Global business confidence gap narrows, Regus says

THE FALL in business confidence in fastgrowing economies has reduced the gap with mature markets, as efficiency becomes the key driver to remaining competitive without compromising on growth.

The Philippines, however, is going against the trend, according to the latest survey of Regus, a global provider of office space.

Research reveals that globally, firms will prioritize cost-cutting measures, from talent retention to flexible workspace, to gain maximum advantage from existing assets and expand fast and flexibly.

The latest Regus Business Confidence Index (BCI) survey of more than 20,000 senior executives across 95 countries found that while confidence levels have risen by five points to 109 in mature economies, there has been as drop of nine points to 117 in emerging countries. In the Philippines, business confidence has increased from 147 points in April 2013 to 154, well above the global average of 113 points.

The report also indicated that Filipino businesses will focus on finding cost-effective services providers over the next 12 months to optimize business process- es and gain maximum advantage from existing assets without compromising on expansion plans.

Commenting on the research, Regus CEO Mark Dixon says: “While mature economies are showing confidence gains as their economic outlook turns positive, the emerging world is slowing the pace of growth as businesses aim to become increasingly efficient to promote productivity. Our research also shows that utilizing flexible workspaces can have a significant impact on the bottom line, encouraging sustainable growth.”

Other BCI findings include: Companies reporting revenue growth in the Philippines have increased from 63 percent to 74 percent and stayed steady, growing from 59 percent to 72 percent

The top four efficiency outcomes for the Philippines are:

Cost effective services providers (58 percent)

Higher return on investment on marketing and advertising (54 percent)

Improved staff retention (49 percent) Cheaper advertising (26 percent) One in four companies (25 percent) plans to reduce fixed office space.