The latest EY CEO Outlook Pulse survey revealed that the majority (74%) of Asia-Pacific CEOs are feeling optimistic about their own countries’ outlook for the coming year, which is higher than their counterparts in Europe (64%) and the Americas (69%).
Disruptive forces
The optimisim remains despite geopolitical tensions such as trade tensions and conflicts (43% consider is a top disruptive force) of CEOs, uncertainties surrounding emerging technologies (42%), evolving customer needs (38%), changing regulations (38%), and access to talent (31%).
“Asia-Pacific CEOs are more confident in the outlook for their local markets than their global counterparts, despite the persistence of economic volatility, geopolitical uncertainty and a lackluster deal market. CEOs are buoyed by advancements in technology, in particular generative AI (Gen AI), and the tremendous growth opportunities it offers companies in the region – through the technology itself and the upgrading of whole ecosystems and supply chains to support it,” Shannon Cotter, EY Asia-Pacific Strategy and Transactions Leader said.
Climate change
Only more than a quarter (27%) of Asia-Pacific CEOs see climate change and environmental issues as one of the top disruptive forces. Only 29% of CEOs consider the cost of capital a major concern for the next twelve months.
“The relatively low concern among Asia-Pacific CEOs for climate change and environmental issues is a worrying trend and indicates a potential oversight in not just the long- run but also short-term resilience of their businesses. CEOs need to recognise that sustainability is crucial to the success of their business, as are forces such as technology and AI.”
