3. Staying competitive and future-ready

SBF backs the Government’s push to enhance the Progressive Wage Credit Scheme to defray the increase in the Local Qualifying Salary, and initiatives to encourage lifelong learning.  At the same time, it is important for businesses, especially those in manpower-intensive sectors to have access to foreign talent to effectively transform. This calibrated approach gives firms the confidence to invest in automation and job redesign while supporting sustainable wage growth for Singaporeans. To bridge the policy-to-practice gap, SBF will continue to work with the business community in implementing these changes on the ground through mid-career conversions and local talent pipeline development, ensuring Singapore’s growth remains inclusive and competitive.

While decarbonisation is necessary, we recognise that a balanced approach is required to manage business costs and benefits. We welcome the calibrated approach to carbon pricing, including the adjustment to the carbon tax trajectory, which aligns with SBF’s earlier recommendation to lower the upper target for 2028–2030 from S$80 to S$50 per tonne. This provides businesses with greater certainty and a more manageable transition pathway as they invest in greener technologies and processes. The extension of the Energy Efficiency Grant and enhanced green financing support will further help firms adopt sustainable solutions while managing cost pressures.

SBF will continue working closely with the Government to ensure that Singapore advances its climate ambitions in a way that remains pro-enterprise, competitive and sustainable.