The Capgemini Research Institute’s latest report Navigating Uncertainty with Confidence – Investment Priorities for 2025 reveals key insights into how business leaders are positioning their organisations for growth.
Despite a complex operating environment, 62 per cent of business leaders worldwide express optimism about their organisation’s prospects for 2025. This confidence is reflected in increased investment across customer experience, supply chains, and sustainability, which are seen as crucial for fostering innovation, efficiency, and resilience.
Singaporean business leaders stand out with an even higher level of confidence, with 69 per cent expressing optimism about their organisations’ future. This exceeds the global average, suggesting that businesses in the city-state are more bullish on their growth prospects. However, the broader global operating environment remains a concern, with only 37 per cent of business leaders worldwide feeling optimistic about the next 12-18 months.
Supply chain de-risking gains momentum
One of the most striking findings from the report is the sharp increase in Singaporean businesses reducing their supply chain reliance on China. The proportion of Singaporean business leaders de-risking their supply chains surged from 47 per cent in 2024 to 77 per cent in 2025, a significant 30 percentage point rise.
This trend reflects the ongoing shift towards supply chain diversification as companies seek to mitigate geopolitical risks and enhance operational stability.
Also Read: SEA’s tech funding skyrockets in January, shattering previous records
As companies reconsider their supply chain strategies, Singapore has emerged as a preferred destination for “friendshoring”, a term that means relocating critical assets to politically and economically stable regions.
Some tech firms are already establishing design hubs in the country, reinforcing its position as a regional innovation hub. Beyond Singapore, Southeast Asia (SEA) as a whole is benefitting from this shift, with nations such as Thailand and Vietnam attracting foreign investment. Notable examples include Apple, Google, and Samsung setting up production facilities in Vietnam, while Chinese firms such as BYD and CATL expand their manufacturing operations in the region.
Tech investment: APAC vs global trends
Investment in tech remains a priority for businesses, but regional disparities persist.
In terms of tech investment as a percentage of revenue, the Asia Pacific (APAC) region, which includes Singapore, is projected to invest less than the US but more than Europe.
The report estimates that in 2025, tech investment will average 1.32 per cent of revenue in APAC, compared to 1.45 per cent in the US and 1.29 per cent in Europe. For mid-sized organisations, the APAC region’s investment share rises to 2.21 per cent, compared to 3.04 per cent in the US and 2.07 per cent in Europe.
These figures suggest that while APAC businesses recognise the importance of digital transformation, they may face budgetary or strategic constraints that prevent them from matching US investment levels.
The tech skills gap: A growing concern
A major challenge highlighted in the report is the persistent tech talent shortage, which is increasingly impacting business competitiveness.
Globally, 61 per cent of business leaders cite a lack of tech skills as a hindrance to growth. In APAC, this concern is even more pronounced, with 71 per cent of business leaders acknowledging that talent shortages are limiting their ability to remain competitive.
Also Read: Markets in flux: Navigating economic uncertainty
While the report does not provide specific data for Singapore, the country has long been working to address this issue through initiatives aimed at upskilling the workforce and attracting international talent.
Trade war fears and market uncertainty
Amid ongoing global economic shifts, Singaporean business leaders are particularly concerned about the impact of a potential global trade war.
According to the report, 63 per cent of Singaporean business leaders fear that trade tensions could disrupt their operations and restrict market access. Given Singapore’s reliance on international trade, these concerns are understandable, as businesses seek to mitigate potential risks by diversifying markets and strengthening regional partnerships.
As 2025 approaches, businesses worldwide will need to navigate these uncertainties with a balanced approach—prioritising innovation, agility, and regional partnerships to sustain long-term growth. With SEA continuing to attract investment and Singapore cementing its role as a key business hub, the region is poised to play a central role in shaping the next phase of global economic transformation.
—
Image Credit: Brooke Cagle on Unsplash
The post 2025 trends: Tech investment remains a priority for APAC business leaders, but regional disparities persist appeared first on e27.