PETALING JAYA: Optimism on global and local economic growth continues to rise for CEOs in Malaysia, according to PwC’s 28th Annual Global CEO Survey.
Some 68% expect the global economy to improve over the next 12 months, aligning with global sentiments. Almost 60% of CEOs around the world display similar views on the global economy. 87% of CEOs in Malaysia expect the local economy to improve over the next 12 months.
This year’s survey, which polled 4,701 CEOs across 109 countries and territories, has just been launched at the World Economic Forum Annual Meeting.
Lower availability of skilled workers (35%) is top of mind for CEOs in Malaysia, followed by digital related threats, with cyber risks and technological disruption both cited by 32% of Malaysian CEOs.
The picture is a little different for their global and Asia-Pacific counterparts where macroeconomic volatility and inflation, the top two threats for both global and regional CEOs overshadow sentiments around lower availability of key skills.
PwC global chairman Mohamed Kande said that this year’s CEO Survey findings highlight a stark juxtaposition – business leaders around the world are optimistic about the year ahead, but also know they must reinvent how they create, deliver and capture value.
“Emerging technologies such as GenAI, shifts in geopolitics, and the climate transition are all revolutionising how the economy works. New business ecosystems are forming, transforming how companies compete and create value. To thrive, business leaders must act now and take bold decisions around their strategy – ranging from people, footprint and supply chain, right through to reinventing their business model,” he added.
When it comes to the complex issue of economic viability, more than half (55%) of CEOs in Malaysia say they do not believe their organisations will be viable in a decade if they continue on their current path, an increase from 43% last year.
The outlook on longevity is brighter among their counterparts in Asia Pacific (45%) and globally (42%).
However, it’s encouraging to note that 42% of CEOs in Malaysia have started to venture into at least one new sector in the last five years in a bid to stay relevant. This is consistent with the almost four in ten (38%) global CEOs who feel the same way.
In terms of venturing into challenging areas, a smaller proportion of companies in Malaysia are taking such actions; pioneering new routes to market, implementing new pricing models or targeting a new customer base. To tap into a wider talent pool in enabling these strategies, CEOs can consider collaborating with educational institutions to source skilled talent or engaging in joint ventures to combine strengths while mitigating risks.
Despite the noteworthy levels of economic optimism, value creation remains an ongoing pursuit for CEOs as they rethink business resilience and reflect on reinvention strategies for greater success in the future.
PwC Malaysia managing partner Soo Hoo Khoon Yean said: “Artificial intelligence (AI) continues to shape leadership conversations and concerns in Malaysia. Only 34% of CEOs in Malaysia trust having AI embedded into key processes within their companies, speaking volumes about building trust in AI as a necessary function of organisational success.
Beyond harnessing AI as a reinvention imperative, more importantly businesses need to assess their data readiness, and ensure that data is utilised and managed responsibly, with proper human interventions in collecting and interpreting data, and addressing risks. CEOs in Malaysia have a unique opportunity to differentiate their businesses in this area of data governance, in supporting the nation’s digitalisation agenda.”
In the area of sustainability, there are avenues to maximise value, considering the 61% of CEOs who have made climate-friendly investments in the past twelve months.
