MOF urged to focus on R&D funds for sustainable tech and ethical AI governance as it prepares Budget 2025

SINGAPORE: In a joint statement, KPMG and the Singapore Institute of Directors (SID) have urged the 2025 budget to focus on advancing Environmental, Social, and Governance (ESG) priorities.

The organizations proposed initiatives to establish national frameworks and a centralized ESG reporting hub, aligning businesses with international sustainability standards.

KPMG and SID emphasized the need for transparent allocation of carbon tax revenues, suggesting that such funds be used to incentivize blended financing for large-scale sustainable projects.

They also recommended the creation of a decarbonization assistance facility, which would provide grants and loans to businesses in hard-to-abate sectors, helping them transition to greener practices.

To foster innovation, the two organizations advocated for increased funding in research and development for sustainable technologies.

They also highlighted the importance of ethical artificial intelligence (AI) governance, proposing measures to encourage responsible AI adoption. This includes developing commercially viable carbon reduction solutions through AI-driven innovations.

Talent development was another key area of focus. KPMG and SID proposed creating a National Leadership Competency Index to assess and enhance leadership pipelines.

To address immediate skills gaps, particularly in AI, sustainability, and cybersecurity, they recommended expanding micro-credentialing programs and increasing access to SkillsFuture funding.

To promote Singapore’s growth in the global digital and green economies, KPMG and SID suggested enhancing grants and financing schemes to facilitate cross-border partnerships.

They also proposed government-backed transfer pricing advisory programs to help small enterprises comply with international standards, mitigate compliance risks, and diversify across ASEAN markets.

KPMG and SID’s recommendations highlight the need for a forward-looking budget that integrates ESG priorities, drives innovation, and fosters talent development. These measures aim to position Singapore as a global leader in sustainability and governance, supporting businesses in adapting to evolving international standards.