German companies operating in the Philippines have better business sentiments based on a latest poll, but they remain cautious as negative impacts and big risks persist amid the coronavirus disease 2019 (Covid-19) pandemic.
In its AHK World Business Outlook (WBO) Survey-Fall 2020 released on Friday, the German-Philippine Chamber of Commerce and Industry (GPCCI) said German firms have a more positive sentiment about their respective business activities compared to the previous WBO Spring 2020 survey.
“Companies already see some light at the end of the tunnel,” GPCCI President Stefan Schmitz said.
In the latest survey, 50 percent of the respondents expect better business situations within the next 12 months.
This is an improvement from the 20 percent that projected better business situations for themselves over a 12-month period in the previous survey.
Firms that said they would reduce their headcount also decreased to 35 percent in the Fall survey from 44 percent in the Spring survey.
“However, many risks persist and the uncertainty in the economy remains,” Schmitz added.
The biggest risks to surveyed firms here include demand issues (64 percent), economic framework (58 percent) and financing (51 percent).
Travel restrictions remain the top concerns of German firms operating in the Philippines.
Meanwhile, among the measures implemented by the surveyed companies amid the pandemic include cost reductions, increased digitalization, and postponing and canceling investments.
The WBO Survey-Fall 2020 was conducted from Sept. 30 to Oct. 19 this year with a total of 69 respondents. CURRENTPH