The Iloilo Economic Development Foundation Inc. (ILEDF), in cooperation with the Iloilo City Government, Iloilo City business sectors, and Global Shapers Iloilo, conducted an online survey during the second week of June to assess the direction of the local economy.
In the online survey, 200 micro, small, medium, and large business owners responded.
In a press release by ILED Foundation Inc., it was revealed that 34% of the respondents reported an asset size of Php 3M to Php 15M and 29% have an asset of more than Php 100M. After the assessment, the foundation highlighted the following:
- While the general economy is deteriorating, in the next 3 to 6 months as indicated by almost all of the respondents, 89.4% of the respondents believe that the Iloilo economy will be much stronger, although they perceived decreasing investments in the next 12 months.
- The businesses perceived that sales and revenues and subsequent profits will significantly decrease in the next 3 months. The critical concerns include declining consumer demand, cost of lease and rentals, wages, logistics, and supply of raw materials and information, communication, and technology infrastructure. In addition, climate condition is also seen as a moderate concern for businesses.
Key takeaways from the survey include the following:
- The general business and investments landscape will look different, as some businesses are adapting new measures to address constraints brought about by the COVID pandemic.
- Businesses are moving slowly to cut costs and labor force. Moreover, multi-pronged government-private sector approach focusing on supply links and pumping financial assistance and grants will be crucial to driving sales and revenue good enough to deal with potential waves of COVID cases.
- Technology and digital platforms are important to connect to customers, suppliers, and financiers will define the prospects of the expectation of a stronger economy in the next 12 months.
Other observation can be seen in the below press release.