CEOs worry about business survival

Cite need to reinvent over next 10 years

MANILA, Philippines —  More than half or 54 percent of chief executive officers (CEOs) in the Philippines are worried about the viability of their business beyond the next decade without implementing changes to their business model, according to a new survey conducted by global consulting firm PwC.

Based on PwC’s 27th Annual Global CEO Survey, which covered 4,702 CEOs from 105 countries, almost all or 97 percent of CEOs in the Philippines have taken steps to change the way they create, deliver and capture value in the past five years.

Over the same period, 86 percent said they have taken at least one action that had a large or very large impact on their company’s business model.

Despite actions being taken, 71 percent said the lack of workforce skills poses a challenge to reinventing the company’s business model.

Lack of technological capabilities in their company (69 percent) and competing operational priorities (75 percent) were also cited as challenges.

While the viability of their business is a concern, 57 percent of CEOs in the Philippines believe global economic growth will improve over the next 12 months, higher than the Asia-Pacific average of 40 percent.

CEOs consider the United States and China as critical for their business growth this year.

“The Philippines has undertaken efforts to improve its investment climate and attract foreign direct investment. This sustained growth and the positive investment climate could have promoted optimism among CEOs regarding both local and global economies,” PwC Philippines deals and corporate finance managing partner Mary Jade Roxas-Divinagracia said.

The survey also found that at least 60 percent of Philippine-based CEOs expect to see the impacts of generative artificial intelligence (GenAI) within three years on the workforce.

Over half or 57 percent also expect GenAI to have a positive effect on revenue and profitability, higher than the Asia-Pacific average of 49 percent.

“Their enthusiasm over the opportunities for growth and innovation that GenAI brings demonstrates their understanding of the need for fundamental reinvention of their businesses,” PwC Philippines chairman and senior partner Roderick Danao said.

But while CEOs in the country expect benefits from GenAI, 80 percent said this would require workforce upskilling.

There are also concerns about the rise in cybersecurity risk (69 percent) and  misinformation (57 percent).

As for the progress in commitments to climate action, 75 percent of CEOs in the country said they have started or completed steps to improve energy efficiency, while 74 percent report having made similar strides in new, climate-friendly products, services or technologies.

The survey also found that 68 percent have made progress or completed initiatives to protect their physical assets and/or workforce from climate risk impact, but 26 to 31 percent have no plans to pursue other types of action related to just transition and nature.

Philippine-based CEOs said regulatory complexity (54 percent) and lack of climate-friendly technologies for their sectors (54 percent) are some of the biggest challenges.

“The impetus to reinvent is intensifying. Many of our country’s business leaders are now working on accelerating the transformation of their business models, investing in technology and their workforce and managing the risks and opportunities related to climate change. In this era of continuous reinvention, CEOs have vast opportunities to reshape their organizations and themselves, to thrive on disruption and transform aspirations into realities,” Danao said.