Goldman Sachs is examining whether to engage with the fast-growing prediction-markets sector, a move that could reshape how Wall Street views platforms long seen as niche or legally ambiguous. Chief executive David Solomon has confirmed that the bank has held discussions with executives from Polymarket and Kalshi, describing these venues as sophisticated markets that resemble derivatives trading more than online betting. The conversations underscore a strategic recalibration […]
MNA Ventures, a premier diversified holding group and “one-stop-shop” conglomerate, today released its 2025 Year-End Summary. The report details a transformative period of internal optimization and aggressive international growth, reinforcing the group’s position as a global parent entity across the UAE, Europe, and emerging markets. Throughout 2025, MNA Ventures continued to execute its “solutions-first” strategy—developing internal tools to resolve complex corporate challenges before scaling them into market-leading subsidiaries. […]
HONG KONG SAR – Media OutReach Newswire – 15 January 2026 – HKU Business School unveiled the “Hong Kong Economic Policy Green Paper 2026” (“Green Paper”). This comprehensive document delves into various facets of Hong Kong’s economic domain, covering everything from trade finance and Hong Kong’s role in the Greater Bay Area (GBA) startup ecosystem to green finance, the IP economy, social and shareholder value for Hong Kong-listed companies, and pressing social issues such as housing affordability and overcrowding in emergency departments. Moreover, with the emergence of AI, the Green Paper examines the impact of AI on the labour market, cybersecurity, and the development of a Web 3.0 ecosystem.
This is the fifth edition of the Hong Kong Economic Policy Green Paper, released by HKU Business School, with the aim of providing recommendations on how Hong Kong can effectively tackle these challenges.
HKU Business School today unveils the Hong Kong Economic Policy Green Paper 2026. From left: Prof. Huiyin Ouyang, Associate Professor in Innovation and Information Management of HKU Business School, Prof. Dragon Tang, Professor in Finance in HKU Business School, Professor Hongbin CAI, Dean and Chair of Economics of HKU Business School, Prof. Richard Wong, Provost and Deputy Vice-Chancellor of The University of Hong Kong and Director, Hong Kong Institute of Economics and Business Strategy, Prof. Heiwai Tang, Associate Vice-President of The University of Hong Kong and Associate Dean of HKU Business School, and Dr. Tingting Fan, Principal Lecturer in Marketing of HKU Business School.
Prof. Richard Wong, Provost and Deputy Vice-Chancellor of The University of Hong Kong and Director, Hong Kong Institute of Economics and Business Strategy said, “This Green Paper was released after months of rigorous research by the scholars from HKU Business School. Grounded in an academic perspective and guided by a pragmatic, problem-solving approach, we have conducted objective analyses and in-depth investigations into core issues and real-world challenges currently facing Hong Kong’s development in political and economic operations, people’s livelihood, and industrial upgrading. Our aim is to provide the Government and relevant authorities with valuable insights and actionable policy recommendations.”
Professor Hongbin Cai, Dean and Chair of Economics of HKU Business School, said, “As a ‘super-connector’ bridging China and the world, Hong Kong’s unique role remains indispensable. Looking ahead, Hong Kong must deeply integrate into China’s national development plans, and also take a more prominent role on the international stage, with an in-depth understanding of the global market and active engagement with its international collaborators.
With campuses in Beijing, Shanghai, and Shenzhen, and an expanding presence in Vietnam and Europe, HKU Business School embodies our unique proposition: deeply rooted in Hong Kong, fully engaged with the Chinese Mainland, and truly international. This year’s Green Paper reflects our dedication to inspiring solutions based on rigorous research. As a world-class institute of higher education, we are committed to enabling Hong Kong to further unleash its core values and usher in a new era of high-quality development.”
Prof. Heiwai Tang, Associate Vice-President of The University of Hong Kong and Associate Dean of HKU Business School, added, “This Green Paper features research papers from ten teams of scholars with diverse backgrounds and varied expertise. Based on profound insights into Hong Kong’s development, they offer unique and targeted policy recommendations, building a rich and multifaceted framework of issues for the Green Paper. At the same time, behind these research achievements lies the scholars’ deep affection for and sense of responsibility toward Hong Kong.”
Regarding how digital technology can boost Hong Kong’s trade finance, he emphasised: “Both data and industry feedback clearly demonstrate the core value of trade finance. However, we need more synergy in the trade finance ecosystem and to catch up in digitisation. To address this, we must strengthen the governance and standard promotion of digital trade platforms and tools, deepen the cross-border interoperability of trade data, expand the functions of the Hong Kong Export Credit Insurance Corporation, focus on high-value-added trade enterprises, extend the coverage of Free Trade and Double Taxation Avoidance agreements, and promote responsible stablecoin adoption and Renminbi internationalisation.”
Prof. Dragon Tang, Professor in Finance at HKU Business School, stated, “Hong Kong is uniquely positioned to lead in the integration of blockchain technology within green finance, exemplified by our pioneering issuance of the world’s first tokenised green bonds, totalling HKD 6 billion in February 2024. With green finance representing a critical avenue for sustainable development, the global market is projected to grow significantly, emphasising the importance of transparency and trust. To capitalise on this opportunity, we must enhance our blockchain infrastructure, establish clear regulatory standards, and promote cross-border integration with initiatives like Core Climate. By leveraging blockchain’s capabilities, we can significantly reduce costs, improve transparency, and engage a broader investor base, ultimately driving our transition to a sustainable finance future.”
Prof. Huiyin Ouyang, Associate Professor in Innovation and Information Management, HKU Business School, commented on her study, saying, “Two weeks post-implementation of the hospital fee reform, the media reported no significant change in emergency department crowding, which aligns with what our analysis predicted. Overcrowding isn’t simply about patient behaviour – it’s a structural issue. Demographics are shifting, capacity is constrained, and alternative treatment options remain limited. What we now need is a careful, systematic evaluation of the fee changes. Where are vulnerable patients going for care? Are some patients delaying treatment? What unintended effects are emerging? Effective reform requires pairing fee adjustments with expanded primary care access. We can’t solve a capacity problem with pricing alone.”
Dr. Tingting Fan, Principal Lecturer in Marketing at HKU Business School, presented as well, spoke on her study and asked, “Why did Pop Mart go public in Hong Kong but register IP in Singapore? Or why was Molly ‘born’ in Hong Kong but did not go viral from Hong Kong? Why have local companies not managed to turn these homegrown IPs into major business triumphs? Learning from the past and looking forward, Hong Kong can leverage its financial market, legal system, as well as talents to build a comprehensive IP industry infrastructure and become an IP hub.”
The Green Paper includes ten articles; the key points are as follows:
Empowering Merchandise Trade Finance with Digital Technology in Hong Kong Author: Prof. Heiwai Tang, Associate Vice-President (Global), The University of Hong Kong; Associate Dean (External Relations), HKU Business School; Associate Director, Hong Kong Institute of Economics and Business Strategy; Victor and William Fung Professor in Economics
Trade is an essential lifeline for Hong Kong; its total merchandise trade was three times the city’s HKD3.2 trillion GDP in 2024. Trade finance is thus equally important, yet research shows that the total loans extended for trade finance have been declining.
As geopolitical and technological shifts reshape trade, Hong Kong must upgrade its trade finance services. With consumer-goods trade shifting to smaller, more frequent orders and shorter cycles, financial institutions need to streamline approvals and develop flexible products for e-commerce and logistics-driven cash cycles. Banks also need to digitise core processes in fund settlement. The article cautions that platforms directly connecting mainland manufacturers with overseas buyers disintermediate Hong Kong’s traditional hub-and-spoke role.
To address this, the article suggests the government leverage digital technologies to elevate the adoption of Hong Kong’s digital trade platforms through unifying core digital trade functions. Moreover, speeding up interoperability of trade data platforms with the Chinese Mainland and other economies will enable seamless data exchange.
Rebuilding Hong Kong as the Catalyst to the Greater Bay Area (GBA) Startup Ecosystem Prof. Alberto Moel, Professor of Practice in Finance, HKU Business School Prof. Joseph Chan, Associate Professor of Practice in Management and Strategy, HKU Business School; Associate Director, Centre for Innovation and Entrepreneurship
Offering a quantitative analysis of the evolution of Hong Kong’s startup landscape, the article found that post-2019 activity has slowed, mirroring global venture capital trends, with most failing to grow beyond 50 employees due to scarce late-stage capital despite early-stage availability. While fintech and logistics dominate and AI/blockchain grow quickly, deep tech lags—authors view this as temporary and highlight Hong Kong’s alignment in financial innovation, regtech, and GBA supply chains to attract investment and support corporate transformation.
To strengthen Hong Kong as the GBA’s premier startup hub and international financial centre, the article recommends nine policies—including fixing funding gaps, closing academia-market divides through industry-focused research for tech transfer, attracting/retaining talent, integrating Northern Metropolis with GBA supply chains, pivoting to high-value services, and drawing large tech platforms to incubate local startups.
The Applications of Blockchain in Green Finance: Hong Kong’s Experience and Opportunities Author: Prof. Dragon Tang, Professor in Finance, HKU Business School; Associate Director, Centre for Financial Innovation and Development
The green finance market has entered an important new phase. Hong Kong became the world’s first issuer of sovereign tokenised green bond when it priced an HKD800 million one-year note in February 2023. Despite this, Hong Kong faces several challenges in the practical implementation of using blockchain to advance green finance. This is due to the limited interoperability between blockchain platforms and existing financial infrastructure, which hinders cross-market transactions. Real-time settlement for tokenised assets is also difficult because of scalability constraints.
The article argues that the future success of blockchain development in green finance will depend on progress in three areas: standardisation, scalability, and security. Clear regulatory frameworks and common technical protocols are needed to provide legal certainty and interoperability across platforms. While collaboration among regulators, technology providers, and energy-market participants can align rules for tokenisation. Blockchain can also connect Hong Kong’s Core Climate platform with overseas counterparts, as cross-border integration is crucial to the inherently international nature of climate finance.
Can Hong Kong be an IP hub for Future Labubu? An Overview of Hong Kong’s IP Industry Dr. Tingting Fan, Principal Lecturer in Marketing, HKU Business School Prof. Heiwai Tang, Associate Vice-President (Global), The University of Hong Kong; Associate Dean (External Relations), HKU Business School; Associate Director, Hong Kong Institute of Economics and Business Strategy; Victor and William Fung Professor in Economics
As Labubu’s success turns the spotlight on the growing importance of the IP industry, the authors propose that this can inspire more creators and businesses to invest in branding, licensing, and cross-border collaborations. This can also attract policymakers’ attention to the emerging IP sector as a key driver of innovation and economic growth.
To position Hong Kong as a leading regional IP trading centre, the authors recommend that stakeholders—including IP developers, entrepreneurs, and government agencies—coordinate efforts across key areas. These include building a robust IP financing ecosystem, such as through government-issued IP bonds replicating the green finance model; enhancing infrastructure and platforms to support IP development; developing specialised talent and professional services in the IP sector; promoting IP initiatives throughout the Greater Bay Area; and strengthening IP protection alongside a solid legal framework.
Thematic Research: Maximisation of Social Value and Shareholder Value – Insights from Hong Kong-listed Companies Across Sectors Author: Prof. Sean Chang, Associate Professor of Practice in Finance, HKU Business School
Through a triangulation research approach, the article examines how social policies, international frameworks, and corporate social responsibility influence a company’s valuation and capital budgeting decisions. Using insights from major Hong Kong-listed companies across nine sectors—spanning transport, utilities, financials, banking, conglomerates, technology, real estate, consumer, and hotel servicing—the research highlights CSR’s role in enhancing long-term firm performance.
Key findings show that corporate risk assessment, company valuation, and stock performance are significantly influenced by CSR-linked socially responsible investing (SRI) factors. Hong Kong-specific social values, such as equality and sustainability, shape investor preferences, guiding finance managers to tailor solutions and adapt regulatory standards. While conventional metrics remain dominant, incorporating social value boosts long-term firm value by building shareholder trust and mitigating risks; companies can pursue CSR projects financed via SRI bonds to create dual economic and societal benefits.
The study recommends embedding core values like equality and sustainability into corporate strategies, aligning budgeting processes with social objectives to pinpoint investments yielding both returns and positive impacts, and urging Hong Kong-listed firms to sustain capital budgeting aligned with enduring societal values.
Housing Affordability and Homeownership in Hong Kong, 1985-2023 Mr. Allen W. Huang, Student Researcher, Hong Kong Future Economy Institute Mr. Alex Ngau, Research Associate, Hong Kong Future Economy Institute Prof. Michael B. Wong, Assistant Professor in Economics, Management and Strategy, HKU Business School
Hong Kong’s housing market has grown increasingly unaffordable, hindering upward mobility for younger generations. Main findings from the research reveal that since the 2002 suspension of the Home Ownership Scheme (HOS), homeownership has declined sharply, rendering private housing “impossibly unaffordable” for median-income households. A wide public-private rent gap drives young people to accept lower-paying or part-time jobs to qualify for public rental housing (PRH), distorting labour supply, stifling human capital investment, and fuelling a surge in adult co-living with parents; younger cohorts (born 1980-1999) face far lower access to public housing and ownership than prior generations at the same age.
Taking Hong Kong Island as an example, between 2003 and 2024, the rent-to-income ratio for a typical 400-sq-ft private unit jumped from 35% to 60% of median household income, peaking at 65% in 2015 and 2019—far exceeding the UN-Habitat and World Bank’s 30% affordability threshold. Public housing rents stayed dramatically lower at just 7%–11% of median household income from 1985 to 2024. For home purchases, it now takes 18.2 years of median income to buy a 500-sq-ft private unit (up from 7.4 years in 2003), placing it in the “impossibly unaffordable” zone per the Demographia International Housing Affordability report, where ≤3.0 years is considered affordable and 9.0+ years is impossibly unaffordable. After the 2002 Home Ownership Scheme suspension, even subsidised HOS units now require 15.8 years of income on Hong Kong Island (up from 7.4 years in 2007), shifting them from moderately unaffordable to severely or impossibly unaffordable in urban cores.
To reverse these trends, the authors recommend ramping up production of high-quality ownership units, easing resale and leasing restrictions on existing subsidised sale flats to boost residential mobility and enable “trading up” the housing ladder, setting housing price and affordability targets over mere supply goals, and adopting responsive mechanisms to balance demand and supply.
Beyond Crisis Management: Structural Reform for the Overcrowding in Hong Kong’s Emergency Departments Prof. Huiyin Ouyang, Associate Professor in Innovation and Information Management, HKU Business School Ms. Yiran Zhang, PhD student, HKU Business School
Hong Kong’s public emergency departments (EDs) handle over 2.14 million annual attendances. This crisis, exacerbated by an ageing population, results from a structural mismatch: the majority of the attendances are for non-emergency conditions, leading to staff burnout and compromised care.
The article proposes three comprehensive structural reforms. First, improving operational efficiency with accurate wait time information systems is crucial. Second, increasing the ED fee (categories III–V) aims to divert non-critical patients. Success for this hinges on assumptions about patient responses, particularly how varied population segments will react to the price signal. International evidence raises concerns, showing that higher ED fees can reduce overall utilisation, but with the decrease primarily occurring among price-sensitive groups who may risk delays in receiving serious care. Therefore, for this reform to succeed, the public must have genuine access to alternative care pathways that can accommodate acute but non-emergency needs outside regular business hours, with pricing acceptable to price-sensitive populations. Third, AI can augment the workforce and manage demand (e.g., through telemedicine).
Ultimately, sustainable reform demands robust evaluation, political courage, and a commitment to address root causes, not just symptoms.
Initial Efforts to Empirically Measure AI Activity and Its Impacts on Hong Kong’s Labour Market Prof. Alan Kwan, Associate Professor in Finance, HKU Business School Prof. Mingzhu Tai, Associate Professor in Finance, HKU Business School; Associate Director, Institute of Behavioural and Decision Science Mr. Zihan Wang, Master student, HKU Business School
In an effort to empirically measure the impact of AI on Hong Kong’s labour force, the researchers observe that firms with a higher adoption of AI experience lower headcount growth. However, the scale of impact appears small in the city, which could be due to several potential reasons. One of these is the different composition of Hong Kong’s labour force compared with other countries. For instance, Hong Kong has a high proportion of finance or managerial talent, which is harder to displace; the city also features older or more elite workers. On the other hand, much of the impact of AI, particularly generative AI, is on the less elite and younger populations.
As such, the authors recommend policymakers produce more labour market statistics that track the impact of AI, particularly by occupation. On the rate of AI adoption in Hong Kong through innovation, the authors find that the city is heavily skewed towards research, but not commercialisation. This means that the quality and quantity of academic research is not translating to commercial use. To address this decoupling, the authors propose that the government tweak its existing early-stage startup funding platforms to encourage streamlining and higher utilisation of existing government resources.
The Impact of Generative Artificial Intelligence on Cybersecurity in Hong Kong Author: Prof. Michael Chau, Professor in Innovation and Information Management, HKU Business School
As GenAI can produce human-like text, code, images, and audio, cybersecurity crimes have become easier and faster to perpetrate. Not only have data leaks and hacks into security systems led to significant financial losses in Hong Kong, but they also hurt confidence in the city’s digital infrastructure.
The article recommends using AI to fortify Hong Kong’s cyber defence, such as using biometric verification and deepfake detection technologies, especially in areas involving critical infrastructure and high financial stakes. It is also important to prevent data leakage and other threats in using GenAI.
Hong Kong’s Next Growth: Pioneering the Web 3.0 Ecosystem Prof. Yulin Fang, Professor in Innovation and Information Management, HKU Business School; Director, Institute of Digital Economy and Innovation Mr. Yangchen Mou, PhD student, HKU Business School
Given the inherent risks in Web 3.0 operational models—most notably within Decentralised Finance (DeFi) systems—striking a balance between fostering the development of the Web 3.0 ecosystem and implementing appropriate regulation to maintain financial stability is and should be a key priority for Hong Kong authorities. To support this, the article categorises the industry into three distinct systems—Centralised Finance (CeFi), the integration of Traditional Finance and Centralised Finance (TradFi-CeFi), and Decentralised Finance (DeFi)—and put forward targeted policy recommendations for each.
For the CeFi system, the authors recommend creating a more conducive environment for development by refining specialised auditing frameworks, promoting a local Web 3.0 talent certification system, and introducing global leading CeFi institutions to the local market. For the TradFi-CeFi system, they suggest upgrading audit standards for traditional firms holding digital assets and upskilling traditional finance professionals with Web 3.0 expertise. In contrast, for the DeFi system, which carries higher inherent risks and poses greater regulatory challenges, the authors advise authorities to adopt a prudent stance while keeping monitoring its latest technological developments.
The full version of the Green Paper can be accessed here. Hi-res photos are available here.
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The issuer is solely responsible for the content of this announcement.
About HKU Business School
Established in 2001, HKU Business School is one of the youngest and most dynamic members of The University of Hong Kong (HKU). The School strives to nurture first-class business leaders and foster academic and relevant research that serves the needs of Hong Kong, China and the rest of the world in the new Asia-led economy. As a top international business school, the School has established its place as a globally impactful institution that leads the way through timely thought leadership, pioneering research, and educational excellence. Deeply rooted in Hong Kong and fully engaged with China, the School’s world-class faculty equip students with global knowledge and perspectives.
HKU Business School offers business education across a full range of disciplines, while achieving remarkable growth in faculty strength and research capabilities. The School ranks Asia’s No.1 in Financial Times’ Aggregated Research Ranking for two consecutive years, 2024 and 2025, while the University of Hong Kong ranked 11th in the world and No. 1 in Asia according to the QS World University Rankings 2026. The School has strategic partnerships with world-renowned universities and corporate partners, providing market-oriented content, superior learning, and instrumental resources.
To better serve our students and alumni in various cities and regions, and to facilitate collaboration opportunities with business communities around the globe, HKU Business School has established a unique international network that extends to Beijing, Shanghai, Shenzhen and Ho Chi Minh City.
HKU Business School is fully accredited by the European Quality Improvement Systems (EQUIS) and the Association to Advance Collegiate Schools of Business (AACSB).
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Tackle rising business costs and trade barriers with a unified digital platform for Free Trade Agreements as well as build stronger economic partnerships.
Bridge AI adoption gaps by co-funding shared data pools and introducing a regional “Trusted AI” mark to drive innovation and governance.
Future-proof the workforce with targeted work visas for global experts, job transformation roadmaps, and advanced leadership programmes.
SINGAPORE – Media OutReach Newswire – 7 January 2026 – KPMG in Singapore and the Singapore Institute of Directors (SID) are pleased to announce the release of a joint Budget 2026 Proposal, titled “Prospering in a New Global Landscape”.
From Left to Right: Yong Jiahao, Partner, Infrastructure, Government & Healthcare (IGH) & Industrial Manufacturing, Tax, KPMG; Ajay Kumar Sanganeria, Partner and Head of Tax, KPMG; Lee Sze Yeng, Managing Partner, KPMG; Max Loh Khum Whai, Vice-Chair, Singapore Institute of Directors; Edwin Lee, Deputy CEO, Singapore Institute of Directors
By fostering resilient economic linkages, embedding digital trust, and cultivating world-class talent and leadership with cross-domain expertise, Singapore can ensure its businesses and economy remain secure, innovative, and competitive in an uncertain global landscape.
This Proposal outlines strategies to position Singapore as a critical hub for global flows, covering three crucial areas:
A new global order: Resilience as a pivotal growth strategy
The Intelligent Age: Smart solutions for an innovative era
The recommendations in the proposal are also supported by data-driven insights from a survey recently conducted by KPMG and SID. More than 1,000 professionals, managers, executives and technicians (PMETs) and business owners were surveyed on the challenges they face and the kinds of Budget 2026 support they hoped to see. [For more information, please refer to the deck with the full survey results: https://kpmg.com/sg/en/campaigns/kpmg-singapore-budget.html ]
Empowering businesses to leverage Singapore’s trusted role as a global connector
Global commerce is rapidly transforming amid rising protectionism, shifting trade rules, evolving tax regimes, and geopolitical tensions. Singapore’s long-term prosperity in the new global order depends on its ability to lead as a trusted connector and aggregator of the flows of goods, capital, data, and talent.
Singapore must strengthen its economic linkages, build secure and interoperable digital platforms, cultivate a workforce equipped with cross-domain expertise, and equip boards with essential skills to navigate emerging risks and opportunities. Trusted and resilient economic linkages will ensure the seamless movement of goods, services, and investments, while interoperable digital platforms will play a critical facilitation role in enabling cross-verification of information, streamlining compliance, and fostering trust across borders. These efforts are especially important in helping businesses cope with shifting regulations. KPMG and SID’s survey found that 51 percent of respondents identified increased business costs as the main challenge to cross-border expansion, followed by higher tariffs (26 percent) and supply chain difficulties (25 percent). To address these challenges, 43 percent of respondents want stronger economic and trade partnerships to overcome trade barriers.
KPMG and SID recommend:
a) Developing a unified digital platform for Free Trade Agreement (FTA) management (page 7) to help businesses navigate complex procedures and unlock the full benefits of FTAs. This would be seamlessly integrated with government systems, making it more seamless and cost-effective for businesses to comply with FTA requirements. This would enable firms to leverage Singapore’s extensive FTA network to gain footholds in new markets, further enhancing Singapore’s regional and global competitiveness.
b) Increasing access to working capital to accelerate local enterprises’ strategic transformation and implementing industry-specific governance frameworks (page 7). With geopolitical shifts driving a more complex regulatory landscape, increased and dedicated funding would enable businesses to transform for the future while responding effectively to evolving governance standards. Such funding should be complemented by industry-specific governance playbooks to equip boards with essential tools to strengthen agility and resilience.
c) Enhancing Singapore’s government-backed trade platform with blockchain and AI (page 6). The global economy has seen an increase in supply chain disruptions amid geopolitical and trade uncertainties. An enhanced Government-backed trade platform would enable Singapore to further facilitate the flow of trusted payments, making it even easier for businesses to validate transactions and act on smart recommendations to elevate supply chain efficiency. Amid a more fragmented world, the enhanced platform would also reinforce Singapore’s position as a reliable hub for global commerce, by promoting increased supply chain transparency for critical industries like semiconductors, pharmaceuticals, and advanced manufacturing.
d) Introducing progressive carbon taxes to reward decarbonisation and establish performance-based pathways for large emitters (page 9). Singapore’s carbon taxes must evolve to consider unique business needs and companies’ decarbonisation plans. Progressive carbon tax rates post-2030 – based on facility emissions volume, emissions per unit of output, and sectoral abatement potential – could be accompanied by permanent conditional tax rebates for energy-intensive, trade-exposed sectors. These rebates could be based on set criteria such as verified year-on-year reductions in carbon intensity and investments in low-carbon technology. To strengthen these efforts, Singapore could also establish an ASEAN Environmental Data Exchange to facilitate the sharing of standardised and interoperable environmental data between Singapore and its regional trade partners (page 8). The exchange would improve the flows of green trade and green capital, enabling Singapore to be a regional hub for environmental data harmonisation. Organisations like the Singapore Institute of Directors could play a catalytic role by building board-level capability, aligning disclosure expectations and promoting best practices through director education, guidance frameworks and peer learning on a regional scale, helping boards to lead initiatives like progressive carbon taxation.
Fostering an ecosystem of Trusted AI in the Agentic Era
The rise of artificial intelligence (AI) is reshaping global competitiveness, with agentic AI—capable of autonomous decision-making—introducing both transformative opportunities and significant challenges. While agentic AI can drive innovation, optimise operations, and unlock new efficiencies, it also raises critical concerns around accountability, ethical deployment, and governance.
A critical enabler of AI’s potential is data sharing, yet this often proves difficult due to competition, concerns over intellectual property, and a lack of trust between organisations. Businesses—particularly smaller enterprises—also face cost constraints in accessing high-quality data, and many also lack the strategic clarity and workforce competencies to identify where AI can augment their operations.
KPMG and SID’s poll found that 54 percent of respondents cited talent and skills gaps as the top challenge for adopting AI, followed by high costs of technology adoption (52 percent) and a lack of clear AI adoption strategies (48 percent). By addressing these concerns, Singapore will be able to fully leverage the vast potential of AI and data to reinforce its status as a hub across various sectors.
KPMG and SID recommend:
a) Co-funding sector-specific shared data pools in partnership with trade associations and industry stakeholders (page 15). These shared, anonymised data pools would enable businesses to access high-quality datasets without incurring prohibitive costs. Tailored to specific sectors such as logistics and retail, these pools would facilitate benchmarking, model training, and experimentation under a trusted framework that safeguards data privacy and protects intellectual property. Shared data initiatives should be paired with guided AI adoption support to help businesses understand how AI can enhance specific parts of their value chain. For example, targeted support could help logistics firms optimise supply chains or assist retailers in leveraging AI to personalise customer experiences. This dual approach would enable broader AI adoption and accelerate innovation across industries.
b) Enhancing the public-private partnership (PPP) framework to accelerate AI adoption (page 15). As firms navigate high costs and limited guidance around AI adoption, there is an opportunity for the Government to provide greater access to infrastructure to lower barriers for AI experimentation and deployment. The enhanced framework would create positive spillover effects from existing AI initiatives, as government agencies, academia and industry stakeholders collaborate to strategically integrate AI solutions into business strategies. The framework could also promote cross-sector collaboration in key industries, fostering a culture of open innovation in AI. To bolster digital trust, Singapore could also establish a regional “Trusted AI” mark to drive harmonisation and innovation (page 12). Although Singapore’s Model AI Governance Framework provides a strong foundation for responsible AI deployment, there is still a largely untapped opportunity for Singapore to champion an assurance label that shows firms have AI controls aligned with recognised AI governance standards. By pushing regionalrecognition of this mark, Singapore could accelerate cross-border innovation and trade. The mark would build on initiatives like AI Verify and Project Moonshot, which have helped to promote Trusted AI in Singapore.
c) Supporting hands-on AI governance training for board members and executives (page 13) through a dedicated fund. This would complement existing SkillsFuture programmes which focus primarily on AI awareness, by expanding the emphasis to address strategic and operational gaps at the leadership level – covering ethical deployment, change management and cross-domain applications.
Building globally relevant leaders with cross-domain skills
To fulfil its role as a hub for global flows, Singapore must enable its businesses to navigate a complex web of governance requirements, trade rules, tax policies, and tariffs. While compliance with governance standards will bring higher upfront costs, it also provides a foundation for businesses to lead in innovation and competitiveness. For instance, businesses that embrace sustainability compliance can innovate in areas like green finance, carbon accounting, and environmental data exchange.
Yet, none of this is possible without specialised talent and leadership. Singapore needs professionals and board leaders with expertise in areas such as supply chain management, AI governance, and sustainability strategy. These individuals must be able to connect the dots across domains, such as linking data governance with trade compliance or integrating sustainability goals into business operations. The need for enhanced talent development also emerged from KPMG and SID’s survey findings. Forty-nine percent of respondents want more skills development and upskilling courses. Meanwhile, 42 percent hope for more support for workforce transformation and job redesign, such as higher grants. In addition, 37 percent of respondents want more leadership and management development initiatives, especially in the areas of mentorship and coaching for emerging leaders and advanced leadership programmes.
KPMG and SID recommend:
a) Creating a dedicated work-pass category for “master trainers” and mentors (page 18). The work-pass would encourage international professionals to join local companies, public agencies and training institutions to lead structured upskilling or leadership development programmes. This would accelerate skills transfer, expose workers to global best practices, and build a robust pipeline of talent capable of driving strategic transformation and competitiveness in a rapidly evolving global landscape. Structured leadership development programmes could also include peer-sharing platforms (page 21) aimed at promoting transformation training among C-suite leaders. Backed by the public sector and industry stakeholders, such platforms could foster the exchange of best practices, promote collective learning on key sustainability capabilities and empower leaders to proactively redesign roles and workflows ahead of market shifts.
b) Setting up job transformation roadmaps with co-funded training and certification initiatives (page 19) tied closely to sector-specific needs. As rapid technological developments shape industry demand for skills, job transformation roadmaps would be beneficial in outlining sector-specific disruptions, challenges and opportunities. These roadmaps could be accompanied by industry-recognised certification, and programmes backed by both the public and private sectors. Tailored to sectoral needs, certifications could help to assess whether workers have acquired the necessary skills to perform in transformed roles, especially in fast-evolving sectors where traditional qualifications may no longer suffice.
c) Establishing a $100 million fund to advance social impact reporting (page 9). As Singapore pursues long-term resilience, it must also ensure that economic growth is sustainable and inclusive. The fund could be used to train professionals and board directors in the reporting of social metrics, support academic modules in social sustainability and certify social auditors and advisers. It could also be complemented by broader efforts to enhance environmental, social and governance (ESG) competencies among businesses’ top leadership. Singapore could establish a national registry of certified sustainability committee members (page 20) who can be matched to boards and committees across sectors. This would help to expand access to qualified board resources, especially for local enterprises.
Lee Sze Yeng, Managing Partner, KPMG in Singapore, said:
“Leadership today isn’t just about mastering AI or acquiring specialised skills—it’s about navigating the intersections of cross-border trade, technology, and sustainability. To remain competitive, leaders must move beyond the basics, using AI and data to drive real business outcomes while building governance frameworks that inspire trust. At the same time, they need the courage to take calculated risks and collaborate across ecosystems to unlock new opportunities. Initiatives like co-funding sector-specific shared data pools and guided AI adoption support are critical to overcoming barriers and equipping leaders with the tools to thrive. As disruptions grow increasingly cross-border and cross-domain, Singapore’s ability to cultivate leaders who can turn complexity into opportunity will define its success as a global flows hub.”
Ajay Kumar Sanganeria, Partner, Head of Tax, KPMG in Singapore, said:
“Singapore’s position as a global hub—connecting trade, data, and capital—offers businesses significant opportunities to grow and compete globally. Grants and platforms are vital enablers, but they must be part of a broader solution that simplifies complexities and empowers businesses to focus on innovation. Future-ready approaches, such as managing governance and compliance in a more consolidated or ‘as-a-service’ mode, can reduce burdens on enterprises. A unified digital platform for Free Trade Agreement (FTA) management, enhanced with blockchain and AI, could streamline compliance and unlock the full benefits of Singapore’s FTA network. Co-funded training programmes and shared governance frameworks can further help businesses pool resources and build capabilities. By combining grants, platforms, and smarter ways of working, Singapore strengthens its role as a trusted global connector and equips businesses to lead with confidence in an evolving world.”
Yeoh Oon Jin, Chair, Singapore Institute of Directors, said:
“Singapore’s future as a global hub for connectivity and commerce will be shaped by how boards of directors evolve to lead with resilience and trust. Budget 2026 is an opportunity to strengthen governance frameworks that embed sustainability, cyber trust and accountability into every organisation’s agenda. By empowering directors to champion innovation, sustainability and digital assurance, organisations can grow with confidence while reinforcing Singapore’s position as a secure and trusted connector for goods, capital, data and talent in an increasingly complex global landscape.” Hashtag: #KPMG #SID
The issuer is solely responsible for the content of this announcement.
About KPMG in Singapore
KPMG in Singapore is part of a global organization of independent professional services firms providing Audit, Tax and Advisory services. We operate in 142 countries and territories with more than 275,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.
About SID
The Singapore Institute of Directors (SID) is Singapore’s national association for company directors. Established in 1998, our mission is to transform boards and empower board directors to be champions of good governance. SID works with regulators and partners to serve as the voice for directors and facilitates consultations and feedback sessions on regulatory matters. In advocating for good governance, SID advances thought leadership and benchmarking research and indices on corporate governance and directorship issues.
SID builds competencies and capabilities to enhance boardroom skills of directors for informed decision-making. An accreditation programme serves to set standards for and showcase best practices of good governance. The organisation supports members on their directorship journey with courses, workshops, advanced masterclasses, forum discussions and pit-stops. SID connects and strengthens the ecosystem with initiatives such as mentoring and networking. The Governance for Good Alliance is an initiative by SID to bring together key stakeholders who help advance our vision for every board director to be a champion of good governance.
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