MANILA – European businesses are expected to increase their investments in the Philippines in the next four years, results of a survey conducted by the European Chamber of Commerce of the Philippines (ECCP) showed.

The 2024 ECCP Business Sentiment Survey gathered members’ insights on the general economic outlook and business sentiment in the Philippines. A total of 200 responses were collected.

Survey results released at the ECCP’s Philippine Economic Outlook held at The Dusit Thani in Makati City on Thursday showed that 85 percent of respondents expect their level of trade and investment to increase over the next four years.

The ECCP said 81 percent also expect their company to expand in the next four years.

Survey results showed growth opportunities, infrastructure improvements, and a focus on sustainability are some of the key drivers of business interest in the country.

The ECCP said these reflect “confidence in the country’s robust economic fundamentals, improving infrastructure, and alignment with global standards.”

The survey, likewise, examined the changes in the Philippines’ attractiveness as an investment destination, supplier market, and sales market.

The ECCP said 60 percent of respondents noted improvements in the country’s appeal compared to other regional markets, with similar sentiments regarding its attractiveness as both an investment destination and sales market.

“Looking ahead, respondents expressed positive expectations for the Philippines over the next four years,” said the ECCP.

Respondents also anticipate the Philippine economy to continue to grow driven by public-private partnerships, robust private consumption, investment spending, growing population, and improved infrastructure among others.

The ECCP said respondents also expect foreign investments to increase following the passage of several economic liberalization laws such as the amendments to the Public Services Act, Retail Trade Liberalization Act, and the Foreign Investment Act.

“Furthermore, respondents believe that the Philippines will enhance its infrastructure through strategic investments, tax incentives, job creation, and initiatives such as promoting smart cities and renewable energy,” ECCP said.

In terms of ease of doing business, the ECCP’s survey revealed that 53 percent of respondents saw improvements.

More than 70 percent, however, said there are still amounts of barriers to investment, business activities, or overall ease of doing business in the country.

The survey, meanwhile, showed that 85 percent of respondents see the resumption of the European Union-Philippines free trade agreement (FTA) negotiations as important for their business strategies.

The ECCP said 24 percent of the respondents said they will use the FTA for trade in goods and services; 21 percent for trade in services; and 20 percent for investments.

The survey, meanwhile, showed that respondents cited the need to adopt a more proactive approach in addressing key challenges.

These include combating corruption, accelerating digitalization, and streamlining regulations to create a more business-friendly environment. (PNA)