Financing instrument and amount
SGD 197.6 million (USD 265.6 million)* through national government transfers
Background
The Smart Nation Initiative was launched by then-Prime Minister Lee Hsien Loong in 2014. This has since been fronted by the Smart Nation Group (SNG), which is an organisation under the Prime Minister’s Office (PMO) responsible to set policy directions and strategies for developing and regulating the information and communications, media industries, digital technologies, and smart nation development.
Approach
The Smart Nation Group presently managed under the Ministry of Digital Development and Information (MDDI) was allocated an operating budget of $197.6 million (USD 265.6 million)* in FY2024 (a portion of the MDDI’s allocated budget). The allocation of this budget is documented in the Singapore Ministry of Finance Budget Documents.
Results
The Smart Nation Group has introduced a wide range of smart technologies in both the public and private sectors. One of the biggest achievements is successfully digitising up to 95% of all government services. This resulted in reduced paperwork, improved turnaround times and greater convenience for citizens.
Other successes include supporting the ongoing development of the Singapore Intelligent Transport System (ITS) and its integration with the Smart Nation Strategy published in 2018. ITS is a system which uses a collection of sensors and cameras to gather data on traffic flow and travelling time to support commuters in their daily commute. The system also provides government officials with means to monitor and manage traffic flow, gather insights on road network efficiency capacity, and make decisions to increase road safety.
The above successes contributed greatly to making Singapore one of the top five “Smartest cities” in the world, according to the Smart City Index 2024 by IMD Business School.
Key Learnings
Creating a dedicated body with a clear mandate for smart city development, along with a designated budget guarantees funding for these projects.
This approach has increased the speed at which smart-city projects get funding and supports the swift implementation of smart solutions like intelligent transportation systems (ITS) and smart-city waste management.
Centralising oversight and allocating ample resources to the SNG proved critical for the success of smart nation projects.
Providing a clear mandate to the Smart Nation Group to design and operationalise smart city projects was also critical.
Sources
- Singapore Government Developer Portal (2023). Singapore Digital Government Journey. Available at: https://www.developer.tech.gov.sg/our-digital-journey/singapore-digital-government-journey/overview.html
- Ministry of Finance (2024). Ministry of Communications and Information FY 2024 Expenditure Estimates. Available at: https://www.mof.gov.sg/docs/librariesprovider3/budget2024/download/pdf/39-mci-2024.pdf
- Smart Nation Singapore. About Smart Nation Group. Available at: https://www.smartnation.gov.sg/archive/sng/
- Smart Nation (2018). Smart Nation Strategy. Available at: https://www.smartnation.gov.sg/files/publications/smart-nation-strategy-nov2018.pdf
- IMD (2024). IMD Smart City Index 2024. Available at: https://www.imd.org/smart-city-observatory/home/rankings/
- *Note that the USD values are calculated based on the average 12-month exchange rate in 2023. Retrieved from the site: https://www.x-rates.com/average/?from=USD&to=SGD&amount=1&year=2023
