Malaysian CFOS least optimistic in survey
But 58% believe return to ‘business as usual’ possible
PETALING JAYA: Malaysian chief financial officers (CFOS) are overall the least optimistic of the countries surveyed in a PWC global study to track sentiment and priorities among finance leaders.
“Although slightly more than half (58%) of Malaysian respondents believe their company could return to ‘business as usual’ within six months if the crisis were to end today, not all are optimistic,” PWC said in its Covid-19 CFO Pulse presentation.
It said that some 23% of these CFOS in Malaysia estimate that it would take more than 12 months compared to the global average of 8%.
The survey saw 867 CFOS from 24 countries or territories participating in it with 31 of these CFOS coming from Malaysia.
The survey had been done in Malaysia as it entered its first week under the conditional movement control order (CMCO).
These CFOS that participated are from industries including energy, utilities, resources; health including the pharmaceutical industry; financial services; industrial manufacturing and automotive; technology, media and telecommunications; retail and consumer; and government/public services.
PWC also said in its presentation that CFOS in Malaysia are more likely than the global average to list implementing cost containment as one of the financial actions that their companies are considering (94% compared to 81% globally).
It said that some 68% of them say they are deferring or cancelling planned investments the majority in facilities/ general capital expenditures (95%) and operations (71%).
PWC said the survey revealed that cost-containment is the top financial action that Malaysian CFOS are considering but cautioned that care needs to be taken to ensure that cost-cutting measures do not come at the expense of long-term growth prospects.
This can be done through proper scenario planning and leveraging data to provide better business intelligence, it said. “Businesses can learn from activist investors in these extraordinary times. Their approach to cost management, while unconventional, can be adapted in light of these fluid times,” PWC said.
PWC also noted that Malaysia is the only country from Asia that had achieved a sufficiently large sample to report local results noting that the other territories are mostly located in the West.
It said that this may explain some of the variances in our results compared to the global average.
Meanwhile, the survey also revealed that some 91% of respondents are expecting a decrease in their company revenues due to this pandemic.
“Malaysian CFOS are also almost twice as likely than the global average to be unable to assess the range of decrease (16% vs 9% globally),” it said.
Among the issues that companies had to deal with as it entered the CMCO are the tactical measures in transitioning to on-site work, including changes in workplace safety measures (87%).
The parties surveyed were also confident that they will be able to meet customer safety expectations with some 74% being very confident.
“With the gradual easing of restrictions during the implementation of the CMCO, sentiments among Malaysian CFOS are mixed as they take a wait-and-see approach to the situation,” PWC said.
It noted that global respondents had displayed more optimism, with some 70% expecting a recovery to business as usual within six months.
“However, over the past few cycles of this bi-weekly survey globally, we’ve observed that CFOS are starting to realise that a return to normal would likely not be instantaneous, but what they are returning to is not business as usual, but rather a stabilisation to a new normal,” it said.