MORE than half of surveyed business leaders in Asia identified lower demand for products and services as the greatest obstacle for business viability as a result of the pandemic, a new report showed on Thursday.

The latest update to the Chief Executive COVID-19 Global Survey by YPO, an international group of more than 29,000 business leaders, said 53% of CEOs in North and Southeast Asia cited diminished demand as their biggest problem. Their proportion is slightly higher than the 50% of CEOs globally.

Globally, changes in consumer behavior were the second biggest threat as identified by 44% of CEOs, followed by 32% who pointed to operating restrictions from the government.

More CEOs in North and Southeast Asia said that the needed government support for their business was not available, with 31% noting this compared with 28% globally.

The third YPO survey during the coronavirus disease 2019 (COVID-19) pandemic was done on May 27-30 and drew 2,718 respondents. The first survey was in March.

Some business leaders have become more optimistic since the first survey, with 23% of global leaders saying that they are at least slightly more positive about business since March.

Among business leaders in North and Southeast Asia, 35% have taken a more negative outlook, more than their counterparts in the United States and Australia/New Zealand, with 31% and 23%, respectively. But this is less than their counterparts in South Asia and Africa, with at least half of their business leaders reporting a more negative outlook.

While business leaders in Africa are on the earliest response stage or the “immediate response stage” to the pandemic in YPO’s business disruption cycle, Asia is furthest ahead in the business continuity phase. But Asia experienced the smallest month-on-month movement along the cycle since March. No country or region is in the business revival and business recovery phases.

Up to 44% of business leaders in North and Southeast Asia said the resurgence of COVID-19 is a large or severe threat, just slightly more than the 42% of global business leaders.

North and Southeast Asian CEOs are less optimistic about sales and fixed investment than the global response, with 33% expecting sales to be down more than 20% in a year, compared to 29% globally. More than a quarter or 29% of North and Southeast Asian chiefs expect total fixed investment to be down by more than 20% a year from now, while 23% of CEOs surveyed globally said the same.

However, fewer North and Southeast Asian CEOs or 15% expect employee numbers to be down by more than 20% a year from now, compared to the 18% of CEOs globally.

Responses are similar to those of CEOs in Europe and the United States as 14% of them expect a 20% decrease. Meanwhile, more chief executives in South Asia (40%), Latin America (27%), and Africa (24%) expect a decrease in 12 months. — Jenina P. Ibañez

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