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.

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).

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

KSA moving forward with privatisation process

The National Center for Privatization & PPP (NCP), a newly-formed agency created to empower Saudi Arabia's private sector, alongside the Supervisory Committees (SCs) established to manage each privatisation sector, has set out the blueprint to ensure the efficient and strategic transfer of the kingdom's government assets to the private sector.

The NCP, established through the Council of Ministers Resolution on April 3, 2017, and the SCs are the first entities of their kind in the MENA region. They have been established to meet the core objectives of the privatisation effort: improving the efficiency and competitiveness of the national economy, thereby boosting the quality of life for the Saudi people through stimulation of the private sector, improving the overall business environment, increasing job opportunities for Saudi nationals, reinvigorating the kingdom's rich mineral resources sector, developing renewable energy capacity, investing in workforce and education development and diversifying the economy.

The KSA Council of Ministers announced the establishment of the SCs on August 1, and these were given a definitive mandate to function as executive facilitators for multiple sectors which are to be privatised over the next 10 years. NCP will serve as a permanent member of all SCs, providing strategic guidance and support as the committees move to enhance KSA's economy by recruiting private sector participation through asset privatisation and the formation of new public-private partnerships.

The role of each committee is to assess the technical, financial, legal and regulatory landscape and to establish a best practice blueprint for the privatisation of the targeted entities. The Ministry of Finance, a permanent member in all the SCs, will also play a crucial role in the privatisation process.

The sectors included in Vision 2030 under the Privatization Program are: environment, water and agriculture; transport; energy, industry and mineral resources; labour and social development; housing; education; health; municipalities, telecommunications and IT and the Hajj and umrah sectors.

NCP will formulate regulations, create privatisation frameworks and prepare robust processes that will serve as a blueprint for agencies and entities to follow that will ensure the efficient sale of Saudi assets and to drive the privatisation process forward. The first step in this process is to establish a world-class centre of excellence to facilitate and regulate the sale of state assets and entities. "NCP has adopted a wide-ranging governance policy that will enable government agencies and hold each accountable as we move forward with stimulating private investment and privatisation," said Turki A. Al Hokail, CEO of the NCP.

"We will facilitate the smooth transfer of assets by publishing a blueprint that will deepen communication channels between government agencies, citizens and the private sector locally, regionally and internationally and serve to guide investors and participating agencies and entities through the privatisation process.

"NCP was established with the purpose of setting policies, strategies, programmes, bylaws, plans and tools to achieve the privatisation projects objectives, thus suggesting the sectors and activities that may be privatised. The centre will also set necessary standards and frameworks for sectors targeted for privatisation, set principles which help the management of privatisation-related projects, develop requirements to establish entities where the private sector – from inside and outside the kingdom – may participate with government entities in the launched privatisation projects.

"NCP will work with the sectors targeted for privatisation to ensure their technical and financial readiness. The Center will work to assess the readiness of the macro economy of the privatisation programs and contribute to managing related risks. It will work with its counterparts to identify key performance indicators related to privatisation. In addition, NCP will be contributing to the training and qualification of human capital in the field of privatisation to guarantee leveraging their abilities and expertise to achieve development objectives.

"Effective governance means integrating a continuous evolution of improvement to keep pace with the rising accountability and transparency expected of government. NCP will serve as an agile, performance-oriented public organisation that will boost performance and increase investment opportunity in the kingdom."

It is anticipated that the privatisation process will increase the private sector's contribution to GDP from 40% to 65%.

Check if KSA sales and promotions are genuine with this app

Source: MCI. HE the Minister of Commerce and Investment Dr Majid bin Abdullah Al Qasabi launched the Sales app on 31 January 2017.

The Ministry of Commerce and Investment (MCI), KSA, has launched Sales, an app which gives access to the MCI database of licensed sales and promotions to the public on smart devices. The app aims to shorten search times and guarantee that sales and special offers are genuine.

With the app, consumers can check on more than 27,000 sales outlets and over 700,000 licensed products in the MCI database, including those which are near them. The app is developed and operated by Thiqa, a business service provider.

Interested?

Download the app

HBMSU launches new diplomas for customer service and institutional excellence

• New 7-Star Customer Service Diploma to make UAE a global example of an excellent provider of government service
• The 4th generation for institutional excellence Diploma supports national efforts to upgrade government system and promote innovation

Hamdan Bin Mohammed Smart University (HBMSU) has launched a 7-Star Customer Service Diploma and a 4th generation for institutional excellence Diploma in line with its commitment to promote the UAE’s leadership in expediting government services and achieving highest customer satisfaction and happiness. The two programmes have received Pearson Assured Status from Pearson.

The 7-Star Customer Service Diploma is designed for customer service representatives, employees, quality and organisational excellence teams of government entities. It complements the Star Rating System launched following the directives of HH Sheikh Mohammed bin Rashid Al Maktoum, UAE VP and PM and Ruler of Dubai, to raise government service efficiency according to the highest global standards. Part of its role is to help public entities pursue the 4th generation for institutional excellence system, a guide for all UAE government excellence programmes.

The unique programme will enhance the capabilities of local government employees especially in terms of providing ‘7-star services’ as part of the goal of UAE Vision 2021 to catapult the country into the ranks of the world’s most developed nations. It comprises five training modules on the basic rules, methods and trends of modern management, including the best ways to deliver high-quality customer service according to standards as well as effective strategies to harness the power of modern technology to attain improved customer experience, satisfaction and happiness.

The 4th generation for institutional excellence Diploma focuses on main aspects of the 4th generation for institutional excellence system implemented to level up government services as well as instill innovation and highest standard of excellence in public services. The system focuses on three areas: the realisation of the UAE’s vision, innovation and empowerment to attain satisfaction in the use of government services, as well as continuous learning and development.

Dr Mansoor Al Awar, HBMSU Chancellor, said: “The new programmes reflect the university’s commitment to the UAE’s march towards national prosperity driven by excellence. We also support the country’s pioneering efforts to become the world’s first government to establish approved benchmarks for public services.

“HBMSU provides continuous learning and professional development in various influential areas of leadership, government excellence, entrepreneurship and change management, among others, to help our learners succeed. The two new programmes, the latest affirmation of this commitment, are being offered under the guidance of HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and President of HBMSU, in our bid to reshape the future of teaching and learning by using innovative methods. These advanced tools support the country’s aspirations to produce a generation capable of leading the emirates into a future where the country sets the bar high in terms of delivery of government services and government excellence."

The programmes support smart education initiatives that include three phases, namely the ‘awareness’ stage based on self-learning; the ‘application’ stage featuring hands-on training; and the ‘follow-up’ stage in which support and guidance using virtual tools are given to sustain the gains. During the three stages, the learners have an opportunity to study the training materials under the supervision of an elite group of experts and trainers as well as communicate with their fellow learners in an interactive environment where exchange, transfer and enrichment of knowledge are ensured.

The 7-Star Customer Service Diploma programme consists of five modules, namely Introduction to Customer Service, Professionalism and Excellence in Identifying and Dealing with Customers, Call Center Management, Time Management and Government Services Strategies, as well as The 4th generation for institutional excellence System and 7-Star Service Program. The sessions for the 7-Star Customer Service Diploma will run for 19 days, six hours per day. It includes one day for a graduation project. The training starts in November of this year.

The 4th generation for institutional excellence Diploma is based on nine tracks, the National Agenda and Achievement of UAE Vision and Results-Orientation, Smart Government and Management of Services, Cities and Smart Communities, Looking to the Future and Sustainable Competitiveness, Innovation Management and Achieving Leadership, Major tasks (design, implementation and operations), Seven-Star Services and Management of the Service Centers, Human Capital Management, Properties and Resources Management, and Corporate Governance. The course will be 28 days long, six hours a day, including one day for a graduation project. global startup space. The MOSTI Commercialisation Year conference will run parallel to the GEC. The Global Startup Award ceremony will be held on 3 November.

SingPass 2FA verification process simplified ahead of July deadline

SingPass users can now set up their two-step verification (2FA), a requirement for using the Singapore online ID, with greater ease and convenience, the Infocomm Development Authority (IDA) has announced. The process was previously more complex. 

If users do not set up their SingPass 2FA, they will not be able to perform sensitive government e-transactions, such as Inland Revenue Authority of Singapore (IRAS) tax filing and accessing Central Provident Fund (CPF) statements. 

From 5 July 2016, over 100 e-services by government agencies, such as the Ministry of Manpower (MOM), CPF, IRAS and the Accounting and Corporate Regulatory Authority (ACRA), will require 2FA to perform e-transactions. This means that in addition to their SingPass username and password, users will need to enter a One-Time Password sent via SMS or generated through a OneKey token.

Jacqueline Poh, Managing Director, Infocomm Development Authority of Singapore, said, "We are consistently improving our e-services to ensure that they are as user-friendly as possible, without compromising security, such as enabling users to activate their 2FA via SMS. We encourage all users to set up their SingPass 2FA early so that they can continue to perform their government e-transactions safely and without any disruption.”

To confirm that they have set up their 2FA, users can log into their SingPass account, click My Account, followed by Manage 2-Step Verification. If they have not set up their 2FA, they will be prompted to do so.

Interested?

The IDA said users only need to:

• Log into their SingPass account and click Set Up 2-Step Verification (2FA) under the Quick Links section 
• Register for SMS or OneKey token via the SingPass website – after which, a pin mailer that contains an activation code will be sent to their registered address 
• Send the activation code to 78111 via SMS, or log into Assurity’s website, to activate their 2FA 

There is a wait of up to seven working days for a pin mailer to activate their 2FA before they can perform sensitive e-transactions.

EIU identifies six areas of growth for Asia

The Economist Intelligence Unit's (EIU's) "industry dynamism" barometer, commissioned by InvestKL, Greater Kuala Lumpur's investment promotion agency, has seen a bright future for six industry sectors across Asia: engineering services, environmental technology, food processing, healthcare, oil & gas, and wholesale & retail. 

The findings indicate that continued corporate investment in Asia will support longer-term opportunities. Speaking at the launch of six reports under the barometer umbrella, Zainal Amanshah, CEO of InvestKL, said that the findings "reinforce the importance of Asian cities as drivers of the region's growth." 

The six sectors are:

Engineering Services 

Rapid economic growth has translated into engineering opportunities for US$8 to US$9 trillion of new infrastructure needed between 2010 and 2020. Asia's engineering companies are growing at breakneck speed as they capitalise on these opportunities. Between 2005 and 2011, the approximately 120 engineering companies listed on the region's stock exchanges grew top-line revenues by an average of 20% every year. 

"Remarkable rates of economic growth make Asia the part of the world for engineering services firms, with this region accounting for 36.6% of global GDP in 2013, up from 26.8% in 2001," said Amanshah of the findings in this sector, which is also a key economic area identified by the Malaysian government.

Environmental Technology  

Policy support for renewable energy in Europe may have fallen, but is strong in Asia. Asia is experiencing record levels of cleantech investment – across the six years of this study, value of fixed assets per company increased by an average of 9% every year. The combined revenues of Asia's cleantech firms more than doubled from 2005 to 2011, while growth rates were at nearly 13% a year for the same period.

"The huge wave of urbanisation sweeping Asia requires a lot more investment in ensuring our urban environments and infrastructure are more efficient," Amanshah noted. "The opportunities for companies that can provide sustainable solutions limiting the environmental impact of our rising population are significant - to put them into context, this region already emits more carbon dioxide than the US, EU and Russian Federation combined."

Food Processing 

Rapid urbanisation is changing food consumption patterns, and creating opportunities for more efficient distribution, including upstream into rural supply chains. Asia's food companies are thriving as they leverage these opportunities. Between 2005 and 2011, the 400 or so food companies listed on the region's stock exchanges grew top-line revenues by an average of 23% every year.

However, companies will need to invest in innovation in order to tailor their products to the diverse local taste preferences across the region – global brands will have to localise their products, while Asia will be a source of new home-grown food ideas (such as the halal-certified food market). 

"We already account for more than half of the world's population. By 2040, we will add another 800 million people to our count – all of whom are rapidly getting richer," said the CEO of InvestKL. "Asia's spending on food is forecast to double between 2007 and 2050 in real terms – representing three quarters of the global increase over the same period."
 
Healthcare

In the hospital sector, Asia will need an additional 180 million new hospital beds in the next decade. In pharmaceuticals, Asia's market will grow more than 13% annually – from US$214.2 billion in 2010 to US$386bn by 2016.
 
In 2007, Asia and Oceania together accounted for 18.1% of global biomedical research. By 2012, that share had grown to 23.8%. Between 2005 and 2011, revenues at Asia's listed healthcare fims rose by almost 23% a year. Profits rose even more swiftly, by 31% a year.
 
Challenges on the horizon include competition that is intensifying as the number of firms entering the sector grows. Costs, especially labour-related, are rising rapidly. And regulations are getting much more stringent as a growing middle class demands greater safety, security and consumer protection. 

With populations and incomes rising, Amanshah noted that "health spending is growing even faster – Asia's share of world health spending is expected to rise from 21% in 2012 to 24% by 2017. Although parts of our region's population are still in need of basic healthcare services, more and more are beginning to require treatment for 'diseases of the affluent'." 

Oil & Gas

"ExxonMobil expects a significant rise in Asia's share of global energy consumption, from 38% in 2010 to 45% by 2040," said Amanshah. "Meeting this rising demand for oil and gas in this region will be challenging, even though some countries are net energy exporters (such as Malaysia and Brunei)."
 
Growth in the demand for gas will outstrip all other fuels, given its cleaner environmental characteristics and superior flexibility.
 
Most countries import more than they produce. BP calculates that Asia produced 8.3 million barrels of oil a day in 2012, or 9.6% of global production, but consumed 29.8 million barrels of oil a day, 33.5% of global consumption. 

Despite being a net energy importer, the Asia Pacific region still has plenty of potential for upstream development. The biggest opportunities exist in new gas fields, such as in Myanmar and Papua New Guinea. In order to extract gas from Asia's more complicated fields, regional oil and gas companies are investing more heavily in new technologies. In 2011, Asia's 50 listed oil & gas firms spent US$2.13 billion on R&D, up from US$368 million in 2004.

Given the landscape of opportunity in Asia, the region's listed oil and gas companies are reporting strong revenue growth. In 2004, revenue per company in the sector stood at US$2.9 billion. By 2011 that had grown to US$10.2 billion, an average annual growth rate of 20%.
 
But while growth is rapid, the industry also faces challenges in the form of increased competition and costs, and talent shortages. These issues contributed to the return on capital employed for Asia's listed oil and gas sector falling from 19% in 2004 to 8.3% in 2011.

Wholesale and Retail

"The population of Asia is predicted to be 4.6 billion by 2040, with average consumer wealth rising in tandem," said Amanshah. "To put the impact of this population increase in perspective, in 2001 Asia accounted for 26.8% of global GDP measured using purchasing power parity – by 2013, our share had risen to 36.6%. Significant urbanisation and penetration of modern retail formats are driving sales."
 
Asia's homegrown retail companies are growing. Between 2005 and 2011, revenues at Asia's listed retail and wholesale firms rose by an average of 21% every year. Most of this growth was organic in character. Between 2013 and 2018, the EIU forecasts that retail sales in Asia Pacific will grow by 10.2% every year, whereas globally retail sales will grow by only 6.9% a year. In 2013, Asia had 80m square meters of modern retail space, but this will rise to 135m square meters by 2018. 


Retail opportunities are highly varied, from mass market grocery chains and fast-food outlets to high-end fashion stores and luxury boutiques. The opportunities for online retail look especially good, with growth rates of close to 17% a year.  

While topline growth is exciting, a number of structural issues are making profits growth harder to achieve. Human capital with retail skills is in short supply, forcing companies to invest heavily in training. Wages are rising, with staff costs up from 3.5% of operating revenues in 2005 to 5% by 2011.

Further reinforcing the eastward shift of power is a study by McKinsey & Co quoted by the EIU in the reports, which notes that 420 cities in emerging markets (more than half of which are in Asia) are expected to contribute 45% of global GDP growth between 2010 and 2015. The report further notes that Southeast Asia will have many significant economic engines of its own, with urban population growth and productivity improvements rising faster than in rural areas, driving incomes up at a much faster pace. This combination of faster population growth and faster income growth led the EIU to conclude that it "makes cities the dynamos of the future".

The six papers, covering engineering services, environmental technology, food processing, healthcare, oil & gas, and wholesale & retail sectors, can be found here.