MANILA, Philippines - American businessmen are now generally more satisfied with the business environment in the Philippines than last year, although major concerns such as corruption continue to weigh on their business plans, results of a survey on business expectations by the American Chamber of Commerce (AmCham) showed.
Among major business concerns, corruption remained the overwhelming problem for US investors in the Philippines, with 88 percent of respondents expressing dissatisfaction.
“Dissatisfaction with corruption, which has improved in recent years, has reverted to 2005 levels,” the survey pointed out.
In the ASEAN Business Outlook Survey 2009, a majority or 59 percent of AmCham members from the Philippines said they still expect higher profits for the coming year, with only 10 percent foreseeing a drop in income.
The survey, which started in 2002, polled senior executives of US companies based in the Philippines. For this year’s findings, the survey was conducted from July 22 to Aug. 11, with a response rate of 29 percent.
Predicting overall economic growth, more respondents (38 percent) expect gross domestic product or GDP to expand this year, while 34 percent said growth would likely be flat. A sizable number (28 percent) said they expect the Philippine economy to contract.
“Respondents from the Philippines are more optimistic for the world economy than they were last year, although they believe the US recession will last longer than they did last year,” the AmCham survey noted.
The AmCham members were nearly divided equally on their satisfaction level with the country’s laws and regulations, infrastructure and political system with 48 percent, 49 percent and 47 percent, respectively, expressing their approval.
The US expatriates also indicated high positive rating on the country’s labor cost and quality, lease expenses and sentiment towards US businesses, registering between 57 percent and 77 percent satisfaction level.