Petaling Jaya: According to PwC’s 28th annual Global CEO Survey, there is growing optimism on global and local economic growth for CEOs in Malaysia.
About 68% expect the global economy to improve over the next 12 months, in line with global sentiments. Nearly 60% of CEOs worldwide display similar views on the global economy. 87% of CEOs in Malaysia expect the local economy to improve in the next 12 months.
This year’s survey, which included 4,701 CEOs from 109 countries and territories, has just been launched at the World Economic Forum’s annual meeting.
Low availability of skilled workers (35%) is top of mind for CEOs in Malaysia, followed by digital-related threats, cyber risks and technological disruption, both mentioned by 32% of Malaysian CEOs.
The picture is slightly different for their global and Asia-Pacific counterparts, where macroeconomic instability and inflation, the top two threats for both global and regional CEOs, dominate sentiments around the low availability of key skills.
Mohammed Kande, global chairman of PwC, said the findings of this year’s CEO survey highlight a clear comparison – business leaders around the world are optimistic about the year ahead, but they also know they need to create value, deliver The way of doing and capturing has to be reinvented.
“Emerging technologies like GenAI, changes in geopolitics and climate change are all revolutionizing the functioning of the economy. New business ecosystems are forming that are changing the way companies compete and create value. To move forward, business leaders must act now and make bold decisions about their strategy – from people, footprint and supply chain to reinventing their business models,” he said.
When it comes to the complex issue of economic viability, more than half (55%) of CEOs in Malaysia say they do not believe their organizations will be viable in a decade if they continue on their current path. The year is up by 43%. ,
The outlook on longevity is brighter among their counterparts in Asia Pacific (45%) and globally (42%).
However, it is encouraging to know that 42% of CEOs in Malaysia have started to venture into at least one new sector in the last five years to remain relevant. This is in line with nearly four in ten (38%) global CEOs who feel the same.
In terms of venturing into challenging sectors, a small portion of companies in Malaysia are taking such action; Finding new routes to market, implementing new pricing models or targeting a new customer base. To access a broader talent pool to enable these strategies, CEOs should consider collaborating with educational institutions to acquire skilled talents or joining joint ventures to combine forces while mitigating risks. Can do.
Despite notable levels of economic optimism, value creation remains an ongoing endeavor for CEOs as they reconsider business resilience and reinvent strategies for greater success in the future.
Soo Hoo Khoon Yen, managing partner of PwC Malaysia, said: “Artificial intelligence (AI) is shaping leadership conversations and concerns in Malaysia. Only 34% of CEOs in Malaysia trust the inclusion of AI in key processes within their companies, which speaks volumes about building trust in AI as an essential function of organizational success.
Apart from using AI as an imperative for reinvention, more importantly, businesses need to assess their data readiness, and ensure that data is used and managed responsibly, starting with collecting data. and with appropriate human intervention in interpreting and addressing the risks. CEOs in Malaysia have a unique opportunity to differentiate their businesses in this area of data governance to support the country’s digitalization agenda.
In the area of sustainability, there are ways to maximize value, considering 61% of CEOs made climate-friendly investments in the last twelve months.
