Production and supply chain issues due to employees falling ill or isolating; closed borders preventing the free movement of top talent; increased cyber risks stemming from remote working. COVID-19 continues to test organizations and their boards across Asia-Pacific. But they’re also grappling with a raft of other global and regional factors, from war in Ukraine, and rising inflation to continued progress toward becoming a digital society.
On the upside, Asia-Pacific remains the fastest-growing region in the world, with an International Monetary Fund growth forecast of 5.6%1 in 2022 and record levels of M&A activity and value. A powerful engine for innovation, it produces exciting, consumer-driven technology to meet the needs of the world’s largest millennial population (and, by 2025, the largest Gen Z population). And around half of global consumption in the next 10 years will happen in the region. As Patrick Winter, EY Asia-Pacific Area Managing Partner, said: “Asia-Pacific’s resilience will continue to prevail in the years ahead. To capitalize further, boards must revisit their strategies through a new lens, as organizations digitalize faster, race toward net zero, and address critical talent shortages and retention.”
But to help their organizations realize these opportunities, boards in Asia-Pacific will also need to help them manage the risks. In this article, we’ve set out the global and regional factors that continue to challenge boards in Asia-Pacific since we last highlighted priority areas 18 months ago. We’ve then suggested some actions boards can take, along with questions they should ask themselves and their management teams.
If you are doing business in other geographies, EY Center for Board Matters teams have also published 2022 board priorities for the US and EMEIA.