Operationalising business trust: Why Singapore must move now

By Ajay Kumar Sanganeria, Partner, Head of Tax, KPMG in Singapore and Shafiqah Abdul Samat, Principal Advisor, Trade and Customs, KPMG in Singapore

Sustained uncertainty now defines the global economic environment. Sanctions regimes and export control regulations have become entrenched features of global trade, with the potential to reshape supply chains and trade compliance framework worldwide.

In this context, Singapore’s long‑standing position as a rules‑based, neutral and operationally disciplined hub takes on renewed commercial importance.

Businesses that anchor operations, data and decision‑making here to reduce uncertainty enjoy practical advantages—lower counterparty risk, faster deal execution and clearer regulatory pathways.

However, these benefits should not be assumed to be permanent. Tariff structures, digital trade practices and preferential market access can shift quickly in response to geopolitical tensions and evolving trade policies. Firms need to quickly secure and maximise the value of Singapore’s free trade agreements and governance frameworks today.

By combining technology innovation with policy leadership, Singapore can turn trust into a competitive asset. In doing so, it can become one of the world’s most seamless gateways for the movement of goods, capital and data.

This is a key foundation for long-term prosperity that few economies can rival. We must act in two areas to sustain this advantage: accelerating digital infrastructure and deepening enterprise resilience.

To prosper in a fragmented world, Singapore must move beyond traditional trade facilitation and position itself as a “global notary” for supply chains – a trusted jurisdiction whose systems reinforce trust and integrity at every stage of a transaction.

Businesses today need systems that not only move transactions quickly but also the ability to verify them, manage risks and ensure compliance across borders. Singapore can build on its strong existing digital capabilities by developing government‑backed platforms that embed trust directly into trade processes.

A government-backed trade platform leveraging blockchain and artificial intelligence could be introduced to enable rolled trusted payments, validate transactions, and provide smart recommendations to enhance efficiency.

Building on the Singapore Trade Data Exchange, such a platform would deliver unparalleled transparency – particularly for industries vital to Singapore’s economy but yet vulnerable to supply chain shocks, such as semiconductors, pharmaceuticals, and advanced manufacturing. This would strengthen Singapore’s role as a secure, neutral hub for global flows and a catalyst of supply chain resilience.

Simplifying the use of free trade agreements is an urgent priority. Singapore’s extensive FTA network remains a strategic advantage, yet the complexity of compliance often limits uptake especially among smaller firms.

A unified, government‑backed digital platform that automates rules‑of‑origin checks, documentation and data governance would ease administrative burdens while helping businesses proactively secure good opportunities. With such tools, firms would be better positioned to navigate tightening international tax, trade, and sustainability requirements with greater confidence.

Digital platforms are only as effective as the organisations using them. Businesses operating across borders need high‑quality governance and well‑integrated data are becoming essential for timely decision‑making and regulatory compliance. Yet many firms remain challenged by fragmented systems and siloed information, limiting their ability to respond swiftly to evolving standards.

Targeted policy support can help address this gap. Budget 2026 could play a catalytic role by enhancing funding mechanisms that enable enterprises to invest in governance improvements and operational resilience.

For example, the Enterprise Financing Scheme can be enhanced to with a separate dedicated category to prioritise and assist local enterprises undergoing strategic transformation or facing supply chain disruptions.

Increased and dedicated funding would give businesses the additional support to act on governance recommendations and ensure their competitiveness in a fast-changing business landscape. A multi-year, tiered funding model could be considered to support initial implementation and subsequent self-sufficiency.

In parallel, industry‑specific governance playbooks could be developed to help boards and senior management navigate cross‑border regulatory expectations in a more structured manner. Tailored guidance would allow companies to strengthen oversight while accounting for sector‑specific risks, improving overall preparedness in a more complex operating environment.

By investing in trusted platforms and governance‑driven resilience, Budget 2026 can transform Singapore’s trust premium into a lasting competitive advantage. These measures will enhance trade efficiency, attract long‑term investment, and strengthen Singapore’s role as a reliable connector in the “new normal”.

Targeted support that helps firms embed trust into their operations—through stronger governance, better data and friction‑less trade infrastructure—will boost investor confidence, deepen regional integration and anchor high‑value global flows in Singapore.

If executed well, Budget 2026 can mark a decisive step in reinforcing Singapore’s position as a resilient, forward‑looking and indispensable hub for global commerce.