GERMAN FIRMS operating in the Philippines are projecting improved business conditions, which will cause more of them to invest and hire more, the German-Philippine Chamber of Commerce and Industry (GPCCI) said.
In a statement Thursday, the GPCCI said that its Fall 2024 survey indicated that 58% of German companies expect conditions to improve in the near term, up from 50% in the previous survey.
Likewise, 51% of the participants also predict expanded investment, against the 44% posted in the previous survey. Some 62% of the survey participants project higher employment.
“The optimism expressed by businesses in the German-Philippine community reflects our ongoing commitment to strengthening economic ties,” GPCCI President Marie Antoniette Mariano said.
“The growth in investment and employment projections is a clear indicator of confidence in the market, and we look forward to seeing these positive trends materialize over the coming year,” she added.
However, the survey found that the lack of skilled workers, complex and unpredictable policies, and supply chain disruptions were the top concerns for German companies.
“Collaboration between government and the private sector is essential to building a more stable and predictable environment that fosters sustainable growth,” GPCCI Board Director and Policy Advocacy Chairperson Marian Norbert Majer said.
“It is crucial to address challenges like regulatory complexity and skilled-labor shortages to fully capitalize on this optimistic business outlook,” Mr. Majer said.
The survey also found that German companies in the Philippines see sustainability requirements as a positive driver in their external competitiveness, with 43% saying it adds to their competitive advantage.
“Our latest survey shows that German-Philippine businesses enhance their respective operations through diversification and increasingly viewing sustainability as a strategic advantage,” GPCCI Executive Director Christoper Zimmer said.
“Embracing sustainable practices and standards is proving essential for long-term growth in today’s competitive market,” he added.
According to the report, 48% of the companies see their competitive positions improving over the next five years. — Justine Irish D. Tabile