German-Philippine businesses turned more optimistic about their overall business situation in the country despite challenges posed by the lack of skilled workers, policy unpredictability and supply chain disruptions.
This optimism cascades to their expectations in both investment and employment, which these businesses plan to increase.
Results of the fall edition of the AHK World Business Outlook Survey conducted by the German–Philippine Chamber of Commerce and Industry (GPCCI) showed 58 percent of firms predict improved business conditions, up from 50 percent in the spring edition.
Around 55 percent of businesses plan to increase investments, an improvement from 44 percent in the previous survey.
Sixty-two percent of the respondents plan to increase employment, slightly higher than the 61 percent in the spring results, highlighting the potential for more potentials on local job creation in the coming year.
“The optimism expressed by businesses in the German-Philippine community reflect our ongoing commitment to strengthening economic ties. The growth in investment and employment projections is a clear indicator of confidence in the local market, and we look forward to seeing these positive trends materialize over the coming year,” said Marie Antoniette Mariano, GPCCI president.
The survey respondents identified the lack of skilled workers, as the primary obstacle to sustained growth, while complex economic policies and policy unpredictability remain key concerns.
Supply chain disruptions and evolving market demands are pressing issues that affect operational efficiency.
“Collaboration between government and the private sector is essential to build a more stable, predictable environment that fosters sustainable growth. It is crucial to address challenges like regulatory complexity and skilled labor shortages to fully capitalize on this optimistic business outlook,” said Dr. Marian Norbert Majer, GPCCI board director and policy and advocacy chairperson.
Nearly half of German-Philippine firms equally reported an improved or stable competitive position over the past five years.
While factors such as local competition, market intervention programs, and shifts in the “Made in Germany” brand were largely viewed as neutral, sustainability requirements emerged as a positive driver, with 43 percent of companies seeing it as a competitive advantage.
These findings in the survey analyzed external influences on the competitiveness of German-Philippine businesses.
“Our latest survey shows that German-Philippine businesses are enhance their respective operations through diversification and increasingly viewing sustainability as a strategic advantage,” said GPCCI executive director Christopher Zimmer.
