THE optimism of chief executive officers (CEOs) of large corporations on the prospects of their industry peaked to its highest level this year. The business leaders however continue to be concerned about geopolitical uncertainty that has become worrisome for the past three years.
Results of the Philippine CEO Survey 2024 conducted from July to August among 168 business leaders showed 86 percent of the respondents are confident about their industry’s prospects for the next 12 months, up from 83 percent in last year’s survey.
About 85 percent of those surveyed expressed confidence their company will experienced revenue growth over the same period. That is a jump from 79 percent of the respondents in the previous year.
CEOs tagged infrastructure development (59 percent) domestic consumption (51 percent) and foreign direct investments (41 percent) as the top three growth drivers of the economy.
When asked what keeps CEOs awake at night, about 62 percent tagged geopolitical tensions, referring to the Russia-Ukraine war, Israel-Hamas conflict and territorial disputes in the South China Sea which impact heavily on global trade, supply chains and economic stability.
Despite external pressures, 52 percent believe global economic growth will improve in the next 12 months.
“Business leaders in the Philippines have been faced with significant challenges stemming from global economic uncertainties, geopolitical tensions and inflationary pressures, but they are continuously adapting and innovating,” said Roderick Danao, PwC Philippines chairman and senior partner, in a press conference announcing the results of the survey in Makati City yesterday.
Danao noted adoption to technology should be multi-generational as organizations now deal with five generations Boomers, Gen X, Millennials, Gen Y and Gen Alpha.
PwC said only 39 percent of businesses have adopted artificial intelligence (AI).
Donald Lim, chair of the CEO Conference Committee of the Management Association of the Philippines, said AI is very nascent and its adoption by businesses could be no more than 50 percent in five years.
Lim said CEOs should understand technology, as this is the biggest driver of competitiveness.
In the next 12 months, majority of CEOs plan to make investments in upskilling their workforce in priority areas, automating processes and systems and deploying advanced technologies like AI and cloud to better equip their companies for the evolving business environment.
