October 29, 2025 | 12:00am
MANILA, Philippines — Nearly half or 49 percent of German companies operating in the Philippines expect business conditions to remain stable in the next 12 months, according to a survey.
This was among the findings of the AHK World Business Outlook Fall 2025 Survey in the Philippines initiated by the German–Philippine Chamber of Commerce and Industry (GPCCI).
Conducted from Sept. 29 to Oct. 17, the survey collected responses from 51 firms in the Philippines.
Asked to assess their current situation, 47 percent of German firms in the country expressed optimism about business conditions.
In terms of the outlook on local economic development over the next 12 months, 69 percent said they expect the situation to remain the same.
When it comes to investments, 51 percent foresee steady trends in the year ahead.
Regarding the labor situation, the survey showed that 58 percent expect employment levels to remain the same in the coming year.
German businesses are concerned about several risks that may affect operations.
In particular, economic policy conditions topped the list of risks at 55 percent, largely due to the perceived inconsistency and unpredictability of local policies.
This was followed by legal certainty (37 percent) and lack of skilled workers or demand (35 percent).
Other risks cited by German businesses include tax administration, climate threats and political challenges, which are all seen as obstacles to both business operations and local economic development.
Despite new trade policies and tariffs imposed by the US, 55 percent of German businesses reported minimal impact on their operations.
Some respondents cited potential benefits from these developments such as expanded trade opportunities, access to alternative markets and increased diversification.
On the other hand, some firms said the tariffs bring challenges, including heightened competition, rising shipping and customs costs and pressure from trade diversion.
“A stable, predictable and accountable governance environment – anchored on clarity, fairness and trust – will further deepen investor confidence, attract high-quality long-term investments and strengthen the Philippines’ position as a competitive and reliable partner in the region,” GPCCI president Marie Antoniette Mariano said.
GPCCI policy and advocacy chairperson Marian Majer said prioritizing education and workforce development is also important to sustain investor confidence.
