A majority of chief executive officers (CEOs) in the Philippines are optimistic about domestic economic growth in the coming year, despite concerns over a shortage of skilled workers and the impact of technological disruption, according to PwC’s 28th Global CEO Survey.
The survey revealed that 78% of Filipino CEOs expect economic growth to improve over the next 12 months, while 9% foresee no change and 13% predict a decline.
The survey, conducted from October to November 2024, gathered responses from 4,701 CEOs globally, including 32 from the Philippines.
Confidence in revenue growth also emerged as a key trend, with 38% of Filipino CEOs expressing high confidence in their companies’ revenue growth over the next year.
For the next three years, optimism increased, with 44% saying they are very confident about growth prospects.
Philippine-based executives also demonstrated strong commitment to workforce expansion, with 59% planning to hire more employees in the next 12 months, surpassing the global average of 42%.
Only 13% anticipate reducing headcount, compared to the global average of 17%.
Despite this optimism, Filipino CEOs cited critical challenges, including a shortage of skilled workers (28%) and technological disruption (28%). Macroeconomic volatility (19%) and inflation (16%) were also flagged as concerns.
PwC highlighted skill gaps in areas like data analytics, digital transformation, and emerging technologies, emphasizing the need for investments in workforce development and organizational reinvention.
AI adoption is another focus area, with 75% of Filipino CEOs expressing confidence in integrating artificial intelligence, including generative AI, into key processes.
The survey found 88% anticipate moderate to large AI integration in business operations, while 75% expect AI to play a significant role in workforce development.
PwC Philippines Chairman Roderick Danao underscored the transformative potential of AI and digital technologies but stressed the importance of careful implementation and skill development to ensure long-term business viability.
The survey revealed that 69% of Filipino CEOs believe their businesses will remain economically viable for up to 10 years without significant changes, compared to the global average of 42%.
This highlights the urgency for fundamental transformations to adapt to evolving technologies and consumer preferences.
“Leaders must focus on meaningful organizational changes rather than incremental improvements to remain competitive,” PwC said, adding that failure to act could render businesses obsolete in an increasingly dynamic market.
Business News Asia