German companies with operations in the Philippines said they are going to hire more Filipino workers within 2024, beating their counterparts operating in other ASEAN countries, revealed a special survey conducted by the German Chambers of Commerce Abroad (AHK) and German Chamber of Commerce and Industry (GPCCI).
According to the AHK World Business Outlook Fall 2023, the Philippines garnered the highest result in employment intentions with 48 percent compared to other Association of Southeast Asian Nations (ASEAN) member states.
Compared to other regions worldwide, around 63 percent of the survey’s participants have expressed willingness to increase hiring and employment in the Philippines in the coming 12 months.
GPCCI President Stefan Schmitz said that the global comparison shows “more interest in job creation by German businesses in the Philippines.”
“Aside from continuing to liberalize the Philippine economy for foreign players, we urge the Philippine government to take advantage of this momentum by instituting laws that seek to improve skills development of Filipinos,” he added.
Schmitz noted the possible amendment of the “outdated apprenticeship system,” and recommended strengthening “enterprise-based education.”
The forecasted increase in local employment follows the positive economic outlook of the country as indicated by the study. The Philippines fared better than their neighboring nations in the AHK’s assessment of the current business situation (44 percent), and business expectations (63 percent).
From a global perspective, 44 percent of respondents also had optimistic views on business development in the Philippines for 2024, and 22 percent predict that the country’s local economy will achieve better development.
GPCCI Executive Director Christopher Zimmer said that 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.”
Worldwide, 22 percent of survey participants said they plan to invest higher in the Philippines. Like Thailand and Malaysia, services (47 percent), and sales and marketing (50 percent) were seen as priority investment areas in the Philippines.
Meanwhile, important investment factors in the Philippines were diversification (29 percent), energy costs and availability (20 percent), and the issue of high costs at German sites (19 percent).
Many firms have also indicated market size and market development as significant factors in considering investments in the ASEAN region.
The GPCCI highlighted a possible venue for German firms to capitalize on the Philippines’ concern for energy prices, recording 38 percent in terms of risk factors to economic development.
Many firms have also indicated market size and market development as significant factors in considering investments in the ASEAN region.
The GPCCI highlighted a possible venue for German firms to capitalize on the Philippines’ concern for energy prices.
GPCCI Policy and Advocacy Committee Chairperson Dr. Marian Norbert Majer remarked that the “Philippines' growth and foreign investment face challenges from high energy prices, a concern both locally and globally.”
"With rising costs, it's vital for the government to further explore better alternatives like German renewable energy technologies," he said.
The AHK World Business Outlook (AHK WBO) was a study made to compare the risks and potentials of firms in respect to German businesses in various sites. It also examined investment areas, and other factors relevant to the current business climate.
The study surveyed over 3,600 German companies, branches, and subsidiaries across the globe.