Multinationals Confront Rising Costs, Embrace AI and Smart Manufacturing
- Sep 25, 2025
- 2 min read
Three in five multinational companies anticipate rising costs due to ongoing geopolitical uncertainties, prompting their accelerated adoption of artificial intelligence and smart manufacturing to alleviate financial pressure. This trend was highlighted in a Standard Chartered survey released on Wednesday.
About 62% of surveyed C-suite executives expect cost increases ranging from 5% to 14% over the next three to five years. ASEAN companies expressed particular concern, citing financial pressure from supply chain realignments, tariffs, and geopolitical uncertainty affecting trade routes.
Sunil Kaushal, CEO for ASEAN and South Asia at Standard Chartered, stated, “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.”
The Standard Chartered survey polled 1,200 C-suite executives and senior leaders from July to early August. Respondents came from 17 global markets, including the Middle East, the United Kingdom, the United States, Hong Kong, mainland China, and ASEAN countries.
Technological innovations like AI and digital assets are now considered as strategically important as economic growth patterns and trade tariffs in forming global supply chain strategies. Fifty-three percent of respondents ranked each as top drivers shaping the future of global trade.
Nearly 40% of companies reported using digital supply chain finance platforms to capture market opportunities. An additional 55% planned to adopt these platforms within the next two years, indicating a growing trend in digital transformation.
Six markets emerged as key hubs for global sourcing, manufacturing, and exports: India, Malaysia, mainland China, Indonesia, the United Arab Emirates, and the U.S. Approximately 40% of respondents from the U.S. and the UK intended to maintain their current level of trading activities in mainland China.
Companies in India and mainland China placed a greater emphasis on global economic growth when shaping their trade outlook compared to businesses in other surveyed markets. The survey also anticipated that Asia would strengthen its trade ties with the Middle East.
Industries in mainland China are progressing up the global value chain, moving from labour-intensive manufacturing to higher value-added products. This transition is supported by technologies such as AI, robotics, and renewable energy, alongside efforts to boost domestic consumption.
Anthony Lin, head of transaction banking for Hong Kong and Greater China and North Asia at Standard Chartered, noted, “Chinese corporates are playing an even greater role in the cross-border trade as the global supply chains are being reshaped.” He added that Hong Kong, as a superconnector and gateway to mainland China, is well-positioned to capitalise on these growing cross-border trade flows.
A separate survey released on Wednesday by Airwallex, a fintech start-up backed by Tencent Holdings, echoed these cost concerns among Hong Kong companies. Three in five Hong Kong businesses were experiencing rising operational costs and margin erosion.
The Airwallex survey attributed these challenges to foreign exchange fluctuations and global trade tensions. It found that Hong Kong firms shared similar financial pressures highlighted in the Standard Chartered study.
Three in five multinational companies expect cost increases due to geopolitical uncertainties.
62% of C-suite executives anticipate 5-14% cost rises in the next three to five years.
Multinationals are increasingly adopting artificial intelligence and smart manufacturing to offset financial pressures.
Source: SCMP
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