Global CEOs, including those in Singapore, are increasingly confident in navigating economic volatility, according to the latest EY-Parthenon CEO Outlook survey. The survey, which includes responses from 40 Singaporean CEOs, highlights a shift towards strategic transactions and localisation as leaders adapt to ongoing geopolitical and economic challenges.
Forty-seven per cent of Singapore CEOs anticipate that current uncertainties will persist beyond this year, with 22% expecting them to last three years or more. Despite this, the CEO Confidence Index for Singapore rose to 81.5, up from 63 in May, reflecting a growing resilience among leaders. Purandar Rao, EY-Parthenon Asia East, Asean and Singapore Strategy and Transactions Leader, noted that CEOs are using market volatility as an opportunity to transform their businesses.
The survey also indicates a strong inclination towards mergers and acquisitions (M&A), with 48% of Singaporean CEOs planning to pursue such deals this year. Additionally, 70% are considering joint ventures and strategic alliances. Singapore is viewed as the top destination for M&A activity among local CEOs, aligning with a broader trend towards localisation. Joongshik Wang, EY-Parthenon Asean and Singapore Strategy and Execution Leader, highlighted Singapore’s focus on localisation due to its role as a hub for Southeast Asian markets.
Inflation and tariffs remain key operational challenges, with 51% and 48% of Singaporean CEOs, respectively, identifying them as concerns. Technology also presents both opportunities and hurdles, with 38% citing cybersecurity threats as a barrier to innovation. Geophin George, EY-Parthenon Asean Transactions and Corporate Finance Leader, emphasised the focus on growth and innovation to future-proof businesses.
As CEOs continue to adapt to a volatile environment, the emphasis on strategic transactions and localisation is expected to shape their long-term strategies.
