6 Business Trends in Singapore
Singapore has grown to become a global leader in trade and commerce. This can be attributed to the country’s ease of doing business as well as its unequaled local and international connectivity. Also, the country’s regulatory framework is business-friendly and has one of the most dynamic labor forces in the world. For these reasons, businesses around the world have made the Asian country their go-to destination. Are you looking to pursue business in Singapore? Here are 6 business trends in the country.
- Digital Business
Digital business is a business trend that is quickly gaining ground in Singapore. Experts have referred to digital business as the future of business for its ability to blur both the physical and digital worlds and connect consumers to businesses through technology. Blur here alludes to a transitional fabric that adjoins the physical realm and the intangible realm.
Digital business promises to bring into existence an unmatched convergence of consumers, businesses, and things. This unprecedented convergence will most definitely disrupt traditional business models. The presence of intelligent things and their ability to integrate and connect with business and people allows digital business to stand out from existing business models.
Digital business shouldn’t be confused with the Internet of Things. Although the IoT holds a key position in digital business, there is more to this. Gartner describes the IoT as a group of physical objects with an embedded technology that allows communication and interaction between the internal and the external environments. On the other hand, digital business is the interaction of business and things.
- Artificial Intelligence
Businesses in Singapore are increasingly using artificial intelligence in an effort to provide improved services to customers. In most cases, businesses leverage artificial intelligence to personalize their services to customers. Thanks to artificial intelligence, businesses are in a position to analyze large volumes of data, such as user profiles and information to enhance their advisory services.
The adoption of artificial intelligence by businesses in Singapore has changed the way people purchase products. Additionally, it has changed the way consumers learn about new products and reshaped the business environment. At the moment, the Infocomm Media and Development Authority is working on an intelligent conversational computing software that will allow customers to carry out smooth and faster online transactions. A perfect example of AI currently being used by businesses in Singapore is the Bus Uncle chatbot, which interacts with people to deliver valuable information in real-time.
- Data Analytics
Data analytics is another business trend that is rapidly gaining ground in Singapore. It provides businesses with new sources of data to enable them realize extraordinary profits. Some sources of data utilized by data analytics include log files, social media, sensor data, and transaction information.
With data analytics, businesses can understand customers better and realize hidden customer trends. Additionally, they can empower their customers to make purchasing decisions promptly and accurately. In addition to understanding customer behavior, data analytics helps businesses to personalize in-store experience and increase conversion rates using targeted campaigns.
Currently, E-Payments are increasingly gaining momentum in Singapore and the country is hoping to considerably minimize the use of cash by 2025. Over 80% of Singaporeans now use e-payments and nearly 40% of businesses in the country accept e-payments. The government is working closely with relevant bodies to make sure that consumers are protected against e-payment risks.
Last year, 2017, the country launched PayNow to help customers send payments using their mobiles. At the moment, nearly 1.4 million customers are using this platform, and close to 900 million Singaporean dollars have been transferred through the platform. PayNow hopes to expand further before the end of 2018 to include businesses.
A couple of months ago, PayNow was used to disburse the Edusave Awards to thousands of students across the country. A few minutes after receiving certificates, students were notified via SMSs that their bank accounts had been credited with the award money.
Crowdfunding is a method used by businesses to raise funds via online platforms such as Indiegogo, Kickstarter, and GoFundMe. There are various types of crowdfunding including donation-based, reward-based, securities-based, equity-based, and lending-based crowdfundings.
In Singapore, these different types of crowdfunding are independently regulated. For instance, the Monetary Authority of Singapore is the body responsible for regulating securities-based crowdfunding. The Authority ensures that all securities-based crowdfunding platforms provide appropriate money segregation and maintain proper transaction records. The Monetary Authority of Singapore’s regulations are not relevant in reward-based crowdfunding and donation-based crowdfunding.
Today, almost everything has been digitized, and this has made it necessary to have secured information technology systems. Cybersecurity ensures that different systems, be it business systems, military information systems, healthcare systems or transport systems are protected against possible online attacks.
An enhanced cybersecurity will increase the chances of Singapore becoming a Smart Nation. The government has come up with a Cybersecurity Strategy that will help position the country as a leading digital hub. Approximately 2.5 million Singaporean dollars have been set aside to help the Nanyang Technological University of Singapore (NTU) to set up a top-notch cybersecurity system. The NTU is working closely with BAE systems, an established security solutions provider, and the Cyber Security Associates and Technologists (CSAT).
Regardless of the business you choose to venture in Singapore, it is imperative to ensure that it is the perfect fit for you. Importantly, make sure you understand the ins and outs of the business of your choice. Also, bear in mind the ups and downs of the business of your choice as well as its market volatility.
Remember to take advantage of the various crowdfunding platforms available in Singapore if you need any financial support to start your business. Most importantly, familiarize yourself with the different regulations that govern some of these platforms, and make informed decisions.
Because artificial intelligence is the next big thing in business especially in Singapore, consider making room for AI in your business. Additionally, incorporate data analytics in your business to collect useful customer data in order to provide personalized customer services.
Understanding how to take advantage of the ever-changing business landscape is no easy task. At Enterprise Assurance PAC, we have a team of experts with vast experience and insights about the mechanics of doing business in Singapore. We provide a wide range of business services, ranging from company incorporation to accounting service. Let us help you today by sending us an email with your contact details!