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Singapore SaaS Market Outlook

Mon 29th Aug, 2022

Southeast Asia has been late in SaaS adoption but Singapore is emerging as a leader. As of 2020, 65% SMEs in Singapore use digital solutions mostly geared towards accounting, HR and customer relationship management. And 75% of those companies are using at least one SaaS solution. Singapore has been actively working to attract major cloud players to establish data centers in the country. Examples include, Amazon, IBM, Microsoft, etc.

Governments in the region have been setting examples for the rest to follow, for example in Singapore, since 2011, they began moving their information to cloud systems and launched many e-government services. Furthermore, apart from just providing the example the government has/had initiatives in place to stimulate digital technology and cloud use amongst SME’s like SME Go Digital and Go Cloud that can fetch businesses up to 80% co-funding support from the government. Other countries in the region also have/had such schemes in place, examples include Malaysia, Vietnam.

SME Go Digital:

● Run by Infocomm Media Development Authority(Govt Body)

● Programme aims to help SMEs use digital technologies

● Launched in 2017 and has helped more than 80,000 SMEs since then

● Support Available: CTO-as-a-Service, Industry Digital Plans, Pre-Approved Solutions, Start Digital, Grow Digital, Advanced Digital Solutions, Government Grants

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Singapore:

Population: 5.4 Million (2022) Internet Penetration: 92% (2021) Smartphone Penetration: 88% (2012)

Cloud Market in Singapore Public Cloud 2018: USD 1.5 billion Public Cloud 2023: USD 3.6 billion CAGR 2018-2023: 20%

SaaS segment share: ~58% (2023) SaaS Segment CAGR 2018-2023: 20%

SMEs in Singapore

● Number of SMEs: ~280,000 (2020) (~99 % of enterprises)

● SMEs account for 70% employment

● % contribution to GDP: ~50%

● % of SMEs using SaaS apps: 68%

● SMEs also have adopted more advanced cloud segments such as IaaS, PaaS, etc.

● 85% of SMEs agree that cloud adoption will help them gain and maintain a competitive advantage

● Top reason for not adopting cloud is data privacy

● 60% of SMEs are influenced by government initiatives

● 83% of SMEs have digital transformation strategies in place

SME Digital Transformation Initiatives

SME Go Digital:

● Run by Infocomm Media Development Authority(Govt Body)

● Programme aims to help SMEs use digital technologies

● Launched in 2017 and has helped more than 80,000 SMEs since then

● Support Available: CTO-as-a-Service, Industry Digital Plans, Pre-Approved Solutions, Start Digital, Grow Digital, Advanced Digital Solutions, Government Grants

● Over 78,000 on boarded as of 2021

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