AsiaPacificC-suitebarometer:Outlook2025

forvs

mazars

“Companiesneedto

expandregionallymore

thanever,yettheyare

becomingincreasingly

cautious.Wehaveseen

acrossAPACmarkets

thatthemostsuccessfulcompaniesarecarefullymixingtechnology

innovationwithsmartriskmanagement.”

Jean-FrancoisSalzmannAPACChairman

ManagingPartnerforJapanForvisMazars

Contents

04Foreword

06Cautiousoptimismdefinesoutlook

07Bracingforeconomicheadwind

08ToppingtheC-suiteagenda

09TheAIrace

11Targetingoverseasmarkets

12Competitionfortalentheatsup

13ESGreportinglosessteam

14Methodology

Foreword

Theworldeconomyin2025presentsC-suiteleaderswithadecisivemomenttoscaleupandgetaheadofintensifyingglobalcompetition.Businessleadersarestrategicallypositioningthemselvesforfuturegrowth,whileeconomic

uncertaintyandatensegeopoliticallandscapecontinuetoputpressureonbusinessoperationsandleadershipconfidence.

AcrossAsiaPacific(APAC),businessesneedtoadaptandstayresilientinincreasinglycomplicatedtimes.Whiletheimmediateshocksofpost-pandemic

disruptionshavesubsided,enterprisesarestill

dealingwithongoingchallenges,includingsustainedinflationarypressures,swiftlyshiftingregulatory

environments,andtechnologicaldisruption.

Atthesametime,US-Chinatechnologytrade

tensionscontinuetoshakeupAsiansupplychains

andareforcingcompaniesintheregiontorethinktheirdigitaltransformationstrategies.However,thishasspurredinnovationinsomemarkets.InChina,

DeepSeekreleaseditsownopen-sourceartificialintelligence(AI)largelanguagemodel(LLM)in

February2025,markingasignificantmilestoneinthecountry’sAIdevelopmentcapabilitiesamidongoingglobaltechnologyrestrictions.

BusinessleadersacrossAPACremainoptimistic

aboutgrowthin2025,buttheiroutlookisn’tquiteasbullishasitwasin2024.Severalfactorsarebehindthemorecautiousoutlook:largeeconomiessuch

asIndonesia,whichwereoncehailedasregional

growthdrivers,arenowcoolingoff;China’sbounce-backistakinglongerthanexpected;anduncertaintyaroundU.S.tariffsiscloudingtheoutlook.Comparedtoexecutivesinotherregions,APACbusiness

leadersarenotablymorereservedintheiroutlook.

Thiscautionisshowingupinhowtheyapproachgrowthplansandinvestmentchoices.

TheForvisMazarsC-suiteBarometerservesas

animportanttooltounderstandtheseshifting

businessdynamics.Thecomprehensivesurvey

capturesC-suiteexecutives’perspectiveson

criticalbusinesschallenges,strategicpriorities,andgrowthopportunities.Theinsightsprovidedhelp

organisationsbenchmarktheirstrategiesagainst

peerresponses,understandemergingtrends,

andmakeinformeddecisionsabouttheirgrowth

trajectoriesinanincreasinglycompetitivelandscape.Between28Septemberand23October2024,we

surveyedandinterviewed1,706C-suiteexecutivesglobally,with171respondentsfromtheAPACregion.

Ourfindingsshowseveralkeytrends.WhileC-suiteleadershaven’tlosttheiroptimismaboutgrowth,

theyarekeepingacloseeyeonrisingcompetition

andgeopoliticaltensionsthatcouldholdthemback.Technologyremainstheirgo-tostrategyforstayingcompetitive,whileexpandinginternationallyand

attractingtoptalentarestillcrucialmoves.Theseelementsareviewedasessentialforredefiningorganisations,creatingopportunitiestounlock

growth,andcompetingformarketshare.

Onthedigitalfront,C-suiteleadersarestillfirmlyfocusedonthetransformativeopportunities

thattechnologycanbringtotheirbusinesses.

TransformingITsystemsemergesastheirtop-

mostpriority,andtheyareespeciallywatching

howemergingtechnologiescouldreshapetheir

organisations.WhenitcomestoinvestinginAI,

companiesarenowusingAImoretooptimisetheirinternaloperationsratherthandevelopexternal-facingproductsandservices.

Internationalexpansionistop-of-mindamong

businessleadersasameanstogrowandspread

risks.Roughlythree-quartersofthemplantoexpandacrossbordersinthenextfiveyears.TheyaremainlyeyeingtheUS,Germany,theUK,ChinaandCanada

forexpansion.Withthatsaid,C-suiteexecutiveswithambitionstoexpandinternationallyneedtonavigatecomplexregulatorycomplianceframeworks,build

AsiaPacificC-suitebarometer:Outlook2025ForvisMazars4

AsiaPacificC-suitebarometer:Outlook2025ForvisMazars5

Foreword(Cont’d)

localtalentpools,andadaptproductsandservicestomeetmarket-specificdemands.

Butthebottomlineisstillaboutpeople.Business

leadersunderstandthatwhethertheyarerolling

outnewtechnologyorexpandingglobally,successboilsdowntofindingandretainingtherightpeoplewiththerightskills.Manycompaniesarestrugglingtodothis,evenastheexactnatureofthechallengeisshifting.Findingseniorexecutiveswasthemainchallengein2024,butrespondentsthisyearsayithasbecomehardertofillentry-levelandmiddle-managementpositions.

AtForvisMazars,wehelpbusinessesidentifymarketopportunitiesandachievetheirstrategicgoalsin

thisshiftinglandscape.Ourcomprehensiveaudit

andadvisoryteamsbringdeepindustryknowledgeandinnovativesolutionstothetable,helpingclientstackletheirtoughestchallenges.

Intoday’shighlyvolatileenvironment,ourclients

needtobalancefurtherinvestmentwithagility.Theyparticularlyvalueouroutsourcingservices,which

allowthemtofocusontheircoreoperationswhilemaintainingvariablecostsandlimitingexposure.

Risingcomplexityintaxregulationsandthereturnofatariffwardemandflexible,pragmatictaxadvice,especiallyfortransferpricing.

Asanindependentfirm,wearecommittedto

excellenceandconstantlybuildingourexpertise–alltohelporganisationscreatesustainable,long-termvalueforeveryonewithastakeintheirsuccess.

“In2025,businessesneedtobalancegrowthwith

stability.Whiletechnologyandglobalmarketsofferopportunities,success

comesdowntohow

wellcompaniesadapttouncertaintyand

competition.”

ChrisFuggle

Partner–GroupHeadofAdvisoryForvisMazars

AsiaPacificC-suitebarometer:Outlook2025ForvisMazars6

Cautiousoptimismdefinesoutlook

BusinessleadersinAPACarecautiouslyoptimisticabout2025,buttheyaredecidedlynotasbullishastheirglobalcounterparts.

BusinessconfidenceinAPACisstrong,with84%ofleadersexpectinggrowthin2025,butthatissignificantlylowerlastyearand9%lowerthantheoverallglobaloutlook.ThenumberofAsianleaderswithanegative

outlookongrowthhasnearlydoubledfrom2024,risingto9%ofrespondents.

Largerorganisationsdemonstratemoreconfidence.Athird(34%)ofcompanieswithover$1billioninrevenueareverypositiveabouttheirgrowthprospectsthisyear,whileonly10%ofsmallerfirms(under$100million)sharethisoutlook.Organicgrowthremainsthemostimportantgrowthsource(44%),followedbystrategic

alliancesorjointventures(26%)andprivateequityfunding(20%).

BusinessleadersacrossAPACsharethesametopconcernsastheirglobalcounterparts:anuncertaineconomy(47%)andincreasedcompetition(38%)aretheirbiggestworries.IntheAPACregionspecifically,supplychainissues(36%)roundouttheirtopthreechallenges.

AsiaPacificC-suitebarometer:Outlook2025ForvisMazars7

Bracingforeconomicheadwinds

In2025,businessleadersinAPAC,sameastheirglobalpeers,seeeconomictrends(44%)andincreasedcompetition(37%)ashavingthebiggestimpactontheirorganisations.

Whilenewtechnologiesemergeasthethird-mostimportantfactorglobally,APACexecutivesplaceanotablyhigheremphasisonsupplychainresilience(33%)thantheirglobalpeers.ThelargegaphighlightsAPAC’s

crucialroleinglobalmanufacturingandpointstogrowingconcernsaboutinternationaltradetensions.

Leadersarelessconfidentabouthandlingthesechallengesthantheywerebefore.Confidencehasdippedacrosstheboard,butlessdramaticallyinAsia-Pacific(down4pointsto30%)thanglobally(down7pointsto37%).

ToppingtheC-suiteagenda

Amongthe13strategicprioritiesthatmaybeincludedontheagendaofAPACbusinessesintheforeseeablefuture,technologystillleadsthepack,with35%ofrespondentsinAPACpointingtoITtransformationastheirnumber-one

priority,sameaslastyear.

Thereisanotableshiftintheirsecondfocus:

enteringnewproductandservicecategories.

Increasinglyimportant,afocusonnewproductsandservicesjumpsfromsixthplacein2024tosecondin2025,with29%ofrespondentsnowprioritisingit(upfrom21%lastyear).Itsuggestscompaniesareactivelylookingfornewgrowthavenues.

Supplychainoptimisationremainsamajorpriorityintheregion,with28%ofleadersfocusingon

it–significantlyhigherthantheglobalaverageof21%.IttrackswithAsia’scentralroleinglobalmanufacturingandgrowingworriesabouttradestability.

TheAIrace

Intermsofdigitaltransformation,companiesinAPACaremovingmoreslowlythantherestoftheworldinsomekeyareas.

Only66%ofAPACbusinesseshavededicated

strategiesfortechnologytransformation,comparedto76%globally.TheyarealsocautiouswithAI

implementation:only60%havestrategiesforgenerativeAI,andjust46%fordiscriminativeAI.

Efficiencyandproductivityaretheprimarydriversof

digitaltransformationinAPAC,whichdirectionallyalignswiththeprioritiesoftheirglobalpeers.

ButAPACbusinessleadersaresignificantlymorecommittedtoachievingefficiencygainsthroughtechnologyinvestment:63%saythisisapriority,

comparedto55%globally.Onceagain,itspeakstoAsia’sroleasacentreforglobalproductivity.

APACleadershaveamoretemperedoutlookontheroleofgenerativeAIthantheirpeerselsewhere,withonly44%expectingittohavea“majorimpact”–fivepointsbelowtheglobalaverage.ThisisreflectedintheirAIdeploymentactivities:APACorganisations

showloweradoptionratesforbothinternal

processes(75%vs.77%globally)andcommercial

products/services(65%vs.75%globally).

TherearestillconcernsaboutthedisruptivepowerofAI.WhilefewerAPACbusinessleadersnowexpectAItoreplaceworkerscomparedtolastyear,thefigurestillstandsat48%–notablyhigherthantheglobal

averageof42%.

AsiaPacificC-suitebarometer:Outlook2025ForvisMazars9

AsiaPacificC-suitebarometer:Outlook2025ForvisMazars10

TheAIrace(Cont’d)

It’sworthnotingthatthissurveywasconducted

beforethelaunchofDeepSeek.China’s

achievementindevelopinganLLMthatrivals

ChatGPT–andatafractionofthecomputingcost–hasplacedAPACfirmlyinthecentreoftheAI

landscape.

Regionalbusinessesarelikelytobenefitfrom

DeepSeek’sgravitationalpull:manufacturersareturningtoAI-poweredpredictivemaintenance

anddataanalyticstooptimisetheirfactories

andsupplychains,helpingthemmaintainsteadycostswhilemaximisingproduction.

AsiaPacificC-suitebarometer:Outlook2025ForvisMazars11

Targetingoverseasmarkets

C-suiteexecutivesinAPAChavehighambitionsforinternationalexpansion,with74%oforganisationsplanningcross-bordergrowthwithinthenextfiveyears.

ThesegoalstrackwithAsianbusinesseffortstobothmaintainsupplychainefficiencyandanchoroperationsinkeydemandmarkets.

Roughlyathirdofrespondentsaretargetingthreeormorenewcountriesforexpansion.TheUSleadsasthepreferreddestination,followedbyChina,

Canada,HongKong,andSingapore.

Tosucceedinternationallymeansunderstandingeachmarket’sregulations,mappingouttalent

strategies,andadaptingproductstomeetlocal

demands.Localisationiskey.Unsurprisingly,APACrespondents–whichoftenmanagebusinesses

acrossmultipleeconomiesintheregion–citethe

challengesofcross-marketregulatorycompliance(59%)ortailoringproductsandservicestolocalrequirements(59%)astheirtopinternational

marketentrychallenges.

AsiaPacificC-suitebarometer:Outlook2025ForvisMazars12

Competitionfortalentheatsup

Organisationscontinuetoprioritisetalentastheirmaindriverofgrowth.DespiteamodestimprovementinAPAC,where50%ofexecutivesreporthiringdifficulties–downfrom57%in2024–theregionstillexceedstheglobalaverageof43%.

Unlike2024,whenseniorroleswerehardestto

fill,companiesnowstrugglemostwithhiringentryandmid-levelpositions.Theprimaryrecruitment

challengescentreonattractingsuitablecandidates

(37%)andtargeting/reachingqualifiedcandidates

(35%).

Todrawinthebesttalent,organisationsare

advocatingflexibleworkarrangements,positioningthemselvesasthe“employerofchoice.”60%of

APACexecutivesemphasiseremoteworkingoptionsand55%focusonreducingrequiredofficetime.

AsiaPacificC-suitebarometer:Outlook2025ForvisMazars13

ESGreportinglosessteam

Despitenewsustainabilityrulesrollingoutin2025,companiesarecutting

backontheirESGreporting.Therehasbeenadramatic29-pointdeclineinsustainabilityreporting,withonly44%ofAPACorganisationsnowpublishingsustainabilityreportscomparedto73%in2024.

Organisations’readinessforESGreporting

requirementshasalsodeclined,withonly31%

feeling“completelyready”–6pointslowerthanin2024and12pointsbelowtheglobalaverage.Amajority(54%)ofAPACC-suiteleadersnowviewESGreportingrequirementsasmoreofacostthananopportunity,reflectinggrowingconcernsaboutimplementationchallenges.

However,therearepositivedevelopmentsin

reportingintegration,with54%oforganisationsnowintegratingsustainabilitywithfinancialreporting,

markinga14-pointincreasefrom2024.

TheGlobalReportingInitiative(GRI)remainstheprimaryframeworkinfluencingESGreportsintheregion.Keyfocusareasincludeclimate/carbon

emissions(53%),responsiblesupplychain(52%),anddiversityandinclusion(47%),thoughAPACexecutivesexpresslowerconfidenceinmanagingtheseareascomparedtoglobalcounterparts.

Primarychallengesincludeconcernsaboutpubliclyhighlightingareasneedingimprovement(37%)

andlimitationsininternalcapabilities/expertise(37%),representingsignificantbarrierstoESGimplementation.

AsiaPacificC-suitebarometer:Outlook2025ForvisMazars14

Methodology

TheForvisMazarsC-suitebarometerwasdesignedandconductedbyForvisMazars.Thedatawasgatheredbetween28Septemberand23October2024.ParticipantsintheonlinepanelinterviewsandsurveyswereC-suiteexecutivesfromfor-profitorganisationswithanannualrevenueofatleastUS$1million.Thetotal

Function

Sample

CTO26

Allfunctions/cross-cuttingrole25

COO21

CMO

12

CFO

6

Strategy

5

CHRO

5

Governance,Sustainability,Environment

4

Innovation

2

Quality

1

samplewasN=171.

Asia-Pacificsample:n=171

Sample

Asia-Pacific

171

Global

1706

Countries

Sample

Australia

20

China

20

HongKong

20

India

20