APAC Executives aim to unlock growth through digital means

Asia Pacific (APAC) companies hope to achieve organic growth and are increasingly investing in digital transformation to achieve it — at least according to Forvis Mazars’ recently published annual C-suite Barometer: Outlook 2025. This survey engaged 1,706 senior executives, and looked at the top priorities and challenges for companies across the world, 171 of which were from the APAC region. These APAC executives prioritise technological investments to tackle the operational and workforce challenges that come with scaling in today’s volatile market.

Updated technology, increased opportunity 

According to the report, organic growth is the number one priority for APAC businesses this year. APAC companies are correspondingly investing their resources, with technology appearing as a golden egg investment. Since digital transformation often creates new opportunities for businesses, 35% of APAC business cited IT and technology as their top strategic priority, likely to increase efficiency and productivity and cybersecurity to protect operations and customers alike.  

While APAC executives recognise that the region has gaps in AI readiness, they still believe that it is a necessary investment in the present day, with 66% of APAC companies having dedicated strategies for digital transformations. 

Supply chain woes

Technology is also being deployed to solve longstanding structural challenges — chief among them being supply chain instability. This is a particularly urgent concern for APAC companies: 36% identified an unreliable supply chain as their primary obstacle to growth, compared to just 26% of companies globally.

The urgency is understandable, as 74% of APAC companies plan to expand internationally within the next three to five years. Such expansion brings with it a host of operational complexities, such as navigating local regulations, tailoring products to the new markets, and building reliable local supply chains. Half of the executives surveyed identified the latter point, supply chain localisation, as the most significant hurdle to successful overseas growth.

To manage these risks, companies that already engage in ESG reporting are doubling down on responsible sourcing. 44% of these companies are hiring supply chain specialists specifically to ensure stable and secure supply chains.

Changes in sustainability

However, despite these investments in responsible supply chains, sustainability reporting in APAC appears to be waning. In 2024, 73% of APAC businesses issued sustainability reports. By 2025, that figure dropped dramatically to just 44% — a drop in 29%, far outpacing the global drop of 18%.

Once viewed as a popular tool to attract investors and project future-readiness, ESG reporting is now seen by over half of APAC executives as a cost burden rather than a business opportunity.

However, this decline in formal reporting does not necessarily reflect a retreat from sustainable practices. Instead, it marks a shift in how sustainability is being approached, with 54% of APAC organisations embedding sustainability metrics directly into their financial reports.

“The apparent contradiction between declining sustainability reporting and increasing integration of sustainability into financial disclosures reflects an important strategic evolution among APAC businesses,” said Chester Liew, Partner, Head of Risk Consulting & Sustainability, Forvis Mazars in Singapore.

“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.”

Handling people

Besides operational concerns, the report highlights talent acquisition as the second largest concern for businesses. Half of executives surveyed say they are struggling to attract and retain skilled employees, particularly for mid-level and managerial roles, significantly higher than the global average of 43%

The report points to a combination of factors, including a limited pool of qualified candidates and ineffective targeting strategies, as key contributors to the problem. To overcome this, companies are being urged to invest in both workplace wellbeing and leadership development.

In line with this thinking, APAC businesses are attempting to improve work environments by offering flexible or remote work options, complying with standard working hours, and increasing rest days. Leadership development is also top of mind: executives identified strategic vision, analytical thinking, and problem-solving as essential qualities to guide organisations forward — providing a clear vision for the path ahead for both people and company alike.

Cautious optimism

Over the last twelve months, many aspects of the global economy have changed significantly. While most around the world are still positive about the future, these predictions come couched in wariness. APAC business leaders are no different, with 84% forecasting positive growth ahead while also acknowledging the difficulties of the global economy.

“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,” said Kee Yin Lai, Partner, Technology, Digital & Sustainability Consulting at Forvis Mazars in Singapore. 

“By prioritising digital solutions, organisations can improve 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.”