CEOs double down on AI, transformation and M&A to drive growth

• Singapore CEOs express optimism toward the local economy
• 2026 a tipping point for AI to move from pilot to enterprise scale
• CEOs view M&A and strategic alliances as a path to accelerate transformation efforts in 2026, despite headwinds

With strong confidence in Singapore’s economy over the next 12 months, Singapore’s CEOs are robust about the outlook for their company’s performance in the year ahead. This is according to the latest EY-Parthenon CEO Outlook Survey, a quarterly survey of 1,200 global CEOs across 21 countries, which includes 40 from Singapore.

An overwhelming 90% of CEO respondents from Singapore expressed optimism toward the local economy over the next 12 months, while 67% shared similar sentiments about the global economy. This is up from 88% and 62% that shared similar sentiments toward the local and global economies respectively, three months ago.

The survey’s CEO Confidence Index – a measure from 1 to 100 that quantifies CEO sentiment globally across a wide range of business dimensions – shows that overall CEO sentiment among Singapore respondents remained stable at 80, compared with 81.5 three months ago.

This demonstrates a quiet confidence among the respondents, despite growing uncertainty in today’s business landscape, which is characterized by geopolitical tensions, persistent volatility, a muted global economic forecast, supply-chain disruption and rising cost pressures.

This confidence and optimism are further reflected in the Singapore respondents’ revenue growth expectations for their companies over the next 12 months. More than a quarter (28%) of them expect their companies to post a strong increase (10% to 19.9%) in revenue growth in the next 12 months. 65% expect a slight (3% to 9.9%) increase in their annual revenue growth, and 5% expect their company’s growth to be flat (0% to 2.9%).

This is a sharp improvement against the respondents’ views of their company’s current performance: 55% saw slight (3% to 9.9%) annual revenue growth in the past 12 months; 40% saw flat (between 0% and 2.9%) revenue growth; and 5% saw a slight (3% to 9.9%) decrease.

This drives their belief in the ability to strengthen performance from within. Singapore CEO respondents expect revenue growth (93%) and productivity gains (93%) to support profitability in 2026, even if 50% of them anticipate increases in operating costs. This confidence is powered by investments being made into talent and technology transformation, with CEOs recognizing that one-off change isn’t enough and are driving continuous, proactive transformation to sustain growth.

The top three priorities for the Singapore respondents in the year ahead are reducing cost and unlocking savings (43%), innovating products and processes (31%) and improving customer engagement and retention amid shifting consumer behavior (31%).

Purandar Rao, EY-Parthenon Asia East and Singapore Strategy and Transactions Leader, says:
“Leading CEOs thrive amid uncertainty by quickly adopting new technologies and driving strong collaboration to stay competitive. In the year ahead, leaders must act with intention — scaling innovation, investing in talent, and partnering across their organizations and industries to create new value.”

AI and skills transformation ignite CEO ambitions for growth

2026 is expected to be a turning point for AI investments, as CEOs shift from piloting technologies to scaling them across their organizations to accelerate transformation. AI adoption is evolving from a bolt on to a built-in foundation of business models, with 65% of Singapore respondents expecting AI to be a major growth engine in the next two years, while about a third (35%) believe it will fundamentally reshape operations as they scale these technologies enterprise-wide.

The survey also found that CEO respondents in Singapore have begun (50%) or are planning to begin (50%) significant transformation initiatives this year in a bid to extract value and growth. CEOs are increasingly regarding AI as a dependable enabler of productivity, revenue growth, customer experience and efficiency for the year ahead. Nevertheless, many are yet to unlock AI’s full potential, with only 20% reporting that AI has significantly exceeded expectations over the last year.

Andre Toh, EY-Parthenon Asean Valuation, Modeling & Economics Leader, says:
“Singapore companies expect AI to have a high impact on business. The future belongs to leaders who can successfully capture breakthrough returns, by scaling AI across the organization beyond experimentation.”

With large-scale shifts in workforce patterns seen globally, CEOs respondents in Singapore feel optimistic (80%) about their ability to attract and retain critical talent. Talent will play a key role in supporting AI transformation initiatives, and in developing teams that are equipped to navigate external macroeconomic and geopolitical pressures and uncertainties. More than half (58%) of Singapore respondents believe investments in AI will lead them to maintain current levels of employment or hire new talent over the coming year. Notably, the proportion of CEO respondents in Singapore who believe investments in AI will lead to a reduction in headcount reduced to 32%, from 62% in a year ago.

Joongshik Wang, EY-Parthenon Asean Strategy and Execution Leader, says:
“Overall, the findings from the survey indicate a proactive approach by CEOs in Singapore to embrace AI while valuing the importance of human talent. However, it will be essential for organizations to continue investing in skills development and foster a culture that embraces change so as to fully realize the benefits of AI transformation.”

M&A as a force for accelerated transformation

M&A is expected to remain a key pillar for CEOs, with many respondents pursuing acquisitions to accelerate transformation efforts, productivity, digitalization and growth in 2026. While geopolitical scrutiny is reshaping deal strategies, investment appetite remains resilient, but with a growing preference for domestic and regional transactions.

CEOs are increasingly focused on deals that deliver on their priorities including technology, talent and capabilities at speed, balancing ambition with pragmatism in an even more uncertain geopolitical and regulatory environment. The survey found that all Singapore respondents (100%) are looking to pursue transactions over the next 12 months.

Specifically, interest in joint ventures and strategic alliances continues to be strong, with 80% of Singapore respondents currently planning initiatives, compared with 73% a year ago – unlocking the immediate access to new capabilities and technology through more flexible and less complex deals. As well, of those looking to pursue a transaction in the upcoming year, 45% plan to pursue acquisitions specifically aligned to their growth agendas.

The top five investment destinations for the Singapore CEO respondents are Singapore, Hong Kong, India, Malaysia and the Philippines. The key outcomes that they focus on in these transactions are enhancing operations and productivity (83%), reducing cost and unlocking savings (61%) and accelerating top-line growth (50%). 

Purandar concludes:
“2026 won’t bring certainty, and CEOs know it. The leaders who win will be the ones who rethink their capital allocation now, cutting through geopolitical complexity, and doubling down on technology-driven M&A to build portfolios that can seize the upside of a volatile market.”

-ends-

Notes to editors

About EY

EY is building a better working world by creating new value for clients, people, society, and the planet, while building trust in capital markets.

Enabled by data, AI and advanced technology, EY teams help clients shape the future with confidence and develop answers for the most pressing issues of today and tomorrow.

EY teams work across a full spectrum of services in assurance, consulting, tax, strategy and transactions. Fueled by sector insights, a globally connected, multi-disciplinary network and diverse ecosystem partners, EY teams can provide services in more than 150 countries and territories.

All in to shape the future with confidence.

EY refers to the global organization and may refer to one or more of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data, and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. EY member firms do not practice law where prohibited by local laws. For more information about our organization, please visit ey.com.

This news release has been issued by EY Corporate Advisors Pte. Ltd., a member of the global EY organization.

About the survey

On behalf of the global EY organization, 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 between November and December 2025. The survey 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 (21%), US$1b–US$4.9b (29%) and greater than US$5b (30%).

The CEO Confidence Index is a measure of executives’ outlook on the macroeconomic environment and company performance, derived from data collected as part of the EY-Parthenon CEO Outlook Survey. CEOs rated their outlook on 15 statements using a 5-point scale ranging from "very pessimistic" (0) to "very optimistic" (100). These responses were categorized into five thematic groups: sector growth, prices and inflation, company growth, talent, and investment and technology. Higher index values indicate a more positive sentiment regarding the future state of the economy and their businesses. An index of 100 is fully optimistic, 50 is neutral, and 0 is fully pessimistic.