MANILA -- Japanese companies doing business in the Philippines expect higher profits and are optimistic about prospects for expansion this year, a survey of Japan External Trade Organization (JETRO) showed.
JETRO-Manila Executive Director Takashi Ishihara said Japanese firms are bullish about their operations in the Philippines in 2019.
Ishihara mentioned that 56 percent of the surveyed companies project their profit to increase this year. The optimism is driven mainly by projections of sales expansion in local or overseas market as well as improved efficiency of production or sales.
This is higher compared to last survey’s result, which showed only 48 percent of firms expressed expectations of enhanced profitability in their enterprises here in 2018.
For the 2019 to 2020 period, 52 percent of the respondents said they are planning to expand their operations in the country.
However, this is still marginally lower than the 63 percent that expressed plans to expand a year earlier, based on the previous JETRO survey.
“They appreciate tax incentives in the Philippines,” the JETRO executive said, pertaining to the current tax perks offered by the government.
“Many of the Philippine respondents highly appreciate current tax incentives, while they are concern about complicated taxation procedures,” he added.
The latest JETRO survey was conducted from October to November 2018, with a total of 127 respondents. (PNA)
