Malaysian CEOs Balance Economic Optimism with Long-Term Business Viability Concerns

Malaysian CEOs remain confident in both global and domestic economic growth but are increasingly uncertain about the long-term sustainability of their companies.

According to PwC’s 28th Annual Global CEO Survey, 55% of Malaysian business leaders believe their companies will not remain viable over the next decade if they continue on their current trajectory. This marks a rise from 43% in 2024, highlighting growing concerns about the need for strategic transformation to secure long-term success.

The survey, which gathered responses from 4,701 CEOs across 109 countries and territories, reveals a stark contrast between optimism about economic conditions and the recognition of internal challenges. While 87% of Malaysian CEOs expect the local economy to improve within the next 12 months, many acknowledge the need for significant change to ensure business longevity.

Despite concerns over sustainability, Malaysian CEOs generally maintain a positive outlook on economic growth. The survey indicates that 87% foresee improvements in Malaysia’s economy, aligning with a broader global trend, where 68% of executives anticipate economic growth worldwide. However, talent shortages remain a major concern, with 35% of Malaysian CEOs citing a lack of skilled workers as their top challenge. This issue surpasses concerns over cyber risks and technological disruption, each identified by 32% of respondents.

In contrast, macroeconomic volatility and inflation dominate concerns among CEOs in the Asia-Pacific region and globally, taking precedence over workforce shortages.

PwC Global Chairman Mohamed Kande commented on the survey’s findings, noting that while business leaders worldwide express optimism about the future, they also recognize the urgent need to reinvent how they create, deliver, and capture value.

For Malaysian CEOs, the question of economic viability remains critical. More than half worry that their companies will not withstand the next decade without major transformation, a concern that has grown from the previous year. However, their counterparts in Asia-Pacific (45%) and globally (42%) appear slightly more confident about the long-term sustainability of their businesses.

To address these challenges, 42% of Malaysian CEOs have expanded into at least one new sector over the past five years to maintain relevance, mirroring a global trend where 38% have pursued similar diversification strategies. However, fewer Malaysian businesses are actively exploring new routes to market, adopting innovative pricing models, or targeting new customer segments.

PwC Malaysia Managing Partner Soo Hoo Khoon Yean emphasized the importance of responsible data management and the growing role of artificial intelligence (AI) in business strategy. He noted that AI continues to shape leadership discussions in Malaysia, yet only 34% of CEOs trust integrating AI into core business processes, reflecting concerns about its role in long-term success.

While AI holds the potential to revolutionize business operations, many Malaysian CEOs remain cautious, stressing the importance of data governance and human oversight in managing AI-driven processes. Soo underscored the need for businesses to assess their data readiness, ensuring that information is collected, interpreted, and utilized responsibly to mitigate risks.

Sustainability has also emerged as a priority, with 61% of Malaysian CEOs reporting climate-friendly investments over the past year. However, to maximize impact, sustainability should be positioned as a core business driver rather than merely a cost factor. Business leaders are encouraged to integrate sustainability into their long-term strategies, creating clear pathways to achieve both environmental and financial growth.

Have you read?
World’s Best Countries To Invest In Or Do Business.
World’s Most Startup-Friendly Countries.
World’s Best Countries For Quality of Life.
Largest Economies Europe In 2024.
GDP of the BRICS countries (2000 to 2028).