Refreshed: Uplifting tomorrow’s workforce

Evolving talent strategies, nurturing leaders for long-term value in Singapore

Adapting Singapore’s Workforce for Emerging Needs

Singapore’s economic success depends on evolving talent strategies to meet global trends, such as the growing mobility of skilled professionals and the rapid digitisation of industries. Changes in taxation frameworks, such as the OECD’s Base Erosion and Profit Shifting (BEPS) policy, further influence Singapore’s ability to attract and retain talent. Simultaneously, sectors like financial services and ESG assurance face growing demand for upskilling in sustainability, digital transformation, and leadership roles.

A dynamic approach is needed to address challenges like global mobility complexities, skills shortages in key sectors, and barriers posed by the COMPASS system. This will ensure Singapore’s workforce remains adaptable, competitive, and prepared to meet the demands of an evolving global economy.

Singapore could establish a National Leadership Competency Index to define critical skills such as strategic vision, innovation management, and cross-cultural leadership. This index would serve as a benchmark for leadership progression and provide a structured framework for nurturing resilient, forward-thinking leaders aligned with national priorities.

By co-developing the index with professional bodies, Singapore can ensure sector-specific adaptability while strengthening the nation’s reputation as a leadership hub.

Expanding micro-credentialing programmes in areas like AI, ESG, and digital transformation would prepare Singapore’s workforce for immediate skills demands. Introducing enhanced tax deductions or grants for employers investing in short-term certifications could increase adoption.

Additionally, a funding mechanism similar to SkillsFuture—where organisations contribute credits for employee upskilling—would incentivise workforce development and strengthen readiness for emerging challenges.

Professions like accountancy, critical for ESG assurance and business trust, need focused efforts to attract and develop talent. Singapore could partner with universities to create specialised programmes in data analytics and sustainable finance while expanding existing international outreach initiatives.

Adjusting the COMPASS framework to better support high-skilled foreign professionals would also help mitigate talent shortages, ensuring the profession remains globally competitive and ready to meet complex business demands.

Building Agility and Diversity in Governance

Singapore’s role as a global business hub requires its boards and leaders to adapt to emerging challenges, including governance complexities, ESG integration, and talent strategy alignment. The Government’s Forward Singapore agenda highlights the need for agile and inclusive leadership that aligns business practices with national priorities. However, gaps in board diversity, succession planning, and understanding of innovative technologies like AI could impede progress.

Enhancing board evaluation processes and providing leadership development opportunities will ensure that Singapore’s governance standards remain robust while driving long-term value creation.

Singapore could introduce structured board apprenticeship programmes to cultivate the next generation of leaders. By providing emerging talent with exposure to governance processes and decision-making, such programmes would ensure a sustainable leadership pipeline.

Government-backed initiatives for board-matching, similar to those implemented in the charity sector, could facilitate these efforts and enhance governance inclusivity across industries.

Singapore could mandate annual board evaluations, with externally facilitated reviews conducted at least once every three years. These evaluations would provide objective assessments of leadership performance, governance effectiveness, and board diversity.

Enhanced evaluation practices would also help identify gaps in succession planning, ensuring organisations are prepared to meet evolving market and regulatory expectations.

Boards must play a more proactive role in addressing ESG challenges and fostering innovation. Singapore could introduce directorship accreditation programmes that focus on sustainability, AI, and digital transformation.

These programmes would empower leaders to drive strategic, forward-thinking decisions, ensuring alignment with national goals like the Green Plan 2030. By equipping directors with the tools to navigate complex challenges, Singapore can set a new standard for governance excellence.

Download our full Budget 2025 Proposal for more insights and recommendations

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