By BERNIE CAHILES-MAGKILAT German businesses operating in the country consider their situation as bad with majority less likely to invest in the next 12 months, according to a survey. Results of the survey conducted by the German-Philippine Chamber of Commerce and Industry (GPCCI – AHK Philippinen) showed that 36 percent of the participating companies consider their current situation as bad. The survey also showed that 40 percent expect their business conditions to become worse within the next 12 months, 42 percent forecast an even poorer mid-term expectations. Majority or 56 percent of companies will invest less or not at all within the next 12 months. But the German-Philippine business community remains committed to maintaining its employees. 47 percent of the participating companies plan to keep their headcount, while 9 percent even intend to grow. “Judging from the results, we see that COVID-19 has led to an erosion of business confidence in the Philippines,” said Dr. Martin Henkelmann, GPCCI Executive Director. “This is understandable as the worldwide fight against the virus has caused the government to impose lockdowns, affected business activities and disrupted the general flow of goods.” Demand (58 %), financing (44 %), economic framework (40 %) as well as legal security (36%) are seen as the largest risks. When asked about the impact of the COVID-19 pandemic, almost a quarter of the companies (24%) expect a decline in sales by 10 percent – 25 percent, the same number of companies anticipate a decline between 25 percent and 50 percent, 13 percent even more than 50 percent. Expected effects of the aforementioned pandemic include travel restriction (82%) and postponed or canceled investments (60%), problems with the supply chains (55%), lacking products and services (49%) and missing demand for their products and services (49%). “The survey shows the urgent need for more governmental measures to assist the companies. Furthermore, the instruments to permit companies to quickly access financial support should be deployed,” said GPCCI President Tristan Arwen Loveres. “Aside from this, companies should be supported when keeping their workforce as this avoids rising unemployment and will set up companies to ramp-up fast as we go back to normal operations.” The participating 45 firms in the GPCCI survey are companies that are related to German-Philippine business relations with 18 percent coming from the industry and construction sector, 24 percent from trade and 58 percent from services. 43 percent of the participants have less than 100 employees, 30 percent have 100 to 1000 employees, and 27 percent have more than 1000 employees. The AHK World Business Outlook (AHK WBO) is based on a regular DIHK survey among member companies of the German Chambers of Commerce Abroad, delegations and representative offices (AHK). It encompasses the feedback from more than 3,700 German companies, branches, and subsidiaries worldwide.