SINGAPORE: Amid rising economic uncertainty and intensifying global competition, senior executives across Asia Pacific (APAC) are sharpening their focus on digital transformation, resilient supply chains, and talent strategies to maintain competitiveness and drive sustainable growth, according to Forvis Mazars’ 2025 C-suite Barometer: Outlook 2025 – Cutting through competition.
Based on insights from 1,706 global business leaders—including 171 from APAC across 15 industries—the report highlights how digital transformation continues to dominate boardroom priorities. More than one-third (35%) of APAC leaders identified technology transformation as their top strategic initiative, up one percentage point from last year. This comes as companies grapple with increasingly complex operating environments shaped by inflationary pressures, geopolitical shifts, and supply chain disruptions.
Digital Agility and AI Adoption in Focus
While digital transformation takes precedence, there is a growing emphasis on the transformative potential of artificial intelligence (AI). The report shows 44% of APAC executives expect generative AI to significantly impact their operations—closely mirroring global expectations. However, the region lags behind in readiness, with only 66% of APAC businesses reporting a defined technology strategy, compared to 76% globally.
Kee Yin Lai, Partner, Technology, Digital & Sustainability Consulting at Forvis Mazars Singapore, said the push for digital solutions is fundamentally reshaping how APAC businesses operate. “Strategically leveraging structured data enables businesses to improve visibility, enhance decision-making, and build operational resilience. As AI matures, early adoption will be key to securing a competitive edge.”
Securing Supply Chains as Expansion Plans Grow
Supply chain optimisation is emerging as a business-critical priority. 36% of APAC executives cited supply chain instability as a top growth barrier—ten points above the global average. A further 28% are actively prioritising procurement and supply chain enhancement in their strategic plans, reflecting the region’s complex logistics landscape.
As APAC companies accelerate international expansion—74% plan to scale operations globally within the next five years—supply chain setup remains a top operational hurdle. Establishing secure, localised networks is critical, particularly for firms entering new markets. In parallel, ESG reporting pressures have driven 44% of regional businesses to invest in responsible supply chain specialists, further underlining the long-term strategic value of robust procurement frameworks.
Talent and Leadership Development Key to Long-Term Growth
The report also highlights a widening talent gap, with 50% of APAC executives struggling to attract and retain skilled talent, especially in mid-level and managerial roles. This surpasses the global average of 43%, revealing a more acute talent crunch in the region.
To address this, APAC businesses are investing in leadership development and flexible working models. Among those already offering hybrid work, 60% plan to adopt fully flexible arrangements, while 55% aim to reduce mandatory in-office days. Rick Chan, Managing Partner at Forvis Mazars Singapore, said, “Companies that embed flexibility and continuous learning into their culture will be better positioned to retain top talent and weather long-term challenges.”
Shifting Attitudes on ESG Reporting
Sustainability remains a strategic consideration, though the region has seen a notable decline in public ESG disclosures. Only 44% of companies in APAC published sustainability reports in 2025, down from 73% in 2024. However, integrated sustainability-financial reporting is on the rise, now adopted by 54% of APAC firms—a 14-point year-on-year increase.
Chester Liew, Partner, Head of Risk Consulting & Sustainability, noted that while public-facing ESG reporting may be tapering, companies are embedding sustainability more deeply into financial planning. “This shift signals that businesses are moving from compliance-driven reporting to strategic ESG integration that supports long-term value creation.”
Investment Outlook Reflects Caution, Not Retreat
Investment sentiment has cooled slightly across the region, with only 55% of executives planning increased investments—down from 64% in 2024. Organic growth remains the most favoured growth strategy, followed by partnerships (35%) and alternative funding (20%).
Despite the cautious investment outlook, APAC companies are optimistic about international growth. However, key barriers remain, including regulatory complexity, product-market fit, and localisation of supply chains.
Resilience with a Cautious Optimism
Looking ahead, 84% of APAC executives anticipate business growth in the next 12 months, though optimism has declined by seven points from the previous year and lags behind the global sentiment of 93%. The outlook reflects an increasingly pragmatic approach, as leaders double down on fundamentals—technology, talent, and operational agility—to navigate volatility and pursue long-term success.
