Connecting Dots Across Asia's Tech and Urban Landscape
Connecting Dots Across Asia's Tech and Urban Landscape

ASEAN Small Businesses Count On Technology To Beat COVID-19

Small businesses across ASEAN are counting on technology to help them overcome the impact of the COVID-19 pandemic on their operations. Technology was ranked the top investment priority for 2020 by two in three (64 per cent) small businesses, including those who currently have cash flow concerns. This is according to a recent survey of 1,000 ASEAN small businesses conducted by United Overseas Bank (UOB), Accenture and Dun & Bradstreet. The research sought to understand how the small firms were adapting to the business environment given the changes brought on by the pandemic.

Across ASEAN, Thailand had the highest proportion (71 per cent) of respondents prioritising technology investments in 2020, followed by Indonesia (65 per cent), Vietnam (63 per cent), Singapore (60 per cent) and Malaysia (59 per cent).

The survey also found that small businesses across ASEAN are persevering in their efforts to invest in technology even when faced with the prospect of declining revenue. Although close to nine in 10 (88 per cent) of these businesses have lowered their revenue expectations in 2020, almost half of them (44 per cent) still plan to increase their overall technology budget. This suggests that ASEAN small businesses are looking beyond the present challenges and are set on adopting technology to improve their competitiveness and sustainability.

Mr Lawrence Loh, Head of Group Business Banking, UOB, said, “The unprecedented economic, business and social impact of the COVID-19 outbreak has underscored the importance of technology for many small businesses across the region. Having had to cope with the disruption to their operations as a result of COVID-19, many of these firms realised quickly that technology can make all the difference to their business. Whether in revising their business models or even transforming their operations, small businesses are responding to the changes brought about by the pandemic by turning to technology to ensure their long-term viability and competitiveness.”

By industry sector, small businesses from the food and beverage (F&B), information and communications technology and healthcare sectors (50 per cent) indicated the strongest desire to boost their technology investments, followed by those in construction (48 per cent) and retail trade (46 per cent).

Mr Loh said, “We at UOB have been keeping close to our small business customers to help them navigate the challenges in these difficult times. Apart from supporting their financial needs, we help them identify and implement digital solutions that enable them to manage their operations effectively and virtually. For example, for Singaporean small businesses in sectors which have been affected more severely, such as F&B, we have been helping them shape their predominantly physical business in response to consumers shifting more of their purchases online. Through our collaboration with Google, we have also made it easier for such firms to register for digital tools such as Google My Business and to set up strong online profiles to attract more customers.”

Beyond technology, ASEAN small businesses are looking to invest in developing their employees’ skills (51 per cent) and in machinery or equipment (40 per cent). Their lowest investment priority is in motor vehicles (18 per cent).

Technology helping small businesses manage cash flow and cost challenges

As small businesses across ASEAN embrace technology as a means of ensuring a more sustainable business model for the long term, they recognise that technology can also help them better manage their cash flow. Eight in 10 (81 per cent) small businesses across the region ranked the use of digital solutions as their most preferred cash flow management method. For instance, digital solutions such as UOB BizSmart enable small businesses to issue electronic invoices to manage their account receivables more promptly.

Mr Divyesh Vithlani, who leads Accenture’s financial services practice in Southeast Asia, said, “As more small businesses prepare to reopen after a very challenging period, their focus on technology will further intensify as they look to reinvent themselves to ensure long-term competitiveness and resiliency. Small businesses that focus on their digital transformation to become more agile and future-proof should see a rapid payback. These investments in technology will be essential because small businesses are the bedrock for countries in the region and also our growth engine, so the rebound of SMEs post-COVID-19 will be fundamental for a speedy recovery of ASEAN economies.”

ASEAN small businesses are also easing their cash flow pressures by seeking deferment on their loan repayments (75 per cent) and renegotiating the terms of their contracts with suppliers and landlords (75 per cent). Small businesses also look to increase their working capital through COVID-19-related financing schemes (73 per cent). One example of such a financing scheme is UOB’s initiative to provide its eligible small business customers in Singapore with pre-approved financing of up to $200,000 so they have access to a ready source of funds should the need arise.

Ms. Audrey Chia, Chief Executive Officer, Dun & Bradstreet Singapore, said, “Despite the uncertainties on the trajectory of COVID-19, the long-term growth potential for ASEAN remains given the region’s favourable demographics and rising consumption. While ASEAN small businesses are facing current challenges brought about by COVID-19, we can see that they are still taking practical steps to increase their business’ resilience to prepare for the future. Firms which transform their business models for the long-term, even after COVID-19, will be better poised to tide through these current challenges and to
create new business opportunities.”

The full survey findings will be available in the ASEAN SME Transformation Study 2020 to be published in mid-July. The study aims to help ASEAN small businesses understand how they can transform their businesses to adapt to the changes ahead and to participate in the region’s long-term growth.

To register your interest in the report, please visit:


About United Overseas Bank

United Overseas Bank Limited (UOB) is a leading bank in Asia with a global network of more than 500 offices in 19 countries and territories in Asia Pacific, Europe and North America. Since its incorporation in 1935, UOB has grown organically and through a series of strategic acquisitions. UOB is rated among the world’s top banks: Aa1 by Moody’s Investors Service and AA- by both S&P Global Ratings and Fitch Ratings. In Asia, UOB operates through its head office in Singapore and banking subsidiaries in China, Indonesia, Malaysia, Thailand and Vietnam, as well as branches and representative offices across the region.

Over more than eight decades, generations of UOB employees have carried through the entrepreneurial spirit, the focus on long-term value creation and an unwavering commitment to do what is right for our customers and our colleagues. We believe in being a responsible financial services provider and we are committed to making a difference in the lives of our stakeholders and in the communities in which we operate. Just as we are dedicated to helping our customers manage their finances wisely and to grow their businesses, UOB is steadfast in our support of social development, particularly in the areas of art, children and education.

About Dun & Bradstreet Singapore

About Dun & Bradstreet Dun & Bradstreet grows the most valuable relationships in business. By uncovering truth and meaning from data, we connect customers with the prospects, suppliers, clients and partners that matter most, and have since 1841. Nearly ninety percent of the Fortune 500, and companies of every size around the world, rely on our data, insights and analytics.

For more information about Dun & Bradstreet, please visit

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