Inclusive growth for all

THIS WEEK'S TOPIC: What Budget measures are needed as the focus shifts from emergency support back to growth?

Ong Pang Thye Managing Partner KPMG in Singapore

As Singapore transitions into a sustainable future and redirects attention back to its long-term growth agenda, the top 3 priorities for Budget 2022 are: (i) enhancing the country's global competitiveness, after international tax rules come into effect from 2023, (ii) tackling the widening wealth inequality by providing equal opportunities for all, and (iii) ensuring environmental sustainability for our future generations.

At the same time, Budget 2022 should not lose sight of the need to address immediate pain points such as the talent crunch, rising inflation and cashflow concerns spilling over from earlier years.

A balanced approach to the Budget is hence necessary - to alleviate short-term concerns of the handful of businesses that are in survival mode, while supporting relatively more agile and resilient businesses to transform into future-ready enterprises with expansionary potential. These measures will be an important precursor to Singapore's next economic sunrise.

Victor Mills Chief Executive Singapore International Chamber of Commerce

As always, we can expect appropriate, considered and impactful budget measures on Feb 18. We will see measures to address inequality and promote social mobility. This is critical for Singapore's sustainability. Just as important will be measures to encourage productive longevity and the necessary societal and workforce mindset shifts needed to achieve it. As previously announced, carbon tax will be increased with effect from FY2024. All programmes will be funded equitably with the government, not borrowing from the future for current expenditure.

Cheung Pui Yuen Chief Executive Officer Deloitte Singapore

Budget 2022 should continue to chart the course for a sustainable future, maintaining Singapore's competitive position as a good place to do business and invest, and a vibrant society to live in. I expect measures and incentives that will enable Singapore businesses and workers to grow and thrive for the long term, as well as policies and progressive tax measures to ensure a resilient fiscal system.

Measures that go towards achieving Singapore's Green Plan will also be at the top of the Budget agenda, with a focus on carbon taxes and green finance initiatives. On the social front, I anticipate support that will help Singapore remain an inclusive society, where there is high social mobility and everyone has an equal chance at success.

Max Loh Managing Partner, Singapore and Brunei Ernst & Young LLP

As we move into an evolving new normal, the emphasis for Budget 2022 needs to revert to supporting growth, innovation and entrepreneurship - helping our businesses build resilience, capacity and future-forward capabilities - with people-centricity as a focal point. A continued focus on value jobs, skills and talent transformation will be essential to enable Singaporeans to be the best that they can be, while ensuring social inclusion to "lift the bottom without capping the top".

Thomas Holenia President Henkel Singapore

For Henkel Singapore, this city-state is a major hub for managing our business, global supply chain, Industry 4.0, talent and sustainability ecosystems. Amid various uncertainties, we welcome the Singapore government being steadfast in its open economy and business-friendly stance and focused on upskilling, sustainability and promoting an inclusive society. For the Singapore Budget, we welcome further initiatives to strengthen trade and supply chain resilience, increase awareness about inclusiveness, and support businesses in driving sustainability within their operations and across their value chains.

Wong Kee Joo Chief Executive Officer HSBC Singapore

The last 2 years have rocked the economy with elements of fragmentation and disruption. To shift the focus back to growth, we hope to see the Budget put forth measures that will encourage international connectivity which will, in turn, solidify Singapore's position as an international business and wealth hub. This can include investment into further digitalising supply chains, the removal of non-tariff trade barriers, and any policies to encourage increased foreign investment into Singapore in order to stoke further infrastructure, manufacturing, and export growth.

In tandem, we're looking for the Budget to reveal more detail on Singapore's Net Zero transition plans including further clarity on the direction of its carbon tax, accelerated adoption of lower-carbon renewable energy sources and the finalisation of green taxonomies for Singapore and Asean as a whole.

Derrick Chang Chief Executive Officer PSB Academy

With the pandemic accelerating the force of digital disruption, the demands for digitally skilled workers continue to surge in virtually every industry. As our economy recovers, education remains a cornerstone of the nation's growth and it is more critical than ever to invest in education and training so Singapore's workforce can stay competitive. This will require the collaboration of an entire ecosystem of businesses, schools, and public sector agencies - extending support to equip students, existing workers, and people who are out of the workforce with the required skills to access job opportunities.

While the Singapore budget has been dedicated to Covid-19 exigencies over the last 2 years, bolstering our workforce resilience by providing more support for educational institutions to offer quality courses emerges as the next natural step in our road to recovery.

Svend Janssen Head of Asia Pacific, Middle East & India Nuix

On the base of a positive government revenue projection, there will be some key issues to address in Budget 2022. Orchestrating the economic recovery is probably number one. SMEs will need support on the post-pandemic journey, as will hard hit sectors, when Singapore re-opens as a global trade and travel hub. Addressing climate change with a proper ESG (environmental, social and governance) agenda will be number two. Corporate tax incentives will need to be looked at in the global context, for Singapore to remain attractive for multi-national corporations, as well as for unicorns. Lastly, future-proofing Singapore's supply chains will remain an area of importance.

Terence Zou CEO and Founder Ryde

While we expect to be co-living with the pandemic for a while, we must look forward and plan for economic recovery. Amid all the restrictions and disruptions, we need to continue working on Singapore's status as an international business hub, to maintain our global competitiveness as global borders gradually open.

Personally, I hope that Singapore's Budget 2022 will focus on 4 themes of growth, beginning with support for SMEs and traditional businesses as they navigate through this pandemic. Secondly, we must continue to grow our status as a tech-savvy nation by investing in more government support for technology companies. Thirdly, we should be brave enough to leverage growing trends and new world growth areas like blockchain technology, cryptocurrencies, NFTs (non-fungible tokens) and the Metaverse, among others. Finally, as an inclusive society, we should have targeted help for low-wage workers, low-income families and other disadvantaged groups who could benefit from educational, financial and social development programmes.

Amerson Lin Co-Founder and CEO Gigacover

As Singapore's economic outlook improves, it is timely for Budget measures to be angled towards inclusive growth. Continued support should be extended towards ongoing efforts to improve safety nets for gig workers in areas such as mandatory insurance and liability protection, especially as the expanding gig workforce could trigger a commensurate rise in financial risk. Moving ahead, we hope to see initiatives aimed at facilitating access to safety training, legal representation, productivity training, and upskilling opportunities for gig workers. Besides creating a more inclusive society, this could increase efficiency, fairness and productivity in the gig economy, justifying any investment made.

Dharmesh Arora Chief Executive Officer Schaeffler Asia Pacific

As Singapore works to recover from the effects of the pandemic, it is essential for Budget measures to increasingly focus on ESG, where the country can establish itself as a global innovation hub for sustainable development and low-carbon technologies. This calls for long-term investments, ranging from infrastructural development, research and innovation, to training programmes to meet the country's net-zero ambitions outlined in Singapore's Green Plan 2030. For instance, our innovation lab and aerospace reconditioning facility in Singapore are supporting this shift towards a green and carbon-efficient economy.

Morgan Terigi CEO and Co-founder Incomlend

While we welcome Singapore's various initiatives to transform the country into a green economy and address climate change, the road to sustainability is a massive undertaking for SMEs. The Budget could look into ESG programmes to help SMEs pivot to robust sustainability strategies to capitalise on green economic benefits, build long-term resilience, and improve business performance. As SMEs become more sustainability-centric, it would open the doors to more ESG-financing options from financial players worldwide. It gives them the working capital to make transformative changes to their operations and supply chain, placing them in a stronger position to seize new growth opportunities in the green economy.

Pulkit Abrol Director ACCA ASEAN ANZ

Investments in technology and the digital economy were critical in absorbing the economic shocks during the pandemic. Businesses which had prior investments, thrived. Those that transformed, survived. Digital Economy Agreements (and equivalents) have been signed or concluded, including the latest one with the UK.

Taking this into account, Budget 2022 should focus on building up, widening and deepening the digital economy and enhancing talent mobility, while gearing Singapore up for a greener and more sustainable future. This will include beefing up digital trade networks both domestically and across borders, as well as enriching and fine-tuning citizen-centric digital government services. Budget 2022 should also have significant investments into the education and enhancement of green financing, creation of more "green jobs" and strengthening corporate accountability.

Maren Schweizer Chief Executive Officer Schweizer World Group

Singapore needs to continue to innovate and position itself as Asia's ESG leader and a global intellectual property and research and development (R&D) hub to attract technology, finance, asset management as well as insurance. Appealing to MNCs and manufacturing giants is increasingly important. Cash flow will remain a short-term focus for businesses amid increasing costs on all fronts paired with workforce limitations and seismic shifts in consumer behaviour driven by digital adoption. These factors impact businesses' transformation efforts to become more digital, productive, and sustainable while capitalising on organic growth and mergers and acquisitions.

It will be essential to provide more targeted financial support and special incentive packages with tax and non-tax measures, in line with a more gradual phasing out of these measures when the economy picks up.

Eileen Chua Managing Director SAP Singapore

As businesses regain the confidence to pivot from recovery to growth, greater support for businesses is needed to enhance their digitalisation efforts, particularly to build resilience, agility, and innovation into the future. The gradual economic recovery will see the need for support schemes diminishing and a shift of focus towards regaining independence, uncovering value from within, and manoeuvring challenges from supply chain volatility, consumer shifts, and workforce changes.

Government support and Budget policies geared towards capability building, digitalisation, workforce upskilling, and experience management are crucial to enable businesses to build a competitive advantage and pursue sustainable long-term growth.

Jagdish Mahapatra VP and Managing Director (Asia) CrowdStrike

Throughout 2021, Singapore businesses continued to be battered by ransomware threats, malware, phishing attempts and software supply chain attacks that are becoming ever-more sophisticated in their approach. Security teams are under-resourced, and in our research on local cybersecurity issues, the skills shortage was highlighted as a challenge. To combat this, we hope to see continued support for skills training in Budget 2022, specifically in the area of cybersecurity to help address this growing gap. By developing cybersecurity talent, this will not only help local companies better meet the evolving cybersecurity demands, but also continue to position Singapore as a technology leader for the region, while also sending a message to adversaries.

Owen Gan Regional Vice President Apptio Inc

For the Singapore economy to remain competitive, the Budget should continue to support innovation and enterprises to become digital-first. As a nation we need to welcome and attract talent that will support our drive to all things digital, and we need further support for any enterprise to innovate, to stay ahead of the curve. The benefit of digitalisation is the deep insights you gain, and visibility helps organisations to make informed decisions.

Dennis Tan Chief Executive Officer Prudential Singapore

A growth-oriented Budget that encourages companies, in particular the SMEs which are the backbone of our economy, to invest in digitalisation and people is critical as Singapore emerges from the pandemic. We have seen an acceleration in the adoption of technology over the last 2 years.

In order for our businesses to remain competitive in the global economy, they must be digitally-enabled, and have a workforce that is equipped with future-ready skill sets to meet the changing demands of customers.

Ben King Country Director Google Singapore

As we enter an endemic Covid-19 world, focus should be channelled into areas deemed necessary to strengthening the resilience of Singapore and ensuring that Singapore remains a liveable place for future generations.

Among other things, this means stepping on the accelerator for measures that support both individuals and SMEs looking to evolve capabilities in line with the digital economy, with a continuation of public-private partnerships and programmes acting as a crucial lever to future-proofing of Singapore's economy. On a different track, the government also has a key role to play in tackling the climate crisis, with support for businesses being critical in enabling the deployment of the right infrastructure and technologies that will make sustainability attainable.

Jon Li Founder and CEO Vizzio Technologies

The pandemic accelerated the need for businesses and industries to digitally augment. As Singapore grapples with moving beyond Covid-19 and its variants, technology will continue to play a key role in the next chapter of our economic growth. Deep tech, in particular, will help tide the pandemic-induced disruptions and result in productivity and efficiency gains, creating higher-paying skilled jobs. Whether it's organisations or start-ups operating in technologies such as 5G, artificial intelligence, digital twin tech or robotics, there need to be policies and upskilling investments to help foster a thriving innovative ecosystem. This will help strengthen Singapore's position as a global tech hub and, in turn, drive economic growth.

Haresh Khoobchandani Vice President, Asia Pacific Autodesk

As Singapore focuses on sustainable and economic growth, digital adoption and upskilling in the construction and manufacturing sectors will be crucial. Digital technologies can boost predictive capabilities, optimise resources, save costs, and improve efficiencies. They have proven to create products, buildings, and infrastructure that are more sustainable, perform better, and ultimately last longer. These are exactly the outcomes needed for a low-carbon economy and we must equip these industries to harness such tools.

In 2021, buildings alone accounted for 20 per cent of the nation's emissions. By focusing on digitalisation and upskilling, the nation can enable organisations to achieve a balanced growth between business and the environment, inching closer to a net-zero future without compromising economic growth.

Eryk Lee Chief Executive Officer AAM Advisory

We have seen a greater demand for investment knowledge during the pandemic and a lot more people have either invested on their own or have done so via professional advisers. While there are institutions providing professional certifications and courses, I do feel that the younger generations should have relevant knowledge imparted to them at a much younger age.

The concept of investment and growing wealth can be simplified and made interesting and we should teach our young generation how to start investing earlier. Many young professionals do not invest until much later in their careers. I do hope that the government can consider providing some funding to schools so that they can have the necessary means to enable imparting of investment knowledge to their students. It is as important as maths or science.

George Lee Regional VP, Asia Pacific & Japan Imperva

For many Singapore companies, swift and decisive action by the government has largely alleviated concerns around immediate business survival. Covid-19 is now under control, and the time has perhaps come for the state to refocus on encouraging enterprises' long term, strategic growth.

As the pandemic has so clearly shown us, business competitiveness hinges much on agility, adaptability and ultimately, resiliency. These qualities are all driven by skilled manpower and advanced technology.

As Singapore starts a new year, I hope the government will press on with its efforts to upskill the workforce, and aid organisations financially in technology embracement. With so many business operations moving online, cybercriminals are having a field day. Resilience against the relentless attacks is crucial, and I hope governmental efforts will include bolstering cybersecurity know-how and adoption among enterprises here.

Helen Ng Chief Executive Officer Lock+Store

I hope SMEs that are foreign-owned but that employ predominantly Singaporeans can qualify for various support schemes such as the Productivity Solutions Grant grant and Jobs Growth Incentive scheme. The self-storage industry is on the threshold of digitisation. We also welcome mature workers who are open to upskilling. It would be good if the industry as a whole could benefit from the support schemes regardless of whether we are predominantly Singapore or foreign-owned.

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