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Despite a cautiously optimistic outlook, APAC leaders surveyed are grappling with digital disruption, supply chain instability, and a widening talent gap.
Business leaders are recalibrating priorities in response to continued economic challenges and intensifying market competition. This is according to findings from the Forvis Mazars 2025 C-suite barometer: Cutting through competition, which surveyed over 1,700 senior executives globally, including 171 in APAC across 15 industry sectors.
Digital transformation remains top of the agenda
In an increasingly digital-first world, 35% of APAC executives identified IT and technology transformation as their leading strategic priority. This has increased slightly from 2024 and shows that digital transformation is now seen as key to increasing efficiency and productivity.
The survey also mentioned the rising impact of AI:
- 44% expect generative AI to have a big impact on their business, which aligns with the global rate of 49%.
- 66% of APAC companies have dedicated strategies in place for transforming the business through technology, although this is below the global average of 76%.
- 63% are aiming to boost efficiency and productivity through digital tools.
Supply chains still under pressure
APAC businesses are still feeling the impact of global supply chain disruptions. 36% list supply chains as a major concern limiting their growth, higher than the global average of 26%. In terms of strategic priorities, 28% are making supply chain improvements a top priority, compared to 21% globally.
As many businesses plan to expand internationally, 52% say building local supply chains is their biggest challenge when entering new markets. Among companies doing ESG reporting, 44% are investing in responsible supply chain specialists, showing how important this area has become.
Talent gap push focus on flexibility and upskilling
Attracting and keeping skilled employees is a growing issue in the region. Half of APAC executives report trouble hiring and retaining talent, especially for mid-level and management roles. That’s more than the global average of 43%.
Primary reasons for hiring challenges:
- Difficulty attracting suitable applicants
- Effectively targeting qualified candidates
- Overall shortage of available talent in the market
To address this, businesses must prioritise:
- Prioritising learning and development initiatives
- Supporting employee wellbeing
- Offering flexible or remote work options
- Ensuring standard working hours and more rest days
- Among hybrid workplaces, 60% are moving towards fully flexible arrangements and 55% aim to reduce in-office days
- Focusing on leadership skills such as strategic vision and planning as well as analytical thinking and problem-solving
A shift in sustainability effort
One noticeable change this year is the drop in sustainability reporting. Only 44% of APAC businesses are publishing sustainability reports, a decrease from 73% in 2024. This is a bigger decrease as compared to an 18-point of global average.
However, this does not mean companies are doing less. In fact, more than half (54%) now combine sustainability and financial reporting, an increase from 40% last year.
APAC firms are putting more investment into ESG reporting to focus on supply chain sustainability (44%), while globally, the focus is more on climate and carbon emissions (42%) and sustainability reporting (40%).
Investment slows, but growth plans remain strong
Fewer APAC companies plan to increase investments this year. Only 55%, a decrease from 64% last year. Investment ranks low on the list of top priorities for 2025. Despite economic uncertainty and rising competition, organic growth remains the top growth strategy for APAC businesses, followed by strategic alliances (35%) and alternative funding (20%). While only 25% of executives list investment as a top priority, 74% still plan to expand internationally over the next five years, mainly into the US and China. Key challenges include navigating local regulations, adapting products for new markets, and building reliable local supply chains.
Overall business outlook
Despite the challenges, 84% of APAC executives expect their business to grow in 2025. This is lower than in 91% in 2024 and below the global average of 93% but still shows a positive outlook.
In short, APAC business leaders are realistic about the hurdles ahead. With a strong focus on digital transformation, talent, and supply chains, they are taking key steps to stay ahead in a competitive and fast-changing world.
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