Leadership
The Case for Global Fluency: Building Resilience in ASEAN
ASEAN boards and CEOs face rising geopolitical risk. Discover how globally fluent leaders turn volatility into strategy, resilience, and regional growth.
November 06, 2025
Turning Volatility Into Strategy and Strength
Globally, 63% of CEOs and board directors say their organisation's risk exposure has jumped in the past year—and only 11% feel fully confident about managing it.
From AI disruption and digital transformation to geopolitical instability and economic volatility, leaders are steering through constant, unpredictable storm fronts. Forecasting customer demand or business performance has never been tougher.
Esther Colwill, President Korn Ferry Asia-Pacific, says she’s seeing uncertainty play out at both board and C-suite level.
“We haven't seen this scenario in the world before,” she says. “So nobody really knows how it will play out. Instead of adapting to changes every quarter or year-to-year, we’re seeing big shifts from month-to-month.”
The ASEAN Opportunity
For some countries, including Australia, there’s a growing realisation that the tailwinds that once turbo-charged growth simply aren’t coming back. But across ASEAN, the potential for hypergrowth is real.
ASEAN is now the world's fifth largest economy. It has a young and well-educated population, an open trade agenda, and rapid digital transformation. Malaysia, for instance, is emerging as Southeast Asia’s leading data centre hub—building AI infrastructure for hyperscalers like AWS, Microsoft, and Google, while mitigating tariff exposure.
Amid geopolitical volatility, ASEAN could serve as a bridge between divided nations. But that requires globally fluent leaders—those who are politically and economically aware, bring cross-cultural perspectives, and able to interpret global signals into local action.
Leadership Traits for a State of Permacrisis
It’s concerning to see soft skills downgraded in Korn Ferry’s global CEO and board survey. Only 38% of respondents rated emotional intelligence as a top leadership priority—compared with 69% who prioritised AI or tech proficiency.
Korn Ferry Malaysia Country Managing Director Anthony Raja Devadoss says emotional intelligence remains one of the most critical traits today.
“I see it as a combination of EQ, IQ, SQ (social quotient) and what I call CQ–cultural quotient,” he explains.
“A globally-fluent leader has all these things. They possess a sharp awareness of global dynamics and demonstrate strategic agility—aligning global insights with enterprise priorities. They can anticipate shifts, adapt decisively, and also work closely with management teams, government and society.”
Such leaders build resilience to manage through permacrisis—a state of continuous, overlapping disruption. In this environment, adaptability and proactive risk management matter as much as technical expertise.
Rethinking Regional Risks
So how are ASEAN leaders leaning into risk? While global boards fixate on trade and supply chain threats, the impacts here are more nuanced.
“Indonesia is still a largely domestic economy,” notes Angel Blanco, Lead Consulting Partner based in Jakarta. “There are very few global Indonesian corporations–plus, China is its main trading partner.”
Export revenues remain dominated by State-owned enterprises that control natural resources—including nickel mines powering the world’s EV batteries.
Currency volatility, however, is a more immediate threat. “When global events shift exchange or interest rates, there’s a direct correlation to profitability,” Blanco says. “A multinational targeting 3% growth could find that goal is more like 13%, once US-dollar fluctuations are factored in.”
Talent shortfalls are another risk, compounded by tighter immigration rules impacting international students and professional migration. “Indonesian corporations are investing more in leadership development programs, because they cannot rely on other nations to provide their talent pool,” Blanco adds.
Government funding, such as Malaysia’s RM30 million cybersecurity training budget, is helping plug skills gaps.
Regulatory changes are also reshaping board agendas—from Indonesia’s post-election policy shifts to Malaysia’s government-led pivot towards a digital economy.
“One of their biggest initiatives is the National AI Strategy framework, expected to contribute USD115 billion to Malaysia’s growth,” says Raja Devadoss. “More than a quarter of GDP is forecast to come from the digital industry.”
National priorities like this also demand cultural transformation at the top.
Culture Resistance
When we surveyed global CEOs and board members, they told us cultural inertia was the biggest barrier to progress towards risk mitigation. Mindset matters.
Blanco says many Indonesian leaders aim for high-performance cultures, but often operate in markets where CEOs are hired for stability, not change. Still, he doesn’t see ASEAN as any more resistant to change than Europe or the US.
In a recent Bloomberg interview, Colwill observed an uptick in CEO turnover across Asia.
“Our teams are having a lot of succession and leadership development conversations right now, especially with family businesses,” she says.
Raja Devadoss sees the rise of first-time CEOs as a healthy sign.
“It’s good for fresh thinking, and these younger leaders will have more runway,” he says. “But every conversation I have involves CEOs already charting their path to a board role.”
Regional Ties Strengthen Resilience
Strong inter-country relationships are another way ASEAN leaders are managing geopolitical risk. Beyond building parallel supply chains, companies are shifting operations to geopolitically aligned nations to reduce exposure.
“I’ve seen these connections deepen over the last five years,” says Raja Devadoss. “Malaysia plays an important role in bridging ASEAN with the Middle East, drawing on long-standing religious and commercial ties.”
The Johor-Singapore Special Economic Zone (JS-SEZ) is one example—deepening cross-border trade and investment between southern Malaysia and Singapore.
Colwill describes these evolving ties as both a silver lining and a balancing act.
“We need agreements that are in the long-term interest of each country, their people, and their resources,” she says.
Is Your Board Globally Fluent?
Boards are demanding more from management in a riskier world—more reporting, more scrutiny, more scenario planning.
“It puts pressure on management,” Colwill admits. “But boards also need to look beyond compliance in their own markets, and see the bigger picture.”
Global fluency should be part of that bigger picture.
“Every board should have cross-cultural diversity—a global expert from another country in the region, for example,” says Raja Devadoss.
Managing multiple scenarios is complex—but the cost of ignoring risk is higher. Boards that combine global awareness with forward-looking strategy are better placed to anticipate, not just react, as markets shift.
Do your leaders have global fluency? Our assessment and succession team can help you bridge cross-cultural gaps.
Related insights
