PwC: 84% of CEOs in Malaysia plan to expand beyond their traditional industry boundaries

KUALA LUMPUR, 20 January 2026: CEOs in Malaysia are outpacing their global and regional counterparts in the race to reinvent, according to PwC’s 29th Global CEO Survey – Malaysia. Based on responses from 4,454 CEOs globally, the survey reveals that leaders in Malaysia will target adjacent and fast-moving sectors such as retail (22%), consumer goods and services (16%), and technology (14%), among others.

This appetite for reinvention is reinforced by bold deal-making ambitions, with 51% planning at least one major acquisition in the next three years, surpassing both Asia Pacific (28%) and global (41%) averages, despite a cautious global M&A outlook. In the corporate landscape, CEOs are accelerating moves into new sectors. Over the past five years, the number of Malaysian companies entering entirely new sectors has surged to 76%—a significant leap from 42% in 2025.

This transformation is happening against a backdrop of caution. Only 33% of CEOs in Malaysia are now very or extremely confident about their company’s revenue growth over the next 12 months—a double-digit decline from last year. Still, they recognise the need for reinvention: 70% worry their transformation is being outpaced by technological change, while 41% question if they are doing enough to safeguard their company’s medium-to long-term viability.

This ebbing confidence is shaped by what the report calls a “polycrisis” of overlapping threats competing for leadership attention, including geopolitical tension, economic volatility, cyber risk, and climate concern. Compounding these external pressures is the availability of skills, a top concern for CEOs in Malaysia at 35%, followed by cyber risks and technological disruption, both at 33%.

Trade-related pressures, on the other hand, remain relatively contained. For most Malaysian firms, tariff pressures have not breached the bottom line. Only 24% of CEOs surveyed report feeling highly exposed to tariff risks, aligning closely with the Asia Pacific average. 70% expect tariffs to have little to no impact on their company’s net profit margin over the next 12 months.

The AI maturity divide and the search for measurable ROI

The survey reveals a widening AI maturity divide as many organisations struggle to translate experimentation into measurable financial impact. Less than a quarter of CEOs in Malaysia (23%) report that AI has driven additional revenue over the past 12 months, while 17% are seeing cost reductions. However, 26% say that AI has increased their cost base.

Enterprise-wide AI adoption remains limited. Less than a fifth of CEOs report that AI has been applied to a large or very large extent in core functions, including demand generation (19%), support services (8%), and direction setting (8%). Even in the development of products and services, where AI's impact is often touted most highly, adoption stands at a mere 8%. Overall, AI awareness is high, but deep operational integration is still the exception.

Mohamed Kande, PwC Global Chairman, said:

“2026 is shaping up as a decisive year for AI. A small group of companies are already turning AI into measurable financial returns, while many others are still struggling to move beyond pilots. That gap is starting to show up in confidence and competitiveness—and it will widen quickly for those that don’t act.”

Soo Hoo Khoon Yean (Soo Hoo), Managing Partner, PwC Malaysia, commented:

“Today is a defining moment for growth. In the face of complexity, we are seeing CEOs respond not by retreating, but by reimagining their businesses—venturing beyond traditional sector lines and embracing new possibilities. The greatest advantage belongs to those who see every boundary as a bridge, and who reinvent with conviction to work across industries in pursuit of greater, sustainable impact.”

ENDS

^{This press release has been corrected to say that 41% surveyed companies globally are planning at least one major acquisition in the next three years, not 45%.}

About the survey

PwC invited CEOs to participate in our 29th Annual Global CEO Survey from 30 September to 10 November 2025. We collected responses from 4,454 CEOs worldwide. 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 4,454 CEOs. The full findings can be accessed on pwc.com/ceosurvey.

About PwC

At PwC, we help clients build trust and reinvent so they can turn complexity into competitive advantage. We’re a tech-forward, people-empowered network with more than 364,000 people in 136 countries and 137 territories. Across audit and assurance, tax and legal, deals and consulting, we help clients build, accelerate, and sustain momentum. Find out more at www.pwc.com.

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