More than a third of Asia-Pacific chief executives are planning to expand beyond their traditional industries over the next three years, as softening confidence and rising risks push companies to rethink how they generate growth.
According to the 29th Annual Global CEO Survey of PwC, 37% of CEOs in the region intend to move into new sectors, signalling a stronger appetite for business model reinvention. Globally, the figure is even higher at 53%.
The survey, conducted from Sept. 30 to Nov. 10, 2025, gathered responses from 4,454 CEOs worldwide, including 1,766 from Asia-Pacific.
While 59% of Asia-Pacific CEOs expect global economic conditions to improve over the next 12 months, only 21% say they are very or extremely confident about their own short-term revenue prospects — down sharply from 34% in 2025 and below the global average of 30%.
The weakening confidence comes amid heightened exposure to risks. Nearly four in ten CEOs (39%) say they feel highly or extremely exposed to cyber threats, making Asia-Pacific the only region where cyber risk clearly surpasses other concerns such as inflation, macroeconomic volatility and tariffs.
Despite the cautious outlook, CEOs are actively seeking growth in adjacent and fast-moving industries, including technology, health services, assets and wealth management, transportation and logistics, retail, and industrial manufacturing. Among those that have already diversified, 61% report that more than 10% of their revenue over the past five years came from competing in new sectors.
Roderick Danao, chairman and senior partner of Isla Lipana & Co./PwC Philippines, said global megatrends are accelerating the need to rethink business boundaries.
“What consumers and stakeholders need and how they want those needs met are changing. The pattern is clear around the world. Boundaries between business sectors are blurring and, as a result, new domains of growth are emerging,” Danao explained.
“Companies that actively reinvent—by crossing sector boundaries and investing ahead of the curve—are more sustainable and more confident about their future. In today’s environment, waiting for certainty is often the riskiest strategy,” he added.
However, investment appetite appears constrained by near-term pressures. Only 28% of Asia-Pacific CEOs plan to pursue at least one major acquisition over the next three years, down sharply from 54% last year and below the global average of 41%. Meanwhile, 60% have no plans for international investments in the next 12 months, up from 44% previously.
Mary Jade Roxas-Divinagracia, managing partner for deals and corporate finance at PwC Philippines, said local trends mirror the regional picture.
“What we’re seeing is that while CEOs clearly recognize the importance of long-term transformation, capital and attention are often held captive by short-range pressures. As a result, deal activity slowed in 2025, with investors deploying capital more selectively toward sectors with clearer growth and value-creation pathways,” Divinagracia said.
The survey underscores a growing tension: CEOs acknowledge that existing business models may no longer sustain long-term value, yet immediate risks and uncertainty are reshaping how — and how fast — they act on reinvention.