PH has fourth ‘most optimistic’ business leaders in world–study


MANILA, Philippines — The Philippines has the fourth “most optimistic” community of business leaders in the world as strides taken in easing the cost of doing business likely negated other concerns like the tension between the Executive and Judicial branches of government.

This is based on the latest Grant Thornton International Business Report (IBR) for the first quarter of 2012, which ranked the Philippines high in its optimism league table, behind Peru, Brazil and the United Arab Emirates.

Based on the survey results released on Tuesday by Grant Thornton’s local audit, tax and advisory firm Punongbayan & Araullo (P&A), 82 percent of Filipino respondents were upbeat about the next 12 months.

Peru, Brazil and the UAE had a confidence index of 90 percent, 86 percent and 84 percent, respectively.

Following the Philippines in the global ranking of territories with optimistic business leaders were: Georgia (78 percent),  India (74 percent), Chile (68 percent), Germany (64 percent) and Mexico (62 percent).

The Philippines ranked higher than the likes of the United States (46 percent), China (23 percent), Thailand (8 percent) and Singapore (2 percent).

Greece and Japan have more pessimists than optimists as their respective indices for the period stood at -52 percent and -53 percent, respectively.

“The Philippines has done a good job of staying resilient despite the economic volatility around the world,” P&A managing partner Marivic Españo said in a press statement. “Now that the global mood has also picked up, particularly among more mature economies, and the government seems determined to make up for its underspending last year, I think we’re on track to maintaining this upbeat outlook.”

The IBR said this rosy outlook belied the respondents’ expectations when it came to specific economic indicators.

Asked about their revenue prospects, only 48 percent of Filipino business leaders expected an improvement, down 12 percentage points from last quarter.

The respondents also mostly doubted their ability to raise prices as a balance of 14 percent expected to increase their selling prices, sharply lower than the 46 percent level in the previous quarter’s survey.

Respondents were also asked about roadblocks to their business growth. Regulations and red tape, which in the past had consistently emerged as the top obstacle for Filipino business leaders, have become less of a hindrance this quarter: 22 percent of local respondents reported it as a business constraint, compared to 32 percent last quarter, the report said.

“Bureaucracy has long been a cause for concern for businesses in the Philippines. So while it’s good to note that fewer respondents are hampered by it, it bears to mention that it still emerged as the top constraint, along with information and telecommunications infrastructure,” Españo pointed out.

“Perhaps some business leaders are starting to feel the effects of the government’s drive to improve the ease of doing business in the country.

The Department of Trade and Industry’s Philippine Business Registration workstation is a good start. But we’ll see what other concerned government agencies will contribute to this effort,” added Españo.

One thing that isn’t affecting local businesses is the ongoing tension between the Executive and Judiciary branches of the government.

Asked if the strained relations between the two has any impact on their business, 78 percent of respondents said no; 20 percent acknowledged it was affecting their business, while 2 percent were unsure.

The IBR, which began as an annual survey of business sentiment, started doing quarterly polls of economic confidence during the last quarter of 2010.

Since then, confidence in the Philippines has been fluctuating, but has consistently outpaced optimism globally and in the Southeast Asian region.

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Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.

  • Alajero

    …hindi mo maintindihan kahit sabihin ko…pero, palagay ko nasabi ko na…mukhang naka “auto” ang reply mo….please review my early response….
    …fyi…optimism does not mean much..  check the meaning of “confidence” instead which is more meaningful…do the businessman have confidence over the economy?…i don’t think the survey answered this question….

  • ed0408

    The pessimist has only themselves to blame. Look at Filipino Chinese businessmen who are making it big, they are bullish and keep on investing. The pessimists have a wait and see attitude and they are always left behind by the optimists. Better invest your money now while the economy is still booming.

  • Diablo_III

    Bat ganun? Daming pessimistic dito eh, lalo na yung nasa lansangan esp mga batugang militante. lol

  • cliff_castillo

    There’s no denying that this is a good sign.  What do they want, that business leaders are pessimistic?  Is that better?  Those who are against PNoy’s desire for a clean govt better think twice.  Do they want Gloria’s governance that the people repudiated by not voting for her perceived candidate?

  • JuanCrisostomoIbarra

    Optimistic nga ang business leaders, pessimistic naman ang mga mamamayan… hay naku!

    • dgboy

       kaw lang pessimistic huwag mo nakami idamay,

  • Carl

    Ho-hum. Let’s see what the growth figure is for Q1.

  • INQ_reader

    Good news.

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