Singapore CEOs’ confidence in growth outlook for 2025 takes a dip amid uncertain business landscape; global CEO confidence rises

Confidence in growth among global CEOs is increasing despite complex geopolitical and macroeconomic challenges.

• 44% of Singapore respondents (global 43%) say they won’t fully achieve transformation goals 
• 40% of Singapore respondents (global 56%) expect to actively pursue M&A activity in the next 12 months, versus 48% (global 37%) in September 2024 
• Top investment locations for local CEOs: Singapore, US, Malaysia, Indonesia and Hong Kong

Confidence in growth among global CEOs is increasing despite complex geopolitical and macroeconomic challenges, according to the latest EY-Parthenon CEO Outlook Survey: Global Confidence Index, which evaluates the optimism levels of 1,200 global business leaders, including 40 from Singapore, based on 15 “Confidence Index" measures. The latest survey data was recorded after the 2024 US election and offers insights on leaders’ expectations for future growth and long-term value creation at many of the world’s leading companies. 

For global respondents, the overall CEO confidence has steadily increased to 73.5% from 70.5% in September 2024, with transformation at the heart of their ambitions. This is despite rapid technological advancements, evolving sustainability agendas and geopolitical tensions making corporate decisions more complex. Forty-nine percent of global CEO respondents believe these will further escalate in 2025.  

For Singapore respondents, the overall CEO confidence has dipped significantly to 54% from 72% in the September 2024 survey, with prices and inflation being a major concern. That said, more than half of CEO respondents (Singapore 56%, global 57%) are very confident they can successfully reimagine their business model for the future through transformation, which the report states will define the leaders and laggards of tomorrow. 

Janet Truncale, EY Global Chair and CEO, says: 
“Adaptability is the ultimate advantage in today’s landscape. Organizations that embrace transformation can turn disruption into opportunity, continuously learning, pivoting and growing to shape their future with confidence. The survey reveals that the most confident CEOs are taking a long-term approach to transformation, focusing on enhancing customer and employee engagement amid macroeconomic and technological shifts, and always placing humans at the center as the best path to sustainable value creation.” 

Andre Toh, EY Asean and Asia-Pacific Valuation, Modeling & Economics Leader, says: 
“Global cost of operations remains high and this is exacerbated by the ongoing global geopolitical and macroeconomic uncertainty, which continue to weigh on the minds of Singapore’s corporate leaders. Further, as an open economy, Singapore is vulnerable to supply chain shocks and trade disruptions, which have been escalating in recent months. Until the dust settles and greater certainty returns to the business landscape, Singapore’s corporate leaders can be expected to be more cautious with their decision-making.” 

The survey highlights that strategic vision and investment in people – including upskilling employees to keep pace with technological innovation – are considered essential levers for growth. Eighty-five percent of CEO respondents (Singapore and global) believe that addressing capability gaps and striking the right balance between human talent and new technology will be a crucial driver for success in the year ahead. However, caution remains around the talent landscape, with 55% of Singapore CEO respondents (global 42%) indicating that declining profitability could lead to workforce reductions. 

Notably, from the global findings, the most confident CEOs are likely to aim for better employee and customer experiences through transformation (60% vs. 30% of the least confident CEOs), while the least confident CEOs focus on improving top-line growth and margin expansion (40% vs. 20% of the most confident CEOs). 

Appetite for M&A drops among Singapore respondents; appetite for divestments and other alliances continue to remain strong

The most confident CEO respondents globally are significantly more focused on pursuing M&A in the next 12 months than the least confident CEOs (70% vs. 17%). Overall, 98% of Singapore respondents (global 96%) intend to pursue transaction initiatives over the next 12 months. These transactions include mergers and acquisitions (M&A); divestments, spin-offs or IPOs; and joint ventures or strategic alliances.  

Specifically for M&As, the appetite of Singapore CEOs has slipped to 40%, down from 48% in September 2024. Conversely, the appetite among global CEOs remained steady at 56%, up from 37% in September 2024. When evaluating a potential acquisition, the key considerations for the surveyed CEOs are whether the transaction will lead to enhanced customer engagement and retention (Singapore 38%, global 29%); operations and productivity (Singapore 30%, global 26%); and product and process innovation (Singapore 28%, global 33%). There are also indications that 2025 could see an uptick in megadeals, with 67% of Singapore CEOs (global 60%) expecting to see an increase in deals more than US$10b.  

Sriram Changali, EY Asean Value Creation Leader, says: 
“Digital and business transformation remains a critical driver of deal strategies, and artificial intelligence capabilities is increasingly driving corporate acquisition strategies as companies seek to build operational and competitive resilience, and create value for customers and stakeholders. Talent constraints continue to put pressure on Singapore executives, while cost synergies become more compelling in challenging economic environments. Given all these drivers, corporate leaders are looking at strategic portfolio rationalization and optimization, leading to heightened deal activity.” 

For divestments or carve-outs, more than half of Singapore CEO respondents are also looking to sell assets. 60% of Singapore respondents (global 48%) are planning a divestment or carve-out, up from 40% (global 44%) in September 2024, adding further momentum to the deal market in the year ahead. 

Singapore respondents appear to be looking closer to home when asked about the top markets they intend to invest capital in: Singapore is the key market that local CEOs seek to invest in, followed by the US, Malaysia, Indonesia and Hong Kong. For the global respondents, US, Canada, Germany, Mexico and UK are the top five hotspots.  

Changali says:  
“As Singapore’s corporate leaders are adapting to a new normal of complex change, Asia continues to stand out as a region primed for growth. As they seek to invest and transform their business with deals as a key catalyst, the most confident CEOs will mitigate disruption, drive sustainable growth and enhance value for stakeholders.” 

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About the survey

On behalf of the global EY organization, in November and December 2024, FT Longitude, the specialist research and content marketing division of the Financial Times Group, conducted an anonymous online survey of 1,200 CEOs from large companies around the world that aims to provide valuable insights on the main trends and developments impacting the world’s leading companies as well as business leaders’ expectations for future growth and long-term value creation. Respondents represented 20 countries (Brazil, Canada, Mexico, the US, Belgium, Luxembourg, the Netherlands, France, Germany, Italy, Denmark, Finland, Norway, the United Kingdom, Australia, China, India, Japan, Singapore and South Korea) and five industries (consumer and health; financial services; industrials and energy; infrastructure; technology, media and telecoms). Surveyed companies’ annual global revenues were as follows: less than US$500m (20%), US$500m–US$999.9m (20%), US$1b–US$4.9b (30%) and greater than US$5b (30%). 

The CEO Confidence Index is a measure of executives’ outlook on the macroeconomic environment and company performance, derived from data collected as part of the EY-Parthenon CEO Outlook Survey. CEOs rated their outlook on 15 statements using a 5-point scale ranging from "very pessimistic" (0) to "very optimistic" (100). These responses were categorized into five thematic groups: sector growth; prices and inflation; company growth; talent; and investment and technology. Higher Index values indicate a more positive sentiment regarding the future state of the economy and their businesses. An index of 100 is fully optimistic, 50 is neutral, and 0 is fully pessimistic.