Startups hope for support in Budget 2024 for digitalisation

SINGAPORE: The republic’s startups are seeking more government support in the light of global challenges and rapid technological advancements that may render workers obsolete.

They hope Budget 2024, which is to be delivered today, will have initiatives to support them in digitalisation, upskilling and expanding into overseas markets.

Kelvin Tan, chief executive of financial technology (fintech) startup audax, noted that digital transformation in banking has advanced at an unprecedented rate in the past few years.

To keep abreast of the developments, 2024’s budget should have initiatives aimed at improving the open banking ecosystem and facilitating digital transformation for traditional banks, he said.

He added that he would also like to see more opportunities for the upskilling of the fintech workforce.

“Singapore has established itself as a leading fintech hub in the region. To maintain this position, the government needs to continue providing funding and support to the sector with readily available courses subsided with SkillsFuture Credit and course fee relief from Iras (Inland Revenue Authority of Singapore),” he said.

“By providing support to Singaporean individuals who are acquiring in-demand skills in the digital sector, the government can nurture and promote innovation in the fintech workforce, enabling Singapore to scale more nascent businesses and ensure its long-term growth in the industry.”

Backed by SC Ventures, the investment arm of Standard Chartered Bank, audax operates as a digital banking technology solutions provider for banks and financial institutions. It is seeking to complete a Series A funding round by the first half of 2024.

Tan also highlighted that workers in fintech are cautiously navigating the artificial intelligence (AI) landscape, as they are aware of the technology’s potential impact on their roles.

The government and industry will play pivotal roles in equipping workers with necessary skills to leverage AI effectively, as well as in helping them change their mindset about the technology.

“Rather than solely focusing on upskilling, efforts should also emphasise educating workers on AI’s benefits,” Tan said.

“Government initiatives could prioritise accessible and high-quality AI training programmes by subsidising training costs and facilitating easy access to resources.

“Empowering workers with AI knowledge contributes to the innovation and growth of the fintech industry and will advance Singapore’s position as a global tech hub”.

Dr Ramesh Rajentheran, co-founder and chief executive of Singapore-based healthtech startup MiyaHealth, said sourcing the right tech talent is the biggest challenge for startups here.

“The local software developer pool has some limitations in terms of skill set.

“We would welcome any initiatives that broaden the local talent pool so that we can add to our team here,” he said.

MiyaHealth, which provides AI-powered healthcare and insurance technology services, has plans to expand into overseas markets such as Vietnam, Thailand and the Middle East by 2025. The firm is seeking a Series A funding round in the first quarter of 2024. “Given the nature of our product and our global ambitions, support in terms of overseas market studies and introductions will also be helpful,” Rajentheran added.

Dr Ali Hasnain, co-founder and chief executive officer of deep tech firm Curium, said that more support is needed for growth-stage startups like his.

Growth-stage startups grapple with challenges such as understanding their market, identifying suitable partners and expanding their customer base, especially when they are seeking to break into overseas markets.

Hence it is beneficial for them to have support in connecting with local advisers and industry experts, on-the-ground networking, and linking to venture capital, Hasnain said. — The Straits Times/ANN