The C-suite’s 2026 outlook points to optimism tempered by discipline and flexibility
C-suite leaders head into 2026 optimistic but disciplined, prioritising AI, cost control, and flexible work to drive productivity and growth.
Senior business leaders are entering 2026 with renewed confidence, but that optimism is being matched by a strong focus on cost discipline, operational flexibility, and the strategic use of artificial intelligence. Findings from International Workplace Group’s latest State of the C-Suite report suggest that executives are planning for growth while remaining acutely aware of ongoing economic and structural pressures.
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According to the research, 95% of CEOs are optimistic about 2026, with 84% expecting global economic conditions to improve after a period marked by volatility and caution. This confidence, however, does not translate into relaxed spending. All CEOs surveyed said cost control will be essential to success in the year ahead, while CFOs reported that budgets are being trimmed by an average of 10%.
Optimism shaped by economic realities
The outlook reflects a more measured form of confidence, shaped by realism rather than expectations of a return to pre-pandemic conditions. Executives appear to be preparing for a business environment where growth is possible, but only through tighter execution and structural change.
In Singapore, this mindset aligns with broader national signals. Despite reporting stronger-than-expected economic growth of 4.8% in 2025, Prime Minister Lawrence Wong has urged businesses to rethink, reset, and refresh their strategies to maintain competitiveness. This message resonates with organisations facing persistent challenges around manpower availability and rising rental costs.
As a result, more than half of Singapore businesses have already implemented cost-saving measures, while 30% plan to introduce more flexible working arrangements. These responses suggest that companies are not relying solely on short-term cuts, but are adjusting how they operate in order to manage long-term pressures more effectively.
AI and flexible work as cost and productivity levers
Artificial intelligence and flexible work models are emerging as central tools in this recalibration. The report indicates that AI can deliver operational cost savings of between 20% and 40%, while flexible working arrangements can reduce real estate costs by up to 55%. For leaders balancing cost control with the need to invest in growth, these approaches offer practical, scalable benefits.
In Singapore, the impact of AI adoption is already evident, particularly among small and medium enterprises. SMEs that implemented AI-powered solutions through the Productivity Solutions Grant achieved average cost savings of 52%. When combined with reduced overheads from flexible work, these gains also support higher productivity and improved employee satisfaction.
Beyond cost reduction, AI is increasingly viewed as a productivity driver. Four-fifths of C-suite executives said investment in AI, automation, and productivity initiatives will be prioritised in 2026. Previous research found that 78% of workers report saving time through AI tools, gaining an average of 55 minutes per day, which is close to the equivalent of an additional working day each week.
Redefining where work happens
Flexible working has now entered the mainstream. Four in five organisations in Singapore offer flexible work options, signalling a lasting shift in how work is organised. Companies are increasingly enabling employees to split their time between local workspaces, a central office, and home, reflecting a broader rebalancing of where economic value is created.
This shift is also changing how leaders think about offices. The report frames 2026 as the year of “work from an office” rather than “the office”. Eighty-three percent of CEOs already enable teams to work from multiple locations. The main reasons include shorter commutes, access to wider talent pools, improved employee happiness, higher productivity, and the ability to locate offices or co-working spaces in areas with lower real estate costs.
Looking ahead, 56% of CEOs plan to pursue shorter-term leases, while 54% are considering co-working solutions or memberships to networks of flexible workspaces. This reflects a move away from long-term, fixed office commitments towards more adaptable models that can respond to changing workforce and market conditions.
“There is no longer a binary choice between work from home and work from the office,” said Mark Dixon, Founder and CEO of International Workplace Group. “By reducing daily, costly commutes to faraway offices and empowering people to spend more time working closer to where they live and want to be, leaders can cut costs, maximise productivity, increase employee satisfaction and retention, and drive better ROI.”
The findings also align with International Workplace Group’s own expansion. Its global network now includes more than one million rooms across 121 countries. The company opened 624 locations in 2024 and signed and opened more locations in the first half of 2025 than in its entire first decade of operations, following its highest-ever revenue, cash flow, and earnings performance.
Overall, the 2026 outlook points to a C-suite that is cautiously optimistic, disciplined in execution, and increasingly flexible in how organisations deploy people, technology, and space to prepare for growth.
