Budget 2020: A need to tackle long-term transformation, sustainability issues

Singapore

IMMEDIATE support aside, the upcoming Budget 2020 should also address longer-term issues such as economic transformation, digitalisation, the environment, and the ageing population, said business leaders.

As previously announced, the Budget will include measures for sectors hit by the novel coronavirus; support for firms to adjust to re-employment and retirement changes; and details of a support package for the upcoming goods and services tax hike.

With the virus outbreak exacerbating the pressures from trade tensions and macroeconomic concerns, short-term relief will be important, said Ernst & Young managing partner for Brunei and Singapore, Max Loh. "Yet, the Budget should press on with the economic transformation agenda that has been set in motion at the industry and workforce levels as a longer-term imperative."

This means improving firms' and workers' capabilities, and tackling gaps between current skills and future opportunities, he said.

For firms, several business leaders called for more support and incentives for various aspects of digitalisation, including adoption of technology; research and development; facilitating digital trade; and building cybersecurity capabilities.

With workers being key to transformation, training is vital too. "Policy support to develop and deepen workers' capabilities should continue to remain high priority to assure the workforce of their jobs, and to make available quality human capital for businesses," said Deloitte Singapore chief executive officer Cheung Pui Yuen.

Even as digitalisation continues, it can be hard to find the talent for this, said Robert Half Singapore managing director Matthieu Imbert-Bouchard. Equipping the Singapore workforce with digital skills is thus key.

This extends to making students digital-ready, with Institute of Singapore Chartered Accountants CEO Lee Fook Chiew suggesting that this should start before the tertiary level.

Besides going digital, firms should also go abroad. Business leaders called for continued support to help firms - particularly small and medium enterprises - enter foreign markets, not least in Asean.

For both economic and environmental reasons, sustainability was another issue highlighted by many.

Incentivising firms to be sustainable will not only reduce carbon emissions, but possibly create economic spinoffs in the form of new technologies, and result in cost savings and productivity improvements, said PacificLight Power CEO, Yu Tat Ming.

Budget measures could encourage firms "to adopt the triple bottom line, which includes social and environmental considerations", said Johnson Controls country general manager for Singapore and Asia-Pacific GM for transformation, David Kirubi.

Suggested areas where the Budget could give support include the adoption of low-carbon, energy efficient technologies; renewable energy; green buildings; sustainable financing; and incentivising less waste. Singapore Green Building Council president Ho Nyok Yong hopes for "a holistic, fiscally feasible and long-term climate action plan".

Abroad, climate change's implications include the possible opening of Arctic shipping routes, which would affect the importance of Singapore's port, said Envysion Wealth Management CEO Veronica Shim.

Another long-term issue is the ageing population, with Singapore International Chamber of Commerce chief executive Victor Mills raising the need to "end ageism in the workforce to maximise citizen potential".

To help older workers "comfortably and contribute further to the economy", more can be invested in preventive healthcare, said Singapore Association of Pharmaceutical Industries executive director Christina Teo.

More broadly, healthcare improvements must continue. This could include further use of technology and artificial intelligence, said Philips Singapore country manager Ivy Lai.

"Social entities such as co-operatives can step in to address some areas of healthcare needs such as long-term affordable and holistic healthcare services like senior homes and eldercare centres," said Singapore National Co-operative Federation CEO, Dolly Goh.

Even beyond the workplace, ageism results in "many cultural, social-economic and structural barriers" for older people, said Tsao Foundation CEO, Peh Kim Choo, who would like Budget 2020 to push for a mindset change at all levels of society.

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