Mr Sam Tan, Parliamentary Secretary of MTI and MICA, announces the Accounting Software Assistance Scheme.

Small and medium enterprises (SMEs) buying their first accounting software will receive a funding of up to S$1,500, if the software meets the requirements set by the Inland Revenue Authority of Singapore (IRAS). Offered under the Accounting Software Assistance Scheme (ASAS) launched by IRAS and the Infocomm Development Authority of Singapore (IDA), the funding also applies to software deployment and training costs.

“ASAS provides support  for SMEs to acquire their first accounting software to improve their financial and bookkeeping practices,” said Mr Sam Tan, Parliamentary Secretary for Trade and Industry, and Information, Communications and the Arts, who announced the scheme at the Infocomm Commerce Conference (ICC) on 20 August 2009.

To qualify for the scheme, each SME must have at least 30 per cent local shareholders, have less than S$15 million worth of fixed assets, employ fewer than 200 staff, is GST-registered, and is currently not using any accounting software. ASAS is available until 31 March 2012.

The ASAS is just one in a wide range of initiatives that have been put in place to encourage SMEs to adopt IT. Under Infocomm@SME, which forms the umbrella for IDA’s SME programmes, SME Infocomm Resource Centres (SIRCs) have been set up at the Singapore Polytechnic and the Singapore Chinese Chamber of Commerce & Industry to provide SMEs with training opportunities, consultancy and advice in infocomm adoption. To date, more than 4,000 SMEs participants have benefited from training workshops, business clinics and other services organised by the two SIRCs.

Another 2,500 SMEs have also benefited from the SME Infocomm Package (SIP), which was launched in June last year. The subsidy available under SIP, which covers the setting up of the SMEs’ first website, was raised from S$1,000 to S$2,000 per SME in April to lend greater support during the current economic situation.

SMEs planning to improve business processes or develop new capabilities using infocomm can also get support through the Technology Innovation Programme (TIP), which is jointly administered by IDA and SPRING Singapore. In the past two years, at least 40 SMEs have received TIP support, with over S$4 million awarded in grants.

Information on these infocomm adoption schemes was available at an IDA booth at the ICC exhibition. The IDA booth was part of the Government Pavilion showcasing government support schemes for SMEs. IDA also organised an Infocomm Singapore Pavilion to enable local infocomm companies to showcase their products and services to SMEs.

Speaking at a forum discussion at the ICC, Mr Andrew Khaw, IDA’s Senior Director, Industry Development Group, said the adoption of infocomm can help SMEs improve cost efficiency, increase productivity and shorten turnaround time.

The conference is attended by a capacity crowd.

IDA has also identified infocomm adoption projects that benefit whole sectors in Singapore. According to Mr Khaw, these sectoral projects will enable businesses to connect with each other more seamlessly and to achieve demand aggregation and improved synergy. For example, SMEs ordering raw materials for a large manufacturer will be able to use infocomm to consolidate their orders and achieve better economies of scale.

Sector-level opportunities include an SME marketplace that can facilitate trading among businesses, the computerisation of school operations, micro e-payment solutions for retailers and neighbourhood shops and the automation of business processes in employment agencies.

For example, IDA is supporting the Association of Employment Agencies of Singapore in its efforts to develop a web portal for its members, who number about 500. Besides helping them reach out to their prospective suppliers and customers, the portal can help business people increase their operational efficiency through tools such as e-forms and other online features.

Welcoming the move is conference participant Mr Bernard Tan, who is also the Executive Director of Aeranda Manpower Resources and committee member of the Association of Employment Agencies.

Aeranda is one of the first 10 Association members to be featured in the portal, which he said is expected to go live in February 2010. The website, he added, would allow agencies to upload manpower biodata, enable employers to pay placement fees online and cut back-end administration. Mr Bernard Tan also expects at least 50 per cent of Aeranda’s business to come from the portal once it is rolled out.