PwC: Almost two-thirds of Asia Pacific CEOs are not confident about their company’s long-term viability, despite most of them having taken steps towards business reinvention

• 63% believe their companies will not be economically viable in the next decade if they continue on their current path
• 97% of Asia Pacific CEOs have already taken some steps toward reinvention.

Beijing, 15 January 2024: Uncertainty continues to be on the mind of CEOs. PwC’s “27th Annual Global CEO Survey - Asia Pacific: Leading through accelerated reinvention” has confirmed this sentiment. CEOs in the region are highly divergent on their views of the global economy. 45% expect it to decline, while 40% believe it will improve in 2024. 

Facing an uphill battle, 97% of Asia Pacific CEOs report that they are already taking at least some steps toward reinvention. These efforts have reached a certain degree of success. Our survey has shown that CEOs in the region feel less exposed to short-term risks including macroeconomic volatility (down 9%), inflation (down 21%) and geopolitical tensions (down 12%). However, confidence is fragile. 63% remain uncertain about their company's viability—10% higher than the previous year and 18% above the average for global CEOs. 

Raymund Chao, PwC Asia Pacific and China Chairman, commented: “Our CEO survey this year serves as an urgent and powerful call to intensified action towards business reinvention. Persistent geopolitical conflicts and inflationary worries, among other challenges, have really dug in, amplifying the risks and constraining growth in Asia Pacific. Simultaneously, global megatrends including technological shifts - exemplified by the rise of GenAI - and climate-related issues are increasingly demanding CEOs’ attention. In a constantly evolving market, businesses must embrace a culture of continuous innovation to not only sustain their competitive edge, but also ensure long-term viability.” 

Asia Pacific CEOs also report their top three barriers to reinvention (to at least a moderate extent): regulatory environment (66%), a shortage of workforce skills (60%) and supply chain instability (57%). 

Catching up with global megatrends: climate change and technological disruption (genAI)

Asia Pacific CEOs are aware that they need to address global megatrends including climate change and technological disruption which are poised to compel further reinvention.

Our report highlights that Asia Pacific CEOs have taken steps, with notable advancements in decarbonisation — 68% and 51% are actively enhancing energy efficiency and introducing climate-friendly innovations, respectively. However, about one in five are not currently pursuing other types of action related to climate – adaptation, nature-based or ‘just transition’ solutions. 

Asia Pacific CEOs cite regulatory complexity (63%) and lower economic returns for climate friendly investments (61%) as the biggest barriers to be overcome. The good news is that they are beginning to take on the economic barrier: 51% have accepted lower returns for climate-friendly investments in the past year, 10% higher than global CEOs. 

CEOs in the region overwhelmingly see generative AI as a catalyst for reinvention that will power efficiency, innovation and transformational change. Over two-thirds of Asia Pacific CEOs foresee substantial impacts of GenAI on their companies, workforce and markets within the next three years. However, 41% of CEOs admit to not having adopted GenAI across their companies in the past 12 months. 
 

About the survey

PwC surveyed 4,702 global CEOs, including 1,774 in Asia Pacific from 2 October through 10 November 2023. The global and regional figures are weighted proportionally to country nominal GDP. The industry and country-level figures are based on unweighted data from the full sample of 4,702 CEOs. The full findings can be accessed on https://www.pwc.com/gx/en/asia-pacific/ceo-survey/27th-annual-global-ceo-survey-asia-pacific.pdf