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Business leaders say impending recession will be short and sharp: KPMG

According to KPMG, nearly 90% of Singapore’s CEOs have embarked on or are planning a hiring freeze over the next six months.

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Global CEOs expect a recession within the next 12 months, with more than half of business leaders surveyed expecting the recession to be “mild and short,” according to a new survey by professional services firm KPMG. I’m here.

But a majority of the 1,300 chief executives surveyed by KPMG in July and August warned that increasing disruptions, such as recessions, could make it harder for businesses to recover from the pandemic. .

That said, the CEO was more optimistic than at the beginning of the year, saying he sees growth prospects over the next three years.

Managing Partner of KPMG Singapore said, “With growing confidence in the global economy and optimism over the next three years, CEOs around the world are more determined to weather the near-term economic impact on their businesses. Shows confidence, grit and tenacity.On Pan Te.

We also see many companies positioning themselves for long-term growth. In Singapore, nearly 80% of CEOs say their company’s purpose will have the greatest impact on building customer relationships over the next three years. ”

KPMG CEO Outlook survey reveals 91% of executives believe recession is coming

KPMG’s report found that while CEOs globally also view mergers, acquisitions and innovation favorably, dealmakers “take a much sharper pencil on the numbers, focus on value creation, and focus on value creation.” are unleashing and tracking the value of

In addition to the economic impact of a recession and rising interest rates, CEOs around the world are also worried about pandemic fatigue, according to KPMG.

Faced with pressing challenges such as the recession, as well as public scrutiny of corporate purpose and environmental, social and governance (ESG) accountability, business leaders are under pressure to fulfill broader social responsibilities. It continues to be

Outlook for Asian Business Leaders

Few CEOs in Asia-Pacific are anticipating a recession. Of those surveyed, 63% expect a recession in the next year, compared to 86% globally.

However, we are less optimistic about growth over the next three years than our global peers.

Globally and in the Asia-Pacific region, about 20% We will not increase hiring for the next three years and will either maintain or further reduce our headcount.

UN forecasts 2.2% global GDP growth in 2023, pushing global economy into recession

In Singapore, nearly 90% of CEOs surveyed have either initiated a hiring freeze or are planning to do so within the next six months, according to KPMG.

Almost all of them are doing or planning to diversify their supply chains.

However, over the next three years, nearly all of the Singapore CEOs surveyed said they would increase headcount by up to 10%.

“Nearly a third of Singapore CEOs say their top management priority over the next three years is to strengthen their employee value proposition to attract and retain the talent they need.” the survey shows.

Changing global corporate tax rules is a top priority for business leaders in Singapore. According to KPMG, many people have a better understanding of the new global tax rules, even though they have been postponed to 2024.

Singapore is part of the global framework for reforming international tax rules and backs a minimum effective global corporate tax rate of 15%. The new agreement aims to discourage companies from shifting profits to low-tax havens.

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