German companies operating in the Philippines remain positive about their prospects, according to the latest AHK World Business Outlook Survey.
The survey revealed that the Philippines stands out in ASEAN and global comparisons, particularly in employment growth, where projections surpass regional and global averages.
“The AHK World Business Outlook Survey demonstrates the Philippines’ ability to deliver good results, particularly in employment growth and investment intentions, compared to global counterparts. However, while this optimism is encouraging, we must remain vigilant in addressing the structural challenges that could hinder sustained progress,” said GPCCI president Marie Antoniette Mariano.
Citing the survey, she said rising energy costs, inadequate infrastructure and supply chain disruptions pose significant risks to the German companies’ optimism.
Despite this, 54 percent of German businesses in the country expect workforce expansion—the highest sentiment globally, as the Philippines demonstrated impressive results compared to its ASEAN neighbors and global peers.
About 44 percent of respondents plan to increase investments, reflecting confidence in the local business environment.
The survey noted positive sentiment about the current business situation, with 55 percent of businesses expressing satisfaction.
Notwithstanding positive developments, the survey noticed that the Philippines trails in global competitiveness rankings.
Only 48 percent of businesses reported improved competitiveness over the past five years, lagging behind regions like the Middle East, North Africa, Africa, and North and South America.
Rising energy prices, infrastructure gaps, and supply chain disruptions were cited as the top risks for businesses operating in the Philippines.
“It is crucial to prioritize policies that enhance energy efficiency, modernize infrastructure, and build resilient supply chains to ensure long-term competitiveness and sustainable growth,” said GPCCI board director and policy and advocacy chairperson Marian Majer.
