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 per cent 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 the visibility of businesses and transactions via structured data footprints, which will allow them to diversify their operational capabilities, enhance productivity, manage risks and build resilience.”
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 per cent of APAC executives anticipate generative AI having a major impact on their businesses, which aligns closely with the global rate of 49 per cent. Additionally, 66 per cent of APAC companies have dedicated strategies for transforming the business through technology, trailing behind the global rate of 76 per cent of companies that have such strategies in place. These statistics underscore how vital digital transformation is to APAC executives, with 63 per cent 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 per cent citing it as a primary concern limiting growth—significantly higher than the global concern rate of 26 per cent. In terms of strategic priorities, 28 per cent of APAC executives explicitly focus on enhancing supply chains, operations, and procurement processes, surpassing the global strategic prioritisation rate of 21 per cent.
With almost three-quarters of APAC businesses planning international expansion in the next three to five years, 52 per cent 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 per cent) 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 per cent. Recruitment is particularly challenging in 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 executives 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 per cent of APAC executives are increasingly focused on fully flexible work arrangements, with 55 per cent 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 and 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 per cent of companies publishing sustainability reports in 2025, compared to 73 per cent in 2024, versus 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 per cent) of organisations surveyed in Asia-Pacific now integrate sustainability with financial reporting, a 14-point increase from 40 per cent in 2024. Results have also shown that APAC businesses prioritise investments in specialists on responsible supply chains (44 per cent) for their ESG reporting, exceeding the global average of 34 per cent. In contrast, global business leaders are primarily investing in specialists for climate and carbon emissions (42 per cent) and sustainability reporting (40 per cent).
Chester Liew, partner and head of risk consulting and sustainability at 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 per cent planning to boost investments, down nine points from 64 per cent last year. Organic growth remains the most important growth source for Asia-Pacific organisations, with strategic alliances and joint ventures coming in second (35 per cent), private equity, alternative funding or other investment (20 per cent) 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 per cent of APAC executives cite it as a top strategic priority for their business in the next three to five years. Yet, 74 per cent of APAC businesses plan to expand internationally within the next five 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 per cent forecasting positive growth despite a challenging economic landscape. This optimism, however, marks a seven-point decline from 2024 and is 9 points below the global average of 93 per cent. The region’s executives recognise clear hurdles ahead, particularly economic uncertainty, rising competition, and persistent supply chain resilience concerns.
Source: Forvis Mazars (Press Release)