KPMG in Singapore (KPMG) and the Singapore Business Federation (SBF) have announced their collaborative efforts in crafting the Budget 2024 Proposal that aims to fortify Singapore’s enduring prosperity amidst the escalating global uncertainties.
Singapore’s 2024 Strategic Focus
In the year 2024, Singapore is poised to solidify its regional dominance in innovation and climate change advocacy. Despite intensifying competition from other financial hubs, Singapore must persist in positioning itself as an attractive destination for foreign direct investment (FDI).
The nation’s strategic focus should revolve around enhancing global competitiveness, empowering local enterprises for digitalization and international expansion, and fostering an optimal business environment.
Especially critical is the support for smaller local enterprises grappling with a challenging business environment. The Budget 2024 Proposal advocates for streamlined procurement practices, continued openness to overseas talent, and policies to promote the development of local talent.
A comprehensive review of business competitiveness is recommended to identify opportunities for cost mitigation and industry transformation.
The 3E Framework: Elevate, Empower, Enhance
Budget 2024 must showcase Singapore’s decisiveness and confidence through the implementation of the ‘3E framework,’ with a focus on:
1. Elevating Singapore’s leadership as a competitive regional hub: The proposal suggests reinforcing Singapore’s status as a leading hub for business, wealth management, and ESG investments. Recommendations include strengthening the tax regime, spearheading innovation, and expanding intellectual property protection.
2. Empowering local enterprises for global growth: To address the recent dip in competitiveness rankings, the proposal emphasizes financial support for business transformation, digitalization, and AI adoption. It also stresses the importance of building ESG and sustainable finance expertise, driving enterprises towards a net-zero future, and establishing an Export-Import (EXIM) Bank.
3. Enhancing enterprise resilience and capabilities: To tackle rising business costs and interest rates, the proposal recommends empowering smaller enterprises through simplified business rules and processes. Other measures include bolstering Singapore’s talent pipeline, forming an Alliance for Action (AfA) on Business Competitiveness, and exploring environmental levies to promote green accountability.
Detailed Recommendations
1) Elevating Singapore’s Leadership
– Strengthening Singapore’s tax regime in a post BEPS era
– Spearheading Asia’s innovation drive and expanding Intellectual Property (IP) protection
– Driving Singapore’s regional leadership in climate financing
2) Empowering Local Enterprises
– Financial support for business transformation, digitalization, and AI adoption
– Building ESG and sustainable finance expertise
– Driving enterprises towards a net-zero future
– Exploring environmental levies or taxes to promote green accountability
– Establishing an Export-Import (EXIM) Bank and increasing Market Readiness Assistance (MRA) Grant
3) Enhancing Enterprise Resilience
– Empowering smaller enterprises to thrive by simplifying business rules and processes
– Bolstering Singapore’s talent pipeline and talent attraction efforts
– Forming an Alliance for Action (AfA) on Business Competitiveness
Leaders from both organisations express the significance of the proposed initiatives, emphasising the importance of innovation, sustainability, and government-business collaboration.
The Budget 2024 Proposal serves as a strategic blueprint, showcasing Singapore’s commitment to sustaining its competitive edge in a dynamically evolving global landscape.
For detailed information and quotes from KPMG and SBF spokespeople, please refer to the complete Budget 2024 Proposal available on the KPMG and SBF websites.
