Tokoin.io – After Hong Kong’s industrial sectors, Tokoin’s Global Roadshow reached its second checkpoint at Singapore. Becoming a major financial hub in the Asia Pacific region, Singapore has a long earned reputation as one of the world’s most advanced economies.
In 2017, Singapore was ranked as the world’s second most open economy by the Heritage Foundation’s Index Economic Freedom, as well as the world’s second most pro-business regime according to the World Bank’s Doing Business report. Today, Singapore’s economy is one of the most stable in the world, with high government revenue and consistently positive surplus.
By far, the manufacturing sector has been Singapore’s largest industry and economic driver. Next to manufacturing, the financial services industry also contributes significantly to the country’s economy as the second largest industry in Singapore which grows comfortably due to Singapore’s pro-business environment and political stability. Besides its two economic pillars, Singapore is also driven by tourism and exports industry, being the world’s busiest cargo seaport.
However, Singapore’s strong economic environment, which is led by big enterprises, leaves a hidden issue. Tougher competition is dragging down small businesses’ growth. Although SMEs become one of the economic driving forces in Singapore, conquering the market brings different challenges.
With so many SMEs on the rise and numerous competitors in a particular industry, everybody wants a slice of the pie of the economy. This has made it hard for an SME to be successful in breaking into the Singaporean market. Expanding the market share is even harder to accomplish. Some difficulties include the shortage of funds, slow economic growth, high property rental, increased production cost, low access to banking/credit, and the need for adapting and utilizing technology.
Tokoin aspires to help small businesses accelerate growth and breakdown those challenges by bridging SMEs with institutions offering financial services. Most SMEs lack the access to funding that can lead them to expansion opportunities. In fact, according to a study by the World Bank, around 200-245 million SMEs from both formal and informal sectors cannot obtain business loan. Thus, with convenient access to business loan, those problems that strain SMEs from growing can fade away.
By utilizing Tokoin’s blockchain technology infrastructure to compile a structured record of data, information from SMEs will be validated as an asset which contains values, and asset valuation can function as a form of credit scoring, making it easier for SMEs to access bank or credit solutions.
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