What's keeping CEOs in Malaysia up at night?

Almost half (43%) of Malaysia-based CEOs say they do not believe their organisations will be economically viable in a decade if they continue on their current path, according to PwC’s 27th Annual Global CEO Survey (Malaysia).

Polling 4,702 CEOs across 105 countries and territories in the Asia Pacific region, sentiments about the global economy are divided, with 45% anticipating a decline and 40% expecting improvement in 2024.

Malaysia CEOs are slightly more optimistic about the economic outlook this year compared to last year. Yet, confidence is fragile as megatrends including technological disruption and the climate transition converge.  While economic outlook pessimism has reduced among Malaysia CEOs, concerns about macroeconomic volatility (30%) and inflation (27%) persist in the next 12 months.

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Workforce woes continue in 2024 as 70% of Malaysia CEOs cite the lack of skills in their company’s workforce and two-thirds (64%) point to the lack of technological capabilities. This suggests that the workforce remains at the centre of reinvention, in an increasingly digitalised economy and sectors where digital transformation is pivotal.

Around 41% of Malaysia CEOs foresee substantial impacts on their companies, workforce and markets within the next three years. In particular, 82% anticipate the need for workforce skills acquisition in response to GenAI advancement, surpassing global (69%) and Asia Pacific (76%) figures.  Despite this awareness, half of CEOs in Malaysia surveyed admit to not having adopted GenAI across their companies in the past 12 months.

Climate change a work in progress

In terms of climate change, CEOs in Malaysia show some progress in decarbonisation efforts – 85% and 73% are currently in progress or have completed energy efficiency improvements and innovation of new, climate-friendly products, services or technologies, respectively. This is higher than the Asia Pacific average at 68% and 51% respectively.

On the other hand, about one in five are not currently pursuing other types of actions related to climate, such as adaptation, nature and initiatives for a just transition. Investment in nature-based climate solutions lags at 50%, with 27% having no plans to act. This passive approach towards other plans to address climate issues is consistent with global CEOs.

Bob Moritz, global chair, PwC, said that globally, this year’s data suggests a high degree of CEO uncertainty ahead, but CEOs are taking action. They are transforming their business models, investing in technology and their people, and managing the risks and opportunities presented by the climate transition.

“If businesses are to thrive over the short and long-term, build trust, and deliver sustained and long-term value, they must accelerate the pace of reinvention,” said Moritz.

Soo Hoo Khoon Yean (Soo Hoo), managing partner, PwC Malaysia, said that amidst the optimism surrounding global economic prospects, the delicate confidence among CEOs show that the continued viability of the organisation rests on the efforts of all layers of business.

“The stakes are high: the reinvention mandate needs to consider technological disruption in the form of GenAI and climate change challenges among other issues. The answers to these megatrends may not yet exist. This opens up meaningful opportunities and collaborative ecosystems for public-private partnerships to tackle complex societal challenges like cybersecurity and workforce skills needs,” Soo said. 

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