Key findings from PwC’s
APEC CEO Survey Report, 2013
- China, Indonesia, US ranked as top investment destinations.
- Urbanisation, rising middle class, infrastructure - potential sources of growth
- Opportunities in overcoming regulatory, legal, trade barriers
Rise in Investment to Continue in Asia Pacific
PwC 2013 APEC CEO Survey of nearly 500 top business leaders with operations in at least one of APEC’s 21 economies found confidence among Asia Pacific-based executives on the rise. Some 42% of executives say they are ‘very confident’ of revenue growth in the coming year, up from 36% last year. Longer term, 52% say they are confident of growth over the next three to five years, about the same as in 2012.
Asia Pacific in transition >> Business in transition
Sources of growth in Asia Pacific are changing. Businesses are adapting. What worked 10 years ago in the region won´t necessarily work in the years ahead. Decisions CEOs are making about where to invest and why reveals many businesses in transition—just like much of the region itself.
Export-led growthProduce goods
Domestic-led growthCreative services
Manufacturing centresExpand capacity
Urban centresExpand distribution, innovation capabilities
Vertically-integrated supply chainControl processes, production
Fluid value chainCo-develop, specialise, use service networks
The right model for a changing region
68% of APEC CEOs plan to increase business investments next year.
According to the PwC 2013 APEC CEO 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.
Agent of change
87% of CEOs say middle-income consumers influence their growth strategies.
Consumer markets in Asia are not completely liberalised and remain highly fragmented. Strong survivors are transforming operating models and product offers in order to adapt.
Bridging infrastructure gaps
49% of CEOs believe public-private infrastructure models are important for their companies’ growth.
Developing Asia has an infrastructure deficit. And yet, the Asia Pacific region has been under-investing in these assets. Economic growth has been running at a faster speed than new investment in infrastructure, and many parts of Asia now struggle with gridlocked roads, clogged ports, unreliable power, and unsafe water. Public financing alone likely cannot meet the needs.
Where business and regional policy priorities intersect
20% of CEOs would be “highly likely” to invest more if services regulations were harmonised.
Services are an integral part of today’s global supply chains. As services become more intensive, the more coherent and transparent regulations matter for businesses. Regulatory consistency around intellectual property and corporate governance in particular could unlock further investment in APEC economies, CEOs say.
APEC 2013: What’s on the agenda
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 Ltd. "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."
Connect with PwC leaders
Dennis M. Nally
PwC Asia Pacific