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- ESG Prioritization: Proposed initiatives include national ESG frameworks, a reporting hub, and targeted grants to align businesses with global sustainability standards.
- Workforce Development: Recommendations focus on upskilling through micro-credentialing, leadership competency benchmarks, and external board evaluations to ensure a globally competitive workforce.
- Innovation and Growth: Incentives for R&D, AI governance, and green financing aim to support sustainable innovation and strengthen Singapore’s position as a regional leader.
KPMG Singapore and the Singapore Institute of Directors (SID) have released their joint Budget 2025 Proposal, “Designing Singapore’s Future Together: Ready, Refreshed, and Resilient for Tomorrow.” The proposal outlines strategies to position Singapore as a leader in sustainability, innovation, and economic resilience by driving ESG adoption, enhancing talent development, and fostering growth through robust corporate governance and financial incentives.
1. Ready: Leading with Sustainable Impact
KPMG and SID’s proposal emphasizes the need for national frameworks and funding to accelerate Singapore’s green transition:
- Carbon Tax Transparency: Increase clarity in the allocation of carbon tax revenues to align business investments with climate goals.
- Central ESG Reporting Hub: Establish a centralized hub to guide businesses in adopting consistent sustainability practices that align with international standards.
- Blended Finance Incentives: Provide first-loss guarantees and grants for sustainable projects to attract diverse funding sources.
- Decarbonization Assistance Facility: Offer grants and competitive loans to support businesses in “hard-to-abate” sectors, promoting energy efficiency and clean energy adoption.
Treasury Secretary Janet Yellen stressed the need for continued green investment:
“The final rules ensure America’s clean energy boom continues—driving down utility costs, creating jobs, and boosting energy security.”
Related Article: South Korea Unveils $313 Billion Green Financing Plan to Combat Climate Change
2. Refreshed: Uplifting Tomorrow’s Workforce
To prepare Singapore’s workforce for future challenges, the proposal outlines key initiatives:
- National Leadership Competency Index: A benchmark to help organizations grow leadership capabilities and strengthen talent pipelines.
- Micro-Credentialing Expansion: Increased access to SkillsFuture funding for short-term certifications in AI, sustainability, and cybersecurity to address skills gaps.
- Board Evaluations: Mandate external, objective board evaluations to align corporate governance with international best practices and enhance leadership accountability.
3. Resilient: Driving Innovation in a Dynamic Global Economy
To maintain its competitive edge, Singapore must foster innovation through comprehensive support:
- AI Governance and R&D: Increased funding for ethical AI deployment, including bias detection technologies and transparent decision-making systems.
- Director Training: Ongoing ESG and innovation training for company directors to enhance governance excellence across industries.
- Tax Governance: Strengthen corporate governance by incorporating tax governance practices, especially for companies receiving tax incentives or grants.
The Bigger Picture:
KPMG and SID’s proposal aims to strengthen Singapore’s position as a global hub for sustainable value creation by enabling enterprises to adopt innovative solutions, expand internationally, and contribute to long-term economic growth.
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