|
Saturday, May 13, 2006
China’s boom a boon to local mid-size firms
China’s “economic miracle” is not restricted to large enterprises, but has penetrated deep into the economic infrastructure of its neighbors, including the Philippines, according to accounting and tax advisory firm Punongbayan and Araullo.
Punongbayan and Araullo, a member of Grant Thornton International, conducted an independent survey of business owners in the Philippines and how they perceive mainland China’s economic boom has affected Filipino businesses.
The accounting firm said medium-sized businesses, which in the Philippines include those having between 50 to 199 employees, are “performing exceptionally well” in the face of Mainland China’s phenomenal economic growth.
“Business owners are bullish about export prospects for the year ahead, and are expecting a continued surge in investment,” said Punongbayan and Araullo in a statement furnished to Sun.Star Cebu.
Largest
Grant Thornton International, which initiated the international survey, asked owners of medum-sized businesses around the world what the impact of the Chinese economic boom had been on their businesses.
The Philippines was among the countries with the largest proportion reporting increased business, with 40 percent of local business owners experiencing an upswing.
“This masks an interesting result,” said Ben Pun-ongbayan, chairman and chief executive officer of Punongbayan and Araullo.
“China’s boom has had a dual impact on the country, increasing business for many respondents while simultaneously decreasing it for a sizeable portion.”
Punongbayan revealed that 27 percent of local business owners who responded to the survey said China’s boom has decreased their business.
Local business owners also expressed concern over the perceived impact of China on their bottom line, the accounting firm said.
When they were asked whether they see mainland China as an opportunity or a threat to their businesses, 54 percent of Filipino respondents said it is the greatest threat to business interests over the next two years.
Suffer
“There is no question that all eyes are on China right now, as it races past the US as the country with the greatest potential for business opportunities,” Punongbayan said. “But corollary to that, there will be businesses that will suffer if they don’t find a way to stay competitive.”
Underscoring the growing importance of China in international trade, the survey revealed that nearly one in five medium-sized businesses now imports from that country.
In the Philippines, 38 percent of local business owners already import from China, and 13 percent plan to start importing soon.
The survey also revealed that one in 10 businesses worldwide have transferred or outsourced operations to another country—14 percent of Filipino business owners having already done so—with China emerging as the leading destination for outsourcing.
The Grant Thornton International business owners survey was conducted among 7,000 owners of mid-sized businesses from 30 countires in the fourth quarter of last year. (LAP/with PR)
For Bisaya stories from Cebu. Click here. (May 13, 2006 issue)
Write letter to the editor.Click here.
Join the Sun.Star message board.Click here. |
|
[return to top]
[home]
[network page]
|
LOCAL NEWS
BUSINESS
OPINION
SPORTS
LIFESTYLE
FEATURE
SUPERBALITA
WEEKEND
|
