SINGAPORE: Despite an overall increase in revenue for many organizations in 2024, optimism about the broader business environment remains subdued, according to a recent report by the Australia-based AustCham.
The report revealed that 65% of companies experienced revenue growth this year, marking a 2% increase from the previous year. However, only 36% of respondents expressed confidence in an improvement in the business environment, a significant drop of 14%.
Businesses cited several pressing challenges, with geopolitical conflicts leading the list, affecting 73% of respondents. Other major hurdles included difficulties attracting local talent and rising business costs, affecting 65% of companies.
The report also highlighted growing concerns over recruitment and retention of quality employees, compounded by uncertainties in global and domestic economies. These challenges have created a cautious outlook among many organizations despite their individual financial growth.
On the positive side, companies pointed to opportunities in digital and AI technologies, as well as the adoption of sustainability practices, as pivotal areas for growth.
An impressive 93% of companies surveyed reported adopting digital tools, with Cloud services, Customer Relationship Management (CRM) systems and AI technologies being the most widely used.
While digital adoption is widespread, businesses face challenges in fully leveraging these tools. Concerns over data privacy and security were raised by 58% of respondents, while 53% reported difficulties with integration and high implementation costs.