In Singapore, nearly 90% of Singapore CEOs have embarked on or are planning to stop hiring in the next six months, KPMG said.
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Global CEO is recession forecast in the next 12 monthsAccording to a new survey by professional services firm KPMG, more than half of business leaders polled expect the slowdown to be “mild and short”.
However, the majority of the 1,300 executives polled by KPMG between July and August warned that an increase in disruption – such as a recession – could make it difficult for their businesses to recover. post-pandemic period.
That said, CEOs expressed more optimism than at the beginning of the year and said there would be growth prospects for the next three years.
KPMG Singapore Managing Partner said: “CEOs around the world are showing more confidence, bravery and persistence in making short-term economic impacts on their businesses, demonstrating through their growing confidence in the global economy and their optimism over a three-year period”. Ong Pang Thye.
“We are also seeing multiple positionings for long-term growth, such as in Singapore, where around 80% of CEOs have indicated that their corporate purpose will have the greatest impact in building customer relationship for the next three years.”
The KPMG report says that globally, CEOs are also attaching importance to mergers, acquisitions and innovation, but many are concerned that deal makers are “using a much sharper pencil for strategic projects.” numbers and focus on value creation to unlock and track deal value.”
Globally, in addition to the recession and the economic impact of rising interest rates, CEOs are worried about pandemic fatigue, KPMG said.
In the face of immediate challenges such as a recession, business leaders say they remain under pressure to meet broader social responsibilities in the face of public scrutiny of corporate purpose and environmental, social and governance (ESG) accountability.
Perspectives of Asian business leaders
In Asia-Pacific, fewer CEOs expect a recession. Of those surveyed, 63% see a recession occurring next year compared with 86% globally.
But they are also less optimistic about growth over the next three years than their global peers.
Globally and in Asia-Pacific, about 20% say they will not expand hiring for the next three years and will either keep their headcount or reduce it further.
In Singapore, nearly 90% of CEOs surveyed have either embarked on a hiring freeze, or are planning to do so in the next six months, KPMG said.
Almost all of them are doing or planning to diversify their supply chains.
But within the next three years, almost all Singapore CEOs surveyed said they would increase headcount by up to 10%.
“Nearly a third of Singapore CEOs say their top operational priority over the next three years will be to strengthen their employees’ value proposition to attract and retain the talent they need,” the survey found. .
Changes in global corporate tax rules are at the heart of Singaporean business leaders. Many people have a better grasp of the new global tax rules, although they have been delayed to 2024, KPMG said.
Singapore is part of a global framework for reforming international tax rules which supports the global minimum effective corporate tax rate of 15%. The new deal is intended to prevent companies from shifting profits to low-tax havens.
