Investment for APEC to continue despite economic uncertainty — PwC

KUALA LUMPUR: Over half the businesses in the Asia-Pacific Economic Cooperation’s (APEC) 21 economies plan to increase their investments over the next 12 months, PricewaterhouseCoopers (PwC).

This is despite the fragile confidence in prospects for revenue growth over the 12 months and disappointment with pace of progress on free-trade in the region, PwC said in a statement.

The PwC has conducted a survey on 1,100 business leaders in 21 APEC economies in the run up to the annual APEC Chief Executive Officer (CEO) Summit in Lima, Peru from Nov 17 to 19.

PwC Peru Country Senior Partner Orlando Marchesi said the subdued level of confidence in the business outlook was hardly surprising, given geopolitical events this year.

“For the foreseeable future, APEC business leaders will have to balance the short-term economic outlook with investing for the long term.

“The wider regulatory and tax environment are critical factors in business confidence and investment. Standing still on regulatory conditions is not the way to be competitive in a paradoxically cash-rich but slow-growth world,” Marchesi said.

As for this year, the survey found that more CEOs (at 22 per cent) reported seeing significant progress towards the goal of free trade in Asia Pacific compared with two years ago (versus 15 per cent in 2014).

However, the majority (53 per cent) in this year’s survey continued to see progress as slow.

The survey’s findings also suggested that business investment is now more likely to flow to APEC economies with the right policy environment and talent pools, as well as dynamic growth prospects.

“APEC businesses are also turning to wider strategies for revenue growth. CEOs report that digital upgrades throughout the enterprise are helping them target results in operational and cost efficiencies, improving customers’ experience and asset optimisation,” the survey said. — Bernama