In this video episode of Singapore Budget 2026 Insights by KPMG in Singapore, Chris Roberts, Partner, IGH & Manufacturing, Tax, speaks with Peter Liddell, Global Leader, Operations Centre of Excellence, on how Singapore can strengthen its role as a trusted global hub by adapting to shifting trade patterns, navigating tariff and regulatory complexity and enhancing supply chain resilience through digital infrastructure, automation and targeted government support.
Read video transcript below.
Peter Liddell:
Chris, it's been a while, great to catch up.
Chris Roberts:
Yeah, likewise, Peter, great to catch up with you. I'm really looking forward to the discussion today on how the budget can help Singapore be more economically resilient by elevating its role in regional and global supply chains. I think it'll be a really interesting conversation.
Peter Liddell:
Absolutely. For decades, Singapore has been a crucial, trusted global trading hub, connecting supply chains around the world, but we know that times are changing. There's a new global order now, propelled by rapid technology advancement, but also shifting trade patterns.
Chris Roberts:
That's right, Peter. We're seeing tariff regimes evolve almost overnight on a daily basis. Trading blocs are being reshaped, new blocs are being created, old blocs are being torn down, as well as both tariff and non-tariff barriers being much more actively used as a tool, across both domestic and foreign policy. So the concept, I think, of free and fair trade has changed dramatically.
The old supply chains that were optimised around free trade and the ability to move goods freely and easily can't be relied on anymore. So at the national level, countries need to ensure their security interests are met and they're resilient in the face of these challenges. At the same time, countries need to address the strategic realities and adapt. So that includes re-examining existing partnerships, seeking out and building new partnerships. But I think most importantly for Singapore, it's leveraging the strengths that make Singapore that global trusted trading hub.
Peter Liddell:
I agree, Chris, completely. And of course, here at KPMG in Singapore, we've come up with three specific areas where we think will help Singapore bolster its resilience. So first, I think it's time for Singapore to really rethink its role in global supply chains. Second, definitely the need to invest in platforms that enhance transparency, but also trust in global trade. And third, to reinforce its status as a trusted global trading hub through investment in digital infrastructure, but staying adaptable and agile with regulatory support.
Chris Roberts:
I think that's right. Now, these are all things that the government can do. From a business perspective, what businesses are looking to do is to gain clarity around the complexities surrounding access to free trade agreements and trading relationships. So that includes the free trade agreements that Singapore has already signed, those that it's looking to sign and agree with other jurisdictions or regional trading blocs. This extends the impact of new tariff barriers on businesses as they arise.
Businesses need to understand what is the impact of this latest pronouncement on my supply chain. Is that a cost that I'm going to be forced to swallow? Can I pass it on to a customer? Or do I need to look for new suppliers or new customers because it's making me uncompetitive. So the ability to quickly interpret and adapt to those evolving regulations will unlock opportunities for businesses, allowing them to save costs, explore new markets and to collaborate and partner with new suppliers. So such adaptability is really the key thing for long-term resilience and growth from a business perspective, and I think the government can really help through the budget with that.
Peter Liddell:
Yeah, that's right, Chris. I think adding further depth from a supply chain perspective, to really help businesses transform, we'd like to see an enhanced trade platform, backed by the government of course, which can drive effectiveness in inventories, like semiconductors and pharmaceuticals, as examples.
Chris Roberts:
I think that's right. It'd be great to hear a bit more about that, Peter, and how that might work.
Peter Liddell:
This enhanced trade platform can function as an extension of the current Singapore trade data exchange, which helps the nation's digital infrastructure, which helps the supply chain ecosystem partners to share data securely. The extension of such a platform could leverage technologies like blockchain and AI to really facilitate the flow of trusted payments, thereby making it easier to validate transactions, but more importantly, providing that added trade flow security. It could also offer smart recommendations using the data that was in the platform so that firms can be more efficient as they trade with global markets.
Chris Roberts:
Absolutely. An advanced digital infrastructure platform would really build and enhance the efficiency, security and resilience of the nation. To emphasise that, the key is to enable agility across businesses so that they can adapt quickly. This calls for real-time data on trade flows and tax costs associated with these. No longer can we wait until the end of the quarter, the end of the year.
Businesses need to make those decisions today to be able to adapt effectively. They can then make those decisions around passing on the incremental costs, absorbing them, or as I said previously, around exploring new markets and new opportunities for suppliers or customers. So how else do you see the Budget 2026 helping businesses, Peter?
Peter Liddell:
I think the budget can really help firms to accelerate their transformation by incentivising them to really invest in automation, advanced inventory management, or autonomous AI-driven supply chain planning. Now, this might include solutions like the current business adaptation grant, which supports companies to engage consultants to adapt their business operations and that really strengthens supply chain resilience.
Chris Roberts:
Great insights, Peter. Another area which the budget can help address is linked to transformation as well. So you've talked quite a lot about AI, the use of new technology, the importance of new technology. So how businesses are able to face the challenges and be able to take advantage of new technologies quickly enables them to transform for the future while keeping up with those new rules and regulations. What we recognise is that firms may not have the budget to do that immediately, or it may be a draw on working capital. So the government can help by enhancing firms' access to working capital, develop and enhance industry-specific governance frameworks, and that can help local enterprises navigate compliance and regulations more effectively.
Peter Liddell:
Interesting. So, Chris, do you think that this is potentially a standalone scheme or potentially in conjunction with one that already exists?
Chris Roberts:
I think it's in conjunction with one that already exists, which is the Enterprise Financing Scheme. So this provides working capital loans which are designed to boost operational cash flows. So with geopolitical shifts driving a complex regulatory landscape, this scheme could enhance the help for firms undergoing strategic transformation. Or, as we've seen particularly over the last six to twelve months, firms that are facing supply chain disruptions, whether that's because there's been an overnight change in regulations, customers are wanting to stock up on goods or suppliers are not wanting to sell you goods quickly.
All of that has a working capital impact and businesses need to be able to manage that effectively. So if you create a multi-year tiered funding model that would cover 90 percent of costs in year one, 75 percent in year two and 50 percent in year three, that would enable firms to both invest in some of these technologies that we've talked about to make them more resilient, but also would help enable them to better weather some of these shocks as they arise.
Peter Liddell:
Yeah, okay. And do you think there's a role for industry to play in this whole thing?
Chris Roberts:
Yeah, absolutely. My preference, I think, would be that industry works alongside government on this, but also industry needs to come up with its own ideas and its own solutions. So what we look forward to seeing from the government, from the budget in 2026 is incentives for business to make these investments and take those decisions that enable them to be more resilient and more successful in the long term. So we want to see the encouragement of industry-specific governance playbooks designed to equip boards with the tools they need to respond to these changing rules, regulations and governance relationships.
Associations that comprise board and C-suite level members as well could be well placed to steer this because one of the most powerful things we can do as consultants is we can help convene C-suites from different clients and they can share experiences both positive and negative between them as to how they're weathering the storm.
Peter Liddell:
Definitely agree with you there, Chris. I think with these measures that we've been talking about, we'd hope to see budget 2026 really unlock more opportunities for businesses and make Singapore a more resilient and trusted global hub.
Chris Roberts:
That's absolutely correct. It's a really great chat, Peter. We'll have to do it again sometime.
Peter Liddell:
Of course. Thanks, Chris.
Chris Roberts:
Cheers.
Principal Advisor, Head of Healthcare and Life Sciences, and Global Leader, Operations Centre of Excellence
KPMG in Singapore
