Reduce operating cost for small business

In his Budget for 2012, the Minister for Finance has recognized the need to help small companies offset  their operating cost. He is offering a cash grant of $5,000, which is helpful in the short term.

Over the longer term, it is important to bring down the cost of doing business, to help our companies, big and small, to remain competitive.

There are a number of inefficiencies that need to be addressed urgently:

• Heavy compliance cost of GST, especially to small businesses
• Online processes of government agencies, which saves a few minutes for the agemcy but adds hours to the time taken by the public
• Inadequacy in the payment infrastructure, which result in most businesses still using checks to make payments
• Heavy reliance of communicate by physical mail instead of electronic mail

We have to move more quickly to update our laws and practices to facilitate the use of electronic payment and communication, e.g. recognize electronic ways to replace signatures and make payments. The government agencies should take the lead in making these changes - as they would provide legitimacy to address the uncertainties of change.

The Monetary Authority of Singapore should be complimented for taking the lead to implement GIRO payments some 25 years ago. It is time for them to make another breakthrough in making pervasive use of  electronic payments.