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Business Times
3 days ago
- Business
- Business Times
C-suite on demand: Is Singapore ready for 'fractional leaders'?
[SINGAPORE] In October 2022, marketing executive David Lim was laid off by his employer HappyFresh, a Jakarta-headquartered online grocery platform that was an early casualty of South-east Asia's funding winter. Lim, who was a senior vice-president of marketing and managing director based in Indonesia, returned to Singapore to figure out his next career move. Despite offers of a full-time position as chief marketing officer (CMO), he turned them down in favour of a more unconventional route. 'I was looking for better work-life integration and to have more control of my time. I was tired of climbing the corporate ladder, but I also knew the value I could bring to businesses,' he says. Today, Lim is a 'fractional' CMO. He joins a growing pool of mid to late-career professionals who identify as 'fractional leaders': highly experienced executives who provide strategic leadership to organisations on a part-time basis. In other words, the gig economy – traditionally associated with blue-collar jobs – has now infiltrated the C-suite. A NEWSLETTER FOR YOU Friday, 8.30 am SGSME Get updates on Singapore's SME community, along with profiles, news and tips. Sign Up Sign Up Recruitment firms here report growing interest in fractional hiring, from startups to global corporations. And fractional leaders have built agencies to offer their specialised expertise, adding headcount to support them. Yet, observers note that employer demand has not kept pace with the booming supply of fractional talent in Singapore. Amid shifting workforce expectations, are companies ready to fully embrace this new and flexible hiring model? Filling a gap Fractional leaders typically fill roles across key functions such as CMO, chief financial officer (CFO), or chief human resources officer (CHRO), working anywhere from one to three days a week for a company. They are not simply contract workers, nor are they consultants. They are distinctly hired for senior leadership positions, where they are deeply embedded within the organisation and occupy a seat at the table. Such professionals are directly responsible for results, overseeing both strategy and execution, and are expected to lead internal teams. As opposed to being hired for short-term projects, they also tend to work with companies on an ongoing basis, with engagements spanning from six months to multiple years. It appears to be a win-win strategy. The executives get more leeway with regard to time. And, for resource-strapped firms, it is an increasingly viable, long-term solution to bring in top-tier talent – but at a fraction of the cost. For working one to two days a week, a fractional leader could roughly command 30 to 50 per cent of a full-time equivalent's salary, estimates Eric Okumu, head of global organisational consulting firm Korn Ferry's interim executive practice across Asia. Elena Chow, founder of talent solutions consultancy ConnectOne, says: 'What's interesting is how creative and innovative people can be nowadays when it comes to building teams – you're not limited to just one way anymore.' Gaining traction While fractional leaders have existed in North America for decades, the concept only began gaining traction in Asia, including Singapore, in recent years. More experienced professionals are choosing flexibility and variety over linear corporate progression these days, says Okumu. The employer-employee relationship has also evolved, with workers no longer feeling obligated to be loyal to one company forever. Such shifts have, in turn, led to the rise of portfolio careers, which refers to the practice of having several jobs simultaneously. Fractional leaders fall into this space, as they often work with multiple clients at a time. ConnectOne's Elena Chow says founders are no longer limited to just one way to build a team. PHOTO: CONNECTONE An ecosystem is taking shape in Singapore. Ground-up initiatives and new business models offering fractional leadership 'as a service' have sprouted. In September 2024, The Fractional Directory Singapore was launched as a free public online resource to connect fractional leaders based in the Republic with companies looking to hire them. In less than a year, the pool of Singapore-based fractional leaders listed in the directory has more than doubled to 500. The website allows employers to search for specific talent using filters and connects them to suitable candidates. Mark Mullinix, the directory's general manager, says: 'We wanted to make it easier for employers to find and source fractional leaders. A lot of placements have always been based on personal referrals and the strength of one's network.' Then there is Portfolio Careers in Asia, a talent community that gathers and supports seasoned professionals pursuing high-end portfolio careers – including fractional roles – across the region. Its LinkedIn group has grown to nearly 1,500 members across Asia, up from just 30 in 2023. It has a WhatsApp chat group and holds regular virtual and in-person networking events for members, all of whom have at least 10 years' working experience. Two-thirds of the members are from Singapore, with more than half identifying as fractional leaders, says founder Moritz Kaffsack. He also runs an agency providing top independent talent, including fractional leaders, as a service. Moritz Kaffsack founded Portfolio Careers in Asia, a community that supports seasoned professionals pursuing high-end portfolio careers, including fractional roles. PHOTO: Meanwhile, Lim founded fractional marketing firm Avante Strategies with a business partner. The duo serve as fractional CMOs and have 10 employees. Strategic leadership on a budget On the demand side, more companies in Singapore are seeking critical talent to scale their operations while on tighter budgets. This is quite different from some years ago. Chow, who first began advocating for the hiring of fractional leadership in 2018, recalls how the idea was hardly well-received by boardrooms here at the time. 'There was still a stigma about part-time independent talent back then, that they are less committed. One major concern firms had was, 'Can this person really deliver the outcome I want in, say, three days?'' she says. But, following massive tech layoffs between 2022 and 2024, an unprecedented surfeit of available talent has flooded the market, note observers. 'Layoffs were happening, but these startups still needed to grow,' says Chow. 'So they needed to be very smart on sourcing headcount, which is when they became more receptive to fractionals.' The number of job positions listed by ConnectOne that are open to fractional hires has trebled this year from 2024. These postings have come from mostly startups, including those affected by the funding winter, on top of a few small and medium-sized enterprises (SMEs). Korn Ferry has seen six times more requests from Singapore-based firms seeking fractional leaders in 2025, compared with last year. Demand has been predominantly from mid-sized multinational corporations (MNCs), which are part of the agency's core customer base. Korn Ferry's Eric Okumu estimates that a fractional leader could roughly command 30% to 50% of a full-time equivalent's salary, for working one to two days a week. PHOTO: KORN FERRY Cost-effectiveness aside, a big appeal of fractional leaders lies in their ability to be deployed 'within days or weeks' and deliver results with little to no ramp-up period, says Okumu. Dr Susan Chen, who identifies as a fractional CHRO, concurs. An in-house HR leader for nearly 20 years, she established boutique HR strategy and fractional consultancy Co:grow in 2024, hiring four full-time staff. Co:grow currently has seven clients that are using its fractional services. The firm signs non-disclosure agreements and does not take on direct competitors to avoid conflict of interest. Before engaging her, most clients had given 'the alternative' a shot: hiring a full-time and more affordable junior employee, but one who ultimately lacked the experience to provide strategic leadership. According to her, the role requires a specific skillset. Context-switching is key to succeed as a fractional leader in the long term, notes Dr Chen, as they must regularly juggle clients across diverse industries. One must also be comfortable setting strategies at a fast pace, on top of leading and mentoring a team that can execute their directives when they are not around, says Mullinix. He is a fractional chief of staff and offers his services under vehicle Growth Vectors. He adds: 'If you're only there eight hours a week, those eight hours better be spent at a full-speed run, not standing by the water cooler and talking shop.' Structural barriers and challenges Though the strategy is gaining momentum, structural barriers to hiring fractional leaders still persist in Singapore. These range from a lack of onboarding processes and internal policies to properly integrate fractional leaders into the workforce, to unfamiliarity with the concept and the value such talent can offer, say observers. Okumu notes that most traditional HR frameworks are designed around permanent or temporary contracts, with newer flexible hiring models sitting 'in between'. Companies may also expect 'full-time' outcomes from fractional leaders, but not grant them access to the necessary data and systems to work effectively, he adds. 'When such arrangements don't work, it's often because the fractional leader hasn't been empowered or supported by stakeholders. Companies need to make sure this person is set up for success.' Before engaging her as a fractional CHRO, Co:grow's Susan Chen says most clients had hired a full-time and more affordable junior employee, but realised he or she ultimately lacked the experience to provide strategic leadership. PHOTO: DR SUSAN CHEN To avoid pitfalls, companies and fractional leaders should ensure that the job scope and expected job outcomes are aligned, advises Chow. They should also be flexible to rescope and review job outcomes when necessary. Salary negotiation is a thorny issue too. Despite providing strategic leadership, fractional leaders are often short-changed by being paid less since they work fewer hours, notes Dr Chen. 'We shouldn't be seen as cheap labour,' she says. Her agency Co:grow charges between S$3,500 and S$9,000 a month for fractional CHRO services, depending on the scope and number of working hours. Chow points out that while firms can refer to existing compensation structures for full-time roles, pricing for fractional leaders can appear 'arbitrary'. As she sees it, such experienced talent command a premium in the market as they can deliver impact fast. 'You are not paying them for time, but for quick outcomes.' Another reason, she adds, is that they typically do not receive benefits accorded to traditional employees, such as medical insurance, annual leave, severance pay and employer's Central Provident Fund contributions. Large MNCs remain the biggest laggards in fractional hiring globally due to more entrenched structures, notes Okumu. On the other hand, smaller businesses such as startups and SMEs are more willing to experiment with new ways of working, as they need to 'react and survive'. Business owner Kannan Chettiar is a firm adopter of the fractional leadership model. He is the founder and chief executive officer of Avvanz, a Singapore-based SME providing employment background checks and screening services. As Avvanz began to scale overseas, Chettiar realised that his team of marketing managers could not keep up with the growing demands of the business. A full-time CMO was out of his budget, but a part-time one made perfect sense to him. 'Let's face it: How many C-suite executives in a company are working throughout a nine-to-five workday?' he quips. 'They could be having a long lunch, golfing, networking. I want only the best of them, not all of them.' Kannan Chettiar, founder and CEO of Singapore-based SME Avvanz, is a firm adopter of the fractional leadership model. PHOTO: AVVANZ Chettiar hired a fractional CMO in late-2023, who remains with Avvanz today. A second fractional leader – a chief technology officer – joined in May. He is now looking to add a fractional CFO and a fractional CHRO to the firm. While he is conscious that fractional leaders divide their time among other clients, he asserts that trust is crucial for such arrangements to work. 'I will not watch the clock, and neither should they. It's a trade-off: you give them respect and time to breathe, and they'll be committed to do the best for your company.' Growing the fractional ecosystem Still, ingrained mindsets equating longer hours with productivity are difficult to shake off. Lee Tuck Wai, who chairs the Association of Small and Medium Enterprises' (Asme) human capital group, observes that many traditional family businesses are still accustomed to time-based hiring models and are sceptical of a fractional leader's ability to commit to the firm. 'With fractionals, you have to think in terms of key objectives,' says Lee. 'The value comes from outcomes achieved – and not how long you stay in the office.' Some headway has been made on the education front. In March, Asme organised a focus group discussion with 15 SME owners to introduce them to the fractional employment model and gauge their receptivity towards hiring such talent. Lee says the association is now working with Workforce Singapore to explore the development of a pilot programme that will match SMEs to fractional leaders based on their business needs. Lee Tuck Wai, who chairs Asme's human capital group, observes that many traditional family businesses are still accustomed to time-based hiring models. PHOTO: CYRIL NG On May 28, The Fractional Directory Singapore held its first in-person seminar for businesses keen on learning how to hire a fractional leader. The event, which had a capacity of 30, ended up being oversubscribed. The directory is currently collaborating with partners to develop a series of toolkits on fractional hiring for firms, says Mullinix. These will cover areas such as the screening and selection of fractional leaders, as well as designing the onboarding processes and job scope. As for nurturing talent, Portfolio Careers in Asia has run multiple webinar series for its members at different stages of their fractional careers. This April, it launched a new six-part 'fractional masterclass' series to help seasoned fractional leaders hone their craft. Planned topics include enhancing one's personal brand, advanced pricing and negotiation strategies, as well as mastering client dynamics. Mullinix believes that the fractional leadership model is poised 'to break through' in Singapore soon – and that the Republic has no time to waste in building the necessary structures for success. 'This is something bigger than a niche way of working. It's a reimagining of the employer-employee relationship, where some of the best and brightest talent no longer wish to take on a traditional full-time role,' he says. 'Employers in Singapore that do not find a way to tap that talent will fall behind.'
Business Times
5 days ago
- Automotive
- Business Times
Going viral on TikTok helped Pitstop Tyres clear S$400,000 of debt; now second-gen owner wants to make it Singapore's top auto shop
[SINGAPORE] Once on the brink of bankruptcy, home-grown auto repair shop Pitstop Tyres is now making more than S$1 million in annual revenue – thanks to its second-generation owner's fresh approach. When Cordillia Tan joined the family business in end-2020, she brought along her experience in a venture capital firm, where she helped early-stage startups accelerate their growth. But she did not expect to spend the next few years trying to pull the company out of debt. Her father, Edmund Tan, opened Pitstop Tyres in 2009 after a career in the industry – first as a tyre fitter and then a factory manager, in companies including Singapore-listed Stamford Tyres. The business was running well until a discovery of financial misconduct forced him to clean house and hire afresh for many roles. The Covid-19 pandemic struck soon after, making it challenging for the business to regain momentum. But the elder Tan never revealed to his family how badly the business was doing. A NEWSLETTER FOR YOU Friday, 8.30 am SGSME Get updates on Singapore's SME community, along with profiles, news and tips. Sign Up Sign Up 'My father was very worried to tell the family that the banks were chasing him, and the business was struggling,' said Cordillia Tan in an interview with The Business Times. She uncovered the extent of the company's financial troubles only after she saw first-hand the outstanding bills and declining sales. The business was clocking just S$15,000 in monthly revenue, servicing only three to five vehicles daily. At the same time, it was overdue on utility bills and owed multiple suppliers money. Problem-solving To help her father's business survive, Tan applied her experience in helping startups to scale. But first, she had to get up to speed on how the automotive industry worked. 'I thought I would be in the corporate world for the rest of my life, so I did not even have a driving licence,' she admitted. She recalled an embarrassing incident where her mechanic had asked her to step on the car brake, but she did not know which pedal that was. After that, she took part-time automotive courses. 'I did all the short courses that were available, so at least I would not be an idiot; and when I open the bonnet, I know what is going on.' Her next challenge was understanding the business well enough to tackle its problems. 'My mistake was that being startup-savvy, I knew all the right strategies to bring. But I did not realise how difficult it would be to bring those things into an SME (small and medium-sized enterprise).' Sales funnels and customer relationship management systems, for example, can be easily adopted by young startups with organised processes, she noted. But if an SME has years of fragmented customer data, records and processes have to be fixed before new strategies can be implemented. 'When I came in, it was very hard for me to prioritise anything, because I was just problem-solving,' she said. Beyond overhauling internal processes, she also had to negotiate and rebuild relationships with suppliers who were unhappy due to the outstanding debts. 'I was walking up and down Chinatown to lawyers' offices to ask if we could negotiate with their clients to come up with a payment plan.' In early 2023, Pitstop Tyres expanded its services beyond tyre sales and replacements. PHOTO: KEZIA LEVIANNE KOO, BT Turning point Beyond fixing problems, the business also needed new ways of generating revenue. So in August 2021, Tan turned to TikTok to market the business. It took eight months of trial and error, and steady content, before she made a breakthrough. She found success in making educational content about car maintenance, sharing what she learnt as she went along. As views went up, so did the number of customers, boosting monthly revenue to a range of S$30,000 to S$60,000. Yet, while higher revenues helped to cover costs, this did not make a dent in the debt. In early 2023, Pitstop Tyres began to expand its services beyond tyre sales and replacements to include rim repairs as well as general car repair and maintenance. The move to diversify was also because tyre sales do not have good profit margins, said Tan. These new services now contribute half of the company's revenue, with the rest from tyre sales. Having more services also necessitated a move to a bigger shop – an investment which she felt was worth making to accommodate the additional equipment and parking space needed to scale the business. 'Even though it was a very painful decision to throw all the money saved up into the deposit for this (new) shop, I think we really just had no choice but to move here,' she said. New ambitions Pitstop Tyres has not yet turned profitable, but is on track to clear its debt in two years. Instead of a target for annual revenue, Tan has a salary target for employees, hoping to give annual increments of 10 to 20 per cent. With the debt-free goal in sight, she wants to focus on customer service, with the eventual aim of becoming Singapore's top automotive shop. 'I want to make sure that the experience at my workshop is unmatched (by others),' she said. 'So instead of trying to expand outwards, what I want to do is to make sure that everything in my shop is tight so that we do not need to chase business.' Pitstop Tyres makes in-store pricing prominent so that customers know exactly what they are paying for, she said, noting that car workshops are often seen as having shady business practices. 'I want everything to just be transparent and honest,' she said. 'This is my way of doing business.' In 2024, Edmund Tan retired from the business, leaving his daughter fully in charge. Reflecting on her entrepreneurial journey, Cordillia Tan said: '(Back when I joined), I did not have any vision for the company. I just knew that I was suffering.' 'I was very proud of the company surviving, definitely. Not dying is an achievement,' she added. 'So I'm very happy with how far we've come. And I would say I'm proud of the team I've built.'
Business Times
05-06-2025
- Business
- Business Times
Less than half of small and mid-sized regional firms upbeat about business outlook post-US tariffs: UOB study
[SINGAPORE] Business sentiment in the region has declined sharply following the announcement of US tariffs, with only 48 per cent of firms positive about the business outlook, down from 77 per cent before. The study, titled UOB Business Outlook Study 2025 (SMEs and Large Enterprises), was conducted in January; about 4,200 businesses in Asean and Greater China were polled, including 900 from Singapore. Following the announcement of US President Donald Trump's 'Liberation Day' tariffs on Apr 2, a dipstick study of 800 businesses was next conducted from Apr 9 to 12. The survey found under half (48 per cent) of companies in the region 'positive' or 'very positive' about the business environment, down from just over three-quarters (77 per cent) in 2024 and 2023. In Singapore alone, 53 per cent of businesses are 'positive' or 'very positive' about the business environment, down from 82 per cent before the tariff announcements. The study noted heightened concerns around increased business costs and inflation. The study also found that companies are facing significant supply-chain disruptions – especially those in Indonesia and Hong Kong. In supply-chain management, 41 per cent of businesses cited rising supply costs due to high inflation as the top challenge; 36 per cent attributed rising supply costs to high interest rates, and 31 per cent flagged difficulties in procuring supplies and raw materials. A NEWSLETTER FOR YOU Friday, 8.30 am SGSME Get updates on Singapore's SME community, along with profiles, news and tips. Sign Up Sign Up Adjusting business strategies Nevertheless, the study revealed that businesses in the region are adjusting their strategies accordingly, to cope with tariff developments. In response to supply-chain challenges, UOB noted that many companies are adopting a localisation strategy, and aiming to improve the stability and resilience of their supply networks by sourcing and operating closer to home. Singapore companies are adopting better inventory-management practices, investing in stronger supplier relationships and digitalising supply-chain management. Based on the study, about 67 per cent of respondents in Asean expect intra-Asean trade to grow, following the announcement of the tariffs; 47 per cent expect to quicken the pace of overseas expansion. Other strategies to respond to the US tariffs included stepping up the pace of digital adoption to improve productivity and customer experience. This was named by 60 per cent of the respondents. About 56 per cent plan to adopt sustainable practices more quickly, in order to improve the company's reputation and become more attractive to investors. UOB's head of group commercial banking Eric Lian said: 'Businesses are actively planning their next steps following the US tariff announcements. Nearshoring looks set to be a longer-term trend as companies rebalance their supply chains within Asean.' Tackling workforce challenges Businesses expect manpower challenges to escalate following the announcements of US tariffs, said UOB. The study revealed that close to six in 10 respondents are affected by workforce or manpower-related issues. Among the top three workforce challenges flagged were higher expectations from employees on pay and remote working (45 per cent), talent retention (42 per cent) and talent attraction (40 per cent). To address these issues, 47 per cent of businesses are offering higher pay and benefits, and 44 per cent are providing reskilling and upskilling to staff. About 39 per cent are embarking on digital transformation; 37 per cent are offering flexi-work arrangements; and 36 per cent are offering job-rotation opportunities across departments or markets.
Business Times
05-06-2025
- Business
- Business Times
Half of small and mid-sized regional firms upbeat about business outlook post-US tariffs: UOB study
[SINGAPORE] Business sentiment in the region has declined sharply following the announcement of US tariffs, with only 48 per cent of firms positive about the business outlook, down from 77 per cent before. The study, titled UOB Business Outlook Study 2025 (SMEs and Large Enterprises), was conducted in January; about 4,200 businesses in Asean and Greater China were polled, including 900 from Singapore. Following the announcement of US President Donald Trump's 'Liberation Day' tariffs on Apr 2, a dipstick study of 800 businesses was next conducted from Apr 9 to 12. The survey found under half (48 per cent) of companies in the region 'positive' or 'very positive' about the business environment, down from just over three-quarters (77 per cent) in 2024 and 2023. In Singapore alone, 53 per cent of businesses are 'positive' or 'very positive' about the business environment, down from 82 per cent before the tariff announcements. The study noted heightened concerns around increased business costs and inflation. The study also found that companies are facing significant supply-chain disruptions – especially those in Indonesia and Hong Kong. In supply-chain management, 41 per cent of businesses cited rising supply costs due to high inflation as the top challenge; 36 per cent attributed rising supply costs to high interest rates, and 31 per cent flagged difficulties in procuring supplies and raw materials. A NEWSLETTER FOR YOU Friday, 8.30 am SGSME Get updates on Singapore's SME community, along with profiles, news and tips. Sign Up Sign Up Adjusting business strategies Nevertheless, the study revealed that businesses in the region are adjusting their strategies accordingly, to cope with tariff developments. In response to supply-chain challenges, UOB noted that many companies are adopting a localisation strategy, and aiming to improve the stability and resilience of their supply networks by sourcing and operating closer to home. Singapore companies are adopting better inventory-management practices, investing in stronger supplier relationships and digitalising supply-chain management. Based on the study, about 67 per cent of respondents in Asean expect intra-Asean trade to grow, following the announcement of the tariffs; 47 per cent expect to quicken the pace of overseas expansion. Other strategies to respond to the US tariffs included stepping up the pace of digital adoption to improve productivity and customer experience. This was named by 60 per cent of the respondents. About 56 per cent plan to adopt sustainable practices more quickly, in order to improve the company's reputation and become more attractive to investors. UOB's head of group commercial banking Eric Lian said: 'Businesses are actively planning their next steps following the US tariff announcements. Nearshoring looks set to be a longer-term trend as companies rebalance their supply chains within Asean.' Tackling workforce challenges Businesses expect manpower challenges to escalate following the announcements of US tariffs, said UOB. The study revealed that close to six in 10 respondents are affected by workforce or manpower-related issues. Among the top three workforce challenges flagged were higher expectations from employees on pay and remote working (45 per cent), talent retention (42 per cent) and talent attraction (40 per cent). To address these issues, 47 per cent of businesses are offering higher pay and benefits, and 44 per cent are providing reskilling and upskilling to staff. About 39 per cent are embarking on digital transformation; 37 per cent are offering flexi-work arrangements; and 36 per cent are offering job-rotation opportunities across departments or markets.
Business Times
05-06-2025
- Business
- Business Times
About 1 in 2 SMEs in region positive about business outlook post-US tariffs, down from 77%: UOB study
[SINGAPORE] Business sentiment in the region has declined sharply following the announcement of US tariffs, with only 48 per cent of firms positive about business outlook, down from 77 per cent before, based on the UOB Business Outlook Study 2025 (SMEs and Large Enterprises). The study was conducted in January and polled about 4,200 businesses in Asean and Greater China, including 900 from Singapore. Following the announcement of US President Donald Trump's 'Liberation Day' tariffs on Apr 2, a dipstick study of 800 businesses was conducted from Apr 9 to 12. Based on survey findings, only 48 per cent of companies in the region are 'positive' or 'very positive' about the business environment. This was down from 77 per cent in 2024 and 2023. Zooming into Singapore, only 53 per cent of businesses in the Republic are 'positive' or 'very positive' about the business environment. This was down from 82 per cent before the tariff announcements, with UOB noting heightened concerns around increased business costs and inflation. The study also found that companies are facing significant supply chain disruptions – especially firms from Indonesia and Hong Kong. In supply chain management, 41 per cent of businesses cited rising supply costs due to high inflation as the top challenge, while 36 per cent cited rising supply costs due to high interest rates. Finally, 31 per cent flagged difficulties in procuring supplies and raw materials. A NEWSLETTER FOR YOU Friday, 8.30 am SGSME Get updates on Singapore's SME community, along with profiles, news and tips. Sign Up Sign Up Adjusting business strategies Nevertheless, the study revealed that businesses in the region are adjusting their strategies accordingly to cope with tariff developments. In response to supply chain challenges, UOB noted that many companies are adopting a localisation strategy and aim to increase the stability and resilience of their supply networks by sourcing and operating closer to home. Meanwhile, Singapore companies are adopting better inventory management practices, investing in stronger supplier relationships and digitalising supply chain management. Based on the study, about 67 per cent of respondents in Asean expect intra-Asean trade to increase following the US tariffs. In addition, 47 per cent expect to quicken the pace of overseas expansion. Other strategies to respond to the US tariffs were also highlighted. About 60 per cent plan to increase the pace of digital adoption to improve productivity and customer experience. About 56 per cent plan to adopt sustainable practices more quickly, in order to improve company reputation and become more attractive to investors. UOB head of group commercial banking Eric Lian said: 'Businesses are actively planning their next steps following the US tariff announcements. Nearshoring looks set to be a longer-term trend as companies rebalance their supply chains within Asean.' Tackling workforce challenges Businesses expect manpower challenges to escalate following the announcements of US tariffs, said UOB. The study revealed that close to six in 10 respondents are affected by workforce or manpower-related issues. Among the top three workforce challenges flagged were higher expectations from employees on pay and remote working (45 per cent), talent retention (42 per cent) and talent attraction (40 per cent) To address these issues, 47 per cent of businesses are offering higher pay and benefits, while 44 per cent are providing reskilling and upskilling to staff. About 39 per cent are embarking on digital transformation; 37 per cent are offering flexi-work arrangements; and 36 per cent are offering job rotation opportunities across departments or markets.
