Business leaders across multiple industries are sounding the alarm that persistent inflation, supply chain disruptions, and rising operational costs will ultimately be passed through to consumers, according to remarks gathered from more than 30 CEOs and executives at the annual Converge Live event in Singapore last week. The consensus among leaders in banking, energy, shipping, technology and manufacturing is that economic uncertainty has shifted from temporary disruption to a permanent operating condition.
The New Normal: Perpetual Crisis Management
DBS CEO Tan Su Shan told attendees that managers must now "manage for maximum flexibility" because "you don't know what's going to happen tomorrow." She emphasized the need to "stress test, stress test, stress test, so be ready for the worst case scenario." Stanley Szeto, chairman of apparel manufacturer Lever Style, said "long-term planning is becoming more and more difficult." Another executive revealed that "we kind of threw our three-year and five-year plan out the window."
Thomas Knudsen, managing director for Asia of jewelry giant Pandora, described the shift in corporate strategy: "It's no longer 'just in time', it's 'just in case'." He added that "the agility of adaptation is key" and made clear the bottom line for consumers: "Ultimately, it will all be passed to the consumer."
Shipping Crisis Compounds Cost Pressures
The supply chain situation remains severe. Captain Rajalingam Subramaniam, CEO of shipping services firm Fleet Management Limited, reported that more than "2,000 vessels in the Persian Gulf [are] stuck," with "nearly between 20,000 to 30,000 mariners" affected. He warned that "it is going to be higher for longer in terms of supply chain cost."
Szeto explained the direct impact on his business: "We produce garments … and to the extent that shipping is disrupted, then the cost goes up." He noted that "material prices have been going up … so … it's very inflationary." Lever Style has sharply increased the use of air freight despite higher costs compared with sea transport, prioritizing speed and flexibility—a premium that will inevitably appear in retail prices.
Consumer Behavior Shifts Under Pressure
Executives serving mass-market consumers reported that while demand has not collapsed, purchasing patterns are changing significantly. Hans Patuwo, CEO of Indonesia-based superapp GoTo, said affluent shoppers remain resilient and lower-income consumers are helped by government support, but the middle segment is adjusting. "Now they are willing to sacrifice assortment. They are willing to sacrifice speed for cheap," he said.
Martha Sazon, CEO of GCash operator Mynt, said consumers in the Philippines are "really being very selective" about their purchases, with government subsidies and overseas remittances helping cushion the blow. When asked to rate the ASEAN consumer's resilience, Sazon put it at seven out of 10. Patuwo noted that "there's enough history in Indonesia of shocks, and we have learned now how to adapt and overcome."
Why This Matters:
The frank assessments from business leaders signal that inflationary pressures are not temporary but embedded in the global economy's operating structure. With shipping disruptions creating sustained cost increases and companies abandoning traditional planning horizons, the price signals being sent to consumers reflect genuine resource constraints rather than temporary shocks. The shift from "just in time" to "just in case" inventory management represents a fundamental efficiency loss that will be reflected in higher prices across sectors. While government subsidies are currently cushioning some consumers, the reliance on such support raises questions about fiscal sustainability. The middle-class consumer squeeze described by executives suggests that inflation is eroding purchasing power precisely among those who typically drive economic growth, with potential long-term implications for market stability and business investment decisions.