SME IT Guide

December, 2000

Grants Now Available for ASP Solutions

The new e-Business Industry Development Scheme (eBIDS) that will take effect from 1st December 2000, includes grants for the use of applications through the Applications Service Provider (ASP) model for the first time. These applicatins include customer relationship management, electronic resource planning and supply chain management.

The S$30 million incentive programme aims to strengthen the adoption of e-Business and increase e-commerce transactions amoung businesses in Singapore. It has two major components.

Plan 1, which is managed by the Singapore Productivity and Standards Board (PSB) is an improved and enhanced incentive programme modelled after the successful S$90 million Local Enterprise Electronic Commerce Programme or LECP (EC). Launced in November 1998, LECP (EC) assisted more than 500 local enterprises in their adoption of e-commerce.

EBIDS Plan 1 continues LECP (EC) with an expanded scope. It will support up to 50 percent of the qualified e-commerce related consultancy, subscription fee for up to 12 months, hardware and software purchases. The incentive will be capped at S$20,000 per company. Unlike the LECP (EC), which only funds one project, provided that each is for developing a different e-commerce capability.

Only locally registered companies with at least 30 percent equity owned by Singaporeans or Singapore permanent Residents are eligible.

With regard to ASP applications, so lution providers will be required to comply with an ASP industry code of practice or ASP industry best practices2 which helps to ensure delivery of good service level to end-users.

The second component of eBIDs, Plan2, is targeted at companies that already have the existing e-commerce capabilities and wish to expand further on them. These companies will include e-commerce exchanges hubs.

Managed by the Infocomm Development Authority of Singapore (IDA) eBIDS Plan 2, is a performance-based incentive programme. IDA will fund companies proportionately based on the total EC value created, up to a maximum of S$500,000. The funding will be tied to the actual online transaction value brought about by the proposed project, and will be limited to ne e-Business project per year company.

With the introduction to eBIDS, significant barriers for businesses, such as costs in their e-commerce adoption will be removed. IDA hopes that through eBIDS, many companies would br encouraged to take the next step forward, adopting e-Business to become more competitive in the new economy," said Dr Kaizad Heerjee, Assistant Chief Executive, Online Development of the IDA.

Dr Heerjee added,"With eBIDS, strong e-Business growth is expected to continued and accelerate in Singapore. The programme will boost the overall e-commerce increment transaction value of S$1 billion by 2002. This further affirms Singapore's position as a major international e-Business hub."