Resilient: Driving innovation in a dynamic global business landscape

SMEs form the backbone of Singapore’s economy but often lack the resources to adopt transformative technologies like AI. To address this, Singapore could scale up grants and subsidies tailored specifically for SME digitalisation.

Additionally, establishing collaborative platforms that bring together SMEs, large enterprises, and research institutions would provide access to shared resources, such as AI tools and low-cost technology enablers. These initiatives would ensure SMEs actively contribute to Singapore’s innovation ecosystem.

While AI dominates the digital transformation narrative, other emerging technologies like IoT, robotics, and quantum computing present untapped opportunities for enterprise innovation. Singapore could create testbeds and pilot programmes for businesses to experiment with these technologies.

By facilitating cross-sectoral collaborations, businesses could identify new use cases and achieve faster scaling of these technologies across industries, further strengthening Singapore’s leadership in innovation.

AI governance remains a critical priority to ensure ethical, secure, and scalable deployment. Singapore could expand initiatives like the AI Verify Foundation to include sector-specific AI frameworks that address unique risks, such as algorithmic bias in healthcare or financial services.

Establishing a dedicated fund for AI compliance and governance research would further incentivise businesses to adopt responsible AI practices. These measures would position Singapore as a global leader in trustworthy AI adoption.

As businesses adopt advanced technologies, workforce readiness is essential. Singapore could prioritise the upskilling of workers across industries through AI-specific literacy programmes and hands-on training in emerging fields like prompt engineering and data analysis.

Introducing modular learning courses that combine technical expertise with soft skills like change management would help employees transition smoothly into tech-driven roles, ensuring long-term competitiveness.

Data quality and interoperability remain challenges for businesses seeking to scale digital solutions. Singapore could invest in a national initiative to align data standards across industries, facilitating the seamless sharing of data within the ecosystem.

By addressing data governance holistically, businesses would face fewer barriers to adopting AI and other advanced technologies, accelerating overall digital transformation efforts.

To address concerns around ethical AI use, Singapore could allocate funding for AI governance research, focusing on bias detection and data privacy solutions. This investment would enable businesses to build reliable AI systems that are transparent and compliant with regulations.

Developing advanced testing frameworks for AI models would also support companies in achieving alignment with Singapore’s Model AI Governance Framework.

Singapore could support businesses by providing grants for cybersecurity training and certifications tailored to emerging risks, such as AI-driven threats. By equipping employees with specialised skills in ethical AI practices, data governance, and cybersecurity compliance, organisations can strengthen their first line of defence.

These grants would also encourage companies to prioritise long-term cybersecurity strategies.

To build confidence in digital technologies, Singapore could introduce a National Digital Trust Index to assess and benchmark businesses’ cybersecurity practices. This index would measure key factors such as data protection, transparency, and adherence to ethical standards.

Companies that score well on the index could gain recognition, enhancing their reputation and fostering trust among stakeholders.

Collaboration across industries is critical for addressing the complexity of cybersecurity threats. Singapore could facilitate partnerships between businesses, government agencies, and research institutions to co-develop cybersecurity solutions.

These frameworks could focus on threat intelligence sharing, real-time risk assessment tools, and collective responses to emerging cyber threats.

Singapore could incentivise companies to adopt best practices in corporate governance through grants or tax rebates for firms that achieve high standards in transparency, disclosure, and compliance.

Platforms recognising governance champions, such as the SGX Fast Track programme, could be expanded with government-backed rewards. These initiatives would encourage companies to adopt rigorous governance frameworks and enhance their global appeal.

Directors play a pivotal role in steering organisations toward sustainable growth. Singapore could support the development of ESG and tax-related skills through directorship accreditation programmes.

These programmes could include ESG integration, innovative business strategy, and AI-driven tax governance, ensuring directors are equipped to meet emerging regulatory and market demands. By investing in continuous professional development, Singapore can foster stronger, forward-thinking leadership.

Integrating tax governance into broader corporate governance frameworks would enhance investor confidence and reinforce Singapore’s leadership in compliance standards. Singapore could promote the adoption of the Inland Revenue Authority of Singapore’s Tax Governance Framework (TGF) and Tax Risk Management and Control Framework (TRM).

By requiring companies benefiting from tax incentives to implement robust tax governance practices, the nation can ensure accountability and transparency at the highest levels.

A centralised governance hub, integrated with Singapore’s ESG reporting hub, could streamline access to resources for companies. The hub could offer tools for benchmarking governance practices, provide guidance on disclosure standards, and promote knowledge-sharing across industries.

By positioning itself as a hub for governance excellence, Singapore can attract foreign firms and investors, further bolstering its economy.

Singapore could introduce enhanced incentives and tax deductions to encourage businesses to adopt artificial intelligence (AI) and sustainable practices across supply chains. These measures would empower companies to meet emerging ESG standards while improving efficiency.

Incorporating technologies such as blockchain and IoT could strengthen supply chain resilience, ensuring that businesses remain agile in a volatile global landscape.

To deepen regional integration, Singapore could provide expanded grants and financing schemes for cross-border initiatives in the digital and green economies.

Projects such as regional power grids and cross-border payment systems would enhance connectivity and competitiveness, enabling businesses to tap into emerging ASEAN markets. These efforts would strengthen Singapore’s leadership in regional commerce.

Navigating complex transfer pricing rules is a significant challenge for small enterprises. Singapore could establish a government-backed advisory programme offering financial support and consultation services to SMEs.

This initiative would reduce compliance burdens, enhance global trade operations, and position Singapore as a leader in transfer pricing expertise.

To enhance the flexibility of investment structures, Singapore could permit family offices to extend interest-free shareholder loans to related domestic companies. This would address challenges arising from current tax rules and promote reinvestment in local businesses.

By removing tax barriers, Singapore can encourage the growth of family offices while supporting domestic economic expansion.