[SINGAPORE] More than eight in 10 Asian chief financial officers (CFOs) expect the global economy to worsen in the coming months – a markedly more pessimistic view than their peers elsewhere.
Yet many are simultaneously prioritising opportunities for international expansion, according to unpublished regional findings from Teneo’s inaugural Global CFO and Investor Outlook Survey.
Christian Buss, senior managing director and co-head of investor relations at the public relations and advisory firm, told The Business Times on Wednesday (Jul 2) that 83 per cent of CFOs in Asia expect the global economy to worsen in the second half of the year.
The regional figures were shared as supplementary insights, as the survey – published on Jun 24 and based on responses from 132 global public company CFOs and 200 institutional investors – did not include a specific breakdown for Asia in its publicly released data.
Globally, 43 per cent of CFOs expect the economy to improve, implying that 57 per cent are bracing themselves for worsening conditions, a sharp difference from the gloomier outlook of their counterparts in Asia.
CFOs in the US were the most optimistic, with 53 per cent expecting improvements, compared with just 29 per cent of their international peers.
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Meanwhile, investors were the most upbeat about the global economy overall, with 78 per cent expecting conditions to improve in H2.
Views on interest rates were also sharply split.
Globally, 40 per cent of CFOs expected rates to rise in the coming six months, while 39 per cent anticipated cuts.
Buss noted that CFOs in Asia were particularly inclined to foresee rate reductions, with 83 per cent expecting interest rates to fall, compared with 77 per cent of CFOs in the UK expecting cuts and a majority of US CFOs anticipating further increases.
Dealing with uncertainty
While Teneo’s survey does not have data on what is driving the split in sentiment regarding the economic outlook between CFOs and investors, Buss attributed the bleaker sentiment among CFOs to a cautious approach amid ongoing economic headwinds.
“They are focusing on nearer-term challenges and making decisions to protect or improve their businesses, so they are better-positioned for the second half of the year and into 2026,” he said.
The survey similarly identified economic headwinds, including US President Donald Trump’s wide-ranging tariffs, as major factors prompting CFOs globally to alter strategies. According to the findings, 86 per cent of CFOs were changing supply chains, 71 per cent were adjusting capital expenditure, and 81 per cent were revising selling, general, and administrative spending.
Buss said these are all signs pointing to a business environment that is taking steps to protect itself from a period of uncertainty.
Nevertheless, he noted that there are still areas of opportunity, pointing to CFOs’ optimism around financing: 81 per cent were positive about debt market access, 70 per cent saw private equity as supportive, and 68 per cent viewed capital markets as a potential funding source. Investors were similarly upbeat on these fronts, the survey showed.
Buss added that CFOs who take steps now to capitalise on disruption caused by economic uncertainty, market volatility, and rapid technological change are ultimately making their businesses more agile and well-positioned to head into 2026.
In Asia, he said CFOs are putting more emphasis on organic growth, with 83 per cent seeing it as an emerging opportunity.
While CFOs elsewhere are reassessing their merger and acquisition (M&A) strategies, those in Asia see less opportunity in deals.
Buss said only 33 per cent are focused on M&As, and are instead concentrating on international expansion, which 67 per cent identified as a priority – a steep departure from the global average of 28 per cent.
This aligns with the survey’s broader findings, which showed that 71 per cent of CFOs globally were rethinking their M&A strategies amid new economic realities, reflecting a more cautious approach to deals.
Although neither Buss nor the survey explained why Asian CFOs are pessimistic yet still pursuing international expansion, recent Reuters reporting offers some clues.
It found Chinese firms seeking Singapore listings to access South-east Asian markets and hedge against trade-war risks, suggesting that CFOs may see overseas growth as a way to offset domestic challenges.
