KPMG highlights need for Singapore to cement its leadership role in the region

Digitalisation and sustainability key to gain a competitive edge

KPMG Singapore stressed the need for Singapore to cement its standing as the leading regional hub for businesses and wealth management in Asia, following their recent 2024 budget proposal alongside Singapore Business Federation (SBF).

Speaking at a recent episode of KPMG’s SG Budget 2024 Insights, Ajay Kumar Sanganeria, partner and head of tax at KPMG Singapore, said the city-state should work on aligning its tax incentive offerings to better align with global standards without losing the interest of investors.

He also urged the country to lean more into regional efforts in driving innovation and digitisation, by establishing itself as a data innovation hub and encouraging public-private partnerships.

Singapore should also spearhead efforts to tackle climate change, noting its potential to become an exporter of green solutions in energy and infrastructure through climate financing and ESG initiatives.

“Digitalisation and sustainability are two key areas where Singapore enterprises can gain a competitive advantage,” Sanganeria said. “With digitalisation, companies can reshape operational landscapes, increase productivity, and deliver superior customer experience.”

READ MORE: KPMG and SBF outlines Budget 2024 wish list

Meanwhile, he said elevated borrowing costs, sticky inflation and economic uncertainties arising from geopolitical tensions are among the challenges Singapore is facing in the near term. He also raised manpower constraints in the city-state, highlighting a weakened business outlook. 

“It is definitely essential for Singapore to equip its enterprises with capabilities to tackle immediate challenges while maintaining robust fiscal policies,” said Sanganeria.