What Budget 2025 should focus on

Experts cited three main sectors that this year’s fiscal plan should fuel.

As Singapore prepares to announce its national budget for 2025, KPMG experts have outlined their recommendations for this fiscal year's spending priorities.

According to Chiu Wu Hong, partner and head of private enterprise at KPMG Singapore, the city-state’s growth depends on green energy, healthcare/biochem, and professional services. To fuel this, the government should incentivise clean tech, boost biotech partnerships, and upskill the workforce in areas like artificial intelligence (AI) and cybersecurity.

To further support business, they need a “cohesive AI strategy that addresses market growth, talent acquisition and retention, and increased productivity,”said Chris Roberts, partner, IGH and manufacturing, tax at KPMG Singapore.

Empowering small and medium enterprises to go global will also be key, which can be done through a transfer pricing advisory programme, Chiu said.

For corporate governance, Tea Wei Li, partner, risk, advisory at KPMG Singapore, said “independent board evaluations are essential for fairness, transparency, and accountability.”

A formal policy on this process would boost Singapore’s corporate governance standing globally, the expert said.

Singapore can also attract more global firms and enhance its professional standards through financial incentives for transparency, recognition programmes, and wider access to director development resources, said Pauline Koh, partner, tax governance and IGH & manufacturing, tax at KPMG Singapore.

In terms of workforce, Murray Sarelius, partner, head of personal tax and global mobility services, tax at KPMG Singapore, said the city-state should relax COMPASS requirements and attract young international talent. These will be crucial for developing a robust talent pool, particularly in fields like assurance and accountancy, to maintain global competitiveness.