Sticking to tactical cost savings could hurt APAC companies’ growth: Deloitte

SINGAPORE (July 25): Companies in Asia Pacific (APAC) region are expecting to focus on cost reduction over the next 24 months, especially in Singapore, China and India, according to a new report published by Deloitte.

Key findings from the study also revealed that while cost reduction is a common focus among the countries in the region, the majority of companies (63-83%) say they are not meeting their cost reduction goals, even as more than 40% of companies have cost improvement targets of less than 10%.

Deloitte’s first biennial cost survey report studies the cost improvement practices and trends in APAC. It surveyed 299 business leaders comprising C-level executives, executives and senior management from large and mid-size companies in China, India, Japan, Australia, Hong Kong and Singapore – which together, contribute to 89% of the APAC economy based on gross domestic product (GDP).

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