KPMG 2026 CEO Outlook

The KPMG 2026 CEO Outlook reveals CEOs’ confidence in their own organizations’ growth prospects over the next three years has risen to 84%, despite continued uncertainty in the global economy. In contrast, confidence in the global economy has fallen from 68% to 65%, its lowest level since 2021 amid continued uncertainties.

Drawing on insights from 1,400 CEOs worldwide, this annual outlook explores how leaders are pursuing growth through AI and technology, workforce transformation and sustainability, with a focus on translating these priorities into tangible, and sustainable business values.

Malaysia’s shifting landscape

In Malaysia, the strategic imperative is to strengthen domestic capabilities and competitiveness amid geopolitical tensions and energy market volatility. The Malaysian Government has set out its national ambitions under the Thirteenth Malaysia Plan (13MP), New Industrial Master Plan 2030 (NIMP 2030) and National Semiconductor Strategy (NSS), which support growth in high-value industries. Translating approved investments into operational projects and strengthening domestic supply chain participation remain critical to delivering intended outcomes.

Beyond attracting and developing investments, Malaysia's growth will also depend on how businesses adapt to changes in technology, the workforce and sustainability. These are among the key themes highlighted in the KPMG 2026 CEO Outlook.

As Malaysia pursues its growth ambitions, businesses, including small and medium-sized enterprises (SMEs), will need to keep pace with changes in technology, evolving business models and workforce needs. This includes adopting new technologies such as AI, putting appropriate strategies and governance in place, and equipping talent with the skills to adapt. At the same time, the National Energy Transition Roadmap (NETR) and National Sustainability Reporting Framework (NSRF) highlight the growing importance of sustainability in shaping Malaysia’s economic and business priorities.

The KPMG 2026 CEO Outlook highlights how AI and technology, workforce transformation and sustainability are shaping the future of business. For Malaysia, I believe the opportunity is much bigger than attracting investments. We need to bring our local businesses along, helping them build capabilities, embrace new technologies and take on higher-value roles in global supply chains. Just as important is preparing our people with the skills to grow alongside these changes. This is how we can build a more competitive and resilient economy for the future.

Foong Mun Kong

Managing Partner

KPMG in Malaysia

Turning priorities into measurable outcomes

The KPMG 2026 CEO Outlook highlights the investment priorities shaping business growth over the next three years:

The defining challenge for CEOs is to ensure these investments deliver measurable business outcomes. This will depend on how effectively organizations connect technology, risk management, workforce capabilities and sustainability, which each aligned to the organization’s strategic priorities.

Economic Outlook

Cyber leads a crowded risk agenda

CEOs’ confidence in their own businesses sits alongside a demanding external outlook. Cybersecurity and data security is cited as the most common threat to growth, cited by 31 percent. Global economic uncertainty follows at 28 percent, with geopolitical instability and regulatory pressure both at 26 percent.

Only five percentage points separate those four risks, with supply-chain resilience close behind at 24 percent. CEOs are preparing for several sources of disruption rather than organizing their response around one overriding concern.

Investment priorities mirror that range of pressures. Cybersecurity and digital-risk resilience is the most commonly selected area in which CEOs have increased investment to mitigate business risks, cited by 45 percent. Regulatory compliance and reporting follows at 36 percent, with AI integration into operations and workflows at 32 percent.

Most CEOs are maintaining their existing appetite for risk, at 61 percent. Sixteen percent are taking more risk to capture opportunities, 17 percent are becoming more cautious, and six percent are prioritizing risk mitigation over new opportunities.

Cyber provides the clearest connection between risk and response. It is the leading threat to growth, the leading area of increased risk-mitigation spending and one of the AI implementation challenges CEOs rank most highly. This highlights the role of resilience in supporting both growth and technology adoption.

Technology and Generative AI

CEOs back AI, but ethics, security and cost shape delivery

AI is firmly embedded in CEOs’ investment plans. Seventy-nine percent say it remains a top priority over the next three years, up from 71 percent in 2025. Confidence is also high: 66 percent believe their organization is moving at the right pace or ahead of the curve. A further 29 percent are cautiously optimistic, while approximately 5 percent are struggling or uncertain. Nearly three-quarters of CEOs (72 percent) expect to spend more than 10 percent of their budget on AI over the next year.

With investment commitment and confidence both high, the more immediate question is how to implement AI and optimize value. Ethical challenges are most frequently rated very or mostly challenging, at 57 percent. Cybersecurity follows at 52 percent, with cost at 51 percent and data-sovereignty requirements at 50 percent. Taken together, these findings suggest that trust, security and embedded controls are becoming important considerations alongside technical capability in the AI agenda.

Governance and regulation are central to that work. Fifty-nine percent say AI and data sovereignty are prompting greater attention to internal data governance and controls. Sixty-six percent expect the pace of AI regulation to present a barrier to organizational success. For businesses operating across borders, the challenge is to scale AI while varying requirements continue to develop and differ between markets.

The wider technology environment is also becoming more consequential. More than eight in ten expect AI integration, cybercrime and technology-infrastructure costs to affect organizational prosperity over the next three years, all notably higher than in 2025.

Returns are expected over the medium term: Seventy-one percent anticipate seeing a return within one to three years, while 17 percent expect it within 12 months.

Talent

Headcount growth continues, but capability is the workforce challenge

Eighty-nine percent of CEOs expect their organization’s overall headcount to increase over the next three years, although 62 percent believe that increase will be under 5 percent. To support that growth, CEOs are focused on building the skills and capabilities their organizations will need for the future. Skills gaps are considered a significant workforce challenge, identified by 56 percent. Upskilling and training employees in AI systems follows at 52 percent, with attracting and retaining talent at 47 percent.

Workforce resistance sits near the bottom of AI implementation challenges, with 26 percent rating it very or mostly challenging. CEOs are responding through communication and development. Over the next 12 months, 51 percent plan to communicate openly about AI’s effect on roles; 46 percent plan reskilling and upskilling programs; and the same proportion plan tailored training on how AI can support people in their jobs.

ESG

CEOs embed sustainability more deeply into strategy

Most CEOs say recent geopolitical developments and internal pressures have brought sustainability closer to core business strategy. Sixty-three percent describe their primary response over the past year as embedding sustainability more deeply. A further 21 percent are refocusing on the issues most critical to the business, while 14 percent are expanding their efforts.

Sustainability also features in capital allocation. Seventy percent consider the costs and potential returns of sustainability initiatives in at least some investment decisions, including 29 percent who do so in every major capital decision.

Where CEOs believe AI can support climate and sustainability efforts

Methodology

About the KPMG 2026 CEO Outlook

The 12th edition of the KPMG Global CEO Outlook, conducted with 1,400 CEOs between 11 August and 21 September 2026, provides unique insight into the mindset, strategies and planning tactics of CEOs.

All respondents oversee companies with annual revenues over US$500M, and a third of the companies surveyed have more than US$10B in annual revenue. The survey included CEOs from 12 key markets (Australia, Canada, China, France, Germany, India, Italy, Japan, the Netherlands, Spain, UK and US) and 13 key industry sectors (asset management, automotive, banking, consumer and retail, energy, healthcare, infrastructure, insurance, life sciences, manufacturing, technology, media and telecommunications).

NOTE: some figures may not add up to 100 percent due to rounding.