Asia-Pacific CEOs Have Strong Confidence in Growth
Asia-Pacific CEOs Have Strong Confidence in Growth
-- CEOs look to Asia's domestic markets to drive future revenues
-- Over 40% of CEOs plan to increase headcount by at least 5%
-- Increased use of emerging technologies on agenda for over 80% of CEOs
HONG KONG, Nov. 3, 2011 (GLOBE NEWSWIRE) -- More than half of CEOs in the
Asia-Pacific region are 'very confident' of increased revenue for their
companies over the next three to five years, up slightly from a year ago. More
than 40% of CEOs say their single greatest opportunity for growth will stem
from the rise in spending power in Asia, particularly in China. These were the
key findings from a survey by PwC of more than 320 CEOs across 26 countries,
including the 21 APEC economies, for the Asia-Pacific Economic Cooperation
(APEC) CEO summit.
To drive growth CEOs are seeking to expand in Asia's fast growing consumer
markets and to extend their presence in the evolving markets for services. Over
40% of planned investments, both by domestic Chinese and non Chinese companies,
are targeted on China.
The CEOs surveyed remain confident that the economy of the Asia-Pacific region
will continue to prosper despite the weak economic recovery in the United
States, financial uncertainty in Europe and the tsunami and earthquake that
struck Japan earlier this year.
However nearly one-third of CEOs said the weak US recovery had impacted their
companies 'to a great extent,' while 17% said they had been strongly affected
by conditions in Europe.
"The opportunities in the APEC economies for the remainder of this decade will
be different from the past 10 years. Going forward, developing domestic Asian
markets will replace low-cost manufacturing exports for mature economies as the
main driver of economic growth in the region", said Dennis Nally, chairman of
PwC International Ltd, who will speak at the opening session of the APEC CEO
Summit on November 11th .
Among other findings of the survey:
-- If they could send a message to political leaders, two thirds of CEOs put a
free trade agreement for the region at the top of agenda for issues that
APEC leaders need to address.
-- Inter-regional trade pacts will play a key role in growth for APEC
economies; 64% of CEOs said bilateral and regional trade agreements will be
more important to their company than multilateral agreements.
-- Nearly 30% of CEOs say protectionist tendencies by their trading partners
are a significant barrier to their growth while 32% of CEOs cite corruption
as another significant obstacle.
-- Companies are changing their approaches towards innovation. More than 80%
of CEOs said they plan greater use of emerging technologies such as
mobility and cloud computing technologies.
-- APEC companies are seeking to lessen their reliance on traditional energy
sources. One fifth are 'significantly' raising their commitment to green
processes and products.
-- One fifth of CEOs are making significant changes to their innovation
strategies to protect intellectual property rights.
-- A majority of CEOs in APEC economies say they face problems with talent
shortages. Nearly half of CEOs based in mature economies have difficulty
deploying people overseas.
-- Nearly 40% of CEOs are making 'significant' change to their talent
strategies to deal with new challenges.
-- More than 40% of CEOs in the region expect to increase their headcount by
more than 5% over the next three to five years.
CEOs in the APEC region recognise that cooperation between business and
government is critical to economic competitiveness and social well being in the
region. They cited financial sector stability as the top way in which companies
can work more closely with government, followed by spreading economic access
and opportunity across the population and promoting sustainable growth.
"CEOs in the APEC region see a future in which their countries evolve from
'producer only' economies to 'producer and consumer' markets. That change
will require deeper capital markets, streamlined supply and distribution
channels, and more consistent regulation with less corruption. Achieving those
goals will require unprecedented cooperation and is something that CEOs look
forward to political leaders addressing at next week's APEC summit," Mr. Nally
"Free trade, increasing innovation and creating the right environment through
the rule of law are a key part of the APEC CEO Summit. This survey of APEC CEOs
will provide essential context for what we believe will be a very productive
meeting next week," said Craig Mundie, chair of the APEC CEO Summit and chief
research and strategy officer, Microsoft.
Notes to Editors:
About the PwC network: PwC firms help organisations and individuals create the
value they're looking for. We're a network of firms in 158 countries with
close to 169,000 people who are committed to delivering quality in assurance,
tax and advisory services. Tell us what matters to you and find out more by
visiting us at www.pwc.com.
About APEC: The Asia-Pacific Economic Cooperation (APEC) forum is the premier
economic organisation in the Asia-Pacific region. Established in 1989 by 12
economies, APEC fosters growth and prosperity by facilitating economic
cooperation and expanding trade and investment throughout the region. APEC's 21
member economies today account for 55 percent of global GDP
The APEC CEO Summit is the Asia-Pacific's premier business event, drawing
thousands of economic and business leaders from around the region and beyond.
The 2011 CEO Summit will be held from 10-12 November in Honolulu, Hawaii.
Survey Methodology: Carried out by PwC International Survey Unit, the APEC CEO
Survey 2011 was conducted between July and September 2011 covering CEOs and
industry leaders in 26 countries, including all 21 APEC economies.
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