In a joint Budget 2025 proposal, KPMG and the Singapore Institute of Directors (SID) have articulated a blueprint to secure Singapore’s position as a global leader in attracting talent, driving investments, and fostering innovation. By leveraging the nation’s capital markets and enhancing corporate governance, the proposal envisions a transformative ripple effect that will bolster the economy and ensure Singapore remains competitive on the global stage.
Titled “Designing Singapore’s future together: Ready, refreshed and resilient for tomorrow”, a key component of the proposal is to enhance corporate governance standards to build investor confidence, positioning enterprises as global benchmarks for integrity and transparency.
This includes nurturing trust and accountability across the business ecosystem, from multinational corporations to small and medium enterprises (SMEs), as well as stimulating greater organic innovation through research and development, supported by incentives and green financing, to further drive this transformation.
To support businesses in navigating increasingly complex challenges, the proposal advocates for a “fast pass” approach. This would streamline access to essential resources, such as ready-to-use templates and targeted assistance, enabling companies to accelerate their journeys in areas like sustainability and technology.
A central focus of the proposal is advancing sustainability, with a call for businesses to adopt greener practices through the establishment of national frameworks, targeted grants, and detailed reporting guidance. A dedicated industry hub is envisioned to provide crucial support for companies aligning with international environmental, social, and governance (ESG) standards. These efforts are expected to reinforce Singapore’s transition to a sustainable economy.
The proposal also highlights the importance of blended and green finance initiatives. By mitigating investment risks and attracting a diverse spectrum of funding stakeholders, such initiatives would support decarbonisation efforts, particularly in hard-to-abate sectors. Leveraging carbon tax revenues and increasing government subsidies would complement these measures, accelerating research and development in sustainable technologies and fostering the creation of commercially viable solutions for carbon reduction.
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Innovation and workforce development are equally critical to Singapore’s future, aligning closely with the “Forward Singapore” agenda. To strengthen workforce capabilities, the proposal recommends the establishment of a National Leadership Competency Index. This would serve as a benchmark for tracking and developing essential skills, helping organisations build robust leadership pipelines for both regional and global growth.
Expanded investments in SkillsFuture funding are also proposed to address immediate skill gaps in critical areas such as artificial intelligence, sustainability, and cybersecurity. Short-term certifications, supported by tax incentives and grants, would encourage businesses to prioritise employee upskilling and ensure Singapore’s workforce remains future-ready.
The proposal further calls for fostering regional collaboration in high-growth sectors such as the digital and green economies. By incentivising cross-border partnerships, Singaporean companies could diversify their operations across Asean, enhancing their resilience and competitive edge. A government-backed transfer pricing advisory programme would support SMEs in aligning with international standards, reducing compliance risks, and improving operational efficiency in complex tax environments.
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Lee Sze Yeng, managing partner, KPMG says: “As Singapore enters SG60, we must focus on developing leaders with foresight and expertise in sustainability and technology to drive ambitions across sectors and secure a competitive edge in a rapidly changing global landscape. A cohesive national strategy, aligned with the Forward SG agenda, is vital for nurturing future leaders.”
“By fostering a culture of sustainability and innovation, directors can ensure long-term value creation, driving both responsible growth and competitive advantage. Board leadership is essential in setting the tone and aligning business models with evolving societal expectations, shaping a future where profitability and positive social impact go hand in hand,” adds Terence Quek, CEO, SID.
