Business execs bullish on Philippine economy

MBC members commit additional investments 

MANILA, Philippines - A bullish outlook on the Philippine economy is pushing most businesses to commit additional investments averaging P4.9 billion this year, a survey conducted by the Makati Business Club (MBC) showed.

The MBC’s Executive Outlook Survey for the first semester released yesterday revealed majority or 59 percent of its member-companies surveyed said they would make additional investments, with the highest investments of over P1 billion to be made by diversified conglomerates and services firms.

“A positive outlook is also seen in terms of corporate performance for 2016, as majority of respondents project an increase in both gross revenues and net income in the coming year,” the MBC said.

The survey showed 82 percent of the companies expect their gross revenues to be higher while only three percent expect revenues to be lower this year.

On the other hand, 74 percent of the respondents project higher net incomes in 2016 and only seven percent expect lower profits.

“Heading into the 2016 elections, majority of Makati Business Club members have an optimistic outlook for the year, generally expecting the Philippine economy to improve on its 5.8 percent GDP growth in 2015 and foreseeing an increase in approved investments in 2016, compared to last year’s P106.6 billion (from Q1 to Q3),”  the MBC said.

“In addition, they are projecting increases in both imports and exports this year, from last year’s P62.6 billion and P54 billion, respectively,” it added.

The survey revealed 52 percent of the senior business executives polled expect the country’s economic growth this year to be higher than last year’s GDP growth of 5.8 percent.

Meanwhile, 39 percent see last year’s economic growth to be sustained, while nine percent project a lower GDP growth for 2016.

In terms of trade and investment, the outlook is also optimistic as MBC members project an increase in imports, exports, and approved investments.

Given that 2016 is an election year, MBC’s first semester Executive Outlook Survey also asked for the top three issues that the business community want the next administration to prioritize.

Majority or 57.75 percent answered infrastructure, while 40.85 percent and 32.39 percent said it should be corruption and peace and order, respectively.

MBC said other notable issues identified include poverty, job generation, agriculture, and education.

The survey was conducted among MBC members from Feb. 2 to March 16 this year.

A total of 71 responses were recorded, representing 17.75 percent of MBC’s 400 member companies.

MBC said about 87 percent of the respondents are in top management.