GERMAN companies said they perceive the main risks in their Philippine operations to be uncertainty in economic policy and worker skills shortages.
The German-Philippine Chamber of Commerce and Industry (GPCCI), citing the results of its global survey, the Fall 2025 AHK World Business Outlook Survey, said 47% of German firms in the country are optimistic about their business situation, while 49% expect their businesses to be stable over the next 12 months.
“German businesses continue to express confidence in the Philippines as a leading destination for investment and growth,” GPCCI President Marie Antoniette Mariano said.
“To turn this confidence into lasting economic gains, the government must accelerate reforms that reinforce transparency, ensure policy coherence, and enhance administrative efficiency to improve the ease of doing business,” she noted.
German businesses also noted that US trade policies have had little to no impact on their operations in the Philippines, though they noted heightened competition, rising shipping and customs costs, and pressure from the diversion of trade from protectionist markets.
Philippine-based German firms also raised concerns regarding tax administration, red tape, climate threats, inflation, insurance constraints, and delays in public projects.
Marian Majer, GPCCI policy and advocacy chairperson, said the business environment is nuanced, with growth offset by structural and policy-related challenges.
“This sentiment underscores the importance of fostering a more predictable policy environment, enhancing regulatory excellence, and ensuring consistent, efficient implementation,” he said.
He cited the need to prioritize education and workforce development to sustain investor confidence and inclusive growth. — Beatriz Marie D. Cruz
