Enterprise Business Group, StarHub.

E-invoicing network details:

Companies are able to sign up with the first 11 APs from today. APs provide the gateway access to the network and can offer services such as sending and receiving PEPPOL-format e-invoices or translating other formats of invoices (such as PDF) into the PEPPOL format. More APs are undergoing certification.

Source: IMDA/Enterprise Singapore. The DPTM logo.

To encourage more companies to adopt e-invoicing, grant support will be provided to build the network, educate and bring on board companies.

On the government front, IMDA is working with several key government agencies, such as Accountant General’s Department (AGD), to drive the adoption of e-invoicing. AGD is joining the nationwide e-invoicing framework to provide government vendors with greater options when transacting with the government, in addition to the current Vendors@Gov system. AGD will be sourcing for a service provider in the coming months. The Singapore government is committed to coming onboard the nationwide e-invoicing network and more details will be provided later in the year.

Data Protection Trustmark

Corporate data usage enables the development of more personalised services such as shopping recommendation engines in a Services 4.0 landscape, where service delivery is automated for repetitive and mundane tasks. As customers’ digital interactions and transactions increase, the additional personal data collected can be used to improve customers’ digital experience.

A PDPC survey* showed that two in three consumers would rather buy from a brand that is certified to protect their personal data. In addition, four in five organisations would prefer to work with partners that properly manage personal data.

Such attitudes have been the impetus for the DPTM certification framework and controls, which have been adapted and aligned with Singapore’s Personal Data Protection Act (PDPA), and incorporate elements of international benchmarks and best practices. These data protection laws of Australia, Hong Kong, the European Union, as well as the Organisation for Economic Cooperation and Development (OECD) Privacy Guidelines, Asia-Pacific Economic Cooperation (APEC) Privacy Framework, APEC Cross Border Privacy Rules (CBPR) and Privacy Recognition for Processors (PRP) systems were all studied as part of the development process.

The DPTM will be a visible indicator that an organisation adopts transparent and accountable data protection practices, as assessed by independent third parties. DPTM-certified organisations not only have to demonstrate good practices but also an effective system to monitor and detect incidents, along with ready plans to manage and recover from incidents.

DPTM-certified organisations can incorporate the logo as part of their corporate branding, which will act as a differentiator for them. This in turn gives business partners and consumers the assurance that the organisation they transact with has responsible data protection policies and practices and will be accountable for the protection of personal data entrusted to it.

Forty organisations from diverse sectors registered for the DPTM pilot. Post-pilot, six pilot organisations have been certified, with the rest expected to be certified by the end of Q119. Certified organisations, which as of today include Carpe Diem @ ITE, DBS Bank, Mamoru Singapore, which provides destruction services; mobile health company MaNaDr, TRS Forensics and TTSH Community Fund, will be listed on IMDA’s website.

“Being the first bank to be certified with the Data Protection Trustmark is an honour, and more importantly reflects our commitment to upholding customer trust. As companies progress in their respective journeys to deliver better products and services by using data, it is equally important to show – including by external assessment – that customer data is protected and used responsibly,” said Lam Chee Kin, Head of Group Legal, Compliance and Secretariat, DBS Bank.

“Trust is one of MaNaDr's core values. Our doctors and patients entrust us with their personal data and medical records. We go for the certification for the Data Protection Trustmark because we want to be accountable to our doctors and patients, and we cherish their trust," said Dr Siaw Tung Yeng, CEO & Founder, MaNaDr.

Organisations such as GOGOVAN Singapore, M1 and UOB have recognised the value of DPTM and have indicated their interest to participate in the certification scheme.

“As a leading communications provider in the industry with over 2 million customers in Singapore, customers’ privacy is of utmost importance to us. We adopt strict practices to protect our customers’ personal information and adhere to a high standard of personal data protection. M1's Data Protection Policy describes how M1 adheres to the principles and requirements of the Personal Data Protection Act 2012.

"Through the Data Protection Trustmark certification, we aim to demonstrate our commitment and assure our customers of our rigorous and accountable data protection practices, to boost customers’ confidence on how data are collected, used and disclosed at M1,” said Stamford Low, Director, Customer Service, M1.

DPTM details:

The DPTM certification is now open for application by all organisations. To encourage SMEs to strengthen their data protection accountability and build consumer trust, IMDA is waiving DPTM’s application fee of S$500 for SMEs till 31 December 2019. Those applying for the DPTM will also have to pay an assessment fee to an assessment body ranging between S$1,400 and S$10,000.

Enterprise Singapore can support Singapore companies while the National Council of Social Service (NCSS) can also support its members in adopting DPTM by helping defray costs for certification and consulting services.
*Between February to March 2018, PDPC surveyed 1,500 individuals (aged 15 and above) and 1,543 organisations across various sectors.

Malaysia announces award winners for Low Carbon Cities Framework Awards 2018

Source: MESTECC. MGTC's CEO, Dr. Mohd Azman (centre) with Diamond Recognition recipients.

The Low Carbon Cities Framework (LCCF) Awards were presented to 12 local authorities and a university in Malaysia this month.

LCCF is a national low carbon framework for cities which was developed by the Malaysia Ministry of Energy, Science, Technology, Environment and Climate Change (MESTECC), formerly known as the Ministry of Energy, Green Technology and Water Malaysia; and the Malaysian Green Technology Corporation (GreenTech Malaysia) under the Smart Sustainable Cities flagship, to facilitate, guide and assess the development of low carbon cities throughout Malaysia and support its goal of becoming a green nation by 2020.

The LCCF also assists local authorities, developers and universities to achieve low carbon status, providing tools to implement strategies that will reduce their carbon emissions in phases.

Three of the local suthorities received the Diamond Recognition Award at IGEM 2018 in acknowledgement of their efforts in reducing their levels of carbon emission based on their action plans.

At the end of 2017, Majlis Bandaraya Shah Alam (MBSA), Majlis Perbandaran Klang (MPK) and Majlis Perbandaran Seberang Prai (MPSP) successfully reduced a combined 4,268.15 tCO₂* in emissions. This was achieved through building energy efficiency, waste recycling, providing low carbon mobility solutions and substantive tree planting in their cities.

Provisional Certificate recipients were recognised for fulfilling the baseline assessment within their working systems. Under the stipulations of the certificate, a comprehensive action plan must be developed and then implemented in the next couple of years.

LCCF is a performance-based system that measures a city’s environmental impact. It looks at the total carbon emissions of a city across four key elements; urban infrastructure, urban environment, urban transportation and buildings.

Realising the importance of measuring performance of cities and townships vis a vis CO₂ emission levels of the country, LCCF was established to inspire stakeholders and users to participate in the mitigation of climate change through a real time carbon abatement measure.

For this year’s award recipients at IGEM 2018 are:

LCCF Diamond Recognition

• Majlis Bandaraya Shah Alam (MBSA)

• Majlis Perbandaran Klang (MPK)

• Majlis Perbandaran Seberan Prai (MPSP)

LCCF Provisional Certificate

• Majlis Perbandaran Bentong

• Majlis Perbandaran Kajang

• Majlis Perbandaran Pasir Gudang

• Majlis Perbandaran Ampang Jaya

• Majlis Perbandaran Batu Pahat

• Majlis Perbandaran Langkawi

• Majlis Perbandaran Selayang

• Majlis Bandaraya Pulau Pinang

• Majlis Perbandaran Jasin

• UNIMAS, Sarawak

From 2011 till 2018, five local authorities and two universities received the Diamond Recognition award and 19 local authorities and three universities received the Provisional Certificate. As of October 2018, 28 other local authorities have also begun the process of LCCF by attending training and working out the proper structures at the local authority level.

Private developers of townships and industrial parks such as Selangor Bio Bay, Malaysia Vision Valley and Iskandar Halal Park are also beginning to adopt LCCF and move towards low carbon developments.

LCCF aims to get the 52 local authorities from the major urban areas to begin the journey towards low-carbon cities by 2020. This effort will drive Malaysia’s commitment towards reducing our CO₂ emissions intensity of up to 45% by 2030.

The latest IPCC Report has outlined the need for immediate and concrete global action towards reducing CO₂ emissions. The time for action is now and through LCCF, Malaysia has a strong foundation to build on to push towards a low carbon nation.

The award presentation was graced by the Honourable Datuk Seri Dr Mohd Azhar Bin Haji Yahaya, Secretary General, MESTECC. Also, present were Asdirhyme Bin Abdul Rasib, Senior Undersecretary for Energy Sector, MESTECC and Dr Mohd Azman Bin Zainul Abidin, CEO, GreenTech Malaysia.

*TCO2 or total CO₂ is a measure of carbon dioxide that includes CO₂ as we know it as well as CO₂ in other forms including bicarbonate (HCO₃), carbonate (CO₃) and carbonic acid (H₂CO₃).

Low Carbon Cities Framework awards handed out at IGEM 2018

The Low Carbon Cities Framework (LCCF) Awards were presented to 12 local authorities and a university in Malaysia this month at International Greentech & Eco Products Exhibition & Conference Malaysia (IGEM). A local authority is a county, city or district public sector organisation in Malaysia.

LCCF is a national low carbon framework for cities which was developed by the Malaysia Ministry of Energy, Science, Technology, Environment and Climate Change (MESTECC), formerly known as the Ministry of Energy, Green Technology and Water Malaysia; and the Malaysian Green Technology Corporation (MGTC) under the Smart Sustainable Cities flagship, to facilitate, guide and assess the development of low carbon cities throughout Malaysia and support its goal of becoming a green nation by 2020.

The LCCF also assists local authorities, developers and universities to achieve low carbon status, providing tools to implement strategies that will reduce their carbon emissions in phases.

Three of the local suthorities received the Diamond Recognition Award at IGEM 2018 in acknowledgement of their efforts in reducing their levels of carbon emission based on their action plans.

At the end of 2017, Majlis Bandaraya Shah Alam (MBSA), Majlis Perbandaran Klang (MPK) and Majlis Perbandaran Seberang Prai (MPSP) successfully reduced a combined 4,268.15 tCO₂* in emissions. This was achieved through building energy efficiency, waste recycling, providing low carbon mobility solutions and substantive tree planting in their cities.

Provisional Certificate recipients were recognised for fulfilling the baseline assessment within their working systems. Under the stipulations of the certificate, a comprehensive action plan must be developed and then implemented in the next couple of years.

LCCF is a performance-based system that measures a city’s environmental impact. It looks at the total carbon emissions of a city across four key elements; urban infrastructure, urban environment, urban transportation and buildings.

Realising the importance of measuring performance of cities and townships vis a vis CO₂ emission levels of the country, LCCF was established to inspire stakeholders and users to participate in the mitigation of climate change through a real time carbon abatement measure.

For this year’s award recipients at IGEM 2018 are:

Source: MGTC. MGTC's CEO, Dr Mohd Azman Bin Zainul Abidin (centre) with Diamond Recognition recipients. The award presentation was also graced by the Honourable Datuk Seri Dr Mohd Azhar Bin Haji Yahaya, Secretary General, MESTECC. Asdirhyme Bin Abdul Rasib, Senior Undersecretary for Energy Sector, MESTECC was also in attendance.

LCCF Diamond Recognition

• Majlis Bandaraya Shah Alam (MBSA)

• Majlis Perbandaran Klang (MPK)

• Majlis Perbandaran Seberan Prai (MPSP)

LCCF Provisional Certificate

• Majlis Perbandaran Bentong

• Majlis Perbandaran Kajang

• Majlis Perbandaran Pasir Gudang

• Majlis Perbandaran Ampang Jaya

• Majlis Perbandaran Batu Pahat

• Majlis Perbandaran Langkawi

• Majlis Perbandaran Selayang

• Majlis Bandaraya Pulau Pinang

• Majlis Perbandaran Jasin

• UNIMAS, Sarawak

From 2011 till 2018, five local authorities and two universities received the Diamond Recognition award and 19 local authorities and three universities received the Provisional Certificate. As of October 2018, 28 other local authorities have also begun the process of LCCF by attending training and working out the proper structures at the local authority level.

Private developers of townships and industrial parks such as Selangor Bio Bay, Malaysia Vision Valley and Iskandar Halal Park are also beginning to adopt LCCF and move towards low carbon developments.

LCCF aims to get the 52 local authorities from the major urban areas to begin the journey towards low-carbon cities by 2020. This effort will drive Malaysia’s commitment towards reducing our CO₂ emissions intensity of up to 45% by 2030.

The latest IPCC Report has outlined the need for immediate and concrete global action towards reducing CO₂ emissions. The time for action is now and through LCCF, Malaysia has a strong foundation to build on to push towards a low carbon nation.

*TCO2 or total CO₂ is a measure of carbon dioxide that includes CO₂ as we know it as well as CO₂ in other forms including bicarbonate (HCO₃), carbonate (CO₃) and carbonic acid (H₂CO₃).

Singapore's Digital Government Blueprint outlines 2023 goals

Source: GovTech Singapore website.
Infographic, Singapore's Digital
Government Blueprint. 

Singapore Deputy PM (DPM) Teo Chee Hean, who is also the Coordinating Minister for National Security, has launched the Digital Government Blueprint (DGB) at the Smart Nation Innovations Week Opening Symposium.

The DGB is a statement of the government’s ambition to better leverage data and harness new technologies to deliver services for citizens, businesses and public officers, and to drive efforts to build a digital economy and digital society, in support of the Smart Nation vision. Under the blueprint, the government will aim for more seamless services. This means citizens and businesses can expect to access government services anytime, anywhere and on any Internet-enabled device.

DPM Teo said in his speech, "Today, Singapore is one of the most networked economies in the world. We have invested in fibre broadband connectivity so that high-speed broadband mobile internet connectivity is available and affordable to companies and individuals all across Singapore. This physical infrastructure and connectivity provides the foundation. But new important back-end, whole-of-nation enabling systems, are needed to enable us to fully exploit these new technologies to create gamechanging exciting new businesses and jobs, and to allow our citizens to enjoy access to public and private sector services in new ways that make a real difference to our daily lives."

DPM Teo elaborated, "This involves improving the user-experience interface where citizens interact with a greater range of government e-services; but also important back-end, whole-of-nation enabling systems, such as SingPass Mobile, which will be rolled out as part of our National Digital Identity system which is being implemented later this year. This is a two-factor authentication (2FA), PKI-based system which will enable our citizens to easily and securely transact with each other and access our government services without the need for physical tokens or SMS passwords. We can pay our bills or sign documents online, apply for public housing, buy or sell a house or a car."

DPM Teo also shared that the Monetary Authority of Singapore is working with industry partners to enhance the National e-Payments ecosystem. "Our focus is on building common links at the back-end, while supporting a range of e-payment platforms at the user-interface. This will enable consumers and businesses to enjoy more convenience, flexibility and efficiency at the point of sale, whether physical or virtual. Simplicity of use at the front-end and integration at the back-end will help to make the overall e-payment ecosystem flexible, open and contestable – allowing new technology, and new payment platforms to come into the market to serve consumers and businesses better," he said.

Some of the 2023 goals of the blueprint include:

- About 75-80% of citizens to rate their satisfaction with digital services from the government as "very satisfied". The same percentages of businesses to offer the same ratings.

- All services to offer e-payment options (inbound and outbound). The same percentage of services (100%) must support digital signatures, and pre-populate forms with verified government data.

- Close to all (up to 95%) of transactions to be completed digitally from end-to-end. Some services and individuals are excluded for legislative reasons, or because some segments of the population such as the elderly or persons with disabilities may not have access to digital tools, or are unable to use them.

- Twenty thousand public officers trained in data analytics and data science. All public officers to be trained in basic digital literacy.

- Thirty to 50 transformative digital projects in play. Ten high-impact data analytics projects per year cross-agency, and two projects per ministry family per year. Data to be integrated cross-agency within 10 days. At least 90% of core data fields to be in machine readable format, and transmittable by APIs.

- All ministry families to have at least one project that uses artificial intelligence (AI) for service delivery or policy-making

Singapore is strengthening up the entire ecosystem to take on the digital economy. DPM Teo said the Infocomm Media Development Authority is working with businesses, industry associations and unions to accelerate digitalisation and build digital capabilities across our industries.

"The services and digital economy is also a focus area in our S$19 billion Research, Innovation and Enterprise 2020 Masterplan. We aim to spark digital innovation to support advanced manufacturing and engineering, health and biomedical sciences, and urban solutions and sustainability. For instance, we have strengths in artificial intelligence which are being applied in aircraft engine design and maintenance forecasting. Our medical researchers and data scientists are working together using the resources at our National Supercomputer Centre to develop precision medicine for our citizens in our future healthcare system," he said.

The National Digital Identity programme provides definitive proof of identity, not just physically face-to-face, but virtually over the Internet. This allows Singapore's e-payments infrastructure to enable virtual trusted exchanges of value. "This infrastructure enables the secure, trusted exchange of information and value that underpins digital commerce and digital transactions," he said.

Singapore has recently adopted the Pan-European Public Procurement On-Line e-invoicing standard, to facilitate the exchange of machine-readable e-invoices, DPM Teo added. "We are also working on a Blockchain-based trade financing project with Hong Kong to enable trade-related digital transactions across borders. This will provide traders, banks and clearing facilities a common view to enable trusted transactions, and execute contracts faster," he said.

As there are run-on effects to cyberattacks that can affect other countries, including Singapore, the country has been vigilant, DPM Teo said. Cybersecurity exercises are conducted every year to test the resilience of critical infrastructure and operational responses. "Last year, for the first time, we conducted a national exercise covering all the 11 critical information infrastructure (CII) sectors. We will continue to explore joint exercises with our international partners, for example with global financial hubs to share experiences and raise our systemic capabilities to deal with cyber incidents and emergencies that have effects across borders. While these exercises are conducted on an annual basis, there is still much that can be done," he said.

Leslie Ong, Country Manager, Southeast Asia, Tableau Software commented, “Innovation will be key for Singapore’s Smart Nation success but data alone will not be sufficient to realise this success. The Singapore government has rightly identified the ability to understand and query one’s data as being paramount to unlocking the value of innovation. As more public officers are able to gather insights from their data, we’ll see new and better ways that public services are delivered. For the government to realise this aim and accelerate Singapore’s progress, it is also important for contributions from the private sector in sharing its knowledge and expertise.

"For instance, Tableau has been working with GovTech since 2017 to equip public officers with visual analytics to understand data more clearly, and gain better insights quickly. Data analytics will be the cornerstone of the Smart Nation vision. It is essential we future-proof our public servants to help them unlock data’s enormous potential and push us towards our goal.”

Explore:

Download the summary of the blueprint (PDF)

It is all about creating a government that is Digital to the Core, and Serves with Heart. A digital government will be able to build stakeholder-centric services that cater to citizens’ and businesses’ needs, securely. By the numbers, the summary of the blueprint lists:

Two principles

A digital government that uses data, connectivity and computing decisively to re-engineer business processes, re-architect technology infrastructure and transform services for citizens, businesses and public officers.

A digital government further automates processes where possible so that it can better serve citizens with a personal touch, in a way that enriches the experience.

Four outcomes for citizens and businesses

Easy-to-use

Seamless

Secure and reliable

Relevant

Two outcomes for public stakeholders

Digitally-enabled workplaces

Digitally confident workforce

Six strategies

Integrating services around citizen and business needs

Strengthening integration between policy, operations

Building common digital and data platforms

Operating reliable, resilient and secure systems

Raising digital capabilities to pursue innovation

Co-creating with citizens and businesses, and facilitating adoption of technology

Singapore's 2018 Budget revolves around technology, innovation and capabilities

Source: Budget 2018 site. View of Singapore skyline.

In 2018, the Singapore Ministry of Trade and Industry (MTI) expects growth to be more broad-based across sectors, moderated from the high of 2017, said Singapore Financial Minister Heng Swee Keat during his Budget 2018 speech.

In his speech Minister Heng said Singapore must prepare for three shifts in the next decade:

- A shift in global economic weight towards Asia.

Some indications of this trend include China's new regional infrastructure bank and plans under the Belt and Road Initiative; economic reform in India, including the easing of restrictions on foreign investments; and a growing middle class in ASEAN countries, which are moving up the value chain, Heng said.

"All these developments represent significant opportunities for our firms and people. Our economy must be geared to ride on and contribute to Asia’s growth," he said.

- The emergence of new technologies, and its implications for lifelong learning.

"Firms will compete increasingly not on physical assets, but on intangible assets, such as intellectual property (IP), data, and user networks. First-mover advantage and time to market will be key.
"Securing better jobs and higher wages will not be just about how well we did in school, but how well we continue to learn, relearn, adapt and grow throughout our lives," he said.

- A greying population, with implicatons for healthcare and social expenditure, as well as the tightening of the labour market if productivity and "a calibrated inflow" of workers from abroad are neglected.

Heng sees the three shifts interacting to bring new opportunities as well as new challenges. He listed the possibility of technology helping older workers to stay productive, contrasting it with the rapid pace of change potentially causing the same workers to feel marginalised.

This year's Budget will guard against the challenges while capturing opportunities, he said, specifically:

- Developing a more vibrant and innovative economy

"We must anchor Singapore as a Global-Asia node of technology, innovation and enterprise, welcome investments, talent and ideas to Singapore, and be bold in venturing out into new markets. "To do this, we must make innovation pervasive in our economy, develop deep capabilities in our firms and workers, and establish strong partnerships locally and abroad. "The shifts in the global economy and the emergence of new technologies are to our advantage, because they allow us to seize opportunities beyond our borders," he said.

- Build a smart, green and liveable city.

"We should take full advantage of the latest technology to improve Singaporeans’ quality of life," Heng said. "To improve our liveability as a city, we must also enhance our urban sustainability and enable our economy to be more carbon-efficient."

- Foster a caring, cohesive society, and plan ahead for sustainable, secure future.

Strategies towards a more innovative economy include:

- Extending the Wage Credit Scheme (WCS). This initiative co-funds wage increases for Singaporean employees, up to a gross monthly wage of S$4,000. The WCS has been extended for three more years. It will provide 20% co-funding for 2018, 15% for 2019 and 10% for 2020.

- Enhance the Corporate Income Tax (CIT) rebate. For the Year of Assessment (YA) 2018, the rebate is raised to 40% of tax payable, capped at S$15,000. In YA2019, it will be at a rate of 20% of tax payable, capped at S$10,000.

- Better support for employees, including upgrading the current Work Trial scheme into a Career Trial scheme, with higher funding support for workers to try out new careers. In 2017, Heng said the government's Professional Conversion Programmes (PCPs) helped more than 3,700 mid-career individuals take up new jobs.

In the longer term, Singapore's transformation will rely in part on Industry Transformation Maps (ITMs) which outline how various industries can digitalise. To date, 21 out of 23 proposed ITMs have been launched, Heng said, with the remaining two to be introduced by end-March. The food services ITM was launched in September 2016, while the financial services ITM and the infocomm media industry ITM were introduced in November 2017. The security industry ITM was released in February 2018.

"The tripartite Future Economy Council (FEC) is now overseeing the implementation of these ITMs and the strategies laid out by the Committee on the Future Economy (CFE)," he said.

"Though new, the ITMs are helping to prepare our companies for a new phase of growth. For instance, as part of the precision engineering ITM, several companies in the sector, like Univac Precision Engineering and Globaltronic Precision, have undertaken projects to make better use of digital technologies in their manufacturing processes. This has enabled them to stay competitive and take advantage of the global economic recovery," he said.

In the next phase of the ITM journey, an ecosystem approach will come into play so that synergies can be reaped, interconnections strengthened, and opportunies explored, he said. The foundation for the ITMs lie in innovation, capabilities and partnerships, all of which will are a focus going forward, Heng said. "By strengthening these three enablers, we can anchor Singapore as a Global-Asia node of technology, innovation and enterprise."

New initiatives include supporting more firms to innovate across the entire value chain:

- Supporting businesses to buy and use new solutions. Existing grants that support the adoption of prescoped, off-the-shelf technologies will be consolidated into a single Productivity Solutions Grant (PSG).

- Tax deductions on licensing payments for the commercial use of intellectual property (IP) will be raised.

- A new Open Innovation Platform will be piloted this year. This marketplace will match companies looking for digital solutions to their challenges with infocommunications and technology (ICT) firms and research institutes to co-develop solutions, Heng explained.

- National research capabilities will be a focus for FY2018, backed by public sector R&D spending at 1% of GDP annually. This year, the National Research Foundation (NRF) and Temasek will launch an NRF-Temasek IP Commercialisation Vehicle.

 "This new investment venture will bring together Temasek’s global investment networks and NRF’s connections with the Singapore R&D community, to grow companies that draw on IP from publicly-funded research," said Heng. "At least S$100 million will go into this joint venture – S$50 million from the government, and at least S$50 million from Temasek."

In addition to the ITMs, special attention is on strengthening Singapore's position as an air and sea hub, leading to a new Aviation Transformation Programme (ATP) and a Maritime Transformation Programme (MTP) this year, Heng said.

"Through these programmes, our airport and seaport will become platforms for companies to develop, test and use new technologies," he said. "The solutions that emerge can be rapidly adopted in other parts of Singapore, or even exported overseas. We will provide support of up to S$500 million for the two programmes, with additional matching investments expected from industry partners."

The built environment sector is also singled out for attention this year with support from an expanded National Robotics Programme (NRP).

More targeted support is in the offing for enterprises:

- Merger of SPRING and IE Singapore into Enterprise Singapore this April

"Enterprise Singapore will provide integrated support to companies, for internationalisation as well as the development of other capabilities, so as to help them compete better both locally and abroad," Heng explained. "We will combine IE’s Global Company Partnership grant with SPRING’s Capability Development Grant, to form an integrated Enterprise Development Grant (EDG). The EDG will provide up to 70% co-funding for companies to develop a range of capabilities."

- Enhanced Double Tax Deduction for Internationalisation (DTDi) in YA2019

The amount of expenses that can qualify for the DTDi without prior approval has been raised from S$100,000 to S$150,000 per year of assessment as of YA2019. From YA2020, changes have been made to the Start-up Tax Exemption and the Partial Tax Exemption schemes. Tax exemptions under both schemes will be restricted to the first S$200,000 of chargeable income. Startups will enjoy a 75% exemption instead of 100% as currently, of their first S$100,000 of chargeable income from corporate tax.

"These schemes help lower costs for smaller firms and startups, but do not directly help firms develop capabilities. In addition, every profitable company should pay some taxes. This is sound and equitable," Heng said of the changes. "Even with these adjustments, corporate tax will remain low for startups and smaller firms. For a taxable income of S$100,000, the effective corporate tax rate is 4.3% for start-ups and 8.1% for older firms, as compared to the headline rate of 17%."

Digital transformation support includes:

- A possible nationwide e-invoicing framework to help companies improve productivity and enhance cash flow

- Expansion of the Tech Skills Accelerator (TeSA) into new sectors such as manufacturing and professional services, with the focus on digital technologies. Launched in 2016, TeSA has trained over 27,000 people in digital skills. Heng listed skills such as data analytics, artificial intelligence (AI), the Internet of Things (IoT) and cybersecurity as the focus today.

Equipping employees with "deep skills" in general continues to be important. A new ASEAN Leadership Programme under the the SkillsFuture Leadership Development Initiative (LDI) will help business leaders build networks and plan business expansions in Southeast Asian markets, Heng said. The LDI has already helped to train nearly 200 Singaporeans, with 180 in the pipeline, Heng said.
Existing initiatives to help the workforce develop deep skills include:

- The SkillsFuture Earn and Learn Programme, a work-learn programme;

- The Go Southeast Asia Award, which matches undergraduates with regional internships;

- The SkillsFuture Mid-Career Enhanced Subsidy;

- The PCPs, including the PCP for Southeast Asia Ready Talent which equips Singaporeans with the knowhow to do well regionally.

- Heng also highlighted private sector efforts, such as the Singapore Business Federation (SBF) and Singapore Management University (SMU) piloting the SBF-SMU LEAD-CHARGE Initiative this year to help small and medium sized enterprise (SME) leaders transform their organisations.

For older workers, the government has raised the re-employment age to 67, extended the Special Employment Credit, and enhanced WorkPro. WorkPro provides funding for the implementation of work-life measures, job redesign, improved workplace practices or flexible work schemes. Re-employment refers to the legal requirement for employers to give eligible employees the option to continue working, or to retire as they choose.

"With the close cooperation of the tripartite partners, Singapore’s employment rate for residents aged 65 and above rose from 14.4% in 2007 to 25.8% in 2017*," said Heng. "We will continue to encourage age-friendly workplaces, and review how we can better support our older workers."
A new Capability Transfer Programme (CTP) will also be piloted to support the transfer of skills from foreign specialists to Singaporean trainers and trainees.

Collaboration in technology, innovation and enterprise will be a government focus for the year. "Where synergies exist, we can achieve more when we work together, and draw on one another’s strengths to address common challenges and capture bigger and better opportunities," Heng said. "We will continue to encourage our companies to form strong partnerships, both locally and abroad."

Various partnership support measures will be consolidated into a single Partnerships for Capability Transformation or PACT scheme. Under PACT, companies can receive up to 70% co-funding for projects undertaken in partnership with others.

Innovation has gone global, the Singapore way. In the past year, Heng said that the Global Innovation Alliance (GIA), launched last year, has seen early progress. Overseas internship programmes at universities have expanded to new locations, GIA Beijing was launched, as was Block71 in Suzhou, China and Jakarta, Indonesia. The original Block71 in Singapore is a space for entrepreneurs and innovation. Heng added that global innovation is also being shared through initiatives like the Singapore Week of Innovation and Technology (SWITCH).

"As ASEAN chairman this year, we hope to make a meaningful contribution by developing an ASEAN Innovation Network. We hope this will strengthen the linkages among the innovation ecosystems in the region, and spark new collaborations and solutions," Heng said.

He also welcomed participation from trade associations and chambers (TACs) in forging partnerships and advancing the industry. Case in point is the Logistics Alliance, which last year launched the digital Transport Integrated Platform (TRIP) to enable easier tracking of container trucks, and reduce idling time, Heng said. The government will continue to support such efforts, through the Local Enterprise and Association Development (LEAD) programme, he noted.

The proposed carbon tax, to take effect in 2019, is on track, Heng shared. "We have to start preparing early so that industries have more time to adapt," he said.

Such a tax is likely to affect electronics manufacturers, for example. Heng said the carbon tax will be S$5 per tonne of greenhouse gas emissions from 2019 to 2023. The plan is to increase it to a rate of between S$10 and S$15 per tonne of emissions by 2030.

"The carbon tax will apply uniformly to all sectors, without exemption. This is the economically efficient way – to maintain a transparent, fair and consistent carbon price across the economy to incentivise emissions reduction," Heng said. The premise is that businesses will be encouraged to reduce their carbon emissions in line with requirements from other countries, as well as international agreements on climate change. At the same time, Heng estimated that the impact of the carbon tax on households would only be 1% of total electricity and gas expenses on average.

Heng also touched on a widely anticipated rise in taxes. National expenditure will require a higher goods and services tax (GST) from 7% to 9% from 2021 to 2025, Heng said. "The exact timing will depend on the state of the economy, how much our expenditures grow, and how buoyant our existing taxes are. But I expect that we will need to do so earlier rather than later in the period.
"This GST increase is necessary because even after exploring various options to manage our future expenditures through prudent spending, saving and borrowing for infrastructure, there is still a gap," he said.

Another anticipated increase in taxes - GST on imported services, widely thought to be an "e-commerce tax" before the Budget announcement - will come into play on 1 January 2020, he said. "Today, services such as consultancy and marketing purchased from overseas suppliers are not subject to GST. Local consumers also do not pay GST when they download apps and music from overseas. This change will ensure that imported and local services are accorded the same treatment," he said.

Industry reactions to the Budget included:

"Finally the end of the PIC scheme. It is welcoming that the Singapore government is providing more targeted support for companies to embrace innovation including raising tax deduction for IP registration fees to 200%, capped at S$100,000 a year. Some licensing payments, such as use of trademarks and brand names, may not lead to innovation. It remains to be seen what the scope of the enhanced deduction scheme is," said Lennon Lee, Entrepreneurial & Private Clients Tax Leader, PwC Singapore. PIC, or the Productivity and Innovation Credit Scheme, gave businesses 400% tax deductions/allowances for qualifying expenditure incurred in any of six qualifying activities from YA2011 to YA2018.

Lee said "all is not lost with the end of the PIC scheme". "...SMEs can now tap on the PSG which subsidises up to 70% of approved costs for the purchase and use of new productivity and innovative solutions."

"Laudable tax measures to encourage Singapore’s IP ecosystem. Enhanced tax deduction for Research & Development in Singapore, IP reregistration and licence payments should enable our SMEs to invest more on innovation and embrace greater use of technology to be efficient and effective," said Abhijit Ghosh, Corporate Tax Partner, PwC Singapore. Tan Tay Lek, Corporate Tax Partner, PwC Singapore added, "I had wanted to see the deduction limit raised to 300% but 250% is not bad. It helps put us in a good position to compete internationally for R&D dollars and more importantly, to attract R&D talent."

Alex Campbell, MD Asia, Xero, welcomed the government’s initiative to financially support small businesses adopting digital technology and saw the PSG in a positive light. “This year’s Budget is not a game-changer, which is great news for Singapore’s small business community. We need to keep our foot firmly on the accelerator and help digitise more homegrown small businesses, faster.

"For example, we recently released a study which found that small businesses here spend on average five workweeks each year manually chasing late payments from their customers. That’s a huge productivity drain which can be significantly minimised using digital technology - mostly funded by the newly-announced single PSG. Addressing these issues that are holding back small businesses is key to unlocking productivity, innovation and global expansion,” he said.

Adrian Lee, Research Director at Gartner, said that GST on imported services would impact digital service providers and consumers.

"To be expansive, the new GST ruling affects digital services like ride-sharing, food ordering, ticket sales (movies), and video on-demand providers. Broadening the tax base to include digital service providers should bring added resilience to the digital business ecosystem over the long term. Fairness can only be ascertained, if and when, the new GST ruling supports or disrupts local digital startups that create new digital workforces. Point of note, digital services constantly evolve. Innovative, forward-thinking service providers will take this in their stride as a matter of doing business in Singapore. They aim squarely at differentiating and gaining market share though unique and rich user experiences," Lee said.

"Digital service providers will face increased operational costs for compliance with the new tax regime. Service providers will need to ramp up to handle GST reconciliation with IRAS once they cross the S$100,000 threshold. Coupled with the proposed increase in GST to 9% across all businesses from 2021, this hits the digital service providers domiciled both in and outside of Singapore with additional margin pressures as they strive to remain profitable. Needless to say, this will dampen the growth of digital services in Singapore but should not constrain it, as consumers progressively digitise their services. It is a positive sign from the Singapore government that digital businesses are given notice until January 2020 to prepare for this," he added.

Consumers are also expected to rein in their online spending behaviour as a result. "In Gartner’s 2017 Mobile Apps Survey conducted across US, UK and China; music and video apps ranked as the 6th and 7th most used smartphone apps. Similarly in our mature market, 59% of all Singaporeans have reported purchasing a product or service online. B2C apps like Grab, Uber and Spotify occupy the top 10 spots with the most monthly active users," Lee said.

"Where there is no viable replacement service, i.e. Grab or Uber for Singapore transport, consumers might reduce and/or (consider) lower-value purchases. I do not think consumers will stop buying online. They will simply choose to spend more prudently."

Lee added that service providers will deal with the higher GST by:

- Offering their own ‘amnesty’ for a period to their high value customers to mitigate the effects

- Focusing on partnerships with digital payment providers/credit card companies to deliver greater incentives against spend

- Proactively lobbying for progressive tax structures to soften the impact, based on revenues earned.

"This should not, however, trigger any sort of a price war between competitive services as it applies across the board," Lee predicted.

Based on Gartner’s consumer personas, savvy "Enthusiast" consumers (24% of users) are expected to seek other digital providers to provide similar or comparable services, Lee noted. "The Internet is porous by nature and the new tax will alter consumption habits. For non-urgent needs, consumers will plan their online purchases for when a suitable promotion or campaign occurs."

Lee shared that in Gartner’s consumer personas, typically the 'Technology Late Adopters' (20% of users) will be held back by price, as one of their top barriers to consuming a digital service.

While an e-commerce tax was not announced, Lee is expecting one to be announced eventually. "Digital commerce service providers need to stand prepared. Innovative, forward-thinking physical retailers are already in digital commerce. These retailers are differentiating though a unified retail experience for consumers - with solid examples from Uniqlo, Sephora and Nike.

"Taxing pure players in digital commerce (like Shopee, Qoo10, Lazada, or Amazon) signals to traditional retailers that it is acceptable to do ‘business as usual’ in a declining physical retail market. Something needs to click for traditional retailers who insist on brick-and-mortar only. The tax might diversify the base, but on its own cannot sufficiently stimulate physical retail. In 2018, physical retailers should already be implementing/harvesting digital transformation; so as to respond to new retail models such as the unmanned store pilots from Alibaba, user-selectable delivery slots from Amazon Prime or digital wallets from GrabPay," he said.

"The reverse charge mechanism to tax business-to-business (B2B) transactions has long been in our GST legislation but was never effected until the Minister's announcement in Budget 2018. With the increase in cross-border services received by businesses in Singapore, the reverse charge could no longer stay dormant and would impact businesses in sectors such as financial services and residential property development which are unable to fully claim the GST on their business purchases," said Koh Soo How, Asia Pacific Indirect Tax Leader, PwC Singapore.

"If there is a question of how the Government would be able to enforce the GST registration for an overseas vendor for business-to-consumer (B2C) transactions, we must bear in mind that the tax authorities have exchange of information arrangements that would enable the jurisdictions to exchange information on overseas vendors which are already registered in the local territories."

Koh said that taxing the digital economy from 2020 will make e-commerce tax a virtual reality in Singapore. "The introduction of the e-commerce tax will make Singapore the first country in Southeast Asia to introduce a tax on the digital economy. This is likely to be followed by Thailand, Malaysia and Indonesia which are already considering such a tax," he said.

According to Koh, "The fact that the e-commerce tax will only apply to services show the practical difficulties and complexities that various jurisdictions face in trying to introduce an effective collection mechanism to tax low value imports of goods. We expect the government to take a wait-and-see approach and learn from the experiences of other countries before expanding the new rules to tax low value imports."

Said Ryan Goh, VP and GM, Zebra Technologies Asia Pacific: "There has been a worldwide shift toward an on-demand economy, which rewards businesses that are able to deliver what customers want, when they want it, and how they want it delivered. The ability to meet heightened expectations today can be achieved through a business’s digital capabilities. Aspects of these capabilities include their ability to leverage the 3A’s: analytics, automation and artificial intelligence.

"Any allocation of expenditure toward helping SMEs here tap on such solutions will go a long way toward giving them a leg up – so they are able to efficiently capture opportunities in and out of Singapore, particularly in the manufacturing sector.

"The impact of efforts to promote digital transformations will be particularly interesting to track in Singapore’s manufacturing sector, given the resurgence of this sector over the last year. This is especially so in the field of advanced manufacturing – which is one of eight emerging areas identified, under the SkillsFuture push to help equip adult learners with industry-relevant skills and prepare them to take on jobs.

"Notably, Singapore has a strong manufacturing base that’s leading the charge for advanced manufacturing – or what we call Industry 4.0. Far from being an endeavour for large enterprises only – we believe the journey toward Industry 4.0 holds great rewards for SMEs too."

Goh shared that in the APAC Manufacturing Vision Study by Zebra Technologies, manufacturers throughout the region are looking to tap on technologies for competitive advantages. "For example, the study predicted that 72% will have incorporated the use of mobile computers by 2022, compared to 27% last year. Similarly, 65% of respondents will use wearable technologies by 2022, while only 38% currently take advantage of such solutions. By leveraging technological solutions for increased operational visibility, manufacturers will be well-placed to respond to the on-demand economy by ensuring that the right assets are in the right place at the right time," he said.

Singapore also shared economic statistics as part of its Budget statement for FY2018:

- GDP grew by 3.6%**, up from 2.4% in 2016.

- Productivity grew 4.5% as measured by real value-added per actual hour worked, and 3.8% as measured by real value-added per worker. These are the highest figures since 2010.

- Real median income*** for Singapore citizens rose by 5.3%**** last year.

Singapore's financial year runs from 1 April to 31 March.

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Read the Budget Speech in full

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*Source: Singapore Ministry of Manpower's (MOM’s) Comprehensive Labour Force Survey

**Source: MTI’s Economic Survey of Singapore 2017.

***Median gross monthly income of full-time employed Singapore citizens.

****Source: MOM’s Labour Market Advance Release 2017.