By Kate Lim

LOW adoption rates for specialised business software and poor Web presence hobble the competitiveness of small- and medium-sized enterprises, according to Ms Samantha Fok, director (SME) at the Infocomm Development Authority.

Speaking at the Digital Life SME Forum, she disclosed that the IDA Annual Survey on Infocomm Usage by Enterprises for last year found that only 32 per cent of Singapore SMEs had company websites and just four in 10 used specialised business software to support their operations.

Specialised business software programs boost speed and accuracy in areas such as accounting and payroll, human resource and point-of-sale systems.

Ms Fok was 'very surprised' about the SME shortcomings, given how the use of such technology can help increase profitability.

'Infocomm does make a difference - eight in 10 profit-making start-ups have tapped technology to achieve competitive edge,' she said.

Technologically averse firms can consider setting up a website first to increase their market reach, said Ms Grace Chng, editor of Digital Life, who chaired the panel discussions.

'When you have a website, you are ready to do business with the world the moment you begin operations.... it is very important to think about reaching beyond your physical visibility,' said Ms Fok.

'A well-maintained and updated website will give a business a very professional front.'

Despite the financial constraints faced by SMEs in the current gloomy economic climate, panellists at the forum said SMEs had more to lose if they failed to make technology-related investments.

'The future of the world is going to be very IT related... shying away from infocomm developments will be putting yourself at a disadvantage - especially with the younger generation being more hands-on and computer literate,' said Mr James Loo, chief information officer with YCH Group.

Ms Fok also encouraged firms to seek funding from government-linked organisations before they make their first move into information technology.

The IDA has a number of schemes designed to help SMEs make the transition to infocomm. These include the SME Infocomm Package, which offers a subsidy of up to $2,000 to create and maintain a website.

The subsidy covers 80 per cent of hosting and maintenance costs, webpage development efforts and broadband subscription charges. As of last month, more than 2,000 firms had benefited from the subsidy.

While not doing well in terms of use of business software and Web technology, SMEs' broadband Internet usage rates jumped from 47 per cent to 62 per cent between 2006 and last year, according to the IDA survey.

This article was first published in The Straits Times.