Malaysian CEOs Weigh Economic Optimism Against Long-Term Business Viability

PwC Survey Highlights the Urgent Need for Transformation Amid Growing Sustainability and Talent Concerns

Malaysian CEOs remain optimistic about economic growth, both globally and domestically, yet many harbor increasing doubts about their companies’ long-term sustainability. This paradox underscores the challenges facing business leaders as they navigate rapid technological advancements, workforce shortages, and the need for strategic reinvention.

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 significant increase from 43% in 2024, reflecting growing concerns about the need for business transformation to secure long-term success.

Optimism Meets Business Realities

The survey, which gathered responses from 4,701 CEOs across 109 countries and territories, reveals a contrast between economic optimism and internal business concerns. While 87% of Malaysian CEOs expect the local economy to improve in the next 12 months—surpassing the 68% global optimism rate—many recognize the pressing need for change.

Despite this confidence in economic recovery, business leaders are grappling with major challenges, particularly talent shortages. A striking 35% of Malaysian CEOs cited a lack of skilled workers as their top concern, overshadowing worries about cyber risks and technological disruption, each cited by 32% of respondents.

In contrast, macroeconomic volatility and inflation remain dominant concerns among CEOs in the broader Asia-Pacific region and globally.

The Need for Transformation

PwC Global Chairman Mohamed Kande commented on the survey’s findings, emphasizing that while business leaders worldwide remain hopeful about the future, they acknowledge the need to reinvent how they create, deliver, and capture value.

For Malaysian CEOs, this need for transformation is particularly urgent. More than half of them worry that their companies will not survive the next decade without major changes—a higher percentage than their Asia-Pacific (45%) and global (42%) counterparts.

To maintain relevance, 42% of Malaysian CEOs have expanded into new sectors over the past five years, aligning with a global trend where 38% have pursued similar diversification strategies. However, fewer Malaysian businesses are actively exploring new market routes, innovative pricing models, or fresh customer segments.

AI and Sustainability: The Future of Business Strategy

PwC Malaysia Managing Partner Soo Hoo Khoon Yean highlighted the growing importance of responsible data management and artificial intelligence (AI) in business strategy. While AI has the potential to revolutionize operations, only 34% of Malaysian CEOs currently trust its integration into core business processes, citing concerns over governance and long-term impact.

To mitigate risks, business leaders are urged to assess their data readiness, ensuring responsible collection and utilization of information as AI adoption accelerates.

Sustainability has also emerged as a key business priority, with 61% of Malaysian CEOs reporting climate-friendly investments in the past year. However, for sustainability efforts to drive real impact, business leaders must move beyond viewing it as a cost factor and instead integrate it as a core driver of long-term growth.

A Call for Action

As Malaysian CEOs balance economic optimism with concerns over business viability, the path forward requires a strategic shift. Whether through workforce development, digital transformation, or sustainability-driven innovation, companies must embrace change to remain competitive in an evolving global landscape.

The message is clear: adaptation is no longer optional—it is essential for survival.