CEOs in Singapore are proactively addressing trade and tariff uncertainties, with 53% planning mergers and acquisitions (M&A) in the coming year, according to the latest EY-Parthenon CEO Outlook Survey. The survey, which included 40 Singaporean business leaders, highlights that 98% of CEOs globally are worried about the impact of tariffs on operations and sales over the next 12 months.
The survey reveals that 38% of Singaporean CEOs are very or extremely concerned about tariffs, prompting 53% to explore new supply chain options. Purandar Rao, EY-Parthenon Asean and Singapore Strategy and Transactions Leader, noted that Singapore’s economy, less reliant on the US market, may face indirect impacts from global manufacturing declines.
Despite the challenges, the appetite for M&A remains strong, with 66% of Singapore CEOs reporting that recent acquisitions met or exceeded value expectations. Luke Pais, EY-Parthenon Asia-Pacific Private Equity Leader, emphasised that M&A can unlock synergies and drive long-term growth even in uncertain times.
The survey also highlights mixed results from artificial intelligence (AI) investments. Whilst 42% of Singapore CEOs plan to expand AI investments, 18% are reconsidering due to unclear returns. Joongshik Wang, EY-Parthenon Asia-Pacific and Asean Strategy and Execution Leader, suggested that AI could reduce operational costs by up to 30% and enhance efficiency by up to 40%.
As inflation remains a concern for 68% of Singaporean CEOs, many are focusing on cost management strategies. The survey underscores the resilience and adaptability of CEOs in navigating complex global challenges.
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