Investments in Asia Pacific Will Continue to Climb, says PwC report

BEIJING - Confidence among CEOs in Asia Pacific continues to get stronger, with 46% of executives in the region now saying they are "very confident" of growth in the next 12 months, up 10 points from 2012 and four points from last year, despite slowing growth in China, according to a new report from PwC.

The survey of 600 business leaders  found that 67% plan to increase investment in the APEC region over the next 12 months. Their plans are spread over each of the 21 APEC member economies, with China, the US, Indonesia, Hong Kong and Singapore the most popular destinations.

Capital spending is a part of it; 57% of respondents said they are either building or expanding facilities in APEC economies in the next three to five years. Most also plan to hire: 38% of respondents expect headcount in their organisations globally to expand by at least 5% a year over the next three to five years.

Nearly 60% of executives say they are now more willing to share insights and resources with business partners in order to speed product development and gain market access. And more than 40% say their company will likely enter a business combination outside of their core industry.

"Asia Pacific today stands at a turning point as advancing technologies move beyond national boundaries and create new demands and even new industries," says Dennis M. Nally, Chairman of PricewaterhouseCoopers International Ltd.

"CEOs see the need to be bold in breaking down the barriers to growth. They want to finalise the Trans-Pacific Partnership, address intellectual property issues and encourage regulatory harmony in the region.

"Businesses are investing in a different Asia Pacific, with rising numbers of urban middle-income consumers demanding new, technologically advanced products and services from business and governments," says McNally.  www.pwc.com/us/apec/2014 (ATI).