The Infocomm Development Authority of Singapore (IDA) has released the results of the Information Communications Technology (ICT) Usage Survey 1999. The survey assesses the adoption and usage of ICT by businesses in Singapore and reveals a high ICT adoption rate. 75% of businesses in Singapore and reveals a high ICT adoption rate.
Singapore, 20 January 2000 | For Immediate Release
75% Have At Least One Computer of Which 81% Have Internet Access
The Infocomm Development Authority of Singapore (IDA) has released the results of the Information Communications Technology (ICT) Usage Survey 1999. The survey assesses the adoption and usage of ICT by businesses in Singapore and reveals a high ICT adoption rate. 75% of businesses surveyed have at least a single stand-alone computer, out of which 81% have access to the Internet. This survey was conducted for IDA by the International Data Corporation (IDC), and polled a total of 747 companies from all industry sectors on various aspects of their ICT usage in 1998.
Highlight of Findings
Level and Impact of Computerisation
The computerisation level for 1998 is 75%. Computerisation is defined as having at least one stand-alone computer. The majority of non-computerised companies indicated that they did not have a need for computers. The findings also showed that 70% of the small and medium size enterprises surveyed use at least one stand-alone PC.
IT Spending in 1998
The average spending on IT by each company for 1998 was S$54,514. For 1999, the companies surveyed indicated that their IT spending is expected to increase by 8%. Their forecast on IT spending for the following two years (2000 and 2001) is an increase of 5% for each year.
The survey findings revealed that close to 50% of the companies' IT expenditure goes to external overheads. Further analysis shows that small businesses allocate slightly higher overheads for external spending.
Among the industries surveyed, companies in the banking/finance, government, IT, and telecommunications sectors emerged as the largest spenders. In contrast, companies in the construction, education, retail/distribution, and transportation sectors were at the opposite end of the scale with much smaller spending. The survey also found that IT spending is directly related to the size of the company with larger companies having bigger IT budgets.
IT Infrastructure Utilisation and Trends
The level of ICT sophistication is also closely related to the size of the company. Larger companies have higher LAN (Local Area Network) usage. LAN connectivity in companies with more than 500 employees is close to 100%. The LAN penetration in small companies is low as most of these companies use stand-alone PCs.
The use of leased line access to access the Internet is confined to the larger companies. Close to 80% of businesses continue to access the Internet through a dial-up modem. Cable modem, a relatively new technology introduced only two years ago, has an adoption rate of 3%.
Trends in Internet and E-Commerce Adoption
81% of the companies with computers have access to the Internet and over a third of these companies owned corporate websites. The sectors that were highly Internet-ready were the businesses in banking/finance and IT.
Companies revealed that their corporate websites were used mainly to provide product information and customer service support, with only 5% engaged in e-commerce transactions. The top three barriers to e-commerce cited were high total costs, high set-up costs, and security issues.
The survey also indicated the lack of skilled ICT manpower and expertise as another challenge faced by companies.
Conclusion
The survey showed that a large number of companies, including the small and medium-size enterprises, are adopting ICT for their businesses. Although they face the challenges of cost, security, and skilled manpower, the trend is for companies to computerise and get online.
The key findings of the ICT Usage Survey 1999 are attached in Appendix A (42.18KB).
Issued by Corporate Communication Division, Infocomm Development Authority of Singapore on behalf of SGNIC
About Infocomm Development Authority of Singapore
The Infocomm Development Authority of Singapore (IDA) is a dynamic organisation with an integrated perspective to developing, promoting and regulating info-communications in Singapore. In the fast-changing and converging spheres of telecommunications, information and media technologies, IDA will be the catalyst for change and growth in Singapore's evolution into a vibrant global info-communications technology centre. For more information, please visit www.imda.gov.sg.
For media clarification, please contact:
Ms Tan Gim Lay
Manager, Corporate Communication
Infocomm Development Authority of Singapore
Tel: (65) 6772 0209
Fax: (65) 6779 5340
Email: tan_gim_lay@imda.gov.sg
Ms Dulcie Chan
Manager, Corporate Communication
Infocomm Development Authority of Singapore
Tel: (65) 6322 1999
Fax: (65) 6779 5340
Email: Dulcie_Chan@imda.gov.sg
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