Singapore Information Technology Report Q2 2010 – New Market Report Published

Singapore’s IT market is projected to grow faster in 2010, building on momentum from a pick-up in consumer spending in the second half of last year. The total size of the domestic IT market is expected to increase to around US$5.78bn in 2014 boosted by significant government information and communications technology (ICT) investment and a pick-up in key IT spending sectors like Telecoms and Real Estate.

In 2010, robust consumer spending is forecast to be reinforced by a revival in business IT hardware spending. In 2009, the computer market was resilient, and achieved single-digit shipments growth, driven mainly by the consumer segment. A recovery in business IT spending could start in Q110, with a surge prior to the end of many company’s financial years in March. The IT market will benefit from ambitious government ICT programmes in 2010, such as the government’s Standard ICT Operating Environment (SOE) project, which is already budgeted and well established. With the Intelligent Nation 2015 (iN2015) plan placing IT at the heart of the government’s strategy to improve competitiveness, complex government tenders will drive considerable spending in years to come in areas such as education, e-government, transport and healthcare.

Industry Developments

The Singaporean government announced plans to invest around SGD1.73bn in ICT projects in the current financial year through to March 2010. 392 new projects were to be put out to tender, with 40% of the planned projects expected to be worth more than SGD500,000. Key projects include the SOE programme for schools (being supervised by the Ministry of Education), a content and management system by the Defence Science and Technology Agency (DSTA) and the Ministry of Home Affair’s BorderWatch System.

The 2009 Singapore budget pledged an additional US$4bn for healthcare, including US$200mn specifically earmarked to develop a better electronic health record system. The first phase of the electronic health record system implementation was due to start in November 2010. The system, part of the government’s iN2015 ICT masterplan, will cover hospitals and doctors in both the public and private sectors.

In 2009, the government continued to roll out its ambitious cross-governmental SOE initiative. As of Q309, four agencies had begun actual implementation of SOEasy, while 30-50% of public officials were estimated to have begun to utilise the centralised services.