Business remains...

of 12 percent expect inflation to stay at the same rate, while 3 percent project it to be lower than 2016.

Likewise, 57 percent of Makati-based businessmen foresee a higher 91-day Treasury Bill Rate than last year’s rate of 1.50 percent. Thirty-nine percent still foresee constant interest rates and expect it to stay the same, while 4 percent expect to see it moving lower in 2017.

On the peso-dollar rate, a big majority of 80 percent of MBC members expect the peso to depreciate against the US dollar by an average of 5.16 percent by year-end 2017; the 2016 year-end rate was R49.82/$.

Meanwhile, 11 percent expect the pesodollar rate to stay the same as end-2016, while the remaining 9 percent expect the local currency to appreciate against the dollar by 3 percent.

On prospective investments for 2017, the survey showed that 29 percent of respondents remain positive expecting an increase of approved investments from the 2016 figure, while 24 percent foresee the same level of approved investments this year.

On the other hand, 47 percent anticipate approved investments this year to be lower than the R89.4 billion recorded by the Philippine Statistics Authority last year.

On trade, the general outlook is slightly critical, as a significant number of MBC members project a decrease in both imports and exports.

Fifty-three percent of respondents expect exports either to increase (29%) or stay on the same level (24%) as last year’s exports figure, while close to half (47%) expect lower exports than last year’s $51.36 billion (from January to November).

For imports, 64 percent expect lower imports than last year’s $73.72 billion, while 24 percent expect it to stay the same; the remaining 12% stay fairly optimistic and expect imports to be higher than last year.

MBC members also mirrored their overall optimism on the Philippine economy to their own corporate outlook with a large majority of the respondents projecting an increase in both gross revenues and net income in the coming year.

About 93 percent expect higher (83%) or the same level (10%) of gross revenues this year compared to last year, and only 7 percent expect their gross revenues to be lower than 2016. Similarly, 74 percent of the respondents also project higher net incomes in 2017, while 14 percent foresee no change, and only 12 percent expect lower net incomes this year.

On investments for 2017, the projection remains bright with 74 percent of the respondents said they will make additional investments in the coming year, with an average of R785 million; the highest projected investments of over R1 billion are under the Diversified / Conglomerate and Services sector.

In terms of workforce, 51 percent of the respondents plan on expanding their workforce; majority of these member companies planning to hire more workers belong in the Services sector. Meanwhile, 48 percent expect to hold their workforce size steady, while only 1 percent foresees the possibility of laying off workers.

The 2017 First Semester Executive Outlook Survey was conducted among MBC members from 2 February to 15 March, 2017. A total of 76 corporate members submitted survey responses, representing 20 percent of MBC’s 380 member companies, excluding foreign embassies and trade offices.

Of the total respondents, 84% are in top management, while 16% are in middle management. Majority of these respondents are Filipino (91%), while 9% are foreigners.

The Services sector make up the largest representation, with 46%, while Manufacturing and Non-Manufacturing industries make up 11% and 8%, respectively. 14% are from the Conglomerate/Diversified sector, and 3% are in Agriculture. Other sectors make up the remaining 18% of the respondents. In terms of company size, majority of MBC members (62%) have annual revenues of over R999 million, while 12% record less than R100 million; 5% have R500-R999 million, 8% have R300-R499 million, and another 13% have R100-R299 million.