**Asia Pacific**: The 2025 C-suite Barometer report reveals that digital transformation is the key focus for APAC executives amid economic uncertainties, highlighting challenges in supply chains, talent management, and decreasing investment sentiment as companies adapt to new market realities.
According to the 2025 annual C-suite Barometer report by Forvis Mazars, digital transformation has emerged as the foremost strategic priority among executives in the Asia Pacific (APAC) region, as businesses navigate increasing economic uncertainties and intensified competition.
The report revealed that 35% of APAC executives identified IT and technology transformation as a key focus area moving forward. This is particularly pertinent as 44% of respondents anticipate that generative AI will have a significant impact on their operations. Furthermore, 66% of executives outlined that they have dedicated strategies for technology transformation, underlining its critical role in the modern business landscape.
Supply chain stability remains a pressing concern, with 36% of executives citing it as a limiting factor for growth—this figure is notably 10 points higher than the global average. In addition, 52% of those surveyed highlighted that establishing local supply chains poses the greatest challenge for international expansion. The complexities surrounding talent acquisition and retention have also emerged as a serious issue, with half of the executives reporting difficulties in attracting and keeping skilled personnel, surpassing the global average of 43%, particularly in mid- and senior-level positions.
The evolving work environment has prompted 60% of APAC companies operating hybrid setups to transition towards fully flexible working arrangements. In line with this trend, 55% of surveyed executives indicated a reduction in mandatory in-office days.
Notably, the report also pointed to a significant decline in sustainability reporting, with only 44% of companies publishing such reports in 2025, a drop from 73% in 2024. However, there is a glimmer of progress as 54% of executives now integrate sustainability into their financial reporting.
Investment sentiment appears to have taken a hit, with only 55% of executives intending to increase their investments, a decrease from 64% the previous year. Despite these challenges, 74% of companies plan to expand internationally within the next five years, with the United States and China being the primary targets.
While 84% of APAC business leaders continue to forecast growth for their organisations, this optimism has waned, reflecting a 7-point decline compared to the previous year.
Kee Yin Lai, Partner at Forvis Mazars in Singapore, commented on the findings, stating, “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.”
Rick Chan, Managing Partner at Forvis Mazars Singapore, elaborated on the talent challenges, asserting, “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.”
Additionally, Chester Liew, Partner and Head of Risk Consulting & Sustainability, remarked, “This strategic shift signals that APAC organisations increasingly view sustainability as integral to business resilience, financial performance, and long-term stakeholder value.”
The report serves as a comprehensive overview of the current state of business in the APAC region, illuminating the key challenges and strategies that executives are prioritising as they navigate a complex landscape.
Source: Noah Wire Services
