singapore – A form of trust and assurance certification for artificial intelligence (AI) could be important to strengthen Singapore's credibility in the region's AI space.
The Republic also needs to improve its global competitiveness not only by accelerating the adoption of AI in businesses, but also by developing a new generation of professionals and board leaders with specialized talents and skill sets to help businesses navigate an increasingly complex world.
One way is to create a new workpath category for global “master trainers” and mentors to conduct leadership development programs here.
These are some of the proposals for Budget 2026 announced by professional services firm KPMG and the Singapore Institute of Directors (SID) in a report released on January 7 ahead of the 2026 Budget.
Prime Minister Lawrence Wong's budget
speech
February 12th.
Singapore needs to ensure its business and economic security, innovation and competitiveness in an uncertain global environment, the organizations said in their budget wish list.
This includes embedding digital trust. Develop world-class talent and leadership with cross-domain expertise. and build resilient economic connections.
Recommendations by KPMG and SID include establishing platforms, programs and grants to address these critical areas, based on observations from 1,000 executives and professionals surveyed.
Ajay Kumar Sanganeria, partner and head of tax at KPMG Singapore, said Budget 2026 is the first budget after the 2025 general elections and represents a timely opportunity to address the challenges of a fragmented global economy and growing trade uncertainty.
“We believe our recommendations are designed to help Singapore not only adapt to global changes, but also strengthen its role as a trusted hub for global flows.”
The report states that in the field of digital transformation, Singapore has the potential to become a regional AI leader by championing the 'Trusted AI' mark.
green mark sustainability certification
.
This trustmark will serve as a platform for mutual recognition, enabling harmonization of ethical standards, data governance policies, and assurance tools across the region. This will enable companies to deploy AI solutions across ASEAN without duplicating compliance, accelerating cross-border innovation and trade.
By leading the development of this framework for ASEAN, Singapore can strengthen its leadership in a multipolar world and deepen its role in the region's ecosystem, the report said.
He also pointed out that companies still face challenges in implementing AI due to high costs and a lack of talent and skills, and called for additional subsidies and strengthened public-private partnership frameworks to accelerate the adoption of AI by companies.
This will foster cross-sector collaboration in key industries such as finance, advanced manufacturing, and logistics, allowing companies to benefit from customized AI solutions and partnerships that drive open innovation ecosystems.
Mr Sanganeria added that although Singapore cannot compete with other countries in developing AI models and infrastructure, there is a huge opportunity to take a leadership position in accelerating AI adoption in Singapore and other countries.
Upskilling professionals as the next generation of business leaders was also a key priority set by KPMG and SID.
Their report cites the need for experts and board leaders with expertise in areas such as supply chain management, AI governance, and sustainability strategy. Approximately 37 percent of survey respondents indicated they wanted more leadership and management development initiatives, particularly in the areas of mentorship and coaching for emerging leaders and advanced leadership programs.
This skills gap can be addressed with a structured upskilling and leadership development program led by international professional 'master trainers' and mentors, who can join local businesses, public institutions and training institutions under new work path categories.
These master trainers will have proven expertise in leadership, innovation and workforce development, the report said.
Exposure of employees to global best practices facilitates the transfer of skills and builds a strong pipeline of talent, including executives, who can drive strategic change and competitiveness in a rapidly evolving global landscape.
The report added that these platforms have the potential to foster the exchange of best practices, facilitate collective learning on key sustainability initiatives, and enable leaders to proactively design roles and workflows ahead of market changes.
It also recommended establishing a job transformation roadmap that includes co-funded training and certification initiatives to further upskill the workforce. While upskilling initiatives like SkillsFuture already exist, the report said the speed of AI disruption varies by sector, increasing the need for new initiatives.
In addition, KPMG and SID advised the establishment of a $100 million fund to advance social impact reporting.
The amount of this fund was estimated based on the $50 million SG Eco Fund launched in November 2020 by the Ministry of Sustainability and Environment. This could be used to train professionals and directors in reporting social indicators, support academic modules on social sustainability, and certify social auditors and advisors.
KPMG and SID said these efforts are particularly important as they address social sustainability, which is a “more nascent area” compared to environmental sustainability.
Maybe this can be strengthened It added that it will attract interest from socially conscious global investors and secure sustainable investment for future growth.
“Sustainability is a big topic and you don't need to be an expert on it, but you do need to know enough to take action,” SID vice-chairman Max Low told The Straits Times.
He acknowledged that small and medium-sized enterprises (SMEs) will face different challenges in upskilling their employees than larger, more established companies. But the key is to ensure continuous learning and improvement across the board so that ideas for change and transformation move beyond the theoretical and can be applied in the real world.
“You can have a well-informed management team, but it is the board that governs, guides, and inspires. Directors can always bring in experts to guide them, but ultimately the board needs to have a certain thought process and support the company in achieving its goals.”
Regarding strengthening economic resilience, KPMG and SID recommended the development of a unified digital platform to manage free trade agreements to overcome potential trade barriers in an increasingly uncertain world.
It integrates seamlessly with government systems and helps businesses navigate complex procedures such as determining the country of origin of goods and services and reduce compliance costs.
“Given the current speed and complexity of change, we are seeing companies pivoting and adapting their supply chains more frequently than before. So a platform like this will enable them to react more quickly,” said Ms Lee Ze Yen, Managing Partner at KPMG Singapore.
KPMG and SID added that they may introduce specific subsidies to help companies streamline processes and subsidize employee training to complement this platform.
Other recommendations include a progressive carbon tax system and ASEAN exchange of environmental data, as well as expanding access to working capital and strengthening government-backed trade platforms with blockchain and AI.
