Nearly two-thirds of firms expect rising costs, Standard Chartered surveys

Nearly two-thirds of companies surveyed by Standard Chartered (2888) expect their costs to increase by 5 percent to 14 percent over the next three to five years, with concerns driven by supply chain restructuring, geopolitical uncertainty, and tariff changes.

The survey, conducted between July and early August, covered 1,200 business leaders from 17 markets, including Hong Kong, mainland China, ASEAN countries, the Middle East, the United States, and the United Kingdom. Respondents spanned industries such as retail and consumer, energy and utilities, diversified sectors, and technology, media and telecommunications.

The bank found that mainland China remains one of the preferred markets for companies reorganizing their supply chains. In African markets, particularly Kenya and Nigeria, more than half of respondents said they plan to expand trade with China.

About half of Indian firms surveyed indicated they would rely more on China for trade. Among respondents from the US and UK, roughly 40 percent plan to maintain current trade levels with China, while 10 percent intend to reduce activity, reflecting a trend among some Western companies to diversify supply chains geographically.

The report also found that nearly 40 percent of respondents have adopted supply chain finance platforms, while more than half plan to accelerate their use in the near term to improve cash flow management.

STAFF REPORTER