Many companies in Asia Pacific will be forced to restructure operations to stay afloat if the new Coronavirus outbreak (COVID-19) worsens, said Tricor Group that recently released its COVID-19 Business Sentiment and Resilience Barometer Report.
The report contains key primary research findings from a survey conducted of business leaders and finance executives at 1,050 organisations in APAC, sampling a cross-section of start-ups, SMEs, MNCs and listed companies in the private sector across 12 major industries, according to Tricor.
- 1 out of 2 executives agree that their business has been impacted by the current public health situation and are concerned about the future of their business.
- 43% of executives report that if the situation gets worse, they will need to consider restructuring operations.
- Less than 1 in 3 executives are confident they have well-equipped crisis management teams capable of handling the situation.
- 43% of the executives agree that COVID-19 has heightened their awareness of business continuity risks and has increased their need for third-party, consulting and outsourcing support.
- 46% of the executives are actively looking for ways to streamline business functions through cost reductions and operational efficiency.
- Nearly half of the executives cite cost reduction as a key strategic focus to help navigate business uncertainty resulting from the acute reliance on China.
Tricor advised businesses to focus on the following priorities to achieve resilience:
- de-risking and diversifying supply chains;
- rebalancing market interdependencies;
- restructuring business operations to reduce costs; and
- mitigating operational risk exposures through outsourcing and offshoring.