The economic landscape facing Southeast Asian and Hong Kong enterprises in 2025/26 feels like navigating a monsoon with one engine out of commission.
Persistent inflationary pressures, volatile commodity prices, heightened geopolitical friction disrupting supply chains, and the accelerating cost of the green transition demand more than incremental tweaks – they demand a fundamental rethinking of cost management.
The mandate of CFOs is clear: drive efficiency not as an austerity measure, but as the fuel for resilience, agility, and strategic growth.
Single trusted spend data source
In 2025, many CFOs in Southeast Asia and Hong Kong continue to struggle with fragmented spend data, with 44% citing data and technology resources as a significant barrier to operational efficiency.
Deloitte's APAC CFO survey reveals that while 78% plan to integrate more automation for better visibility, capability constraints hinder a single source of truth, particularly in Southeast Asia, where 67% report data challenges.
Source: Deloitte Insights 2025
Predictive analytics for cost avoidance remains aspirational, supported by government initiatives like Singapore's Smart Nation programme, which promotes data integration through public-private partnerships to enhance economic resilience.
Echoing these findings, Jonathan Lew, CFO at Finmo, notes:
"Most CFOs in Asia still operate in fragmented financial environments — where finance data lives across multiple bank portals, ERPs, and spreadsheets. Finance teams often resort to manual downloads and offline consolidation, creating delays and blind spots."
He highlights the critical need for real-time visibility encompassing cash, payables, and receivables, which enables "connected finance intelligence — a single source of truth that enables predictive cost controls, not just reactive analysis." This unified data approach is foundational for proactive cost management.
Advancing cloud cost optimisation
CFOs are progressing beyond basic migrations by embedding FinOps practices, focusing on continuous optimisation through automation.
In Southeast Asia, 38% leverage internal shared services for measurable gains, aligning with regional trends where 78% of APAC CFOs prioritise digital technologies for efficiency.
Hong Kong's innovation hubs, backed by government funding under the InnoHK initiative, encourage cloud maturity to counter economic volatility, although talent gaps (a 55% barrier) slow adoption. Supporting this progression,
Lew emphasises that cloud migration is yesterday's milestone. He reiterates, "today's agenda is FinOps maturity." CFOs are increasingly collaborating with engineering teams to monitor cloud usage in near real-time, benchmark costs by business unit, and implement automated scaling controls.
He adds, "The goal isn't just efficiency — it's accountability across the organisation," although he notes that many firms "still lack the tooling and cultural alignment needed to go from cloud-enabled to cloud-optimised." This highlights the gap between cloud adoption and effective cloud cost management.
Applied AI for rapid ROI
Applied AI delivers rapid ROI in fraud detection, risk assessment, and forecasting, with 57% of AI leaders reporting returns exceeding expectations through cost reductions of up to 30% in operational tasks.
In Asia, examples include Chinese aerospace firms utilising AI for contract risk analysis and Japanese hardware companies automating financial planning, resulting in efficiency gains and error reduction.
KPMG's global AI report highlights ASPAC's advanced adoption, supported by initiatives like Thailand's AI Governance Framework, enabling CFOs to achieve ROI in under 12 months via treasury automation.
Lew shares that Finmo's AI co-pilot, MO, "uses prompt-based commands to generate insights, analyse cash positions, or surface trends in receivables and payables."
Looking ahead, MO aims to become "a true intelligence layer" proactively detecting anomalies, flagging liquidity risks, and dynamically adjusting forecasts.
This practical AI application exemplifies the shift among APAC CFOs who leverage AI tools to move beyond hype and drive measurable value.
Modelling total landed costs
Proven approaches involve mapping multi-tier supply chains and scenario planning for tariffs, logistics, and ESG compliance, revealing cost increases of 10-25% versus pre-2023 models.
McKinsey recommends assessing alternative sources, such as India's "Make in India" incentives, to offset tariffs, as Asia-Pacific imports rise amid US shifts.
In Southeast Asia, incorporating ASEAN's carbon border adjustments and ESG regulations via digital tools ensures accurate modelling, as seen in Bain's reports on reconfigured chains for resilience.
Maximising free cash flow
The imperative to maximise free cash flow amid rising costs is clear. Treasury strategies, such as dynamic discounting, supply chain finance, and AI-enabled inventory optimisation, create liquidity improvements of 15-20% in Southeast Asia, as noted in FutureCFO studies.
Lew concurs: "The modern CFO has an obligation to maximise returns in a risk-averse way through any avenue available."
He observes a significant mindset shift as CFOs increasingly wield data as a "weapon" to unlock restricted cash and discover new cash flow opportunities via real-time analysis. "Business Intelligence is becoming instrumental to the Finance organisation," he confirms.
Reskilling finance teams
Reskilling for digital and AI capability is a pressing priority, with 62% of teams undergoing upskilling and 74% of Southeast Asian CFOs facing talent constraints. Initiatives like Malaysia's MyDigital programme and Deloitte's SEA CFO Agenda encourage AI and ESG training, while firms adopt gig economy and hybrid talent models to reduce fixed labour costs by up to 20%.
Lew describes Finmo's approach: "We're deeply focused on equipping our finance team to thrive in a tech-enabled environment... embedding upskilling into the way we work." They also pursue flexible talent models, leveraging contractors and project-based roles to maintain agility without inflating fixed costs.
Collaborating with suppliers
Bain's green economy report highlights SEA collaborations in bioeconomy projects, which cut costs through shared innovations. Government directives, such as Indonesia's supplier ESG mandates, foster partnerships, leading to strategic alliances for supply chain resilience.
"This has always been the case, but with the proliferation of data-driven decisioning, it's easier to create supplier relationships that are quantifiably win-win," comments Lew.
ESG for cost reduction
According to PwC, energy efficiency projects, such as distributed district cooling, offer 30% savings in cooling costs while ensuring compliance.
Bain identifies grid modernisation in SEA, creating a $25 billion GDP value by 2030 through renewable energy integration. PwC's circular economy models, backed by ASEAN's green finance roadmaps, reduce waste and emissions, with innovations like EV ecosystems providing competitive edges via government subsidies in Thailand and Vietnam.
Stress-testing for geopolitical shocks
Geopolitical risk is front and centre, with Taiwan Strait tensions and trade disputes identified by 54% of APAC CFOs as critical threats. AI-driven scenario planning enhances readiness, although many organisations still rely heavily on spreadsheets and intuition. Governments, including Singapore, promote integrated risk modelling.
"Geopolitical stress testing is no longer hypothetical. We're modelling worst-case scenarios—shipping embargoes, regulatory disruptions—and simulate impacts on cash flow, FX exposure, and vendor risk." Jonathan Lew
He identifies a significant opportunity in integrating external risk signals with financial models to enable proactive CFO action.
Funding growth via optimisation
CFOs use cost savings strategically to fund growth, prioritising mergers, acquisitions, and innovation, with 83% aligned on growth focus. Deloitte reports that 47% of respondents expect increased deal activity in Southeast Asia, complemented by investments in digitalisation and reindustrialisation.
CFOs reallocate savings from optimisation to M&A and innovation, with 83% prioritising growth.
Lew emphasises the balance between growth and profitability: "These decisions are not taken lightly... quantifying every action through real-time data enables confident decisions on spending."
His example of utilising a dashboard for liquidity across countries demonstrates how savings can be channelled into "high-yield, flexible products" supporting operational and strategic agility without liquidity risk.
