High cost of tech is biggest hurdle in digital push, say local firms

Companies surveyed want funding for projects and a one-stop resource point

- Krist Boo

Qbasis founder Huang Yaoquan has been juggling skyrocketing technology costs over the past year as his company, which specialises in tech services for physical security automation and system integration, tries to keep up with the latest tools.

As the tech his team of five uses becomes more complex, Mr Huang feels an urgent need to train his employees to keep pace with these changes.

“Costs all around have gone up: Servers, software and service subscriptions, development tools, compliance costs, tech salaries, freelance salaries… all across the board. And this is not only in the local context but globally,” he noted.

Yet, he has no choice but to bite the bullet. “Only by doing so can we provide a sound solution that is valuable in the current environment.”

Mr Huang’s situation reflects a broader trend among Singapore companies facing significant challenges in adopting new technology.

A survey of 529 companies over six weeks from May 23 initiated by the Singapore Business Federation (SBF) identified these challenges as major roadblocks to digitalisation. Small and medium-sized enterprises (SMEs), which account for 99 per cent of firms here, made up 82 per cent of the respondents.