In 2025, the global business environment will be shaped by geopolitical tensions, including US protectionism, technological advancements and labour market shifts. As the global market becomes more fragmented, businesses will need to adapt and seize new growth opportunities. This year also marks a key moment for AI adoption, with major companies and governments investing in digital infrastructure, while businesses integrate AI into their daily operations.
This report comes in PPT.
In 2024, companies accelerated efforts to localise and regionalise production, aiming to reduce supply chain risks. “Friendshoring” is gaining momentum, as businesses prioritise partnerships with geopolitical allies. The shift away from China has been particularly driven by concerns over potential US import tariffs.
Lack of talent and skills is identified as a significant barrier to innovation. Businesses are struggling with skills and labour shortages in rapidly expanding high-tech sectors, such as semiconductor manufacturing and energy infrastructure. The insufficient growth in STEM (Science, Technology, Engineering and Mathematics) education is causing delays or even the abandonment of innovation projects.
AI-driven technologies demand substantial infrastructure and resources. Both governments and businesses are ramping up investment in critical areas like data centres, broadband connectivity and power generation. Such investment is essential for positioning companies and nations as leaders in the evolving industry landscape.
Rapid economic growth, a young and expanding labour force, political stability and government support initiatives have established Southeast Asia as one of the most interesting regions for companies, both those looking for new consumer markets and those that want to relocate their production.
AI-driven tools are creating opportunities for personalised products, boosting efficiency and reducing labour reliance. In developed markets with rising labour costs, AI and automation will enhance competitiveness by taking on routine tasks. As technology advances, automation will expand to developing markets and more complex tasks, boosting productivity.
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