InfoComm21 Singapore eBusiness Development Program

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InfoComm21Singapore eBusiness Development Program
Section E2 - Group 8 Marcello Deplano William
Dujardin Eyal Lavin Cesar Rainusso Markus
Scheuermann
Date January 14th, 2003
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Agenda

• Overview InfoComm21 program
• Economic development SGP
• Economic structure SGP for eBusiness
• Impact of program on foreign investors
• Proposal for re-focus of program

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InfoComm21 wants to ensure Singapore's leading
position in eBusiness in Asia-Pacific
Overall goal to become leading infocomm savvy
society
Undertaken and supportedactivities

• Become leading eBusiness hub in Asia-Pacific
• Implement leading eBusiness infrastructure
  throughout the entire country
• Transform and e-enable government services to
  improve service level and speed
• Develop information technology training and
  educational competencies

• Subsidize and co-fund infrastructure development
  projects
• Invest and control major ICT companies in
  Singapore
• Provide and adjust regulatory conditions to
  support eBusiness activities
• Fund internet courses in schools and universities

Source Singapore InfoComm Development
Authority
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Singapore Real GDP Growth
Percent
High exposure to premature ICT and eBusiness
sector might be partly attributable to the steep
decrease of the GDP growth in 2001 Recovery to
historic growth rates not expected in the mid-term
Source Economist Intelligence Unit
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Economic structure in SGP not ideally suited for
eBusiness
Percent
Industry segments in SGP
SMEs in SGP
Rest
SMEs
Totalcompanies
Workforceemployed
Value added
Only a part of Singapore industry sectors
are well suited for an extensive eBusiness use
in the short run
Large share of SMEs indicated limited leverage
for eBusiness use or only with significant time
lag
Source Telecom Research Asia-Pacific,
Development Bank of Japan
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Foreign investors might not decide to invest in
SGP
Competing country investments
Unclear role of government

• Other emerging countries are also investing
  significant amounts of money in their IT
  infrastructure to attract foreign investorse.g.
  P-K-P TIGeR in Malaysia to strengthen the country
  as e-manufacturing hub for electronics
• Fast technological developments require ongoing
  investments to renew the infrastructure. Once SGP
  stops investing, companies can quite easily
  switch to other countries
• Companies looking for highly skilled and cheap
  labor might still choose to invest in India or
  China

• Industry promotion and industry regulation are
  combined within the same agency in Singapore
• Government has significant stakes in local ICT
  companies and exercises close control. Existing
  structure poses risks
• Promotion of industry players for which no real
  demand exists
• Internal pressure to subsidize "own" companies
  rather than others
• Foreign investors might prefer fair market and
  transparency, if they want to make significant
  investments

Source National Information Technology
Council Malaysia, International Telecommunication
Union
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Government ownership of the Singaporean telecom
industry
Source International Telecommunication Union
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Re-focus of activities to foster economic growth
Traditional industries

• Singapore's economy is significantly impacted by
  the opening of the Malaysian port of Tanjung
  Pelepas
• Many firms have left Singapore due to
  uncompetitive costs and inferior services
• 1 in every 10 people in Singapore is dependent in
  some way on the port and jobs are endangered
• Other examples include the Malaysian airport
  Senai
• Strengthen "traditional" business infrastructure
  to avoid exodus, and support existing backbone of
  the Singaporean economy

• Focus on education of workforce to increase
  computer literacy
• Education will foster sustainable development by
  providing local talent
• Shift funding to this area from less urgent and
  more volatile investments

Education
Source Economist Intelligence Unit