German businesses in the Philippines are the most bullish compared to those in other countries in Southeast Asia but they note certain risks in their business prospects: shortages of skilled labor, disruptions in supply chains, and economic policy uncertainties.
“Our recent survey shows a bullish business interest of German businesses in the Philippines,” said Christopher Zimmer, executive director of the German Chamber of Commerce of the Philippines Inc. (GPCCI), of the results of the Spring 2023 AHK World Business Outlook Survey conducted by the GPCCI — AHK Philippinen in April.
The Philippines has achieved exceptional results in the Spring 2023 survey, leading among six countries in Asean that also include Vietnam, Thailand, Singapore, Malaysia and Indonesia in all five areas: situation, expectations, economy, investments and employment.
However, German firms anticipate an increase in geopolitical obstacles, such as inflation, trade barriers, and cybersecurity threats, over the next five years.
The survey said more than a half (62 percent) of German-Philippine businesses are in a better business situation with a significantly improving trend when compared to Spring 2021 (21 percent).
Expectations also showed positive results with vast majority (74 percent) of responding firms forecast confidence in business development for the next 12 months, with none reporting in worse ratings.
Around 54 percent of participating companies forecast a better development on local economy in the next 12 months with a drastic decrease (-24 percent) in “worse” ratings from Fall 2022 (from 27 percent to 3 percent). Investments and employment also show higher uptick, 46 percent said that plan to invest higher in the country in the next 12 months and 50 percent said they will hire more people locally.
The survey found that 44 percent of respondents identified a lack of skilled workers as the most significant risk, followed by supply chain disruptions at 39 percent, and economic policy conditions at 35 percent. With regard to potential geopolitical challenges for their respective companies in the next five years, inflation/monetary policy environment (47 percent) was identified as the most pressing concern, followed by an increase in political influence on supply chains (42 percent), and cybersecurity issues (37 percent). Irma Isip
