Singapore, 10 June 2025 – As global macroeconomic instability continues to challenge business leaders, a new survey by International Workplace Group (IWG) reveals that C-suite executives are increasingly leaning on hybrid working models to manage costs, build resilience, and future-proof operations.
The study, which surveyed CEOs and CFOs across global markets, found that 86% of leaders are proactively taking steps to shield their organisations from economic turbulence, with 67% actively reducing or planning to reduce operating costs. A core part of that strategy? Hybrid working, which 83% of respondents credit as playing a vital role in driving cost efficiencies and improving operational flexibility.
Hybrid as a Financial Strategy
As organisations seek to strengthen their financial footing amid shifting economic conditions, hybrid work has moved from a pandemic-era contingency to a deliberate cost-control strategy. 77% of executives report that shifting to hybrid models has led to measurable reductions in overheads, including real estate costs, utility expenses, and office service outlays.
In turn, this agility is freeing up capital for growth, while also providing a buffer against market volatility. Nearly eight in ten (79%) business leaders say they are exploring further adoption of flexible workspace solutions to better weather ongoing economic uncertainty.
Singapore’s SMEs Embrace Flexibility
In Singapore, the trend is particularly relevant for small and medium-sized enterprises (SMEs) — which make up the backbone of the national economy. Local businesses are contending with rising operational costs, talent shortages, and regional expansion pressures, all while maintaining growth aspirations. A separate study shows that 44% of Singaporean SMEs are planning regional expansion, intensifying the need for more scalable operating models.
Hybrid work is enabling these businesses to access wider talent pools, support decentralised teams, and scale operations without proportionate increases in physical infrastructure. It also plays a vital role in attracting and retaining talent, particularly as employee expectations shift toward greater workplace flexibility.
Productivity, Talent, and Expansion Gains
Beyond cost containment, hybrid strategies are proving to be performance enablers. According to IWG, 83% of C-suite leaders report increased employee productivity, while 88% cite stronger employee satisfaction as a result of hybrid policies. Additionally, 74% say the model has enabled them to explore new markets and decentralise operations more effectively.
These findings reflect a shift in how companies view hybrid work—not just as a temporary fix, but as a strategic advantage that supports long-term talent, workforce, and business planning.
“In times of economic volatility, CEOs are carefully evaluating how to navigate uncertainty while driving efficiency and growth for their business. They recognise that flexibility is not only crucial when it comes to safeguarding their operations but also enhancing the productivity of their teams,” said Mark Dixon, CEO and Founder of International Workplace Group.
“By empowering their teams to work closer to home in local workspaces and offices, companies operating in the hybrid model are able to significantly reduce their costs and improve the work-life balance of their people.”
Real Estate Transformation in Focus
This transition is also reflected in the real estate strategies of Singaporean companies. A separate report by Knight Frank finds that more businesses are “right-sizing” office space to align with hybrid work models and reduce fixed expenses—reinforcing the growing focus on agile infrastructure that supports workforce flexibility.
Ultimately, as CFOs and CEOs confront rising costs and unpredictable markets, hybrid work is proving to be a powerful enabler of financial resilience, workforce sustainability, and scalable growth.
