Why open innovation is key for Singapore amid deglobalisation

By Lee Sze Yeng, Managing Partner, KPMG in Singapore and Yeoh Oon Jin, Chairman, Singapore Institute of Directors (SID)

Economies worldwide are becoming less interconnected as protectionism, tariffs and trade wars reshape global dynamics. For Singapore, this shift presents both challenges and opportunities. To remain competitive, the nation must defy these trends by fostering collaboration in critical areas like technology, talent, and sustainability. The pressing question for businesses is how to respond strategically.

Addressing this requires a focus on three key considerations that will determine their ability to adapt, innovate and lead in this new era of macroeconomic uncertainty and rapid technological advancements.

First, how can companies thrive in an increasingly volatile and rapidly evolving landscape? Businesses today face unprecedented levels of uncertainty in both global and local markets. To stay ahead, they must abandon a "wait-and-see" approach in favour of a proactive, agile mindset. This means developing solutions iteratively, adapting quickly to change and delivering sustainable long-term value without delay.

Speed is no longer just an advantage—it is essential. Advanced tools like artificial intelligence and predictive analytics empower businesses to act in real time, identifying emerging trends and opportunities with unprecedented accuracy.

By embedding these tools into operations, companies can simplify complex challenges and pivot faster than the competition, ensuring they remain relevant and competitive. Iterative innovation—the ability to adjust and refine strategies dynamically—must underpin this process.

Sustainability can open pathways to value creation. Companies transitioning quickly to greener practices— whether through adopting renewable energy, optimising supply chains for efficiency or incorporating circular economy principles—gain both market leadership and reputational strength.

Achieving success in this space depends on swift, decisive action. Setting measurable sustainability goals, investing in green technologies, and leveraging sustainable finance and government assistance allow businesses to contribute meaningfully to global objectives, while unlocking new growth opportunities.

A rapidly evolving business environment demands a shift in mindset. Companies that are agile, willing to learn from experimentation and ready to act boldly will not only create value with speed and scale, but set the benchmarks for the industries of the future. This adaptability must be complemented by bold transformations that leverage collective intelligence and collaboration.

The era of going it alone has passed. Businesses can consider partnering with startups, technology hubs, universities and even competitors to co-develop scalable, efficient solutions. To achieve this would require a shift from guarding ideas to responsibly sharing insights.

Collaborative frameworks, like the government’s Enterprise Compute Initiative, will showcase how shared resources can accelerate innovation and keep businesses ahead of rapid technological change. Likewise, strengthening Singapore’s capital markets and R&D infrastructure will attract high-growth, knowledge-driven enterprises to join in this collaboration here, fortifying the nation’s status as a global innovation hub.

Transformation also requires investment in people. Reskilling initiatives and specialised learning platforms equip workforces to thrive in this collaborative, fast-evolving landscape. Companies that lead in collective innovation will drive Singapore’s future economy, delivering sustainable growth and outpacing competitors resistant to this new paradigm.

Boards and management play a pivotal role in fostering collaboration and shaping the collective progress of businesses. As apex-level leaders, they are poised to drive initiatives that optimise not only organisational performance, but also contribute to broader ecosystem growth. Boards must not only champion good corporate governance, but also focus on value creation for their stakeholders.

At the heart of this leadership approach is the ability to balance risk management with visionary decision-making. Boards must find a way to “conform, perform, and transform,” enabling organisations to safeguard value while evolving in response to emerging opportunities. By encouraging cooperative innovation, directors can better navigate complexity brought about by shifts in the global operating environment.

Continuous education for board members is equally critical. Directors must stay attuned to rapid changes in technology, geopolitics, and norms to make informed decisions that benefit all stakeholders. Investment in their professional development ensures leaders are prepared to guide their organisations, and foster cross-sector alliances necessary to propel wider economic and societal outcomes.

Boards that champion these growth-oriented, collaborative strategies will not only future-proof their organisations, but also contribute towards driving Singapore’s leadership in creating a resilient, interconnected and thriving economy.

Singapore’s future in a deglobalised world hinges on bold leadership, collective action and a commitment to transformation. Leaders who champion open innovation, sustainable practices and strategic collaboration will drive progress and resilience, creating ripple effects that strengthen ecosystems and inspire industries.

By embedding adaptability and collaboration at its heart, Singapore can serve as a global model for navigating constant change and thriving in an era of complexity.