How will your business navigate the shifting landscape of the future?

Welcome to KPMG Insights, a monthly newsletter capturing the top business trends and insights you might have missed this month.

As we enter 2024, Deputy Prime Minister Lawrence Wong’s statement about the “end of benign globalisation” serves as reminder that successfully navigating the evolving landscape of the future demands agility and vision. Businesses need to embrace a forward-looking approach, leveraging technology and anticipating industry shifts to bolster resilience. By rising to a new reality, we can forge a path to enduring success.

In this issue of KPMG Insights, we delve into potential trajectories and emerging trends in three critical areas: the supply chain, life sciences and global taxation.

Navigating the future of supply chain today

Continuous crises have beset the supply chain industry in recent years, however it has strengthened and emerged stronger. But, new challenges are demanding immediate attention as well as look to the future with a long-term approach to regain momentum towards growth.

Over the next one to two years, supply chain leaders will likely be occupied with cutting-edge technologies, sustainability imperatives and workforce evolution. Looking three to five years ahead, we anticipate the adoption of distributed ledger technologies and digital currencies to enhance the security and monitoring of cross-border trade flows. Industries will need to adjust to the evolving dynamics of the supply chain, driven by technological innovations and the growing potential of the metaverse as a supporting technology.

Explore our report, 'The future of supply chain' for strategies to capitalise on the challenges and opportunities that lie ahead.

Redefining tomorrow's life sciences

COVID-19 has brought improved efficiency across the healthcare ecosystem, but also led to stakeholders like payers, providers and patients having higher expectations such as rapid innovation, pricing transparency and a higher purpose.

Post-pandemic, four key drivers of change have emerged to set the next direction for the future of healthcare. Precision medicine, which tailors treatments to individual genetic profiles, integrates life sciences into patient care. Digital health aligns innovations with consumer expectations for connected healthcare. Artificial intelligence (AI) and machine learning accelerate drug discovery but demand robust cybersecurity measures. Despite these advancements holding promise, critical risks persist, including challenges in the supply chain, cyber breaches, and counterfeiting.

To seize current opportunities, organisations can leverage four strategic imperatives: creating tech-enabled, customer-centric experiences, partnering with diverse AI companies for faster time-to-market, transforming the supply chain and proactively managing cyber risks.

Discover how KPMG can help life science companies harness technology to build a connected enterprise .

Decoding the impact of BEPS Pillar Two

The Base Erosion and Profit Shifting Protocol (BEPS) Pillar Two, which came into effect in some jurisdictions on 1 January 2024, is poised to significantly impact multinational organisations with consolidated group revenues exceeding €750 million. The new requirements, complex and still evolving, may potentially affect private companies, family offices and trusts that meet the minimum threshold and have a foreign presence.

In anticipation of these imminent changes, private entities need to prepare for the forthcoming legislative changes. In adapting to global tax shifts, they should carefully consider four key aspects: a structural and system review, a detailed planning exercise, an evaluation of existing operations and an assessment of reputational risks.

By leveraging our expertise, private entities can gain a comprehensive understanding of the nuanced implications of Pillar Two and take the necessary actions.

Read more in our report, ‘The rising tide of global taxation’ to proactively navigate the changing terrain.