KPMG and SBF outlines Budget 2024 wish list

Their first recommendation is to strengthen Singapore’s regional competitiveness.

KPMG Singapore and the Singapore Business Federation (SBF) have unveiled its ‘3E framework’, their joint Budget 2024 Proposal designed to secure enduring prosperity for Singapore amid growing global uncertainties.

“In 2024, Singapore is poised to cement its regional authority in innovation and climate change advocacy. To succeed, the nation must continue to position itself as an attractive destination for foreign direct investment, despite rising competition from other financial hubs,” the companies joint statement said.

To do this, KPMG and SBF said Singapore needs to strengthen its tax regime. They advised that the government consider introducing new incentives that would fit into the category of Qualified Refundable or Marketable Tax Credits (QRTCs or MTTCs) to mitigate the impact of Pillar 2 for multinational companies affected by the new global minimum tax. 

Singapore could also broaden the definition of qualifying IP for corporate tax purposes and enhance the IP Development Tax Incentive. This could include incorporating a wider range of IP for writing down allowances such as customer lists and other marketing intelligence on an approval basis.

KPMG and SBF also recommend more support for local enterprises to drive global competitiveness and address recent drops in rankings. Recommendations cover tiered financial support for digitalization, the expansion of ESG expertise, and a push towards a net-zero future. Specific measures include calls for environmental levies, tax incentives, and support for international trade through an Export-Import Bank.

In enhancing enterprise resilience, KPMG and SBF’s proposals focus on streamlining business rules and processes, bolstering the talent pipeline, and forming alliances. Notable recommendations include amendments to share option plans and concessions for frequent overseas travel, specifically addressing Singapore's competitiveness in attracting top talent and promoting lifelong learning with an increase in the Course Fees Relief cap to $10k.