HONG KONG (Realist English). A majority of multinational companies expect operating costs to rise over the next three to five years due to ongoing geopolitical uncertainty, according to a survey published Wednesday by Standard Chartered. The findings point to a sharp pivot toward artificial intelligence and smart manufacturing as firms seek to offset financial pressures and protect margins.
The poll, conducted between July and early August, gathered responses from 1,200 senior executives across 17 markets, including the US, UK, China, ASEAN states and the Middle East. About 62 percent of respondents predicted cost increases of 5 to 14 percent. Concerns were most pronounced among Southeast Asian firms, where supply chain realignments, tariffs and disrupted trade routes have amplified pressure.
“We are seeing strong demand from clients to evolve their global trade and supply chain ecosystems and accelerate the adoption of smart manufacturing and AI to drive efficiencies and offset rising costs,” said Sunil Kaushal, CEO for ASEAN and South Asia at Standard Chartered.
The survey underscored that digital transformation now ranks alongside economic growth and tariffs as a top driver of global trade strategies. More than half of respondents said AI and digital assets are shaping their future planning. Nearly 40 percent of firms already use digital supply chain finance platforms, with another 55 percent planning to adopt them within two years.
India, Malaysia, mainland China, Indonesia, the UAE and the US emerged as key hubs for sourcing and manufacturing. Despite trade frictions, 40 percent of companies from the US and UK said they intend to maintain current trade levels with China.
Standard Chartered noted that Chinese industries are shifting up the value chain, integrating robotics, renewable energy and AI into production, while boosting domestic demand. “Chinese corporates are playing an even greater role in cross-border trade as the global supply chains are being reshaped,” said Anthony Lin, the bank’s head of transaction banking for Hong Kong, Greater China and North Asia.
A separate survey by fintech firm Airwallex reinforced the trend, finding three in five Hong Kong businesses are grappling with rising operational costs and margin pressures from currency fluctuations and global trade tensions.
