What’s keeping CEOs in APAC up at night?

Business leaders are looking to redefine their priorities to focus on maximising value while driving profits in today’s challenging marketplace.
By: | January 19, 2023

Faced with the challenges caused by economic and geopolitical uncertainty, CEOs in the Asia-Pacific region are having to manage short-term external risks to drive profitability, while simultaneously transforming their organisations to thrive in the long term.  

They are also having to redefine their priorities and rethink business models, while bracing for a challenging 12 months ahead, revealed PwC’s Annual Global CEO Survey – Asia Pacific: Leading in The New Reality study. 

Raymund Chao, Chairman, Asia Pacific and China, PwC, said, “At this time last year, Asia Pacific CEOs’ optimism hit a 10-year high. Just a year later, we’re seeing a stark reversal of this confidence. With continuous disruptions, CEOs in the region are facing a new reality. To execute the dual imperative successfully, leaders need to redefine their priorities around value creation, build a differentiated culture of empowerment, and collaborate broader and deeper than ever before.”  

READ: What’s keeping HR leaders up at night?

Over the next 12 months, 69% of Asia-Pacific CEOs predict a decline in global economic growth, compared to 76% last year, when they predicted an improvement, and 53% believe that their business models will not be economically viable in the next decade. 

The impact of the economic downturn is found to be top-of-mind for Asia-Pacific CEOs this year, with inflation (41%) and macroeconomic volatility (30%) leading the risks weighing on CEOs in both the short and medium term. There is also considerable concern about geopolitical conflict (30%), which has led Asia-Pacific CEOs to rethink aspects of their business models, such as adjusting their presence in current markets or expanding to new ones (53%), adjusting supply chains (49%), and diversifying their offerings (48%).