CFOs in Southeast Asia prioritise revenue growth for 2025

Deloitte's latest study reveals that Chief Financial Officers (CFOs) in Southeast Asia are prioritising revenue growth as their top strategic focus.

According to the Southeast Asia CFO Agenda 2025 survey conducted by Deloitte's Southeast Asia CFO Program, 82% of CFO respondents view revenue growth as paramount, taking precedence over cost control, which is a priority for 71%, and financial performance, considered by 70%, despite potential challenges posed by external risks such as economic downturns, inflation, and fluctuating interest rates.

The survey involved 190 CFOs from countries including Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam, with detailed interviews carried out with 11 CFOs towards the end of 2023.

To effectively manage growth in an unpredictable business climate, CFOs are employing focused capital allocation strategies and taking a closer look at their investment portfolios. A significant 58% of those surveyed reported evaluating portfolio performance at least twice a year.

Interest in Mergers & Acquisitions (M&A) is also gaining momentum. The data shows that 28% of CFOs engaged in at least one M&A transaction over the past 36 months. Looking forward, 46% of CFOs are projecting an increase in deal-making activities in the next three years. Ho Kok Yong, Deloitte Asia Pacific & Southeast Asia CFO Program Leader, emphasised, "Regular portfolio review is promising, yet CFOs must lead continuous reassessment to ensure assets align with the company's overarching strategic direction, ready to divest if necessary."

On the topic of digital technologies and automation, 59% of CFOs indicated plans to adopt these systems, with another 34% planning to increase digital investments in the future. While some organisations have established Centres of Excellence for AI trials, the current focus remains on low-risk and efficiency-driven AI applications.

CFOs in the region are also turning their attention to workforce capabilities and trust issues related to AI, with 78% concerned about technical skills and AI expertise. Risks related to AI usage are a concern for 55%, and 45% are mindful of organisational culture and trust.

Regarding Environmental, Social, and Governance (ESG) factors, integration into business practices remains in the initial stages, with less than a quarter (23%) of CFOs incorporating these elements fully. Challenges in this area stem primarily from a skills shortage, acknowledged by 80%, and the difficulty of measuring ESG impact, noted by 78% of those surveyed.

Despite the challenges, steps such as ESG risk assessments and stakeholder reporting are being taken by 40% of CFOs, while 33% are developing ESG performance metrics. Nonetheless, only 16% have managed to align capital allocation with ESG objectives, hinting at the difficulties of achieving measurable results. "CFOs recognise ESG targets do not conflict with long-term financial success and should consider tools like balanced scorecards for financial and ESG goal integration," said Ho Kok Yong.