2025 budget must fund R&D in sustainability and AI governance: KPMG

They also advocate for increased funding in R&D for sustainable technologies and artificial intelligence governance.

The 2025 budget must focus on advancing ESG priorities, with proposals to establish national frameworks and a centralised ESG reporting hub, KPMG and Singapore Institute of Directors (SID) said.

In their statement, KPMG and SID stated these initiatives aim to align businesses with international sustainability standards.

Transparent allocation of carbon tax revenues and incentivized blended financing for large-scale sustainable projects are also suggested, whilst decarbonisation assistance facility is proposed to support businesses in hard-to-abate sectors through grants and loans.

To drive innovation, they also advocate for increased funding in R&D for sustainable technologies and artificial intelligence governance, which includes encouraging responsible AI adoption through ethical practices and creating commercially viable carbon reduction solutions.

Talent development is another priority, with plans to create a National Leadership Competency Index to evaluate and grow leadership pipelines. The expansion of micro-credentialing programs and increased access to SkillsFuture funding is proposed to address immediate skills gaps in areas like AI, sustainability, and cybersecurity.

To support international growth, they also recommended including enhancing grants and financing schemes to promote cross-border partnerships in digital and green economies. 

Government-backed transfer pricing advisory programs are also proposed to help small enterprises align with international standards, reduce compliance risks, and diversify across ASEAN markets.