Big Data Sandbox for Singapore

Sir, data science and artificial intelligence (AI) technologies can help companies use raw data to make better business decisions. Unfortunately, many local companies are not taking advantage of this potential. A study done by the Committee on the Future Economy showed that about a third of businesses have not adopted data analytics and about 80% have not adopted AI. Many of these businesses said that they lacked awareness and the expertise to harness data science and AI or were concerned about breaching data protection regulations.

Sir, the Government is addressing these barriers to adoption. First, we are making it easier for our small and medium enterprises (SMEs) to deploy such solutions. The Info-communications Media Development Authority's (IMDA's) SMEs Go Digital programme gives SMEs access to proven digital solutions to grow their businesses. These solutions come embedded with capabilities, such as data analytics, cybersecurity and data protection. Over time, IMDA intends to raise the standards of these solutions with new technological capabilities, such as AI.

Several SMEs have successfully taken advantage of these solutions. Let me share with Members one example. Poh Kim, a video retailer, has deployed Ishikawa's video analytics solution to analyse its customer traffic, so as to optimise its operations and improve its marketing efforts. These have helped Poh Kim to increase its revenue by 10%. So, I encourage Members to check out our #SMETowkay series showcasing SMEs, including Poh Kim Video, which have benefited from going digital. SMEs can contact their nearest SME Centres for advice on their digital needs.

Second, Sir, we are bringing companies together to realise the value of sharing data. IMDA established the Data Innovation Programme Office (DIPO) on 1 April 2017 to champion this effort. DIPO has made encouraging progress. For instance, it is working with the industry to scope problem statements through industry-led Data Collaboratives. These Data Collaboratives are essentially partnerships among businesses where the businesses identify a common business problem and share data with one another to solve those problems. IMDA is finalising the implementation details and will announce these when we are ready.

Finally, Sir, we are reviewing our regulations on data sharing. There appears to be a misconception amongst businesses that the Personal Data Protection Commission (PDPC) prohibits the sharing of personal data. This is inaccurate. I would like to take this opportunity to highlight the Guide to Data Sharing that PDPC released on 27 July this year. This Guide seeks to provide clarity to businesses on how they can share personal data within and between organisations. The Guide also introduced a regulatory sandbox for personal data that exempts businesses from certain obligations under the Personal Data Protection Act under specific circumstances.

I would like to thank the Minister for the answer. I have two or three supplementary questions, but these are short questions.

First, with regard to the role of the big data sandbox in my question earlier, can the Minister elaborate more about the progress of the initiative? I think the Minister mentioned briefly, but maybe he could share a bit more on the progress.

Second, I have heard of the Go Digital programme and I laud that programme. A lot of the SMEs are looking forward to that and more should take up that programme. But one area that may need to be looked upon, and maybe the Minister could share on this part, is about the exchangeable business intelligence in the future. For example, the 10% or 20% that is taken up, the extent of exchangeable business intelligence that they can use to enhance their profitability, in terms of consumer behaviour and consumer actions that they can take.

Finally, in terms of costs, in the future, with the big data sandbox, can the Minister share a bit more whether there are cost issues with regard to SMEs and regulations? Will there be an increase in costs as well from that?

Sir, as to the first question on the data sandbox, as I have mentioned earlier, we are sorting out the details and when we are ready with the details, we will announce them. But certainly, we want to go forward in creating that platform to allow companies to come together and share data. So, as I have mentioned in my reply, once it is ready, IMDA will announce the details.

I think for the next three questions, they are all inter-related.

First, the SMEs Go Digital programme, by and large, has been quite successful. I have personally visited many companies, small SME companies. The solutions are not deep-tech, they are really simple solutions. And the most important thing is for us to prove to the SMEs that it will benefit them.

I have visited a cleaning company, a security company, a construction company and all of them are basically happy with the solution. So, what IMDA wants to do is to develop proven off-the-shelf digital solutions that can then be deployed and scaled to other companies. I agree with the Member that this is a good effort, and we will continue to push this.

The Member mentioned about business intelligence. I had mentioned in my reply that within the solutions that we offer, we have also embedded within it the use of data analytics, cybersecurity and data protection, and we hope they can tap on that.

In the SMEs Go Digital programme, there are many levels. Some companies are just starting off and, therefore, they need some basic solutions. Some are more advanced. The more advanced companies which have already deployed digital solutions, if they want to go into analytics, AI, or business intelligence, we will work with them. Sir, one of the key programmes under the SME Go Digital programme is the Tech Hub that we have started. Within the Tech Hub, there will be experts who can offer advice to the companies on how they can use what they have deployed, to basically further raise their business profitability by leveraging technology.

Cost will always remain a concern and that is why the current programme is highly subsidised. We work together with the SMEs. But we believe that, over the long run, if they are able to prove that it is profitable for their business, we hope they will be self-funded. The real task of the Government is to prove to the companies that going digital is the way to go for them, not just to stay relevant, but to be profitable in time to come.