European Firms Show Increased Interest in Expanding Philippine Operations, Survey Reveals

MORE European Union (EU) firms expressed interest in expanding their Philippine operations this year, though the 43% share of such firms underperformed relative to Southeast Asia, according to a survey conducted by the EU-ASEAN Business Council (EU-ABC). The EU-ABC said its 12th Business Sentiment Survey found that the companies signaling their Philippine expansion plans surpassed the 40% total in 2025. “While the Philippines also shows strong European business presence (66%) and similarly record substantial expansion intent among existing operators, they have relatively limited planned market entry,” EU-ABC said. “Only 8% of respondents not currently active there reported intentions to expand,” it added. The Philippines also trailed its ASEAN peers in terms of European expansion intentions. About 64% of EU companies are bullish on expanding in Vietnam, with 57% expressing confidence in Indonesia, 49% in Malaysia, 49% in Thailand, and 44% in Singapore. About 78% of EU firms said they plan to expand in at least one ASEAN market. “The global situation has certainly proved challenging, but European businesses have shown a firm commitment to ASEAN,” EU-ABC Executive Director Chris Humphrey said in a statement Tuesday. However, 81% of firms said unpredictable US tariff policies have weakened business confidence in ASEAN. “Despite concerns around tariff uncertainty, the findings point to a resilient outlook for ASEAN, with stronger trade and investment expectations and sustained confidence in the region’s longer-term growth prospects,” the EU-ABC said. The EU-ABC surveyed 357 European businesses between April 16 and July 3. — Beatriz Marie D. Cruz