Singapore investors believe technological advancements will be the most significant driver of change for the companies they invest in – ahead of factors such as government regulation, geopolitics, supply chain instability and changing customer preferences.

In fact, more than half expect generative artificial intelligence (AI) to increase productivity, revenue and profitability of the companies they invest in, based on PwC Global Investor Survey 2024 published Wednesday (December 4).

Investors also don’t see a trade-off between AI and employees, according to the survey.

Patrick Yeo, deputy head of markets at PwC Singapore, said: “Rather than a zero-sum game, our survey also reveals investors’ expectations of companies that want to upskill their workforce in tandem with investments in AI. »

Notably, 84 percent of respondents investing in Singapore believe that companies should invest in upskilling their workers. Nearly a third expect AI to increase the workforce by 5 percent or more, while 36 percent expect the technology to make little or no change to the workforce.

About half of Singaporean investors surveyed expect the economy to grow over the next 12 months.

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When asked about investors’ most pressing concerns, 51% of respondents investing in Singapore ranked macroeconomic volatility as the top concern, followed by cyber risks and geopolitical conflicts.

Global investors have ranked cyber risks and geopolitical conflicts among their top concerns.

Climate action and sustainability

The survey also reveals that climate action is a priority among Singapore investors, with 71% saying they would moderately or significantly increase their investments in companies that take a range of climate-related measures.

When evaluating companies’ net zero emissions transition plans, just over two-thirds of respondents agreed that governance and associated capital or operating expenses are very, or extremely, important.

More than three-quarters said companies should integrate environmental, social and governance priorities directly into their business strategies.

However, most Singaporean investors believe that more should be done in terms of sustainability reporting.

Importantly, seven in ten respondents said sustainability reporting should have a level of detail comparable to financial audits. Additionally, 54 percent agree that company reports on their sustainability performance typically contain unsubstantiated claims.

When searching for information to evaluate companies, 55% of Singapore investors said that AI helps them analyze information released by companies.

Although financial statements and explanatory notes, followed by materiality disclosures, emerged as the primary sources of information investors rely on, most reported using multiple sources of information to evaluate companies .

Singaporean investors notably value a wide range of data beyond financial information, including data on cybersecurity and data privacy, supply chain management, corporate governance and innovation.