German companies in the Philippines are more bullish in their local business prospects than in other ASEAN countries despite acknowledging certain risks, such as shortages of skilled labor, supply chain disruptions, economic policy uncertainties, and inflation, according to a new survey conducted by the German-Philippine Chamber of Commerce and Industry (GPCCI-AHK Philippinen). Results of the Spring 2023 AHK World Business Outlook Survey conducted in April this year showed that more than a half (62%) of German-Philippine businesses said they are in a better business situation with a significantly improving trend when compared to Spring 2021 (21%). The survey results further showed that expectations also registered more positive with vast majority (74%) of responding firms forecast confidence in business development for the next twelve months, with notable zero in worse ratings. Fifty four percent of participating companies forecast a better development on local economy in the next twelve months with a drastic decrease (-24%) in "worse" ratings from Fall 2022 (from 27% to 3%). Investments and employment also show higher uptick, 46 percent said that plan to invest higher in the country in the next 12 months and 50 percent said they will hire more people locally. In addition, when compared to ASEAN neighbors and the Asia-Pacific, the Philippines generally exhibited a “better/ higher” results in almost all areas of the AHK World Business Outlook Spring 2023 Survey. “The positive outlook of companies engaged in German-Philippine economic relations is attributable to the recent activities of the Philippine government in the EU,” said GPCCI President Stefan Schmitz. “We urge the government to capitalize on this positive momentum, as it can generate renewed interest in the Philippine market, given the country's ongoing economic development.” While the Philippine survey results led its neighboring countries in the ASEAN region attributing it to the concerted efforts of the government, the private sector and the Filipino people, GPCCI Director and Policy and Advocacy Chairperson Dr. Marian Norbert Majer urged the government to take action on the challenges identified by participating companies, particularly in the area of “human capital development, given that it is the country's most valuable resource." Notably, the Spring 2023 Survey also listed major risks anticipated by respondents for their companies in the next 12 months. The survey found that 44 percent of German firm respondents in the Philippines identified a lack of skilled workers as the most significant risk, followed by supply chain disruptions at 39 percent, and economic policy conditions at 35 percent. With regard to potential geopolitical challenges for their respective companies in the next five years, inflation/monetary policy environment (47%) was identified as the most pressing concern, followed by an increase in political influence on supply chains (42%), and cybersecurity issues (37%). “Our recent survey shows a bullish business interest of German businesses in the Philippines,” said  GPCCI Executive Director Christopher Zimmer. “We are excited about more developments soon as we promote the Philippines to more German businesses in our lined-up activities this year such as Trade Secretary Alfredo E. Pascual’s visit in Germany this July, upcoming business delegations, and our flagship event Mabuhay Germany,” said Zimmer. The AHK World Business Outlook Spring 2023 Survey in the Philippines was initiated by GPCCI that is participated by 112 companies related to German-Philippines business relations. The participating sectors are from the manufacturing or construction sectors (20%), trade (19%), services (50%), and others (11%). 54% of the respondents have less than 100 employees, 8% have 100 to 1000 employees, and 38% have more than 1,000 employees. The AHK World Business Outlook (AHK WBO) is based on a regular DIHK survey among member companies of the German Chambers of Commerce Abroad, delegations, and representative offices (AHK). It encompasses the feedback from more than 3,100 German companies, branches, and subsidiaries worldwide. GPCCI / AHK Philippinen belongs to the international network of German Chambers of Commerce Abroad (AHKs) which is represented by 150 offices in 93 countries. GPCCI is the official representation of German businesses in the Philippines; a bilateral membership organization with around 300 members; and a service provider to companies in their market entry and expansion.