Reinvention in motion

As 2025 begins, a wave of optimism is sweeping across Asia Pacific. This year’s survey reveals that CEOs in the region are feeling more confident about the global economy and their revenue growth.

• 55% of Asia Pacific CEOs expect the global economy to improve over the next 12 months, up from 40% last year and 23% two years ago.

• 34% of Asia Pacific CEOs are very and extremely confident about their company’s short-term revenue growth (+3% vs. 2024), rising to 54% for a three-year outlook (+17% vs. 2024).

• This confidence is evident in their hiring plans. 46% plan to increase their headcount in the next 12 months, similar to global CEOs.

While CEO optimism prevails, it is tempered by caution, as the economic uncertainty of recent years lingers. Macroeconomic volatility and inflation remain top of mind. Other risks further complicate the outlook, including technological disruptions, skills and talent shortages.  

Caution is also shaping investment strategy. 44% of Asia Pacific CEOs don’t plan to spend any capital expenditure for international operations in the next 12 months. This cautious approach is more evident among smaller companies (with revenues under US$1 billion and fewer than 500 employees).

Those who plan to invest in international operations have identified the US, UK and Singapore as their top choices over the next 12 months. Chinese Mainland, Hong Kong SAR and Vietnam follow closely behind. 

As the two largest economies in the world adjust their trading patterns, some areas in Asia Pacific might stand to benefit. Since 2018, ASEAN economies have increased their share of imports and foreign direct investment from Chinese Mainland and the US.  Our survey echoes this sentiment, showing that Asia Pacific CEOs are diversifying their international investments across various countries and regions, including Southeast Asia and into Europe.

Asia Pacific CEOs express a rising confidence in their company’s viability.

• Only 45% now believe their companies will last less than a decade if they continue on the same path, an improvement from 63% in 2024.

• This optimism mirrors their growing confidence in the global economy and accelerated reinvention effort—59% of CEOs have taken at least one significant reinvention action in the last five years. 

While many CEOs recognise the need for transformation, few have made bold moves.

• On average, only 7% of companies’ revenue in the last five years came from fundamentally distinct business.
• Dynamic resource reallocation is a prerequisite for reinvention. However, 64% reallocated less than 20% of financial resources, and 70% reallocated less than 20% of human resources.   
• One of the ways to reinvent is to look beyond company’s walls and across industry boundaries, to create value. However, 72% have not undertaken a major acquisition (over 10% of assets) in the last three years.

Generative AI (GenAI) enthusiasm remains undimmed, but lingering trust issues are holding back its full potential

• 82% of Asia Pacific CEOs have adopted GenAI in the last 5 years. 

• In 2024, 37% of Asia Pacific CEOs report increased revenue, 40% note higher profitability, and 58% observe improved employee efficiency due to GenAI adoption.

• Only 34% of Asia Pacific CEOs express high trust in embedding AI into their core processes - a reflection of ongoing challenges in adoption.
• Many CEOs are choosing to integrate AI more into technology platforms (43%) and business processes (37%) rather than workforce and skills (29%).

Climate investments are paying off   

• 87% of Asia Pacific CEOs have initiated climate-friendly investments in the last five years.

• 63% of Asia Pacific CEOs have tied their personal incentive compensation to sustainability metrics, surpassing the global average of 56%.  

• 39% of Asia Pacific CEOs report increased revenue from climate-friendly investment, while 34% state pressures on costs.