ACCA Report: Economic Uncertainty and Talent Shortages Threaten Asia Pacific’s Growth in 2025

The latest Global Economic Conditions Survey (GECS) by ACCA and IMA highlights declining business confidence and economic uncertainty in Asia Pacific as 2025 approaches. Confidence among finance professionals has hit its lowest since Q1 2020 due to concerns over a sluggish Chinese economy, U.S. tariff risks, and geopolitical instability.

Economic slowdown

In Malaysia, declining business confidence and capital expenditure could affect foreign investment and exports, especially given China’s economic slowdown. However, easing cost pressures provide some relief, and Malaysia’s economy is expected to grow 5%–5.5% in 2025, supported by technology investments and the Johor-Singapore Special Economic Zone.

Globally, economic growth is projected at 3.2%, with strong momentum in the U.S. but fragile conditions in Europe. Key risks include supply chain disruptions, inflation, and geopolitical uncertainty, while climate change remains a long-term challenge. Businesses are urged to focus on diversification, sustainability, and compliance with IFRS sustainability standards to ensure resilience.

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