PwC survey finds 9 in 10 anticipate global economy decline over next 12 months
Despite the growing number of layoffs occurring across the world, only 25% of employers in Singapore plan to reduce their workforce and implement hiring freezes in 2023.
Findings from PwC's 26th Annual Global CEO Survey revealed that 67% of 36 executives surveyed in Singapore don't plan to freeze hiring, while 64% don't want to reduce their workforce in the next 12 months.
A massive 83% also said they have no plans to reduce employee compensation, while 14% of Singapore-based employers are planning or are already carrying this out.
These decisions are likely a result of the recent "great resignation" and the “ongoing war for talent," according to the report.
The findings also come as 89% of Singaporean businesses believe that the global economy will decline over the next 12 months — higher than the 73% recorded globally.
"While this is not surprising given Singapore's open economy, it will take more than re-evaluating operating models and cutting costs to survive and thrive in a world that continues to change at a relentless pace," said Sam Kok Weng, Financial Services and Markets Leader at PwC Singapore.
Another 39% of CEOs also don't think their companies will be "economically viable a decade from now if they continue on their current path." They ranked inflation and macroeconomic volatility as the biggest threats to their businesses (31%), followed by cyber risks and geopolitical conflict (25%).
"It is indeed a very challenging time for CEOs, they must reimagine how their businesses can continue to stay relevant and at that same time, tackle immediate issues such as fast-changing customer demands, rising costs, supply chain disruptions, and talent challenges," said Charles Loh, Singapore Consulting Leader at PwC Singapore.
While CEOs remain concerned about immediate and long-term issues, 89% said they plan to invest in automating processes and systems, while 83% said they will deploy technology, including cloud, AI, and other advance tech, over the next 12 months.
However, while many CEOs recognise automation as a factor in business survival, this can be "quite daunting and a costly undertaking," according to Loh.
"CEOs must formulate their business-led digital transformation agenda, prioritising digital innovation initiatives, speed to value projects and upskilling the workforce," he said.
Another 78% of the respondents said they plan to upskill their company's workforce in priority areas, according to the report.
This comes amid an emerging need to encourage C-Suite members to rethink workforce strategy, according to Martijn Schouten, People and Organisation - Workforce Transformation Leader, PwC South East Asia Consulting.
"There's also a need to invest in upskilling programs for people-leaders and employees that also touch on interpersonal and non-technical skills to navigate increasing complexities," Schouten added.
