“2025 Supertrends” Highlights Key Factors Shaping the Global Investment Outlook

Bank of Singapore successfully concluded the CIO Summit, held in Dubai, where its leadership and expert panelists explored key investment themes, their implications on global investment, and strategies for success. During the summit, the Bank unveiled its highly anticipated “2025 Supertrends Report,” a refreshed outlook building upon the insights of the 2024 edition. This latest report identifies the key investment themes shaping financial markets and global economies in the years ahead. 

The 2025 Supertrends Report draws on perspectives from the recently established Global Advisory Council, which was convened in 2024 under the guiding principles that thought leadership is a global effort, there is no monopoly on good ideas, and diversity of perspectives is critical. By integrating the expertise of esteemed council members, this report offers forward-looking insights to help investors navigate an increasingly complex and dynamic world.

As the world undergoes rapid and profound shifts—from geopolitical realignments to the accelerating influence of artificial intelligence, the report underscores the importance of strategic foresight in navigating today’s evolving investment landscape.

Ms Jean Chia, Global Chief Investment Officer at Bank of Singapore, said: “The 2025 Supertrends Report, a collaborative effort of Bank of Singapore’s Chief Investment Office with our CIO Global Advisory Council, integrates diverse global perspectives to provide our clients with actionable insights. By anticipating these structural trends, investors can unlock new opportunities and construct resilient portfolios that thrive in an ever-changing world.”

The 2025 Supertrends Report identifies five key investment themes that will define the financial and economic landscape in the coming years:

The Changing World Order

This theme explores the increasing fragmentation of the global economy as investors navigate the lingering effects of the pandemic, ongoing wars in Ukraine and the Middle East, and the escalating US-China rivalry. This divide is expected to deepen under a second Trump presidency, which could introduce tax cuts, steep tariffs, tighter immigration policies, and deregulation—potentially driving inflation higher for the rest of the decade.

While these measures may initially boost US economic growth, fewer Federal Reserve (Fed) rate cuts and higher US Treasury (UST) yields could create headwinds in the longer term. Meanwhile, the rest of the world is likely to face economic strain due to US tariffs, a stronger dollar, and rising UST yields. If the global economy continues to fragment into US- and China-led blocs, disrupted supply chains could further fuel inflationary pressures worldwide.

Activating Asset Allocation

As traditional 60-40 portfolios become less effective in a high-inflation, high-interest rate environment, investors are expected to shift toward private markets and real assets. Key areas of interest include digital transformation, automation, and sustainability, as these sectors drive long-term value creation.

The expansion of digital infrastructure, including data centers, 5G networks, and cybersecurity—will require substantial investment, while the transition to a sustainable economy will depend on scalable solutions in clean energy, energy efficiency, and the circular economy.

In this higher-risk environment, companies with strong business models and pricing power are likely to outperform. Additionally, given concerns over debt sustainability and geopolitical risks, investors may consider safe-haven assets such as gold to enhance portfolio resilience.

Finding AI #IRL

Artificial intelligence is moving beyond conceptual hype to real-world applications, becoming a clear priority for businesses across industries. As companies increasingly channel capital into AI-driven investments, they seek to enhance productivity, customer engagement, and revenue growth. This has led to substantial capital inflows into AI semiconductors, cloud computing, and enterprise software.

AI semiconductors are benefiting from significant capital expenditures by hyperscalers, with demand extending beyond off-the-shelf merchant chips to custom solutions, further driving growth across the semiconductor and hardware ecosystem.

Real-world AI applications are rapidly expanding, focusing on:

Additionally, consumer adoption of AI-powered tools—such as chatbots—is steadily increasing. As mass-market familiarity with AI grows, it sets the stage for sustained and long-term demand, reinforcing AI’s integral role in shaping the future of business and technology.

Powering Ahead

This theme highlights how the rising energy demands of AI and the accelerating transition to clean energy are reshaping the global energy landscape. As AI adoption expands, so too does its power-intensive nature, intensifying the need for sustainable energy solutions. While political shifts—such as a Trump administration—may slow short-term policy momentum, the global commitment to sustainability remains strong, presenting significant long-term investment opportunities.

The clean energy transition is not only an environmental imperative but also an economic one, benefiting established players in renewable energy, electric vehicles (EVs), smart grid infrastructure, energy storage, and efficiency technologies. Additionally, critical minerals and metals producers are well-positioned for growth.

At the same time, traditional energy companies are adapting and integrating new technologies such as bioenergy and carbon capture to stay relevant in a changing landscape. Evolving policies have also opened doors for the oil and gas industry to contribute to the transition, leveraging their expertise in managing complex energy systems.

Despite near-term political uncertainties, the global shift toward clean energy remains inevitable, driving long-term economic opportunities and a more resilient energy future.

Living 2.0

As life expectancy rises and workforce dynamics evolve, this theme explores how automation and AI-powered productivity tools are becoming essential in offsetting labor shortages.

Longer lifespans are reshaping consumption patterns, shifting capital allocation towards healthcare, leisure, and experiences to meet the changing demands of an aging society. Meanwhile, as working-age populations shrink, competition for talent is intensifying. This could drive wages higher and accelerate investment in automation and productivity-enhancing technologies. Companies at the forefront of robotics and AI stand to benefit as industries seek innovative solutions to labor shortages.

At the same time, declining populations are increasing the need for workforce reskilling, particularly as automation reshapes job markets. This trend is creating growing opportunities for companies in education, training, and talent management—sectors that will play a crucial role in preparing workers for the evolving economy.