Global economic uncertainty is the #1 challenge businesses expect to face this year

The ability to attract talent from the region was another frequently-cited challenge (44% of respondents).

A survey of the Australian Chamber of Commerce (AustCham) community in Singapore identified the following as the top 10 challenges that are impacting respondents' business prospects over the next 12 months:

1. Global economic uncertainty (78%)
2. Cost of doing business (63%)
3. Ability to attract talent from the region (44%)
4. Maintaining customer loyalty (31%)
5. Decline in private investment (25%)
6. Decline in private consumption (22%)
7. Cybersecurity (19%)
8. Increasing competition (19%)
9. Australia-China Trade Partnership (16%)
10. Changes in public policies (9%)

The data collection saw 68 responses being obtained, whereby they were also asked about the factors that they believe will positively impact their business prospects over the next 12 months. The results showed:

1. Increasing technology adoption (62%)
2. Greater access to regional markets (55%)
3. Improvements in the regional economy (45%)
4. Increasing business capability (45%)
5. Customer loyalty (41%)
6. Improvements in the global economy (38%)
7. Business-friendly government policies (21%)
8. Cost reductions (21%)
9. Increasing private investment (17%)
10. Ability to attract talent from the region (10%)

Another interesting data point from the study was the decision for a multinational organisation in selecting the location of its global headquarters. Per this survey, most respondents chose to situate their
headquarters in Singapore (44%), while one in three (34%) said Australia. Among the 22% who chose 'Others', the responses included France, Hong Kong, Mauritius, and Dual HQ in Singapore and Melbourne.

Respondents were also asked to select as many answers that apply to their reasons for locating their global headquarters. These includes a strong pro-business environment (81%), English language capabilities (78%), and the proximity to existing customers/markets for easier coordination and control of the activities of the affiliates within the region (78%).

Other important factors of consideration were regional market growth potential (59%), spring broad to
access potential customers in the regional markets (56%), lower taxes (50%), and access to a well-trained workforce in the country/region (50%).

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Lead photo / Austcham Singapore Business Sentiments & Sustainable Practice Report 2023