Filipino businessmen 2nd most optimistic in global survey

MANILA, Philippines - The Philippines ranked second in the list of the most optimistic business leaders, the latest results from the Grant Thornton International Business Report showed.

The report, released on Wednesday by accounting firm Punongbayan & Araullo, said 90 percent of Filipino businessmen have very bright expectations for the country's economy in the next 12 months. The survey, which covered the first quarter of the year, is an improvement of 18 percentage points from the last quarter of 2012.

This makes the Philippines second to Peru, which posted 98 percent optimism among its business leaders.

The Philippine score is way above the global average of 27 percent and the Association of Southeast Asian Nations average of 29 percent.

“Leading up to 2013, there were several positive forecasts for the Philippines, with independent economists projecting stronger growth for the next couple of years. So there is good foundation for this surge in optimism among business leaders,” said Marivic Españo, chair and chief executive officer of P&A.

“And I think businesses here are picking up on the improving mood in the more mature markets, such as the US and Japan,” she added.

The study also showed a massive jump in the global optimism score, which was only 4 percent the previous quarter.

Skilled workforce

Despite the Philippines' positive results, the survey noted that businesses in the country lack an available skilled workforce. Forty-six percent of the respondents considered it a roadblock to growth, an increase from the 20 percent recorded a year ago. Forty-six percent of respondents also said they are planning to hire new employees in the next 12 months.

“Considering this picture, business leaders may run into problems filling positions in their organization,” Españo said.

“It’s an unfortunate situation, because we have a 7.1 percent unemployment rate and yet executives are complaining that they can’t find talent. Perhaps the private sector and the academic community can work together to address this gap before it gets bigger,” she added.

Forty-two percent of Filipino businessmen also cited transport infrastructure as a business constraint, up from 20 percent in the previous quarter.

Expectations for profitability and revenue, however, are both up by 10 percentage points to 74 percent and 76 percent, respectively.