Nearly two-thirds of local businesses plan to increase investments in 2025

SINGAPORE: Singapore businesses are gearing up for a significant investment boost in 2025. Nearly two-thirds of business leaders plan to allocate more resources to sustainability, artificial intelligence (AI), and supply chain innovations.

This optimism is outlined in a recent report by the Capgemini Research Institute, which highlights key trends among large organisations in Singapore.

Sustainability remains a top priority for 70% of Singaporean business leaders in large organisations who plan to ramp up investments in green initiatives. Climate technology is also gaining traction, with 60% of businesses intending to increase spending in this area, reflecting a broader commitment to addressing environmental concerns.

AI is set to dominate the technology investment landscape in 2025, with 67% of Singaporean businesses identifying it as a primary focus area. The report reveals that 75% of organisations are expected to initiate proof-of-concept (PoC) projects or fully adopt AI agents within their operations.

AI applications in cybersecurity are gaining momentum. Over 60% of organisations plan to deploy AI or generative AI (GenAI) PoCs in this domain. Furthermore, almost one-quarter of businesses aim to implement AI-powered robotics on a partial scale.

The supply chain sector is another critical investment area. 57% of business leaders indicate plans to increase spending. More than half (58%) are exploring next-generation supply chains that promise to be agile, environmentally sustainable, and AI-integrated.

Singapore stands out globally for its emphasis on improving customer experience and manufacturing operations. A remarkable 85% of business leaders in large organisations plan to invest more in customer experience initiatives, while 72% focus on advancing manufacturing and operational capabilities.

The findings are based on a survey conducted by the Capgemini Research Institute between Oct 23 and Nov 20, 2024. The survey encompassed responses from 2,500 leaders across 17 North America, Europe, and Asia-Pacific countries.

These leaders represent nine industries: automotive, banking, retail, and manufacturing. Of the respondents, 70% were from organisations with annual revenues exceeding $1 billion, while 30% were from mid-sized firms with revenues between $100 million and $1 billion.

Half of the responses were gathered before the U.S. elections and the other half afterwards.