Forty two percent of Chief Executive Officers (CEOs) in Asia Pacific are "very confident" of revenue growth over the next 12 months and 68 percent of them plan to raise their investments in the region, a survey by consultancy PwC showed Saturday.
China, Indonesia and the US ranked top three destinations for increases over 3-5 years in the survey, Asia Pacific CEOs: Their agenda for 2013-14.
However, many believe Indonesia will surprise the region with more business opportunity than expected, followed by Myanmar, China, The Philippines and Vietnam.
According to the survey, the trend towards urbanisation in many Asia Pacific economies, the emergence of the local middle-class, and the need for infrastructure development are the main reasons for driving the increase in confidence.
Nearly 500 business leaders were surveyed on their attitudes toward doing business in the region and the findings were released just hours ahead of the crucial APEC CEO Summit in Bali, Indonesia.
Business leaders see opportunity in mobile-enabled sales and transactions. One in five Asia-Pacific CEOs are pursuing mobile products and/or services.
"Executives in the Asia Pacific region are in the midst of a major transformation taking place within the region driven by a gradual but steady rise in income and economic opportunity for millions of people," says Dennis M. Nally, Chairman of PricewaterhouseCoopers International (PWC).
"While overall confidence in growth in Asia Pacific remains undiminished, APEC economies now also face many of the uncertainties of slower growth, previously limited to the more developed markets."
The CEOs believe regulatory consistency around intellectual property (IP) and services could unleash more investment. They say lifting regulatory and legal barriers and trade infrastructures can create "significant" growth opportunities.
Innovation, expanding services top CEOs to-do lists.
Close to one in five CEOs see R&D, HR as 'unprepared' to adjust to the middle-income trend in Asia Pacific.
Key highlights:
-- Confidence is up: More CEOs (42%) are 'very confident' in revenue growth for their companies than were at this time last year (36%).
-- Most CEOs (68%) plan to increase business investments in APEC economies next year.
-- China, Indonesia and the US ranked top three destinations for increases over 3-5 years.
--Regulatory consistency around IP and services could unleash more investment: CEOs 'highly likely' to invest more with harmonisation in IP (22%); corporate governance (22%) and services (20%).
--Innovation, expanding services top CEOs to-do lists: 87% of CEOs say middle-income consumers influence their growth strategies.
--Close to one in five CEOs see R&D, HR as 'unprepared' to adjust to the middle-income trend in Asia Pacific. Many believe Indonesia will surprise the region with more business opportunity than expected, followed by Myanmar, China.
--One in five Asia Pacific CEOs are pursuing mobile products and / or services: Business leaders see opportunity in mobile-enabled sales and transactions.
--Asia Pacific's many trade talks welcomed, but some CEOs flag rising complexity and costs: 69% agree multiple trade tracks create more opportunities for their companies.
--Developing tech grids and urban transport are the paths to economic growth: CEOs believe lifting regulatory and legal barriers (32%) and trade infrastructures (31%) can create 'significant' growth opportunities.
