Business Bayani PH

In a recent survey conducted by the German-Philippine Chamber of Commerce and Industry (GPCCI), German firms operating in the Philippines have emerged as the most optimistic among their Southeast Asian counterparts regarding business and hiring prospects in the coming year.

According to the AHK World Business Outlook Fall 2023, which compared results from various ASEAN nations, German companies in the Philippines are notably more positive about their current business situation, expectations, and employment outlook.

In terms of the current business scenario, 44% of surveyed German firms in the Philippines expressed that their businesses are currently in a “good/better” situation. This figure surpasses the percentages reported by other countries in the region, with Indonesia at 42%, Thailand at 28%, Singapore at 26%, Malaysia at 22%, and Vietnam at 12%.

Looking ahead, the study found that German companies in the Philippines, alongside Malaysia, share the highest business outlook for the next 12 months at 63%. Thailand follows at 43%, Indonesia at 42%, Vietnam at 37%, and Singapore at 7%.

Buoyed by this positive outlook, 48% of German companies in the Philippines expressed their intention to hire more employees in the next 12 months. This hiring enthusiasm outstrips the numbers reported by other countries, including Malaysia at 41%, Vietnam at 29%, Indonesia at 18%, Thailand at 17%, and Singapore at 14%.

“The satisfactory outlook in the Philippines is encouraging to see as GPCCI continues to provide a platform for German businesses in their market entry in the Philippines,” remarked GPCCI executive director Christopher Zimmer.

GPCCI president Stefan Schmitz, noting the global comparison, highlighted the heightened interest in job creation by German businesses in the Philippines. Schmitz emphasized the importance of addressing the skills gap among Filipino workers and suggested amendments to the Apprenticeship Law, specifically removing the cap on apprenticeship duration.

“This amendment acknowledges that the necessary length of training should be determined based on the specific skill or curriculum requirements,” GPCCI said.

Simultaneously, GPCCI urged the Philippine government to take steps to attract more foreign investments by further liberalizing the economy and addressing the high energy costs in the country. These recommendations align with the organization’s commitment to fostering a conducive business environment for both local and foreign enterprises.

In summary, the latest survey results showcase a robust and optimistic stance among German companies operating in the Philippines. This positive outlook not only bodes well for their individual businesses but also reflects the broader economic potential and attractiveness of the Philippine market within the ASEAN region. 

As the country positions itself as an attractive destination for foreign investments, the recommendations put forth by GPCCI underscore the collaborative efforts required to sustain and enhance this positive trajectory.◼