SMALL AND MEDIUM-SIZED ENTERPRISES (Implementation of e-Commerce)

Assoc. Prof. Toh See Kiat asked the Minister for Communications and Information Technology whether the Government has any plans to (a) help small and medium-sized enterprises implement e-Commerce; and (b) provide funding for the people sector to increase access to information technology and Singapore ONE.

The Parliamentary Secretary to the Minister for Communications and Information Technology (Assoc. Prof. Yaacob Ibrahim) (for the Minister for Communications and Information Technology): Sir, PSB and IDA work closely to help SMEs adopt e-commerce in three steps under the Jumpstart Programme and e-Business Industry Development Scheme.

The first step to e-commerce is to help SMEs which have limited resources and in-house expertise in IT to get an initial taste of e-commerce. Under PSB's Jumpstart Programme, we help SMEs to take advantage of ready-made solutions offered by the Application Service Providers, and join one of the e-market-places. So far, PSB estimates that about 19,000 SMEs have taken this first step towards e-commerce.

Next, to help initiated SMEs conduct more of their business transactions on the Net, we encourage the development of industry specific e-market-places under the e-Business Industry Development Scheme (e-BIDS) jointly promoted by PSB and IDA. These vertical portals are customised to meet the needs of the suppliers and customers in the respective sectors. Recent examples of these special purpose e-market places are Kafe 123 (an e-market place for the coffee shop trade) and Asia Furniture Hub (a portal to enable Singapore based furniture businesses to transact globally). So far, close to 2,000 SMEs have taken this second step.

The third step to e-commerce is to help some of the SMEs to re-invent their business with e-commerce. One example is Far East Flora. Even though the flower trade is very much a brick-and-mortar business, the company has developed an online flower wholesale business and is beginning to transform itself into a click-and-mortar operation. About

165 SMEs have taken this third step. We hope to see more SMEs gearing themselves up for the fast emerging New Economy.

Let me now move on to funding of the people sector to increase access to IT and Singapore ONE. I can assure Members that there is adequate funding support for initiatives to bridge the digital divide. IDA has committed to spend up to $25 million for e-lifestyle programmes by 2003. We have received another $5 million in corporate sponsorships for this purpose. Many community groups and private organisations have also stepped forward to contribute towards the movement to transform Singapore into an Information Society.