Upskilling a bigger problem for larger firms in Singapore than smaller businesses, findings reveal
The task of upskilling employees has emerged as one of the top challenges faced by businesses when it comes to technology adoption, according to a new survey from the Singapore Business Federation (SBF).
In SBF's poll among 529 businesses in Singapore, 47% said upskilling staff to keep up with new technologies is a roadblock to technology adoption, up by 18 percentage points from 2024.
The report further found that larger companies (57%) are more likely to say that upskilling employees is a problem than small and medium-sized enterprises (44%).
But topping employers' list of challenges for technology adoption are the high costs of technology adoption (73%) and the expensive licensing payments for commercial use of IP.
Source: SBF National Business Survey 2024 - Smart-Enabled Businesses Edition
Digital transformation in Singapore
The findings come as 94% of businesses recognise the importance of digitalisation in the workplace, with those who have already begun their digital journey already reporting an improvement in business performance in terms of:
- Optimising operations (67%)
- Reducing operation costs (58%)
- Enhancing employee collaboration and remote work channels (49%)
According to the report, employers consider artificial intelligence (70%) and cybersecurity (68%) as the top trends that will likely impact their businesses.
Source: SBF National Business Survey 2024 - Smart-Enabled Businesses Edition
In fact, businesses already implementing AI said they have integrated it in areas of:
- Operational business automation (45%)
- Cybersecurity defence (45%)
- Analysis of customers' data (44%)
- Risk management (42%)
- Revenue generation (36%)
The Smart Technologies Action Committee (STAC), which was formed by the SBF, is set to dive deeper into the survey findings and provide more relevant suggestions for digitalisation-related matters in the SBF Budget Recommendations for 2025.
Meanwhile, SBF chief executive officer Kok Ping Soon said they will continue to work with the industry, associations, government, and corporates to help businesses remain competitive amid a fast-moving landscape.
"Businesses can achieve true value and success when their digital transformation objectives are aligned with their business objectives," Kok said in a statement.
