PwC: Asia Pacific Outlook Affected By Worldwide Economic Prospects

By Rob Starr, Content Manager, Big4.com

Just 36% of executives in the Asia Pacific region surveyed by PwC said they are “very confident” of business growth over the next 12 months. Economic disruption, including possible recession in the U.S., the Eurozone crisis and the slowing of expansion in China have taken a toll on the confidence of CEOs in the area.

CEOs said the top economic risks to their growth were a spike in oil prices to beyond US$150 per barrel, a U.S. recession, breakup of the Eurozone, and the slowing of China’s growth to below 7.5% of gross domestic product. Other top concerns cited were a major disruption of the Internet or cyber attack, and a pandemic or natural disaster.

Meeting the need for talented, highly skilled workers remains a top priority for CEOs in Asia-Pacific; 40% said they plan to expand their workforce by at least 5% in the next three to five years. But, 42% think talent shortages in the region will worsen over the same time period.

To meet the intense competition for talent CEOs said they will offer employees salaries that are more competitive, better apprenticeship and intern programs, more non-financial rewards and customised benefits, and international assignments

Nearly 60% of Asia-Pacific CEOs said there is a ‘critical’ need to improve their use of technologies like cloud computing, digital devices and social media in order to meet customer and employee expectations. CEOs said the top priorities of the APEC organisation should be promoting the free flow of investments in the region, harmonising regulations and standards, and mapping skills in the region with an eye to helping ease restrictions on immigration. About 40% of CEOs said potential trade agreements by both the Association of Southeast Asian Nations (ASEAN) and the Trans Pacific Partnership (TPP) could have potentially significant impact on their companies.

Carried out by PwC International Survey Unit, the APEC CEO Survey 2012 was conducted between June and August 2012 covering 376 CEOs and industry leaders in 40 economies, including all 21 APEC economies.