Nurturing the shoots of recovery

THIS WEEK'S TOPIC: What Budget measures are needed as the focus shifts from emergency support back to growth?

Lawrence Loh Director, Centre for Governance and Sustainability NUS Business School The Budget will have to advance the delicate synergisation of 3 interacting forces - infections, inflation and inflection. First, the coronavirus is not expected to vanish any time soon. Businesses and individuals will have to live with this reality of continued infections - the Budget will need to transit from an assistance to an integration thrust, more through adaptation and transformation. Second, rising price levels will have profound effects on costs. Fiscal injections have to enable growth and yet not lead to economic overheating. Third and most of all, the Budget will be a clear watershed. While there are challenges of infections and inflation, the expected economic recovery will provide an appropriate time window for economic inflection.

David Sandison Singapore Practice Leader Grant Thornton We assume that growth will naturally follow the removal of emergency support. Not so fast. I have long been concerned about what we will find under the Covid covers once they are rolled back. The wealth gap is not confined to individuals. Businesses that have held on for dear life may finally succumb, to be subsumed within businesses with deeper pockets. Normally, we should allow nature to take its course. Survival of the fittest. But these are not normal times. Rather than further intervention from the fiscal budget, we should perhaps consider extended legal protections to afford some breathing space once normality is resumed. Then let us talk about growth.

Marcus Lam Executive Chairman PwC Singapore My Budget wish list is all about ESG (Economic, Social and Global): 1) Fuel Economic growth, with incentives to encourage businesses to participate in new and emerging industries like carbon services, while being competitive in industries being increasingly "green"; 2) Continue efforts around Social cohesion and inclusion, particularly on continuous upskilling and reskilling to build a future-ready workforce so that people are not left behind; 3) Initiatives to help Singapore succeed as a Global knowledge hub on ESG, whether to reinforce its convening power on world issues or to lead on achieving ESG progress despite constraints.

Jeffery Tan Group General Counsel and Chief Sustainability Officer Jardine Cycle & Carriage If there is one lesson that Covid has taught us over the last 2 years, it is how interconnected markets and economies are. It has highlighted the benefits of regional collaboration and cooperation. In building back growth, the Budget will, hopefully, encourage Singapore businesses to identify and leverage opportunities beyond our shores. In making this happen, businesses should be incentivised to develop the skills, talent and creativity of Singaporeans who are mindful of sustainability and climate issues (as well as the opportunities) - endeavouring to establish a more socially inclusive Singapore. In short, the Budget should inspire businesses to have the purpose of growing faster than the regional economies and elevating our community. In looking beyond our tiny red dot, Singapore can have an "economic roar" that befits the Year of the Tiger. After all, we are the Lion City.

Michael Lien Founder and Board Chairman LEAP201 The pandemic has not only impacted business performance, but also intensified the challenges facing vulnerable groups in our society. With progressive recovery evident in the economy, now is the right time to address these challenges. One area of focus is the strengthening of social protection for our migrant workers, and safeguarding the livelihoods of this important segment of Singapore's workforce. Together with our partners, LEAP201 spearheaded and has been advocating for the protection of migrant workers through the Care4MigrantWorkers (C4M) insurance scheme since September 2020. This scheme now covers over 36,000 migrant workers in Singapore, and counting. We believe the primary care plan introduced by the Ministry of Manpower is an important step forward, and hope to see more measures in the Budget to ensure that migrant workers receive affordable and comprehensive healthcare.

Glenn Gore Chief Executive Officer Affinidi As Singapore accelerates its capabilities to become the Silicon Valley of Asia, the technology sector will benefit from Singapore's Budget measures to fuel economic growth and bolster the country's digital trust capabilities. Advancing cutting-edge technologies such as privacy-preserving technologies and decentralised identities will be the way forward to allow people, businesses and the government to protect and share sensitive data that unlocks value safely. With the dawn of the new Web 3.0 era, now is the time to embrace new technologies that will form the foundation to building a secure digital world for generations ahead.

Samit Chopra President and COO, International, EMEA and Pacific WeWork Government and business leaders are now better equipped with the knowledge and resources to address the economic fluctuations brought about by the pandemic, and thus 2022 should be the year we emphasise investment and growth. As WeWork continues to track interest from global corporations to establish and expand their regional presence in Singapore, the government should focus on measures to further attract, develop and retain talent. The pandemic has highlighted the importance of technology in helping organisations with business continuity, from workplace strategies to business models. This year, I would like to see the government increase its commitment to innovation, to support more sectors in leveraging technology to drive business resilience.

Willson Deng Chairman, Singapore Manufacturing Consortium (Simco), and CEO, Arcstone We hope to see stronger support for manufacturers, both big and small, to focus on production transformation towards sustainability and data transparency. Singapore has a unique advantage to be at the forefront to drive responsible and sustainable manufacturing and set an example for the rest of the world to follow. Additionally, it can be the anchor point for South-east Asia when it comes to production supply chain data transparency once an ecosystem is built and supported at a national level.

Rick Harshman Senior Vice-President and MD, Asia-Pacific and Japan UiPath I hope that businesses receive more support to manage the inevitable transition to a workforce where humans leverage technology like software robots and artificial intelligence (AI) to work together seamlessly. The labour crunch has emerged as one of the more pressing issues facing many sectors including healthcare, finance, banking and retail. Businesses and governments investing in technologies such as automation are mitigating the impacts of the labour shortage to improve efficiencies and drive productivity. That said, adopting automation technologies is only the first step. To build a next-generation workforce, Singapore needs to continue to invest in upskilling and education to stay ahead of the curve in the automation era.

Mark Billington Managing Director, International ICAEW With COP26 now in the rear-view mirror, businesses and governments now have to find a way to turn their promises into action, and at the same time build back all sectors post-pandemic. While Singapore has done well to strengthen financial sector resilience and harness technology to recover in a green and fair manner, it has to work on building knowledge and capabilities of local talent. This year's Budget should focus short-term on accelerating recovery in sectors that impact most citizens, and midterm on bridging that talent gap by encouraging Asia-focused climate research and training, and that includes educating the young generation on the pressing need to enable positive change for the environment and training them on specific knowledge on sustainability standards and green financing.

Wendy Johnstone Senior Vice-President and COO, Asia-Pacific Zendesk As we move through this ongoing pandemic, the focus may be redirected towards growth - but that does not mean every business is now fully prepared to navigate these changes. Budget measures that empower companies to invest in agility - the right technology, people and processes - will help them move quickly to meet current needs. These measures also help businesses scale for future growth. It is about having the support to balance immediate and future needs, and ensuring we bring along those who will continue to play an important role in Singapore's growth journey.

Ashwini Gillen Regional Vice-President, Asia Twilio In the upcoming Budget, I hope to see the Singapore government continue to invest in technologies that will enable businesses to optimise their operations, such as customer engagement tools, data analytics and AI. Unlocking the full power of said technologies will also require the right talent. To succeed, we need to nurture our workforce, and provide them with ongoing access to equitable cross-training and upskilling opportunities. After all, digital transformation is not a one-off project. It is a continuous process that adapts and evolves over time in response to changing business and market demands. Additionally, I look forward to the events industry coming alive again through government support. Great businesses are built by connected people, and 2022 can be the year Singapore regains its reputation as one of the top Mice (meetings, incentives, conferences, and exhibitions) destinations of the world.

Geraldine Kor MD, South Asia, and Country MD, Singapore Telstra Singapore has a track record of strong economic development and a positive outlook for further growth this year. Even in this climate, 29 per cent of organisations in Singapore are looking to expand into other markets in Asia-Pacific as part of their growth plans. Investing in technology is key to succeeding in overseas markets. Strong governmental support for firms is welcomed to help boost their competitiveness, especially in areas such as cloud infrastructure, Internet of Things and AI. This will also send a strong signal to companies to embrace an expansionary vision and prioritise their digital strategy in order to differentiate themselves and be more resilient as we move to a digital future.

Deborah Heng Country Manager, Singapore Mastercard Singapore remains a model nation in terms of managing the pandemic's impact, evident in the country's gross domestic product growth of 7.2 per cent in 2021. Continued support for boosting digital capabilities remains vital to deliver solutions and benefit people and business across all sectors. Mastercard has been leading the drive into inclusive digital commerce by delivering frictionless and secure payment experiences and multi-layered cybersecurity solutions to defend critical assets, equipping businesses with a network of partners that support each step of the consumer digital journey. Enhanced accountability, reliability, and transparency are the next steps in strengthening our digital economy, to continue to drive digital transformation while building a sustainable Singapore for future generations.

Mark Weaser Vice-President, Asia-Pacific OutSystems As Singapore moves in tandem with its plan to build a Smart Nation in this post-pandemic world, the government could allocate a budget to help companies with their digital transformation efforts and in their process to hire tech talents. While many businesses have started to adopt digital technology as they migrate to a hybrid work environment, some still struggle to keep pace with the constantly evolving technologies. The speed of digitalisation has also led to an increase in demand for tech talents. As companies continue in their digitalisation race, the government could also allocate a budget for educational institutions to develop courses to train future tech talents.

Ricky Kapur Head of Asia-Pacific Zoom As Singapore knuckles down on growth post-pandemic, the rise of the hybrid workforce has amplified the challenge of talent attraction and retention for local businesses. Be it to combat remote hiring or meet employees' expectations for greater work flexibility, Budget 2022 should provide more incentives and grants for companies to utilise platform solutions that facilitate asynchronous work and effective collaboration. In the long run, investments in digital upskilling and reskilling initiatives would be key to developing a digitally empowered and connected workforce across different skill levels and age groups. This will also help businesses cultivate a happy and motivated talent pool that is well-equipped for the digital economy ahead.

Yean Cheong Executive Director SGTech We need concrete measures that enable firms to build products and services and do more business, beyond "life support" measures. The industry hopes for the targeted loosening of restrictions on the workforce in areas where the required talent is in need - such as specific technical skills; widening the guidance and deepening the engagement with small and medium-sized enterprises (SMEs) to empower them in their business and digital transformation to thrive; and supporting SMEs banding together in "consortiums of equals" - to sell to the international market. Scoping government procurement projects smaller to allow experimentation or a sandbox approach would also give small and innovative firms more opportunities to prove their solutions and better position them to sell to other clients.

Frankie Chia Managing Partner BDO While companies are generally optimistic about the business environment in 2022, concerns over rising costs and a manpower crunch remain. Helping companies thrive in the new norm by providing double tax deductions to qualifying costs of automation/digitalisation and costs associated with remote working, especially in IT security and cloud solutions and upskilling/reskilling, would be necessary. To address the manpower crunch and increasing retirement age, the government should incentivise businesses to hire older employees by subsidising a portion of the wages. As part of longer-term workforce transformation, Singapore can consider targeted calibration of foreign talent quota and/or short-term work pass holders of 2 to 3 years.

Yoon Young Kim Cluster President, Singapore, Malaysia, and Brunei Schneider Electric Making a positive impact on shared sustainability goals and contributing to societal progress is a global responsibility for all stakeholders. We are heartened to see sustainability and climate action recognised as priorities at the upcoming Budget, to further ongoing conversations on boosting resilience and positioning Singapore for sustainable growth. Schneider Electric is steadfast in our commitment to drive sustainable development, and we are humbled to be named in Corporate Knights' Global 100 for the 11th year in a row. We look forward to greater collective efforts by the public and private sectors to prioritise green infrastructure investment, elevate sustainability on the national and corporate agenda, and fund enabling technologies that pave the way to net zero.

Victor Ng Regional Vice-President, Asia BlackLine In line with the recently announced job transformation road map, measures to help finance and accounting (F&A) professionals upskill and narrow the skills gap will be crucial. F&A professionals will require a more diverse range of skills such as data analytics, automation, business strategy and leadership, to stay ahead of the curve as they play an increasingly critical role to help businesses work towards economic recovery. With calls for greater disclosure around a company's environmental commitments, F&A teams are also increasingly involved to help steer a company's environmental, social and governance (ESG) efforts, emphasising the need for them to have relevant skills to scale up to help tackle climate change.

Fann Kor Chief Executive Officer Institute of Singapore Chartered Accountants (ISCA) With the sustainability agenda expected to take centre stage for businesses in 2022, we hope the upcoming Budget can drive change in 3 areas. Firstly, there should be greater impetus for businesses to engage in green projects to accelerate change in improving climate conditions, such as in the form of tax incentives. Secondly, there should be support for companies in the development of green technology solutions, for them to gain first-mover advantage and possibly even export these solutions internationally. Lastly, the workforce must develop skill sets in sustainability to meet future demand and challenges. More training grants and subsidies for professionals to develop skills in sustainability-related fields, such as green finance, should be provided. This will build Singapore's talent pool, and enable local talent to apply these skills and knowledge not just in Singapore, but also globally.

Abel Ariza President, Malaysia and Singapore Sodexo As Singapore gears up for economic growth, it is critical to embed sustainability into business models and practices. To sustain the momentum of the Green Plan, progressive measures are necessary to encourage the innovation of new green solutions while continuously educating the community. For instance, we can explore extending existing funding schemes to sustainability-focused SMEs and ground-up initiatives, or ramping up partnerships on plant-based food innovations. Our very own data-driven WasteWatch technology has helped educational institutions and other industry partners reduce their carbon footprint from food waste, while improving bottom lines. Through working together, we believe everyone can do good business and contribute to a better every day.

Sujith Abraham Senior Vice-President and GM, Asean Salesforce In a digital-first economy where workers can work and find success from anywhere, it is imperative for the Singapore government to accelerate its efforts in digital skills training for its people. Today, we are faced with a growing digital skills crisis as the demand for workers with digital skills outpaces supply. Salesforce's recent Global Digital Skills Index study found that 64 per cent of Singapore workers do not feel "very prepared" with workplace digital skills, and only 29 per cent are actively upskilling themselves. Equipping Singaporeans for the future of work will be pivotal to our post-pandemic economic recovery and growth. We hope to see a Budget that encourages more collaboration between businesses and government agencies to scale up digital skills training opportunities for all strata of society.

Sandeep Sharma President, Asia Workday As businesses shift their focus from recovery towards growth, new priorities have emerged for leaders in tackling the challenges ahead - from the rising Great Resignation phenomenon and war for talent to digital acceleration in today's hyper-connected yet increasingly uncertain world. In addressing these headwinds, upcoming Budget measures need to encompass more robust investments in programmes that incentivise businesses in their digital transformation goals. With a strong digital backbone, enterprises can better engage, develop and retain their employees, thus ensuring a strong pipeline of talent and a future-ready workforce. As technology continues to be a key enabler for growth, another strategic focus would be to support disruptive innovations that empower the hybrid workforce and decision-ready organisations, such as workplace analytics, and finance digital transformations that optimise business performance.

Christanto Suryadarma South-east Asia Sales Vice-President Zebra Technologies, Asia-Pacific The Covid-19 pandemic has uncovered supply chain vulnerabilities like manufacturing lockdowns and border limitations. As such, the Singapore government has rolled out measures like the S$18 million-worth Supply Chain 4.0 initiative to improve supply chains' agility, resilience, and security through implementing digital and automated solutions to fulfil corporate needs. Budget measures should include opportunities made available for enterprises to help them to identify and overcome their challenges, and to use the right technologies to increase their competitiveness and productivity. There is no one-size-fits-all solution, so it is paramount they work with trusted brands known for their expertise in helping businesses gain a performance edge.

Asheesh Chanda CEO and Founder Kristal.AI With digibanks set to enter the ecosystem, we hope to see support given to fintech players to ramp up their digital capabilities and product and service offerings. This spurs other innovative players to scale up and accommodate the growing proportion of consumers who are shifting to digital-first banking solutions. These digital players also need to stay abreast of emerging cyberthreats which undermine data privacy. To this end, efforts should be directed to bolster e-banking security, enable platforms to facilitate secure transactions, and educate consumers on self-protection. Singapore remains a leading wealth management hub poised to thrive in the years ahead. We would also welcome measures to ensure a deep and diverse talent pool in our fintech sector.

Tianyi Jiang Founder and CEO AvePoint A sustainable digital transformation that holistically empowers an organisation's workforce to thrive in a hybrid world is key for organisations to emerge stronger from a pandemic. We will see SMEs to large organisations investing in emerging technologies to re-establish their competitiveness, with soft skills and people development being of paramount importance. Organisations may seek grants to customise their own employee learning and development beyond traditional compliance training, and into one that intrinsically motivates working professionals to seek and obtain skills that are highly relevant in a new digital economy. It takes an ecosystem of expert advisory, skills knowledge, and technology enablers to facilitate effective workforce renewal programmes.

Andy Sim V-P and MD, Singapore Dell Technologies At this juncture, our approach to economic growth must be centred on people and the environment. The increasingly digitalised world we live in calls for dedicated measures to help our workforce thrive in the digital future. Our government should continue to partner businesses and educational institutions to equip students, graduates and mid-career professionals with digital knowledge and skills for the data era. We must also not forget about the world around us. The pressure is on to recover sustainably as we reconstruct our way of living post-pandemic. While some businesses have the means to embrace sustainability, we must offer support to enable all organisations to contribute to our collective quest for sustainable development, in line with the Singapore Green Plan 2030. By devoting resources to enhance our digital and green economies, we will be poised to build back bigger and better.

Vincent Goh Senior Vice-President, Asia-Pacific and Japan CyberArk Post-pandemic, business organisations need to evolve by adopting new innovations, strategies, and ways of market engagement. WithSMEs forming the backbone of our economy, the government should continue issuing productivity grants and running programmes to support the digitalisation efforts of local businesses. With digitalisation comes the risk of cyberattacks, and this is why digital security is a pillar of Singapore's digital defence framework. The government needs to continue educating businesses on the importance of improving their cybersecurity defence posture. Finally, to compete globally, a mindset change is also important. This requires developing a workforce that is inclusive and resilient, as well as developing new skill sets and capabilities that align with the current needs of the global economy.

Lee Wing On Executive Director Institute for Adult Learning We want to grow and prosper in a Covid-19-endemic world. As Singapore's economy continues to recover, it is more pertinent than ever that the government continuously and generously supports our workforce in terms of training and deepening of skills, as key industries stand ready to seize growth opportunities. By putting in place initiatives that not only strengthen the workforce, but also break barriers that hinder them from taking that leap, businesses can be further empowered to be future-proof and productivity-ready as we all transform for the better together.

Lim Soon Hock Managing Director PLAN-B ICAG Although the Singapore economy is expected to recover in 2022, despite the challenges from Omicron, the US-China tension, and climate change, the pickup is not even throughout all industries and sectors. While the government will need to calibrate the financial support needed for fiscal sustainability, the support should not be withdrawn entirely. Instead, it should be gradually phased out to give more time to affected businesses, especially SMEs, to recover. Support should still be extended to businesses and individuals who need it most, through the existing schemes including Jobs Support Scheme, rental relief for commercial properties, aid for market stallholders, credit support measures, et cetera. The social welfare net that has been widened as part of Covid containment measures should remain, as some people are also being affected by economic transformation, demographic, and social inequality issues. Many businesses on the ground and individuals at the subsistence level still need support to nurse them back to pre-Covid health.

David Leong Managing Director PeopleWorldwide Consulting

Living with Covid is a significant departure from the earlier zero-Covid strategy. The government is focusing on accommodative containment strategies for Covid (like shorter quarantine and home-based recovery) while cautiously opening up the economy for growth. The 2022 Budget must feature strongly on creating more fishing lines and nets (digitalisation, ESG, green energy, pivoting on crypto-blockchain technology to create economic buzz) in the sea of opportunities so that Singapore can grow sustainably with a live-with-Covid strategy. Singapore should move fast and furious in opening up, to remain relevant as a critical node in the trade, logistics and finance space in the region and globally.

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