SBF and PwC Tell Singapore: It's Time to Move First on Decarbonization, Not Wait and React

Sometimes, the most honest wake-up calls do not come from regulators. They come from the business community itself.

In January 2026, the Singapore Business Federation and PwC Singapore submitted their joint Budget 2026 recommendations to the government, under the title "Building a Future-Ready Singapore: Transformation, Technology, Trust." The core message was simple: do not wait for things to change around you. Move first.

The report covered a wide range of issues. But if you run a business and care about where sustainability fits in, one part is worth paying close attention to.

On decarbonization, both SBF and PwC were upfront: moving to a green economy is not something any single business or sector can do alone. It needs coordination across the whole economy, clear guidance, practical roadmaps, and the right people with the right skills. Their recommendations included establishing a Carbon Transition Council to track businesses' progress toward net-zero targets, developing sector-specific best practices, leveraging procurement to accelerate decarbonization, and extending the EFS – Green scheme beyond March 2026.

Now, you might be thinking, does any of this actually apply to an SME?

The answer is yes, and quite directly.

SBF and PwC were clear that SMEs specifically need stronger, more practical support to innovate, scale, and grow. Technology adoption and decarbonization were both called out as real levers for staying competitive, not just buzzwords, but genuine business strategies for the road ahead.

The economic picture added urgency to all of this. Singapore's GDP grew by 4.8% in 2025, but slower growth was expected in 2026 amid mounting global pressures. SBF's own survey found that 37% of businesses were bracing for a tough year ahead, compared with 14% who felt optimistic. When times get harder, businesses that have already started cutting emissions and building sustainable operations tend to be in a stronger position than those that have not.

Budget 2026 responded with a firm yet grounded message. Singapore's climate commitments are not going anywhere, but the support is there to help businesses move at a pace that works for them. The Energy Efficiency Grant was extended, decarbonization research was backed by the S$37 billion "Research, Innovation and Enterprise 2030 Plan". The direction was clear.

Industry and government are saying the same thing. The businesses that start their sustainability journey now will be better placed in terms of costs, in supply chain expectations, and in new opportunities as the green economy grows.

The grants are available.

The roadmaps exist.

The support is in place.

There has probably never been a better time to get started.

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