Asia-Pacific CEOs are confident to weather through the looming ‘mild and short’ recession
KPMG 2022 CEO Outlook reveals that in response to the anticipated recession, 29% of CEOs in Asia-Pacific (ASPAC) have reportedly paused or reconsidered their existing environment, social and governance (ESG) efforts while 47% plan to do so over the coming months.
Datuk Johan Idris, Managing Partner at KPMG in Malaysia observed this to be a risky approach, saying, “… as liquidity gets tighter and a recession becomes more certain, those industries that are already out of favor with banks due to their ESG priorities, may find any form of new financing difficult, thereby triggering capital issues that will require careful planning.”
Meanwhile, Guy Edwards, Executive Director of Restructuring at KPMG in Malaysia advised that, “CEOs should be looking at the best ways to manage their exposure whether it is through sourcing other suppliers, increasing inventory levels, or reviewing supplier financial viability.”
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