CEOs grapple with trade and tariff uncertainty but imperatives for dealmaking remain

• 38% of surveyed CEOs in Singapore (global 50%) are very or extremely concerned about tariff impact and 53% (global 44%) are already exploring new sourcing and supply chain options.
• Transformation drivers remain: 53% of Singapore CEO respondents (global 57%) hope to pursue M&A in the coming year but many await clearer market conditions.
• More than half (Singapore 66%, global 55%) see real value in recent deals, underpinning deal appetite resilience.

While escalating market volatility due to shifting trade and tariff policies will likely delay investment decisions, the rationale for dealmaking prevails as CEOs take proactive steps to mitigate the impact and remain competitive. This is according to the latest EY-Parthenon CEO Outlook Survey¹, which evaluates the views and optimism levels of 1,200 global business leaders at many of the world’s leading companies, including 40 from Singapore.

The survey finds that 98% of CEO respondents (Singapore and global) are concerned about tariff increases affecting their company’s operations and sales in the next 12 months, with 38% of those surveyed in Singapore (global 50%) very or extremely concerned. Indeed, geopolitical, macroeconomic and trade uncertainty is cited as the top risk to achieving growth (Singapore 35%, global 42%), and 63% of Singapore respondents (global 54%) say they have delayed a planned investment as a result. But CEOs are responding proactively by rethinking global relationships: 53% of Singapore respondents (global 44%) say they are looking to adjust supply chain arrangements; 38% (global 42%) are exploring product design innovations to reduce reliance on tariffed materials; and 38% (global 39%) are relocating operational assets to a different geography.

The complexity of the current landscape is reflected in the fact that the most critical trading relationships are not always the closest or most locally significant, according to the survey. While 42% of Chinese respondents cite the US-China tariff and trade dispute as their primary concern, 8% are more focused on the US-Mexico relationship. This underscores the global interconnections and difficulty of navigating tariff challenges, particularly as other major economies react to potential US tariffs. This contrasts with a highly positive outlook for M&A in 2025 prior to the US administration’s tariffs announcement of 2 April this year, which culminated in US$1t of deals recorded during 1Q25 – up 25% year-on-year.

With 53% of Singapore survey respondents (global 57%) hoping to pursue M&A in the next 12 months, the report indicates that pre-existing pressures – tech adoption and a talent squeeze key among them – will remain pent-up transformation drivers that will see CEOs return to dealmaking as the market settles.

Purandar Rao, EY-Parthenon Asean and Singapore Strategy and Transactions Leader says: 
“Singapore is an open economy that thrives on trade with access to markets across multiple regions. Hence, unlike countries that rely heavily on the US market, Singapore businesses may have less direct exposure to US tariffs, as reflected in their relatively lower levels of concern. Furthermore, Singapore’s economy is more weighted toward sectors like finance, technology, logistics and services, which will likely face less direct impacts compared to economies driven by traditional manufacturing. That said, these sectors are still vulnerable to indirect impacts, such as the knock-on effects of a global decline in manufacturing, due to the interconnectedness of global supply chains. As there may be a time lag for these indirect impacts to play out, Singapore CEOs are likely to adopt a wait-and-see approach for their business strategies.”

M&A can drive transformation and deliver value in times of challenge

While reports of integration hurdles, cultural misalignment and overestimated synergies often lead to speculation around how much shareholder value is delivered post-deal, the survey tells a different story about the CEO experience. More than half of CEO respondents (Singapore 66%, global 55%) say their recent acquisitions met or exceeded value expectations, with only 8% (global 2%) reporting value destruction.

Luke Pais, EY-Parthenon Asia-Pacific Private Equity Leader says: 
“Times of uncertainty also present companies with great opportunities. With a clear strategy, disciplined execution and strong leadership, M&A remains a powerful lever to create long-term value, where companies can unlock synergies, preserve competitive edge, and drive growth well beyond short-term financial returns.”

AI investment roadmap unclear as many CEOs look to cost reduction

While global CEOs report mixed results from artificial intelligence (AI) deployments to date, which may slow down implementation in a turbulent year, Singapore CEOs appear to have a more robust perspective on their AI investments.

Also, while 42% of Singapore respondents (global 36%) say they plan to expand AI investments after positive results to date, 18% (global 25%) say they are “scaling back or reconsidering” AI investments due to “unclear or disappointing” returns.

With nearly half of CEO respondents (Singapore 47%, global 42%) indicating that they are looking to absorb additional costs through operational efficiencies and cost reductions, many may be delaying tech investment pending more geopolitical certainty.

Also fueling a renewed and likely growing focus on cost management is the challenge of inflation. More than two-third (Singapore 68%, global 71%) of respondents agree that inflation continues to be a challenge and will be an issue they need to navigate for the next year, and many of those will be looking at opportunities to mitigate cost increases.

Joongshik Wang, EY-Parthenon Asia-Pacific and Asean Strategy and Execution Leader says: 
“AI and automation can help companies reduce operational costs by up to 30% and achieve efficiency gains by up to 40%. This can help companies absorb the impact of tariff without solely relying on cost management. Additionally, the predictive analytics capability of AI allows for better forecasting, scenario planning and identification of new business opportunities, helping companies to respond proactively to market changes.”

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About the survey

On behalf of the global EY organization, in March and April 2025, FT Longitude, the specialist research and content marketing division of the Financial Times Group, conducted an anonymous online survey of 1,200 CEOs from large companies around the world that aims to provide valuable insights on the main trends and developments impacting the world’s leading companies as well as business leaders’ expectations for future growth and long-term value creation.

Respondents represented 21 countries (Brazil, Canada, Mexico, the United States, Belgium, Luxembourg, the Netherlands, France, Germany, Italy, Denmark, Finland, Norway Sweden, the United Kingdom, Australia, China, India, Japan, Singapore and South Korea) and five industries (consumer and health; financial services; industrials and energy; infrastructure; technology, media and telecoms). Surveyed companies’ annual global revenues were as follows: less than US$500m (20%), US$500m–US$999.9m (20%), US$1b–US$4.9b (30%) and greater than US$5b (30%).