• 92% of Singapore CEOs anticipate growth for their businesses, a significant increase from 76% in 2022
• Over half of Singapore CEOs or 52% are shifting capital investments towards skilling their workforce for an AI-driven future
• Majority of CEOs see their ESG investments as having the greatest impact on their capital allocation, partnerships, alliances, and M&A strategy

SINGAPORE - Media OutReach - 5 October 2023 - The KPMG 2023 CEO Outlook offers an in-depth examination of the viewpoints of more than 1,300 CEOs from some of the world's leading companies. Despite the current geopolitical and economic uncertainties and escalating cost-of-living pressures, a staggering 92% of Singapore CEOs forecast growth for their businesses. This figure significantly surpasses the 77% of global CEOs who share this positive outlook. Notably, this optimism has seen a year-on-year increase among Singapore CEOs, rising 16% from 76% in 2022. Ms Lee Sze Yeng, Managing Partner at KPMG in Singapore, offered an analysis of the prevailing business environment: "Singapore CEOs are showcasing exceptional resilience and adaptability in the face of complex geopolitical and economic landscapes. They are strategically preparing their organisations for a future steered by generative AI and environmental, social and governance (ESG) initiatives, with human expertise as the foundational pillar. A significant shift is evident, with 52% of Singapore's CEOs transitioning from a focus on technology acquisition to prioritising the upskilling of their workforce in AI and ESG. "As we steer towards 2023, three strategic priorities have surfaced for Singapore CEOs: improving the customer experience (28%), catalysing inorganic growth through mergers and acquisitions as well as expansions (24%), and stimulating organic growth with innovation at its nucleus (20%). While the global emphasis among CEOs remains on digitalisation and talent retention, these aspects have seen a reduction in priority among Singaporean leaders since 2022. However, it's important to highlight that a substantial 69% of CEOs worldwide are leveraging generative AI, underscoring its potential as a key driver for competitive advantage and future innovation." Globally, geopolitics and broader political uncertainty have become the greatest risks to business growth for senior executives. These concerns were not in the top five in the 2022 survey. Singapore CEOs also expressed concerns about ongoing economic uncertainty, with 68% noting that rising interest rates and tightening monetary policies could prolong any potential or current recession. More than three in four CEOs globally (77%) also point to cost-of-living pressures impacting their profitability. Amid market instability, appetite for mergers and acquisitions (M&As) among Singapore CEOs has dropped slightly to 60% in 2023, as compared to 88% in 2022. This is compared to global CEOs' M&A appetite in 2023 which is at 88%. As depicted in Figure 1, Singapore CEOs identify operational risk and emerging/disruptive technology (each at 16%) as the principal threats to growth, aligning with their global counterparts' concerns. However, they remain undeterred. Instead, they approach this dynamic and demanding environment with resilience, adopting a purpose-driven, proactive strategy focused on technology, ESG, and talent management. Over half of Singapore's CEOs (56%) have already adjusted their growth plans to tackle these interconnected challenges, and an additional 40% are planning to follow suit. Figure 1: Top threats to growth for CEOs in Singapore and globally

Singapore	Global
Operational risk (16%)	Political uncertainty (18%)
Emerging/ disruptive technology (16%)	Emerging/ disruptive technology (12%)
Supply chain risk (16%)	Operational risk (12%)
Interest rate risk (12%)	Regulatory risk (9%)
Political uncertainty (8%)	Environmental/ climate change risk (9%)

Mr Bill Thomas, Global Chairman & CEO, KPMG, said: "Business leaders are facing challenges and obstacles to growth on multiple fronts – from geopolitical uncertainty and politicisation to increased stakeholder expectations in the ESG space and the adoption of generative AI. What I find reassuring is that, despite the many macroeconomic and geopolitical challenges right now, mid-term global confidence remains relatively robust. There's a consensus that we can, in time, return to a path of international, sustainable long-term growth. For CEOs – the opportunity to drive a return to a more equitable, successful planet is right in front of us. The key to success will be an unrelenting focus on long-term, strategic planning and commitment to avoid the danger of short-term, reactive leadership, which is always a threat during a period of deep...