Worldwide Economic Prospects Take Toll on Asia Pacific Outlook
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.
Asia-Pacific CEOs said China and the United States were their dominant targets for investment over the next three to five years. Resource-rich areas such as Russia, Indonesia and Australia, and Asian services capitals like Hong Kong and Japan were also cited as top draws for investment.
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.
"Making progress on the many issues that face the diverse economies of the Asia-Pacific region is no easy task. CEOs have set some very clear challenges for the upcoming APEC summit. If the summit is to be deemed a success we need to see some real progress on key issues such as harmonising regulation and encouraging labour mobility in the APEC region," said Dennis Nally, chairman of PricewaterhouseCoopers International Ltd.
More than three quarters of Asia-Pacific executives said their organization is using green technology to increase efficiency, and nearly 60% said they were adopting water conservation techniques. To manage power usage and cost, 27% said they plan to generate their own power with renewable energy in the next three to five years.
In other findings:
- 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.
- More than half listed a deep pool of talent and strong protections for intellectual property as most important to innovation.
- A majority (73%) said they expect infrastructure improvements will continue in such areas as transportation and water treatment.
Notes to Editors:
The full report on the survey results can be found at www.pwc.com.
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.
'PwC' is the brand under which member firms of PricewaterhouseCoopers International Limited (PwCIL) operate and provide services. Together, these firms form the PwC network. Each firm in the network is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way.
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 2012 CEO Summit will be held from 7th to 8th September in Vladivostok, Russia.
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.
2012 PricewaterhouseCoopers. All rights reserved.
David JansenPwC Japan Business NetworkUnited Statesdavid.email@example.com-