More than eight out of ten CEOs in the Asia Pacific region are confident of growing revenues during the next 12 months, almost identical to the global average of 81%. This is a stark contrast to 2008, where only 66% of Asia Pacific CEOs felt this way. This, according to PricewaterhouseCoopers’ 13th Annual Global CEO Survey, indicates that the worst of the global downturn is behind them Underpinning this optimism is a belief that Asia will be the centre of economic growth in a new world order - issues critical to achieving this status include investing in talent development and combating climate change.
Asia—centre for growth
Globally, the vast majority of CEOs are expecting to grow their businesses in Asia in the next 12 months. Although Western Europe is currently the most popular region for an acquisition, for Asia Pacific, this is expected to change very quickly over the next 12 months. There is a sense of optimism in Asia, which will certainly become a centre of growth in the new world order, and to capitalise on this, Asia Pacific CEOs must remain focused on their long-term prospects.
“The crisis has quickened the change in the economic landscape with emerging nations taking on more economic power than ever. Our prudent nature has left us in better shape than many other regions. Now, Asia’s strategic advantage lies in its people and resources, and its ability to deal with crises, “ said Frank Lyn, China Markets Leader, PricewaterhouseCoopers.
Talent—top priority
Leadership and talent development is a key area in which Asia Pacific CEOs will focus their long-term investment decisions. However, the crisis has also caused CEOs to be more prudent about their spending with 84% rolling out initiatives to help realise cost efficiencies. Despite the focus on cost savings, almost 50% of CEOs expect to increase headcount over the next 12 months, while only 16% expect to reduce headcount.
“Talent remains a top priority for CEOs. The crisis taught us a few things—one of which is that organisations that are able to balance people retention and development against cost reduction measures will be well positioned for taking on the upswing. With Asia Pacific poised to be an economic powerhouse, having the right people in place is more urgent than ever,” said Lyn.
As a result, Asia Pacific CEOs expect to significantly invest in their people’s growth, and not through sheer compensation alone. Almost half will change their training and development programmes to prepare their people for the upswing. The crisis has also reminded CEOs of the importance of engaging their people, and 43% will concentrate on staff morale and employee engagement programmes. Only 16% of CEOs expect to make any adjustments to remuneration levels.
Paul Arkwright
Publisher
