Study shows half of SMEs not applying for gov’t incentives for digitisation

Businesses report plight in barriers to upgrade digitisation.

Half of small and medium-sized enterprises (SMEs) are not applying for government support packages amidst increase in hurdles for digitisation growth. 

A QBE Singapore research revealed that 89% are aware of the packages. For those who applied, these companies said the government support is for enterprise development programmes (46%), and financial support (45%). 

The study also showed that amongst the barriers are cost of investment (29%), lack of financing (27%) and lack of digital skills (24%), which remain unchanged since 2017.

Other barriers are “possible disruption to their business during implementation (23%), ensuring protection and security of data (21%) and finding digital technologies too complicated (21%) as further barriers to digitalisation.” 

Cyber events

Issues on cybersecurity continue to hound the SMEs with almost 40% of SMEs were affected by cyber events last year from 26% in 2021.

Even though there are concerns on cybersecurity risks, only 9% of businesses continue to operate without protection against it.

Almost 40% of SMEs either would not consider or are on the fence about protecting themselves against cyber risk, an “alarming” figure according to the researchers.