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How ICT can help accelerate businesses and digital economy?

Businesses should embrace and optimise the use of IT applications because:

  • IT reduces transaction costs – In the past you have to go to the bank to do your banking but now through e-Banking (Internet Banking), cost of transactions are reduced because you can just use the internet or your mobile phone; and
  • BY 2025, about 24% of the total world economy will be digitalised compared with the current 15%, featuring a growth rate that is three times faster than the traditional economy.
  • “Those are the reasons why many countries are developing their National Digital Economy Strategies (NDES),” he added, outlining such examples:

  • Singapore’s Smart Nation Strategy – aimed at using technology to help Singapore become a smart nation;
  • Germany’s industry 4.0 – focused on how to use technology to improve the efficiency of manufacturing in Germany; and
  • China’s Internet Plus – this means working towards using the internet for everything and transactions.
  • Tsang said that in Singapore’s case, it focused on key areas such as:
  • BROADBAND infrastructure network – ensuring excellent and efficient powerful infrastructure mobile network coverage or fibre networks to enable speedier access to the cyberworld;
  • HELP the industries – to create a value chain in an ecosystem for different industries;
  • TRAINING and nurturing ICT talents – focusing on training and building a human capital supply chain that is efficient and competent in various ICT certifications from educational institutions;
  • FOCUS on technology development – supporting and sustaining Research and Development (R&D) incubation and funding; and
  • OTHER initiatives –such as smart home, smart cars, health care, smart retail, etc.
  • Tsang said the digital infrastructure was the most fundamental need for the a digital economy to flourish in a country, and that having a 4G LTE network, meaning speedier and bigger capacity for information transmissions.

“For example, in China, you have the Internet Plus which means internet plus something else. It can mean the internet plus manufacturing or internet plus government and others.
“So you need to ensure that you have an adequately efficient broadband for the people and businesses to use. This is the fundamental to facilitate content delivery and speed for those engaged in online transactions.
“This is why there is now a correlation in GDP growth and ICT investment,” he said, adding that the availability of public Clouds (Data storage centres available to users in the internet) has enabled small enterprises to connect and go global.

Next : What is Digital Economy?

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