BUSINESS CONFIDENCE IN PHL SLIPS BACK 6 INDEX POINTS SINCE SEPT
[PHOTO - BUSINESS NETWORK IN THE PHILIPPINES]
MANILA, APRIL 14, 2012 (MANILA TIMES) Written by : Raadee S. Sausa, Reporter - BUSINESS confidence in the Philippines has slipped back six index points to 136 since September, according to the global Regus Business Confidence Index.
“Although untouched by the significant setback reported by the Index in other global economies between March and September 2011, Filipino business confidence has now suffered a slight dip.
In addition to this, the proportion of companies reporting revenue and profit growth has decreased. Therefore, in order to grasp growth opportunities in a sustainable way, businesses are still looking to cut overheads without damaging their growth prospects,” said William Willems, regional vice president of The Regus Group for Australia, New Zealand and South East Asia.
Companies reporting revenue growth decreased, reaching 56 percent compared to 63 percent six months ago. Companies reporting profit growth (50 percent) also fell 7 percent.
Regus added that globally, the Business Confidence Index rating is lower for small businesses (107) than for large firms (124).
The report said that Filipino firms identified making permanent staff redundant (50 percent) as the main reason for corporate distress during the downturn, followed by paying for unnecessary office space (46 percent).
Meanwhile, respondents identified a shorter supply chain (51 percent), increasing use of flexible workspace (49 percent) and greater use of cloud information technology applications (42 percent) as areas where companies could best make savings without damaging growth prospects.
Also, Regus said that Filipino firms reported that wider distribution of customers (47 percent) and increasing flexible workspace (35 percent) would make the greatest contribution to enhancing future business stability as a platform for growth.
“In particular, a significant proportion of businesses believe that reducing the cost of unnecessary office space, one of the major burdens borne through the global economic downturn, and increasing use of flexible workspace would make a great contribution to enhancing business stability.
With solutions readily available on the market for flexible workspace arrangements, there is no doubt that the number of businesses benefiting from more nimble and scalable arrangements will increase in the coming years,” Willems said.
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