On February 16, Singapore’s Deputy Prime Minister and Finance Minister Lawrence Wong delivered the country’s 2024 budget in Parliament.

As quoted by the Straits Times, Budget 2024 aims to “keep Singapore moving forward” and “equip our citizens to realise their fullest potential and give more assurance to our families and seniors amid a more troubled world.”

As the global political and economic situation challenges local startups, e27 spoke to several tech companies in Singapore to understand their aspirations for the Singapore Budget 2024 and how the government can further support the startup ecosystem.

Several notable themes surfaced in our email interview with founders and executives from Human Managed, Payoneer, and Qashier.

Talents in the ecosystem

Talents are a crucial part of a tech startup ecosystem, and there is an urgency for support that helps them keep up with market changes.

According to Human Managed CEO Karen Kim, academic courses and industry certifications for developing talent should be boosted.

Also Read: Uncovering the rise and challenges faced by deep tech startups in Singapore

But this is not the only dimension of talent development that the government needs to consider.

According to Christopher Choo, Co-founder & CEO of Qashier, “Shortage of manpower, especially in industries with high turnover rates, can pose a challenge for many startups. This is because they may not have as deep pockets as large enterprises to hire extensively.”

“As such, technology plays a key role in automating processing and streamlining operations, allowing startups to operate more efficiently with limited manpower,” he stresses.

Funding and international expansion

Another key challenge that supports in Singapore are facing includes securing capital and maintaining healthy cash flow, according to Choo.

“Grants from public and private sectors are essential for startups and SMEs to scale their operations. Qashier is also constantly finding ways to support SMEs through various efforts such as Qashier Support Package (QSP), an initiative designed to help SMEs digitalise their operations without breaking the bank,” he says.

This funding is crucial in supporting tech companies in their expansion plan, which remains a popular option for Singapore-based startups.

“It’s crucial to grasp the significance of businesses venturing into new markets. At the crux of it, building scale improves the productivity of any business, and unlocking cross-border capabilities will undeniably help businesses become more efficient. It is also part of Singapore’s DNA and identity as a financial hub to help business realise their full potential. While internationalisation efforts are no longer solely the domain of large corporations, it also implies a greater need for support,” says Nagesh Devata, the SVP and President of APAC for Payoneer.

Also Read: Is Singapore the “Delaware” of Southeast Asia?

As a platform that works closely with SMEs, Payoneer notes the challenges that SMEs can face in their international expansion effort.

“Global expansion is undoubtedly challenging for businesses of all sizes, much less SMEs. While many SMEs have achieved remarkable success through global expansion, venturing into new markets can be daunting with unique risks and complexities, and many don’t know how. Launching a business in new countries is one of the most salient areas in which SMBs surveyed in our recent SMB Barometer Report believe they have the weakest performance. That said, it is not an unsurmountable feat,” says Devata.

On supporting innovation

Apart from challenges related to talent and funding for expansion, Kim also highlights the importance of building an ecosystem that supports innovation.

“While Singapore has a vast number of innovations, with NTU and NUS reporting a combined amount of 4,000 inventions and disclosures, Singapore lacks a venture-building ecosystem. The Singapore Budget 2024 should prioritise initiatives that promote the integration of cutting-edge technologies such as AI, alongside investments in robust cybersecurity infrastructure, regulatory frameworks, and educational programs,” she says.

According to Kim, these endeavours are essential for fostering trust among citizens, businesses, and investors while improving transparency, accountability, and the ethical handling of data.

“Increased support for collaborative endeavours involving the government, private sector and academia would be welcome. Corporations looking to adopt new technologies should have access to grants to get started. Pre-qualified startups in Singapore would benefit from introductions to potential corporate clients and VCs.”

—

Image Credit: Swapnil Bapat on Unsplash

The post Singapore Budget 2024: For startups, talents and funding remain key challenges this year appeared first on e27.