Asia Pacific C-suite barometer: outlook 2025

SINGAPORE, 14 April 2025 – Forvis Mazars’ 2025 annual C-suite Barometer: outlook 2025 – Cutting through competition report has revealed that digital transformation remains the foremost strategic priority for Asia Pacific (APAC) executives, in an increasingly volatile business landscape. As digital transformation proves to create new opportunities for businesses, 35% of APAC executives identified the transformation of IT and technology as their key priority, up from one point the previous year. With economic uncertainty and increased competition cited as the top two factors limiting growth, APAC executives’ other top priorities include entering a new product or service category, and reviewing supply chain operations and procurement processes. 

Forvis Mazars’ annual C-suite barometer survey captures insights from 1,706 senior executives globally, including 171 from the Asia-Pacific region across more than 15 industry sectors, highlighting strategic priorities identified by APAC businesses to overcome barriers and secure sustainable growth in an uncertain market environment.

Kee Yin Lai, Partner, Technology, Digital & Sustainability Consulting at Forvis Mazars in Singapore, said, “As businesses across Asia-Pacific grapple with persistent economic uncertainty, intensified market competition, and ongoing supply chain disruptions, executives increasingly recognise digital transformation as a strategic imperative. By prioritising digital solutions, organisations can improve visibility of the businesses and transactions via structured data foot-prints which would allow them to diversify their operational capabilities, enhance productivity, and build resilience—crucial factors that help them maintain stability, manage risks effectively, and drive sustainable growth even amid volatility.”

Rising Impact of AI in Digital Transformation

APAC businesses recognise the necessity of transforming business structures and enhancing digital capabilities despite regional gaps in artificial intelligence (AI) readiness. Notably, 44% of APAC executives anticipate generative AI having a major impact on their businesses, which aligns closely to the global rate of 49%. Additionally, 66% of APAC companies have dedicated strategies for transforming the business through technology, trailing behind the global rate of 76% of companies that have such strategies in place. These statistics underscore how vital digital transformation is to APAC executives, with 63% prioritising increased efficiency and productivity, as the main driver for developing digital agility. 

Resilient Supply Chains Crucial Amid Volatility

 Supply chain stability continues to dominate the agenda for APAC businesses, with 36% citing it as a primary concern limiting growth—significantly higher than the global concern rate of 26%. In terms of strategic priorities, 28% of APAC executives explicitly focus on enhancing supply chains, operations, and procurement processes, surpassing the global strategic prioritisation rate of 21%.

With almost three quarters of APAC businesses planning international expansion in the next three to five years, 52% of the APAC respondents shared that their biggest challenge in setting up operations in new countries was to establish local supply chains. APAC companies engaging in ESG reporting also reported high investments (44%) in responsible supply chain specialists, highlighting the importance of secure supply chains for businesses in APAC.  

Addressing the Talent Gap Through Flexibility and Upskilling

Talent remains a critical priority for APAC businesses, yet talent acquisition challenges have significantly intensified in the region. Half of APAC executives now report difficulties in attracting and retaining skilled employees, notably higher than the global average of 43%. Recruitment is particularly challenging at mid-level and management roles. The primary reasons for these hiring challenges include difficulty attracting suitable applicants, effectively targeting qualified candidates, and an overall shortage of available talent in the market.

To successfully attract and retain top talent, APAC businesses must prioritise comprehensive learning and development initiatives, alongside a strong commitment to employee wellbeing. Executives in the region have identified strategic vision and planning, as well as analytical thinking and problem-solving, as the most important leadership qualities for guiding their organisations forward.

Additionally, in response to employee welfare needs, APAC executive prioritise flexible or remote working, compliance with standard working hours, and providing increased rest days to foster a supportive work environment. For APAC companies that already practise hybrid working, 60% of APAC executives are increasingly focused on fully flexible work arrangements, with 55% prioritising a reduction in the number of days people are in the office.

Rick Chan, Managing Partner at Forvis Mazars Singapore and Head of Audit & Assurance APAC, observed, “The ongoing talent shortage in APAC highlights a critical need for companies to transform their talent management strategies, particularly around leadership development and employee wellbeing. Businesses that actively foster flexible, hybrid work environments and prioritise continuous development for leaders will see improved employee engagement and organisational resilience. Addressing these talent challenges strategically today is vital to securing long-term competitive advantage.”

Marked Decrease in Sustainability Reporting

The Asia Pacific region has seen a notable decline in sustainability reporting, with only 44% of companies publishing sustainability reports in 2025, compared to 73% in 2024, an 18-point global decline. Correspondingly, more than half of executives in APAC now view ESG reporting as a cost rather than an opportunity. Despite this, more than half (54%) of organisations surveyed in Asia-Pacific now integrate sustainability with financial reporting, a 14-point increase from 40% in 2024. Results have also shown that APAC businesses prioritise investments in specialists on responsible supply chain (44%) for their ESG reporting, exceeding the global average of 34%. In contrast, global business leaders are primarily investing in specialists for climate and carbon emissions (42%) and sustainability reporting (40%).

Chester Liew, Partner, Head of Risk Consulting & Sustainability, Forvis Mazars in Singapore said, “The apparent contradiction between declining sustainability reporting and increasing integration of sustainability into financial disclosures reflects an important strategic evolution among APAC businesses. Companies in the region are now prioritising substantive actions—demonstrated by significant investments and deeper integration of sustainability into their core financial frameworks—over mere compliance-driven reporting. This strategic shift signals that APAC organisations increasingly view sustainability as integral to business resilience, financial performance, and long-term stakeholder value.”

Cautious Investment Yet Ambitious International Plans

APAC leaders demonstrate caution around investments—with only 55% planning to boost investments, down 9 points from 64% last year. Organic growth remains the most important growth source for Asia-Pacific organisations, with strategic alliances and joint ventures coming in second (35%), private equity, alternative funding or other investment (20%) being ranked as the third most important growth source. Economic uncertainty and heightened competition have contributed to cautious investment stances, which could also account for investment being low on the C-suite agenda, where only 25% of APAC executives cite it as a top strategic priority for their business in the next 3-5 years. Yet, 74% of APAC businesses plan to expand internationally within the next 5 years, with most companies targeting the US and China markets. Key challenges for these businesses would be to understand local regulations, product diversification for new markets, and establishing secure local supply chains.

Cautiously Optimistic Outlook Amidst Challenges

Overall, APAC business leaders remain cautiously optimistic, with 84% forecasting positive growth despite a challenging economic landscape. This optimism, however, marks a 7-point decline from 2024 and is 9 points below the global average of 93%. The region’s executives recognise clear hurdles ahead, particularly economic uncertainty, rising competition, and persistent supply chain resilience concerns.

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