6 in 10 SMEs prioritise tech investments over fixed assets

Software to improve websites and develop mobile app are on top of the list.

Six in 10 small and medium enterprises (SMEs) in Singapore will focus more on investing in technology over fixed assets this year to help drive business performance, according to a study by United Overseas Bank, EY, and Dun & Bradstreet.

Specifically, 79% of SMEs said they will invest in software that would improve their websites and help create a mobile app.

“There is significant opportunity for SMEs in the region to improve their digital agility. SMEs have typically been cautious in adopting cutting-edge applications. But that is changing as we see disruptive offerings such as robotics process automation, artificial intelligence and 3D printing beginning to rouse the curiosity of SMEs. In time, we expect that SMEs will increasingly subscribe to web-hosted applications to free themselves from managing IT functions internally,” said Liew Nam Soon, managing partner at EY Asean Markets, Ernst & Young Advisory Pte. Ltd., in a press release.

Moreover, 38% of SMEs expect revenue growth while 13% forecast a double-digit expansion.

The ASEAN SME Transformation Study was participated by 1,235 SMEs across Indonesia, Malaysia, Thailand, Vietnam, and Singapore.