PwC: Asia Pacific CEOs enter 2025 with optimism and caution, urging bold reinventions to unlock new value

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Hong Kong, 21 January 2025 – As 2025 begins, a wave of optimism is sweeping across Asia Pacific. PwC's latest survey “28th CEO Global Annual CEO Survey - Asia Pacific: Reinvention in motion” reveals CEOs in the region are feeling more confident about the global economy, their revenue growth, and the long-term viability of their businesses.

The survey, which polled responses of 1,520 CEOs in the region, highlights:

• 55% expect the global economy to improve in the next year, up from 40% in 2024
• 34% are very and extremely confident about their company’s short-term revenue growth (+3% vs. 2024), rising to 54% for a three-year outlook (+17% vs. 2024)
• Only 45% believe their companies will last less than a decade if they continue on the same path, a drop from 63% in 2024, showing increased confidence in business longevity

Mohamed Kande, Global Chairman, PwC, said: “This year’s CEO Survey findings highlight a stark juxtaposition – business leaders around the world are optimistic about the year ahead, but also know they must re-invent how they create, deliver and capture value. Emerging technologies such as generative artificial intelligence (GenAI), shifts in geopolitics, and the climate transition are all revolutionising how the economy works. New business ecosystems are forming, transforming how companies compete and create value. To thrive, business leaders must act now and take bold decisions around their strategy – ranging from people, footprint and supply chain, right through to reinventing their business model.”

The report further reveals some Asia Pacific companies are moving rapidly to capture the growth and value-creation potential inherent in the defining forces of our era. 59% report that they have taken at least one significant reinvention action in the last five year. They’re investing in GenAI, addressing the opportunities and threats posed by climate change, and reinventing their operations and business models to create value in new ways.

• Among the 82% who have adopted GenAI in the last 12 months, 37% report increased revenue, 40% note higher profitability, and 58% observe improved employee efficiency due to GenAI adoption.
• A significant 85% of CEOs in the region have initiated climate-friendly investments in the past year. Of these, 39% report increased revenue, while 34% faced cost pressures.
• 63% indicate they have tied their personal incentive compensation to sustainability metrics, surpassing the global average of 56%.

Yet many others are moving slowly and a large majority of companies lack agility.

• On average, only 7% of revenue over the past five years stems from fundamentally new businesses.
• Dynamic resource reallocation is a prerequisite for reinvention. However, 64% reallocate less than 20% of financial resources, and 70% reallocate less than 20% of human resources.
• One of the ways to reinvent is to look beyond company’s walls and across industry boundaries, to create value. However, 72% have not undertaken a major acquisition (over 10% of assets) in the last three years.

CEO confidence is tempered by caution. Macroeconomic volatility and inflation remain top of mind. Additionally, one in four CEOs identifies talent shortage and technological disruption as key threats to their businesses. Reflecting this cautious outlook, 44% of Asia Pacific CEOs do not plan to spend any capital expenditure for international operations in the coming year.

The report also identifies a growing trend of industry convergence. 35% of Asia Pacific CEOs are venturing into new industries, with technology, retail, and health services leading the charge as the most attractive arenas for new entrants.

Hemione Hudson, Chair and CEO of PwC China, commented, “After years of digitisation, the traditional boundaries between industries have become increasingly blurred. We believe that the interaction between the development of AI, the challenges of climate change, and other megatrends will further accelerate this process of change. Industry convergence presents unprecedented opportunities for cross-sector growth in Asia Pacific, but navigating this complex environment will require decisive leadership and enhanced board engagement. As we look ahead, those who are willing to innovate and collaborate across traditional boundaries will lead the future and play a central role in shaping a more sustainable and interconnected world.”
 

Notes to editors:

About the survey 

PwC surveyed 4,701 global CEOs, including 1,520 in Asia Pacific from 1 October through 9 November 2024. The global and regional figures are weighted proportionally to country nominal GDP. The industry and country-level figures are based on unweighted data from the full sample of 4,701 CEOs. The full findings can be accessed on https://www.pwc.com/gx/en/about/pwc-asia-pacific/ceo-survey.html