Winning the Smart Nation race

The objective of Singapore's quest to be the world's first smart nation is to make a positive difference to people's lives and reinforce Singapore as a leading city state to attract investment, develop talent and innovation.

"Smart" has resurfaced as the current buzz word, albeit with an additional layer of meaning. Smart cities, smart estates, smart buildings, smart elevators, smart phones, smart watches, smart shoes, etc., etc. It seems like even things are getting "smarter" nowadays.

Every mayor now speaks of "Smart City" initiatives. With rapid urbanisation and advancement of technology, we are constantly discovering new ways to make our lives better. The internet also plays a significant part in this smart movement as it makes information available anywhere, anytime.

In a country like Singapore with a mobile internet penetration of 74 percent, higher than North America at 70.3 percent (according to 2014 figures from PwC Entertainment & Media Outlook 2015-2019), Singapore has an edge in this Smart City race.

Beyond mobile devices, the explosion of wearable technology is generating a massive volume of data that the government and businesses can use. Data, if properly harnessed, provides information and insights that can help shape strategic decision making – both at business and national level. What used to require a significant investment of labour and time (to gather information and data) is now readily available for harvesting.

Information gleaned from this data can be used to improve infrastructure in easier and better ways, for example in the redesigning of road networks that match traffic volume and frequency, optimising resource spend on education, healthcare, township maintenance, waste management, etc. The possibilities are endless.

However, deciding what data to harness and how to define and deliver outcomes in the form of infrastructure improvement is crucial. In addition, maintaining public trust and (personal) data protection are critical for the success of smart improvements driven by data. Technology today is a better enabler than it has ever been, but without the right people, robust governance framework and processes, by itself it is useless.

Much effort has been spent by the relevant authorities to put in place the right ecosystem, policies, infrastructure, and competencies, it is expected that the private sector will play a significant role in the development of smart ideas and solutions. Cooperation between the government and private sector on initiatives – for example, the ones unveiled in this year's Budget – would help to make meaningful strides towards this shared vision.

Our first industrial park of the future
The recently-announced Jurong Innovation District by Finance Minister Heng demonstrates the government's commitment to create a smart and sustainable urban environment for Singaporeans to live and work in – something budding entrepreneurs and R&D firms can look forward to.

It is touted to be the "future of innovation for enterprise, learning, and living." The objective is to create a next generation working and living space where new and innovative ideas can be brought to life. The plans are bold and ambitious, highly appropriate for the creation of an "industrial park of the future".

Our first National Trade Platform
On a business front, the government proposes to develop a National Trade Platform to replace and improve on the current TradeNet and TradeXchange systems, which support companies engaged in the import and export of merchandise. The new Platform will allow easier electronic data sharing among businesses and the government.

While it is primarily meant to facilitate customs and trade regulatory approvals, the government plans to open it to service providers to develop apps covering related operations and activities, such as trade financing and freight management.

It is said that the Platform could potentially bring over $600 million worth of man-hour savings annually. This is very encouraging news indeed.

Having the Platform open to third-party service providers (to provide their services and apps in the field) shows the government's commitment to make things easier and smoother for intended users. While the intention of a National Trade Platform is to be applauded, prior experience in Singapore and other countries with similar initiatives have demonstrated that it is by no means a foregone conclusion that the business community will be keen to participate.

It remains to be seen how seamless, and therefore attractive, the interaction between a government trade information management system and the services and apps of third-party service providers would be.

Promoting Research & Development and Enterprise
The government affirms its commitment to the creation of intellectual property through innovation by enhancing the Research, Innovation, and Enterprise (RIE) 2020 plan aimed at boosting science and technology research with a $1.5 billion top-up to the National Research Fund.

The Minister for Finance has also announced the set-up of SG-Innovate – a new entity aimed at expanding current accelerator programmes by SPRING and EDB to grow and further develop new and emerging sectors such as smart energy, digital manufacturing, fintech, digital health, and Internet of Things. This initiative aims at promoting start-ups in new and existing industries.

Currently, 40 percent of all start-ups in Southeast Asia reside in Singapore. SG-Innovate looks to further strengthen the start-up eco-system in Singapore to benefit local and foreign entrepreneurs and innovators.

The right cooperative framework
It is clear that both public and private sectors need to work together. In many cases, the Singapore government will function as a regulator or facilitator.

However, sometimes while the socioeconomic benefit of new ideas is apparent, implementation may not be commercially viable. In such cases, government support – such as access to additional resources, soft loans, or grants – may make the difference between successful implementation and them staying "just an idea".

There are many guiding principles which have been applied in Public-Private Partnerships (PPP) programmes globally, including strategic partnering arrangements. Important lessons and guidance materials should be studied for potential implementation in order to form the right partnerships for the success of Singapore as a smart nation.

The way forward
The smart nation programme is indeed both an ambitious and exciting initiative. Both the private and public sectors need to venture into the unknown and dare to take risks in order to win this smart race. If done right, this will greatly secure the bright future of Singapore for the next 50 years and beyond.