SINGAPORE - Budget 2024 is comprehensive and forward-looking, but when it comes to implementing measures like new technologies, smaller firms might need more help, said experts at a roundtable organised by The Straits Times and UOB on Feb 19.

Companies’ challenges with implementation range from using artificial intelligence (AI) and green technology to reconciling workers’ training with practical job demands, they said in their discussion on the Budget measures unveiled by Deputy Prime Minister and Finance Minister Lawrence Wong on Feb 16.

The roundtable was moderated by ST associate editor and senior columnist Lee Su Shyan.

Singapore Business Federation (SBF) chief executive Kok Ping Soon said: “I think this year’s Budget has addressed some of the economic challenges that we have... I think businesses certainly welcome DPM Wong’s restatement that one of the Government’s key priorities is to ensure a strong, vibrant and dynamic economy, and we should not make any apologies for growth – (although), of course, not growth at all costs.”

He referred to initiatives aimed at supporting business growth, such as the Enterprise Support Package and investments into productivity, research and innovation, AI and future energy.

“On the whole, I think the measures would help to restore our competitiveness,” he said.

UOB senior economist Alvin Liew said productivity is vital as, going forward, Singapore will still be a costly place to operate in for many businesses.

“So our way out of this is we really have to look at productivity (and) efficiency, and if you look at the longer-term measures... it’s all working towards that direction in trying to improve productivity, trying to improve our efficiency to move us up to the next level,” he said.

But the experts noted that one challenge is how to get businesses to tap the schemes on offer to integrate new technologies into their workflows.

Associate Professor Walter Theseira of the Singapore University of Social Sciences said: “I think the real challenge here is – how do you integrate AI usefully into business processes? How do you get the return on investment on it?”

He noted that this is where investment can come in to operationalise AI at the business level.

“If (Singapore) can get in early on this, if we can maybe invest... (and) become a regional centre for the training of these chatbots or other AI applications and development of that, I think that’s where it may actually pay dividends,” said Prof Theseira.

“It’s not going to come from just telling companies to integrate AI and then let the companies do what they want because I don’t think that’ll get you the results.”

SBF’s Mr Kok also spoke about ensuring the Government’s $1 billion investment into AI trickles down to the bulk base of companies.

He noted that AI can already have practical uses such as improving customer service or marketing, but small and medium-sized enterprises (SMEs) are not utilising it.

“I think they’re just not equipped,” he said. “Sometimes it is not (about) the cost. It’s actually the lack of management expertise and the technical expertise.”

The same issue with implementation comes about when companies look at green transformation, Mr Kok said.

“The challenge here is that not all energy-efficient grant measures are as straightforward as changing a light bulb,” he said.

“When it comes to implementing some of these energy-efficient equipment, it requires pretty complex changes in your business processes, in your production processes.”

He added that the grant given by the Government covers the cost of equipment, but what companies grapple with is the full process of implementation.

“There’s a dearth of expertise. I can’t imagine every SME has the resources, nor is there the availability of talent of sustainability professionals. So, how can the whole ecosystem work together to pull together this pool of resources and maybe offer it as a service to SMEs? That will really start to change the game,” he said.

Panellist Irene Tai, corporate tax partner at PwC Singapore, said the Energy Efficiency Grant helps firms to take that first step.

“You use less energy, it costs less to run your business... Overall, from a sustainability perspective, I think, if every business is encouraged to start taking sustainability into their business strategy, that could give them longer-term growth,” she said.

The panellists also discussed the new SkillsFuture Level-Up Programme to support mid-career workers, saying that the training has to gel with what companies need.

Mr Kok noted that if workers are sent for training, especially for long courses, there is the concern of not having enough manpower to fill the gaps.

And when they return, the skills they acquired might not be useful in practice.

“Can we have more on-the-job kind of training that is actually recognised (and) certifiable, and that can allow portability of the skills across the company? I think a lot more needs to be done, otherwise, we are not going to benefit from that,” he said.

UOB’s Mr Liew added that there could also be a fear that companies might lose workers after they have upskilled.

Prof Theseira said the training allowance under the scheme can also get people thinking about retraining earlier, rather than waiting to be pushed out of their jobs, especially if they are in sunset industries.

“I think it’s very important to have some provisions in there to accommodate people in industries and job sectors which are on the decline anyway, and where we actually want people to get out while they still can and proactively retrain and adapt themselves for a new career,” he said.