Singapore Budget 2016: Thriving in the digital economy

WHILE global economic growth is widely expected to slow in 2016, the growth of the digital economy will likely accelerate. The digital economy is already permeating multiple aspects of the world economy and impacting sectors, businesses and workers. With the next billion people coming online, it will become an even more important driver for innovation, competitiveness and growth. The digital economy was a key focus at the recent World Economic Forum in Davos, with the theme of The Fourth Industrial Revolution.

Digital technologies are changing the way we do business and redefining global value chains. Platforms such as Airbnb and Uber are disrupting traditional business models; algorithms, artificial intelligence, blockchain are disrupting professional services while the Internet of Things and 3D printing are changing industries such as manufacturing and healthcare. In PwC's latest Global CEO Survey, business leaders told us technology is one of the biggest disrupting forces in their organisations.

So what does this all mean for Singapore? This article will not delve into specific digital technologies or suggestions on tax and incentives already outlined in PwC's Budget Wishlist and white paper on Singapore's tax policy, Singapore: Sovereignty, Society, Substance, Success. We will offer broad ideas on areas that the Singapore government can explore to enable businesses and workers to thrive in a digital economy.