Asia-Pacific (APAC) business leaders are under immense pressure. With economic uncertainties, supply chain disruptions, and a widening talent gap, executives in the region are recalibrating priorities for 2025. A new survey reveals what’s keeping them up at night and how they’re planning to adjust.
Digital Transformation: The Top Priority for APAC Executives
The world is more digital than ever before, and APAC business leaders are well aware of the need to stay ahead of the curve. In the Forvis Mazars 2025 C-suite barometer survey, 35% of APAC executives marked IT and technology transformation as their top strategic priority. This shift marks a slight increase from 2024, reinforcing the growing importance of digitalization in driving operational efficiency and productivity.
The survey also shed light on the escalating influence of artificial intelligence (AI) in APAC. More than 44% of executives believe that generative AI will drastically affect their business, echoing global sentiment where 49% of leaders feel similarly. It’s clear that AI’s role is no longer a passing trend; it’s a powerful force reshaping industries.
What’s even more telling is the number of companies with clear digital strategies in place. While 66% of APAC companies have adopted specific plans for technological transformation, this figure lags behind the global average of 76%. Nevertheless, 63% of companies in the region are actively looking to boost efficiency using digital tools.
Businesses that embrace these technological shifts are positioning themselves to thrive in a competitive landscape. But how are they managing the rising challenges of supply chain instability?
Supply Chain Struggles: The Unrelenting Pressure
For APAC companies, supply chain issues are far from over. According to the survey, 36% of business leaders view global supply chain disruptions as a major barrier to growth. This percentage far exceeds the global average of 26%, highlighting the region’s unique vulnerabilities. Companies are struggling to keep up with the unpredictable fluctuations in supply and demand, and this instability is putting significant pressure on their bottom lines.
Amidst these challenges, 28% of APAC executives have made improving their supply chains a top priority. This is a step up from 21% globally, signaling the region’s urgency to resolve these issues.
But the supply chain struggles don’t end there. As more companies look to expand internationally, 52% of them say building local supply chains is their biggest challenge when entering new markets. These difficulties are compounded by an increasing focus on responsible sourcing. Among those companies reporting on environmental, social, and governance (ESG) initiatives, 44% are investing in specialists to ensure their supply chains are sustainable. It’s clear that managing both the immediate disruptions and the long-term risks tied to ESG factors is essential for APAC businesses.
Talent Gap: Flexibility and Upskilling at the Heart of the Solution
Perhaps the most pressing challenge for APAC leaders in 2025 is the talent gap. With half of APAC executives reporting difficulty in attracting and retaining skilled employees, the pressure is on. This is especially true for mid-level and management roles, where the struggle is even more pronounced than the global average of 43%.
In response, many leaders are focusing on enhancing their workforce strategies. Flexibility and upskilling are becoming key tactics to address the talent shortage. Offering remote work options and building clear career development paths are among the strategies being employed to attract top talent.
But it’s not just about finding new talent; it’s also about holding onto the existing one. Leaders are now looking to create more inclusive and dynamic work environments that focus on retaining high-potential employees. Providing opportunities for upskilling is essential to ensure that teams are future-ready, especially as industries increasingly embrace digital and AI tools.
Moreover, some companies are investing heavily in leadership training to fill critical management positions. Without the right leaders, APAC businesses will struggle to adapt to rapid shifts in market dynamics, making leadership development a key focus for 2025.
Business Resilience: Adapting to a New Reality
As economic challenges and market competition intensify, APAC business leaders are not simply reacting—they’re looking to build resilience into their organizations. The global landscape is shifting, and companies in the region are determined to stay competitive by adopting innovative solutions.
One example of this is the rise of cross-industry collaborations. As companies strive to stay agile, partnerships and collaborations are seen as vital in mitigating risks. Sharing resources and knowledge with other businesses can help APAC companies weather economic storms and unlock new growth opportunities. This resilience-driven mindset could be the difference between companies that survive and those that thrive in an increasingly volatile market.
At the same time, the ability to manage risks and predict future challenges is becoming a key aspect of strategic planning. This involves more than just reacting to immediate issues—it’s about forecasting potential disruptions and building strategies that can quickly adapt to these changes.
Key Takeaways:
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35% of APAC executives are prioritizing digital transformation, with AI emerging as a significant disruptor.
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Despite an overwhelming focus on technology, supply chain disruption continues to be a major barrier to growth.
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The talent gap remains an urgent concern, with flexibility and upskilling becoming crucial for retention and attraction of skilled workers.
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APAC companies are focusing on resilience, adapting to the pressures of economic uncertainty and intensifying competition.
| Challenge | Percentage of APAC Executives Impacted |
|---|---|
| Talent Gap | 50% |
| Supply Chain Pressure | 36% |
| Digital Transformation | 35% |
APAC leaders are clearly walking a tightrope. With digital transformation leading the charge, the focus on talent management and overcoming supply chain disruptions will define their success in 2025. The actions they take now will determine the trajectory of their organizations for years to come.
