Chief financial officers in the Asia-Pacific region will be zeroing in on revenue growth for the next 12 months, according to a survey by Deloitte.
The Asia-Pacific CFO Survey, which asked 276 CFOs in the region across financial services, life sciences and health care, manufacturing, public sector, TMT, energy and resources, and consumer business, found that 62% of the respondents will be prioritising on the organisation's revenue in 2024.
Meanwhile, 56% of those surveyed eye cost control as a key focus area, while 37% look into productivity improvement.
In Australia, 75% of CFOs cited cost control as the top priority, while in Japan, CFOs cited finding talent (48%) as a focus. And, in China revenue growth (70%) and cost control (49%) remain the top priority areas.
ESG shift
Deloitte said companies are facing the urgent challenge of addressing the climate change imperative.
Asia-Pacific’s regulatory landscape is starting to see changes as governments and policy makers are transitioning from voluntary disclosures to comply-or-explain disclosures, and ultimately, to mandatory disclosures.
In terms of the level of preparedness of companies to tackle sustainability, climate and ESG priorities, survey results indicate a significant majority of CFOs (56%) are only somewhat prepared.
Technological transformation
Changes in technology and regulation are also affecting priorities in the region, making the transformation of the finance function a necessity. Achieving a deeper integration between finance, business, and technology is essential for evolution, and interesting CFOs report that their role is shifting from traditional guardians of data and accounting to value creation through transformation.
A Deloitte program leader believes that when it comes to truly harnessing the power of digital, CFOs in Asia Pacific feel that there is a considerable distance to traverse. A fraction of CFOs are leveraging big data and analytics or actively seeking artificial intelligence and machine learning solutions to optimise their finance function, and this is where the leading CFOs will play an integral role.
Other risks
A range of other concerns facing businesses in Asia Pacific were also identified. Notably, respondents in Japan (43%) highlight currency fluctuations as a significant risk, while 27% of CFOs in China are concerned about the impact of regulatory or government policy changes, and 27% of CFOs in India view digital and technology disruption as a significant external risk to their business.Â
Thirty-three percent of AP CFOs cite capital flight from emerging countries as a concern and 51% of Australian CFOs citing inflation as a concern.
When considering internal risk factors, 59% of AP CFOs consider securing and retaining key talent as their top internal risk, while 46% were concerned about change in demand for services or products, and 38% were concerned about their inability to execute strategies. Japanese CFOs (43%) are focusing their efforts on team capability and utilisation while Australian CFOs (39%) are currently hiring for Data Management, Cybersecurity, and Analytics Capabilities, surpassing the regional average (18%).Â
