Philippine policemen walk past an APEC summit logo in front of the media center in Manila. (Photo: sputniknews.com)
Around half of surveyed Asia Pacific CEOs say they plan to raise investments in Vietnam, the Philippines and Singapore
during the next year although confidence among CEOs has declined, according to PwC
’s fifth annual APEC CEO Survey.
For the survey entitled “CEO confidence in Asia Pacific shaken but strong,” 800 business leaders were surveyed about the prospects for business, growth and free trade in the region. The study was released on Monday at the start of the APEC CEO Summit in Manila, the Philippines.
Volatility in the financial markets this summer undermined CEO confidence with just 28% of the surveyed CEOs are now ‘very confident’ their organization will see revenue growth over the next 12 months. The reading is down from 46% a year ago, and it is the lowest level since PwC started tracking 12-month confidence for Asia Pacific CEOs in 2012.
Adding to concerns over financial market volatility, cyber security, exposure to natural disaster risks and regional geopolitical tensions are among the leading threats to business investment and growth.
“Despite their dwindling confidence in revenue growth, the majority of CEOs (53%) still plan to increase investments over the next 12 months, with most of that investment (68%) planned for the APEC region,” says PwC in its press release.
APEC CEOs are bullish on free trade. As regional integration proceeds on several fronts, they believe a free trade area in Asia Pacific could be a reality by 2020. For more CEOs, the ASEAN Economic Community is the ‘mega regional’ game changer, while there are also hopes that Trans-Pacific Partnership agreement will boost exports and fuel regional growth.