5 Must-Know Strategies for Top Leaders

2025 marks a watershed moment in the global economic, technological, and geopolitical arena, with significant impacts on ASEAN. Long-held political and economic values and belief systems have been discarded and superseded by self-preservation and protectionist strategic priorities. In ASEAN, both economic blocs and individual countries face growing uncertainty due to external trade tensions and disruptions from emerging machine learning and artificial intelligence (AI) based technologies. Leveraging AI technologies have led to unprecedented levels of innovation, effectiveness, and efficiency but also poses significant challenges, especially in navigating diverse labour markets across ASEAN.

It is therefore crucial for the Board be well versed with Volatility, Uncertainty, Complexity and Ambiguity (VUCA) trends, challenges, risks, and the complex response and solutions required to address them. In the ASEAN context, there are nuanced challenges in the region. Robust, localised solutions are necessary to effectively address these issues.

Top Disruptors to Watch in 2025

The following were ranked by the World Economic Forum as some of the top severe risks for 2025 in the intermediate to long term that can be managed by organisations and their Boards:

VUCA Dimension

Global View

ASEAN View

Economic

Trade Protectionism causes supply disruptions leading to decreased trade, business activities and inflationary pressures

ASEAN's total trade surplus with the US reached USD 227B in 2024.

ASEAN companies must foster resilient regional supply chains through diversification and digital infrastructure investments.

Societal

Declining birthrates and an ageing population lead to labour shortages and pension payment challenges.

This is particularly notable in Singapore, Thailand, and Malaysia, requiring cross-border talent strategies aligned with ASEAN Economic Community (AEC) guidelines.

Environmental

Extreme weather events, biodiversity loss, and pollution severely impact life and the economy, causing breaches of regulations and business disruptions.

There is a significant need for more systematic and concerted regional collaboration. For instance, ASEAN should monitor and build on progress made through the ASEAN Agreement on Transboundary Haze Pollution.

Technological

Cyber espionage causes operational disruptions, compromises, or damages technological and information networks.

Misinformation and disinformation spread false information through media networks, leading to distrust in facts and authority.

There is a great need to operationalise the ASEAN Cybersecurity Cooperation Strategy and update regional frameworks to include emerging technologies.

ASEAN should consider whether it has mechanisms in place to combat potential destabilisation from false information and whether regional initiatives help address these concerns (e.g., Former President Rodrigo Duterte’s arrest by the International Criminal Court).

Key Challenges Impacting Boards

Based on the regional disruptors identified, it is imperative for Boards to understand and appreciate the context and the challenges posed by each trend:

Supply Chain Disruption

Leads to declining global trade and inflationary pressures.
Trump’s tariff policies could cause a fluctuation in export levels from Asia (excluding China) to US.
ASEAN needs to build more resilient and diversified supply chains, expand their export connections.

Labour Shortage

Declining fertility rates and increasing life expectancy.
Labour shortages are evident in western democracies and parts of East Asia.
Use of technology or attracting migrant care workers to increase sectoral productivity.
Fewer people will be contributing to pensions.
There is a gap between what global executives think needs to be adjusted in pension schemes and what they view as businesses’ responsibilities.

Pollution

Pollution ranks as a major global risk.
Black carbon and methane decrease agricultural yields and diminish sustainability of life
Air pollution reduces work productivity
Livestock manure and fertilizer use contribute to global warming.
Improper waste disposal spreads infectious diseases and expose humans to toxic chemicals.

Cyber espionage

Digital and AI content makes misinformation and disinformation challenging to detect.
The lack of algorithm model transparency and reliance on third party data makes it difficult to identify vulnerabilities.
It is difficult to assign responsibility without clear accountability frameworks.
Algorithmic bias can result from a lack of knowledge, testing, or insufficient oversight.

How Boards should respond to Challenges posed by Leading Disruptors

The Board is expected to be well aware of these looming challenges, the risk each poses for their organisation and the appropriate responses and solutions to undertake:

Economic

Specific Risk - Trade protectionism and supply disruptions
High Risk	Medium Risk	Low Risk
Risk Scenarios
Geopolitical conflicts Major supplier failure Regulatory changes	Delays in raw material deliveries Moderate financial instability of suppliers Labor strikes in supplier region Fluctuation in currency costs	Temporary transportation delays Quality issues with small batches Minor regulatory changes
Board Response
Implement crisis management and business continuity planning Conduct scenario planning and stress testing Invest in product innovation Remove redundancies Develop diversified and integrated vendor hubs Obtain supply chain risk insurance	Establish real-time tracking and dashboards for key suppliers Backup suppliers on contract Strengthen contract terms Establish inventory buffers Forward contracts and currency hedging Engage suppliers actively to mitigate disputes	Implement automation and AI-driven supply chain optimisation Review inventory strategies Require supply chain audits Maintain buffer for essential items Evaluate suppliers

Societal

Specific Risk - Birthrate decline/ ageing population
High Risk	Medium Risk	Low Risk
Risk Scenarios
Shrinking workforce unable to maintain economic output Rising pension liabilities place pressure on a small taxpayer base Healthcare and social services face significant strain Limited immigration policies High dependency ratio (Unstable number of retirees per worker)	Moderate population decline offset by immigration and policy changes Labour shortages occur in specific industries but remain manageable Pension funding remains viable, though under pressure Productivity growth helps compensate partially for a shrinking workforce	Stable or declining population at manageable rate Immigration able to sustain labour needs Pension systems are stable Economic structure is resilient to demographic shifts
Board Response
Extensive use of automation, AI, robotics Aggressive international talent acquisition Reskill and upskill the workforce Support government pension adjustments	Increase automation where feasible, enhance employee retention Upskilling, flexible work arrangements and extending working years Expand into countries with better demographics Partner with government to shape labour and pension policies Enhance employer branding	Monitor and plan based on demographic trends Incentivise older employees to stay longer Optimise technology for efficiency gains Support pro-family and work-life balance policies Maintain pension system for gradual adjustments

Environment

Specific Risk - Extreme weather events, biodiversity loss and pollution
High Risk	Medium Risk	Low Risk
Risk Scenarios
Severe financial, operational or reputational impact Stringent regulatory oversight and compliance requirements Potential to disrupt business continuity Sectors (e.g. fossil fuel, mining and chemical) facing global decarbonisation, and pollution challenges	Moderate financial, operational or reputational impact Some regulatory oversight and adherence to best practices Manageable with appropriate policies Potential impact on supply chain, logistics and branding Sectors (e.g. F&B, agricultural, retail, transportation) facing climate variability, recyclable packaging and carbon emission challenges	Minimal impact on financial, operational or reputational aspects Low regulatory pressure or direct exposure Indirect effects from industry shifts Sectors (e.g. digital, financial or consulting) facing minimal environmental impact or exposure
Board Response
Invest in sustainable practices and environmental technologies Work with regulators, environmental bodies and communities to align business practices Establish contingency plans for extreme weather events or regulatory penalties Maintain transparency with investors, customers and governments Move to low carbon and climate resilient business	Track regulatory, developments and environment trends Work with eco- friendly suppliers Implement energy efficient, waste reduction and water conservation programs Communicate sustainability commitments and progress Utilise sustainability -linked loans and incentives to fund initiatives	Maintain awareness of environmental trends Incorporate sustainability into corporate values Invest in carbon neutrality efforts Manage exposure to high-risk industries

Technological

Specific Risk - Cyber espionage
High Risk	Medium Risk	Low Risk
Risk Scenarios
Targets include government agencies, defence contractors, power grids, telecommunications, financial institutions, healthcare Tactics used include Advanced Persistent Threats (APTs), zero-day exploits, nation sponsored cyber operations, ransomware with geopolitical motives	Targets include finance, healthcare, technology and supply chain logistics Tactics used include phishing, business email compromise, insider threats, cloud infrastructure attacks	Targets include small to mid-size businesses, startups, NGOs and educational institutions Tactics used include website defacements, minor ransomware, hacktivism
Board Response
Form Cybersecurity & Crisis Committee with direct Board oversight Establish an incident response escalation framework Conduct frequent cyber threat assessments Implement end point detection, AI based threat detection Ensure compliance with cyber hygiene requirements Collaborate with government and the industry Conduct mandatory cybersecurity training & drills	Implement cyber insurance coverage and incident response playbooks Ensure continuous monitoring and frequent security audits Examine security attestations and requirements from vendors	Ensure basic security hygiene Incorporate cloud security solutions and end point security Conduct cybersecurity training Conduct phishing tests Establish an incident response and business continuity plan

Technology

Specific Risk - Misinformation and disinformation
High Risk	Medium Risk	Low Risk
Risk Scenarios
Wide reach Severe potential impact on reputation, stock value, legal standing Regulatory scrutiny, lawsuits or financial losses Orchestrated disinformation campaigns	Moderate reach Potential for misrepresentation Possible impact on brand reputation or public perception Could influence decision making	Limited reach Minimal impact on reputation, operation or stakeholders Easily correctable with factual information
Board Response
Upskilling people and using automated algorithms Improve digital literacy within the organisation Improve accountability and transparency framework Activate crisis management protocols Form a Rapid Response Team Utilise press conferences, interviews, and official statements Involve social media, regulators and law enforcement	Assess credibility of misinformation/ disinformation Develop communication strategy Clarify facts with stakeholders Co-ordinate with legal teams to manage any legal risks Engage in social media and other channels to counter disinformation	Monitor situation for escalation Issue factual corrections Educate employees and stakeholders on identifying misinformation

Next Steps for Boards

Only organisations that are growth oriented, adaptable, innovative, and bold will thrive in a world that is no longer bound by traditional economic models and mindsets. The Board and management should understand the causal factors shaping the VUCA landscape and the solutions required to address them. They should also understand the socio-economic, cultural, and regulatory complexities unique to ASEAN and other regions where they operate. Technology must be deployed judiciously and guided by robust governance and ethical oversight, aligned with regional and global best practices.

The Board should adopt an agile, region-focused, and ‘ready for anything’ mindset, ensuring that an appropriate governance framework meets global standards and encourages cross-border collaboration. This will position the organisation to lead the charge rather than follow the herd.

Rapid, well-informed responses to these emerging disruptors are critical to sustaining a competitive edge, especially in ASEAN’s dynamic landscape.