KUALA LUMPUR (March 12): The rise of cyber threats on chief executive officers' (CEOs) list of concerns coincides with the rapid acceleration of companies’ digital transformation during the Covid pandemic, according to findings of PwC’s 24th CEO Survey, which explores the views of 5,050 CEOs around the world on how they are reinventing their companies to mitigate global disruptions.

The survey, conducted in January and February 2021, included 48 Malaysian respondents from government-linked companies, public-listed firms and growing private businesses, PwC said in a document published on the consulting firm’s website yesterday.

"During this time, Malaysia was going through a Movement Control Order (MCO 2.0), a targeted response to a rise in daily (Covid-19) case numbers in many states. Although more sectors of the economy continued operating, social activities were restricted, along with inter-district and inter-state travel bans. 

"The rise of cyber threats on CEOs' list of concerns coincides with the rapid acceleration of companies’ digital transformations during the pandemic, with no plans to slow down: nearly half of CEOs globally, and 56% of CEOs in Malaysia plan to increase their investments in digital transformation by 10% or more and 38% are planning to increase investments in cybersecurity and data privacy by 10% or more.

"With digitalisation and cybersecurity becoming key pillars of organisations’ strategies, it’s clear that businesses need to move quickly to embed technology into their DNA, to align the value they can create with accelerating Malaysia’s digital economy,” PwC said.

According to PwC, Malaysian CEOs, like CEOs everywhere, are still riding out the aftershocks of the pandemic. 

But for the first time in years, CEOs are starting to show more optimism about the world’s economic trajectory and their own possibilities for reinventing the future, PwC said. 

"However, we should not miss the trees for the forest — short-term interventions need to be balanced by long-term sustainable solutions. 

"Digital transformation and upskilling are top of mind, but the focus on climate change and sustainability sits lower on the priority list than we’re comfortable with. 

"Addressing sustainability risks will require significant government policy interventions, long-term planning and public private sector partnership, to secure our place in the future,” PwC said.

PwC said that one year after the World Health Organization declared Covid-19 a pandemic, 71% of Malaysian CEOs believe global economic growth will improve in 2021, mirroring the sentiments of 76% of CEOs globally and 71% of CEOs in the ASEAN region, which includes Cambodia, Indonesia, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. 

In Malaysia, analysts’ projections of gross domestic product growth for Malaysia in 2021 ranges anywhere from 4% to 7.5%, a respite from last year’s contraction although forecasts are still relatively conservative, according to PwC.

"As business leaders prepare for the anticipated rebound, they may find it critical to keep that momentum of fast, high-quality decision-making that has become synonymous with Covid-19, going. Businesses can’t afford to go back to the ‘old ways’ of working. 

"To stay relevant for the future, they need to stay proactive and agile by focusing on long-term stakeholder trust beyond just bread-and-butter issues, engaging with people within and outside the organisation and revisiting critical decisions frequently,” PwC said.

CEOs are projecting a more conservative estimate of revenue growth for the coming year but appearing more hopeful over a longer period into the future, according to PwC.

PwC said this is reflected in the 25% of CEOs in Malaysia who said they are very confident about their organisation’s prospects for revenue growth over the next year, and the 44% who are very confident looking ahead over the next three years. 

"While CEOs are looking forward to some stability this year from the relief efforts of mass vaccination, they recognise that recovery will not happen overnight, though this sentiment could well be limited by our smaller sample size,” PwC said.