Budget 2025 proposals must boost cybersecurity and innovation: EY

It also called for enhancements to Singapore's tax system to support businesses and drive innovation.

Budget 2025 proposals should emphasise innovation, cybersecurity, AI adoption, and workforce upskilling through enhanced support for businesses and individuals, EY said.

In its wish list for Budget 2025, EY advocated for enhanced cybersecurity capabilities amongst businesses, ensuring they can transition securely.

In AI, they suggest providing AI adoption incentives for SMEs, including subsidies and the establishment of sector-specific hubs.

For individuals, EY recommends SkillsFuture Credit top-ups, micro-credentials, AI literacy programmes, and workplace AI integration training to promote workforce readiness.

EY also calls for enhancements to Singapore's tax system to support businesses and drive innovation. They propose allowing companies to convert R&D tax deductions into refundable credits, easing cash flow, particularly for SMEs.

The firm also recommended including insurance policies as designated investments for funds tax incentive schemes and ensuring tax transparency for new S-REIT income streams, such as co-working spaces and ESG-related initiatives.

Supporting workers, families, and individuals remains a priority on the wish list. EY proposes enhancements to the Senior Employment Support initiative, such as wage subsidies and training for older workers.

Lastly, EY emphasises the need to promote sustainability and innovation in the real estate sector. They propose tax adjustments for S-REIT income streams derived from new services like co-working spaces and ESG initiatives, including solar energy projects.