Companies in the Philippines are more optimistic about their growth prospects than their overseas counterparts as they expect global trade to improve next year, results of an HSBC survey showed on Tuesday.
Citing the latest HSBC Navigator poll, HSBC Philippines said in a statement that “the outlook for international trade is promising, with Philippine companies showing significantly more confidence” — 41 percent of them — “than those globally (19 percent) and across [the] Asia-Pacific (APAC) (16 percent)” despite most “businesses reporting that international trade was becoming more difficult.”
According to the banking giant’s local unit, the percentage of Philippine firms with plans to expand internationally is also higher than their counterparts despite weaker macroeconomic conditions.
“[M]ore Philippines companies think international trade will get easier in 2021, with 92 percent eyeing expansion into other markets over the next three to five years,” compared with 76 percent of global firms and 79 percent of APAC firms, it said.
Graham FitzGerald, HSBC Philippines president and chief executive officer, said
intraregional trade already accounted for 60 percent of Asia’s overall trade, and this figure would only grow once RCEP comes into effect.
Formally known as the Regional Comprehensive Economic Partnership, RCEP was signed on November 15 by the 10 members of the Association of Southeast Asian Nations — Brunei Darussalam, Cambodia, Indonesia, the Lao People’s Democratic Republic, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam — as well as Australia, China, Japan, New Zealand and South Korea.
The pact would result in the creation of the world’s largest trade bloc, covering around 30 percent of world gross domestic product and population.
“Asian integration will not only strengthen the region’s role in the global trading system, but also [usher in] the next round of global economic growth, and this is a very promising outlook for the Philippines,” FitzGerald said.
HSBC Philippines said the confidence of the 200 companies surveyed in the country was more positive, with 85 percent of these planning to increase investments next year.
Meanwhile, the confidence of APAC firms about seeing revenue growth next year slipped to 60 percent this year from 77 percent in 2019.
The resurgence of coronavirus infections and its knock-on effects — a decrease in customer demand, supply-chain disruptions and workforce morale, among others — are seen as the main threats to economic recovery.
The HSBC Navigator survey was conducted from September 11 to October 7 by the Kantar market research company on behalf of HSBC. It involved more than 10,000 businesses in 39 countries, markets and territories.