- Most businesses expect Mainland China’s GDP to grow by five per cent or more.
- Eighty-three per cent predict their company’s profits will increase or remain stable.
- Challenges include global economic uncertainty, the pandemic and potential trade barriers.
BEIJING, MAINLAND CHINA – Media OutReach – 21 January 2022 – Most businesses in Mainland China are confident about the country’s 2022 economic and business outlook, according to a new survey by one of the world’s largest professional accounting organisations, CPA Australia. The survey results suggest that Mainland China will continue to play an important role in driving the global economic recovery this year.
CPA Australia surveyed 210 accounting and finance professionals in Mainland China about local economy and business conditions in 2022. Sixty-nine per cent of respondents expect Mainland China’s GDP to grow by five per cent or more. Eighty-three per cent predict their company’s profit will increase or remain the same. Forty-seven per cent expect their company’s profit to increase by two per cent or more. Forty-nine per cent of respondents expect their company’s headcount will increase.
Kevin Ng FCPA (Aust.), Member of CPA Australia’s North China Committee, said “Respondents are generally optimistic that the economy will remain stable in 2022. This is mainly due to positive factors such as an effective control over Covid-19 and a host of different measures which were implemented to keep the economy stable, including government interventions.
“The economy is facing major headwinds such as continued global economic uncertainties, the pandemic and the possibility of more international trade barriers. These challenges may impact many businesses, particularly smaller businesses facing financing difficulties.
“The government’s timely measures to support small and medium-sized enterprises, such as introducing targeted tax deduction and fees cuts as well as strengthening financial support, will help relieve the financial burden of these challenges and lower financing costs.”
Reflecting efforts to ensure long-term growth and stay ahead of technological disruptions, 59 per cent of respondents think their company will increase investment into new technology and 47 per cent expect digital transformation will be their company’s key strategic focus in 2022. In addition, 88 per cent of respondents expect their company will undertake an environmental, social and governance (ESG) initiative this year.
Michael Yu FCPA (Aust.), President of CPA Australia’s East and Central China Committee, anticipates that “Trends in technology and innovation, ESG and consumer business investments will continue to boom in 2022 in terms of the direction of corporate investments and mergers and acquisitions.
“Digital transformation and innovation are key drivers of business growth. The percentage of respondents who expect their company to increase investment into new technology has increased by two percentage points from last year. This marks two consecutive years of rising expectations for technology investment.
“Supported by the 14th Five-Year Plan, the deployment of 5G coverage network and the proliferation of artificial intelligence, blockchain and cloud technologies, the strong level of business technology usage and innovation will ensure Mainland Chinese businesses are well positioned for further development and expansion.
“It’s positive to see most local businesses will be taking actions related to ESG. This indicates that businesses are accelerating ESG integration into their business models and aiming to contribute to national ESG goals such as carbon neutrality.”
Rebecca Wong FCPA (Aust.), Deputy President of CPA Australia’s South China Committee, noted that 85 per cent of respondents expect their company to expand business activities within the Greater China region in the next three years. She says this trend is another positive sign that the local economy is stabilising.
“Respondents were most likely to expect their business to expand into the Greater Bay Area (GBA) in the next three years, with 47 per cent picking this region. The market size, large talent pool and a strong innovation and technology ecosystem in the GBA are attractive to businesses seeking growth opportunities.
“We recommend businesses seek to learn more about the GBA, including preferential government policies and consumer behaviour, and develop a long-term strategic plan to capitalise on the unique growth opportunities in the GBA.”
CPA Australia recommends Mainland Chinese businesses consider the following:
- Take advantage of preferential market expansion policies, for example, diversifying and expanding businesses into the GBA.
- Integrate medium and long-term development strategies and reasonably allocate resources across short, medium and long-term R&D investment in targeted areas.
- Establish a long-term ESG strategy or governance framework and specify ESG-related responsibilities across different business units.
- Regularly review and seek to improve internal tax compliance and control systems.
- Balance market opportunities, capital risks and corporate governance risks based on the characteristics of the industry and the overall business strategy.
- Focus on nurturing, upskilling and reskilling talent in innovation and technology to enhance the competitiveness of the businesses.
Download the Mainland China Economic and Business Sentiment Report 2022
About CPA Australia
CPA Australia is one of the largest professional accounting bodies in the world, with more than 168,000 members in over 100 countries and regions, including more than 21,000 members in Greater China. We have offices in Beijing, Shanghai and Guangzhou. Our core services include education, training, technical support and advocacy. CPA Australia provides thought leadership on local, national and international issues affecting the accounting profession and public interest. We engage with governments, regulators and industries to advocate policies that stimulate sustainable economic growth and have positive business and public outcomes. Find out more at cpaaustralia.com.au
#CPAAustralia
The issuer is solely responsible for the content of this announcement.
Services
Stakeholder mapping, analysis, engagement and communication needs to be detailed to avoid business losses or even worse, a crisis. How can you do this effectively to prevent failure? ...
Data-driven business decisions have never been as crucial, especially in this era. MGBF leverages off, technology, experience and market presence to aid businesses in making accurate decisions. ...
MGBF provides comprehensive strategic advice and results-focused solutions to solve clients' problems in business-government relations so they can focus on their core business. ...
A critical business challenge is meeting the right decision-makers and potential buyers through the best channel and platform. How will you improve your business competency? ...
Upcoming Events
The threat matrix has evolved to include information warfare, cyberspace incursions, big data and behavioural communications. Business leaders need to be aware of these threats to survive. What are you doing as a key stakeholder?
Companies can now live or die based on their ability to generate and manage data. Effectively managing existential challenges is the opportunity that business leaders need to grasp for a sustainable future. Calling for speakers!
Corporations and their leadership often face weaponised information attacks in the media. Understanding these advanced business threats is crucial. Recently completed. View proceedings online.
Special session: Cyberwarfare Waged on the Corporate Sector - Lessons from the Russia-Ukraine Crisis. Corporations are in a digital arms race that many don't realise. How does this relate to your organisation?
MGBF In The News
KUALA LUMPUR, 25 May 2022 – The Malaysia Global Business Forum (MGBF)’s exclusive roundtable on ‘Security Concerns in Critical Value Chains’ was held in a hybrid setting yesterday at the Eastin Hotel Kuala Lumpur. The guest of honour was Yang Berbahagia Tan Sri Dato’ Seri Rafidah Aziz, former minister of […]
We live in the age of crisis. At the heart of any crisis is the threat of rapid change. Change too deep or too wide that the current coping mechanisms for an individual, corporation or government are unable to remain resilient. An unwelcome paradigm shift, like the proverbial spider, that […]
The Malaysia Global Business Forum (MGBF) has released a report following the roundtable on ‘Digital Resilience in the Corporate Sector’, which was recently held in Kuala Lumpur. In attendance as guest of honour was Deputy Minister of Communications and Multimedia, Datuk Zahidi Zainul Abidin. The report recommended several critical development […]
Trade and investment delegations will trickle back over the next few months, but the second half of the year should see considerable return of business travellers. It was learnt that over 50 per cent of international business chambers and industry associations surveyed will consider sending exploratory teams to Malaysia during […]
KUALA LUMPUR, 30 March 2022 – The Malaysia Global Business Forum (MGBF)’s exclusive roundtable on ‘Digital Resilience in the Corporate Sector’ was held in a hybrid setting yesterday at the Element by Westin Kuala Lumpur. The discussion focused on what business leaders need to understand, to ensure business resilience and […]
The Malaysia Global Business Forum (MGBF)’s exclusive roundtable on ‘Addressing Weaponised Information in the Media’ was held in a hybrid setting today at the Hilton Kuala Lumpur. The discussion focused on addressing one of the most relevant threats to businesses in the digital economy – cyber threats causing physical and […]
The current floods that have impacted various parts of the country have given rise to an extensive commentary on the response cycles of various stakeholders. It has in turn led to continued crisis communications and statements in the media by agencies and ministries alike. This binary approach to the discussion […]
The formation of a special Cabinet committee to develop strategic measures to safeguard the economy amid the Covid-19 outbreak shows the Malaysian government is serious about creating a balance between the continued safety of the general population and the survival of the economy. In the global context, as many countries […]
Innovation, coupled with a radical departure from contemporary thinking, is required with a possible reality of a prolonged crisis becoming the new reality that people and companies must function through. Malaysia Global Business Forum founding chairman Nordin Abdullah said innovation and resilience from all stakeholders will be required to shape […]
The recent announcement that a committee jointly chaired by senior ministers in charge of security and economy clusters respectively demonstrates that the Malaysian government is serious about creating a balance between continued safety of the general population and the survival of the economy. In the global context, as many countries […]
Innovation, coupled with a radical departure from contemporary thinking, is required with a possible reality of a prolonged crisis becoming the new reality that people and companies must function through. Malaysia Global Business Forum founding chairman Nordin Abdullah said innovation and resilience from all stakeholders will be required to […]
Innovation, coupled with a radical departure from contemporary thinking, is required with a possible reality of a prolonged crisis becoming the new reality that people and companies must function through. Malaysia Global Business Forum founding chairman Nordin Abdullah said innovation and resilience from all stakeholders will be required to […]
The announcement that a committee jointly chaired by senior ministers in charge of security and economy clusters demonstrates that the government is serious about creating a balance between the safety of the population and the survival of the economy. In the global context, as many countries struggle to deal […]
THE Covid-19 outbreak has exposed the citizens of most countries to a dangerous virus. But perhaps more importantly, it has exposed the weaknesses in supply chains of nations.The government should be commended for setting up a task force to maintain critical supply chains as it’s an excellent step to ensure […]
In the last few days, the Movement Control Order (MCO) has awoken many to the fact that supply chains that we assume work without question have now become highly critical.The establishment of a special task force to maintain critical supply chains by the current government is an excellent step to […]
by Gunaprasath Bupalan (YouTube – Emjay Communications, The Malaysia Global Business Forum, News Hub Asia, Property360Digest) The CEO Series 2019 by REHDA Institute is more than a developer’s driven event; it is about the strategy made real, where property and its ancillary businesses will provide balance in social, economic and […]
I am the Managing Director of Lynas Malaysia and I’m writing to you on behalf of our employees and contractors and their families. In recent weeks you may have seen a campaign of false information by anti-Lynas activists. We have always welcomed informed debate, however, the spreading of false allegations […]
I am the Managing Director of Lynas Malaysia and I’m writing to you on behalf of our employees and contractors and their families. In recent weeks you may have seen a campaign of false information by anti-Lynas activists. We have always welcomed informed debate, however, the spreading of false allegations […]
I am the Managing Director of Lynas Malaysia and I’m writing to you on behalf of our employees and contractors and their families. In recent weeks you may have seen a campaign of false information by anti-Lynas activists. We have always welcomed informed debate, however, the spreading of false allegations […]
SALAM sejahtera, I am the managing director of Lynas Malaysia and I’m writing to you on behalf of our employees, contractors and their families. In recent weeks, you may have seen a campaign of false information by anti-Lynas activists. We have always welcomed informed debates; however, the spreading of false allegations and […]
