Malaysian CEO's see economic growth declining over the next 12 months
19 Jan 2023 12:18pm
A total of 74 per cent of the chief executive officers (CEOs) in Malaysia believe global economic growth will decline - FILE PIC .
According to PwC’s 26th Annual Global CEO Survey, which polled 4,410 CEOs in 105 countries and territories in October and November 2022, 51 per cent of Malaysian CEOs also think their organisations will not be economically viable in a decade if they continue on their current path.
The pattern is consistent across a range of sectors globally, including telecommunications (46 per cent), manufacturing (43 per cent), healthcare (42 per cent) and technology (41 per cent).
The survey noted that globally, the CEOs' confidence in their own company’s growth prospects also declined dramatically since last year (-26 per cent), the biggest drop since the 2008-2009 financial crisis when a 58 per cent decline was recorded.
In contrast, CEOs in larger Asia Pacific countries are much more optimistic about their domestic growth: China (64 per cent), India (57 per cent) and Indonesia (50 per cent) (compared to global -29 per cent).
"The growing emphasis on national interests over global ones represents an acceleration of trends underway - however the fundamentals of the Asia-Pacific region continue to be bolstered by trade liberalisation and markets welcoming foreign direct investment," said PwC in a statement, today.
It said the impact of the economic downturn is top-of-mind for global CEOs this year, with inflation (40 per cent) and macroeconomic volatility (31 per cent) leading the risks weighing on CEOs in the short-term, between the next 12 months and over the next five years.
"Close behind, 25 per cent of CEOs also feel financially exposed to geopolitical conflict risks whereas cyber risks (20 per cent) and climate change (14 per cent) have fallen in relative terms.
"Similar trends are evident in Malaysia in the next 12 months amidst softening customer demand and persistent economic uncertainty; inflation (40 per cent) is the top threat to growth, followed by macroeconomic volatility (29 per cent) and geopolitical conflict (23 per cent)," it added.
In response to the current economic climate, CEOs are looking to cut costs and spur revenue growth with 74 per cent in Malaysia reporting reducing operating costs, while 40 per cent will raise prices and 63 per cent will diversify product and service offerings.
However, 71 per cent of Malaysia’s CEOs are not planning to reduce their workforce, and 83 per cent are not planning to reduce compensation, as they strive to maintain a balance between long-term growth and current operating issues, said the statement - BERNAMA
