3 in 4 SG CEOs are delaying investment plans amidst geopolitical tensions

This is above the global average of more than 3 in 5, EY reported.

Around 3 in 4 (75%) CEOs in Singapore are either delaying or halting their investment plan as they brace for an economic downturn amidst geopolitical tensions, EY reported.

This is higher than the global average of 65%, according to EY’s CEO Outlook Pulse – Q1 2023 which surveyed 1,200 CEOs across the globe, including 40 in Singapore. 

“CEOs are aware that this recession will be different,” Geophin George, EY Asean Transaction Diligence Leader, said. 

“A combination of interconnected risks – ranging from geopolitical tensions, supply chain disruption, talent shortages, and ongoing pandemic-related uncertainty and policy responses – will need to be carefully considered as CEOs plan to systematically manage these risks through robust scenario planning and transformed governance structures and processes to assess the impact on strategy.”

Read more: Singapore CEOs reveal top challenges likely to affect their company’s profitability

The report found that 63% of CEOs in Singapore are preparing for a severe economic downturn, above the global average of 50%. 

Of this, about half are fearing a recession that could be worse than the 2008 global financial crisis. 

Moreover, 28% of CEOs in Singapore consider uncertainty around the direction of monetary policy and an increase in the cost of capital to be the greatest risks to the future growth of their business.