The biggest question to ask ourselves is: would there be growing demand for technology services moving forward?
Just take a look at how the world has changed in recent years. In China, almost the entire population in the cities downloaded apps such as WeChat Pay and Alipay to integrate mobile payments into their daily lives. For retail investors looking to invest, various investment brokerage companies facilitate an easy and interactive investing experience where investors can invest from smartphone apps and consume content on that same app.
Closer to home, we also see that Fairprice embarked on its Scan & Go initiative where shoppers can scan the barcodes of their groceries on the go for a seamless shopping experience. Even museums these days incorporate technology to create more unique experiences for the visitors.
At the back end, businesses utilize technology solutions to improve their workflow and processes, incorporating automation and data analysis to increase productivity, efficiency and deliver higher quality services.
The pandemic has also accelerated the need for businesses to embark on digitisation. Technological innovation is no longer an option now, but an essential to survival for businesses.
To add on, the global labour shortage that the world is facing currently may also accelerate the use of automation to offset the impact of labour shortage by cutting down on the mundane, repetitive and time consuming tasks that the workforce handles.
The secular growth drivers in technology are here to stay and would be more deeply rooted in the markets going forward. While we are currently experiencing volatile periods, the sustainable growth offered by the tech companies will likely return to favour.