SINGAPORE - The top concern of one in five chief executives (CEOs) in Singapore was their firms' reputation, which outweighed other factors such as economic outlook or uncertainty caused by the Covid-19 pandemic.
In contrast, CEOs globally picked pandemic fatigue and uncertainty as their most pressing concern, a study by professional services firm KPMG showed.
Economic factors, such as rising interest rates, inflation and the possibility of a recession, came in second for CEOs in both Singapore and globally.
Coming in third was emerging or disruptive technology for chief executives globally.
Three things took the third spot for local CEOs - pandemic fatigue, emerging or disruptive technology, and regulatory concerns.
The annual study, KPMG 2022 CEO Outlook, surveyed more than 1,300 chief executives at some of the world's largest businesses about their business strategies and outlook. The study was conducted between July and August this year.
Mr Ong Pang Thye, KPMG's managing partner in Singapore, said a reason that CEOs here are most concerned about reputation risk is because Singapore has shifted from managing the pandemic to pushing for economic growth and opportunities.
He said Singapore CEOs would as a result be concerned about brand reputation.
Their concern about reputation comes amid climate pledges that bring environmental, social and governance (ESG) responsibilities to the fore, thereby raising scrutiny - by customers, investors and regulators - of responsible corporate behaviour, added Mr Ong.
For example, the top executives may be worried that the lack of a compelling ESG strategy may affect their company's brand, profitability and valuation.
They may also risk losing the loyalty of their customers if they are not able to live up to expectations in areas such as cyber security and data privacy.
Mr Neeraj Aggarwal, regional chairman of Asia Pacific at global consultancy firm Boston Consulting Group, said economic factors could be taking a back seat for CEOs in Asia because their sentiments towards a looming recession may not be as negative as that of their global counterparts.
Asian companies are benefiting from digitalisation and there is a lot of productivity gain in Asia, he said.
He added that Asian companies are expecting to reap benefits in the next year or so from their investments in technology.
Many global companies also view Asia as the next battleground, where more growth will occur in the coming years, Mr Aggarwal added.
Mr Ong highlighted three factors that may account for Singapore CEOs' relative optimism.
These comprise policies here that support businesses, a competent talent pool, and how Singapore, being an open economy, has trading partners well spread over different geographies and markets, he said.
"Singapore has been bold... in its measures to grow the country despite the pandemic and global developments. It has implemented a series of policy measures to bring in large-scale events, which build international confidence in Singapore's readiness to move forward, while supporting businesses here," said Mr Ong.
He cited the recent Formula 1 Singapore Airlines Singapore Grand Prix 2022, as well as Singapore's plan to grow Changi Airport and the Tuas Port as examples.
The talent pool here has also attracted foreign direct investments to the Republic, he added.
