27 January 2009 - The Makati Business Club released today the results of its latest Business Opinion Survey Series conducted among its members to gauge the probable impact of the global financial crisis on their business operations and workforce in 2009.
Nine of 10 MBC members expect their businesses to feel the impact of the financial crisis this year. More than 6 out of 10 (64 percent) say the crisis will have a slight impact, while nearly 3 out of 10 (29 percent) expect it to have a substantial impact. Only 7 percent believe it will have no effect on their business.
Commenting on the results, Alberto Lim, executive director of MBC, says, "Recession was already happening in the U.S. even before the financial crisis exploded in October 2008, so weak U.S. demand was bound to affect us anyway. The financial crisis exacerbated what should have been a mild economic crisis."
Despite the dreary forecast for the respondents' firms in 2009, only 19 percent see a possible downsizing in their companies this year. Nearly half of these (46 percent) expect a 3 to 10 percent reduction in their workforce, and close to a quarter (21 percent) project the extent of workers' dismissal to be from 20 to 30 percent. Thirteen percent expect a cut in manpower by about 50 to 60 percent, while 8 percent expect an 80 to 90 percent workforce reduction. The remaining 12 percent did not disclose the extent of their possible workforce reduction.
Fifty-eight percent of the companies who foresee the possibility of downsizing in 2009 are service providers, followed by manufacturing companies with 21 percent, exporters with 17 percent, and importers with 4 percent. One hundred twenty-six (126) MBC members responded to the survey conducted from 16 to 23 January 2009.
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Business Opinion Survey Series
No. 1 Series 2009
Company Forecast for 2009
(In % of respondents)
I. Nature of Business
70% Service Providers
12% Manufacturers
13% Importers
5% Exporters
II. To what extent will your company be affected in 2009 by the global financial crisis?
29% Substantial 64% Slight
7% None
III. Do you foresee a reduction in your company's workforce? 81% No
19% Yes
