MORE European businesses want to expand in the Philippines over the next five years, placing the country among Asean’s most attractive markets, according to the 12th European Union-Asean Business Sentiment Survey released Tuesday.
The survey showed 43 percent of respondents plan to expand in the Philippines, up from 40 percent in 2025 and just below Singapore’s 44 percent.
The Philippines ranked among the top six Asean markets for European business expansion for the third consecutive year, behind Vietnam (64 percent), Indonesia (57 percent), Malaysia and Thailand (49 percent each), and Singapore.
The EU-Asean Business Council said the results suggest future investment could reinforce established centers of European commercial activity, rather than significantly shift toward smaller Asean markets.
About 65 percent of respondents already have a business presence in the Philippines. Among those planning to expand, 51 percent are existing operators, while 8 percent without a current presence intend to enter the Philippine market.
European businesses also remain bullish on Asean as a whole. About 73 percent said the region has become more important to their global revenues over the past two years, while 61 percent see Asean offering the best economic opportunities over the next five years, up from 56 percent in 2025.
Meanwhile, 78 percent expect their Asean trade and investment to increase over the next five years. The same percentage plans to expand in at least one Asean market, although this was down from 87 percent last year.
Geopolitical uncertainty is also influencing investment and supply-chain decisions. About 81 percent said uncertainty over US tariffs has weakened business confidence, while 64 percent reported significant effects from the US-Iran war.
About 67 percent are considering Asean as they recalibrate supply chains amid political uncertainty, well ahead of South Asia at 29 percent and China at 24 percent.
However, businesses continue to flag barriers to deeper Asean integration. While 87 percent consider regional integration important to their success, 73 percent said supply-chain efficiency is hampered by too many barriers, particularly non-tariff measures and regulatory uncertainty.
The survey also found 88 percent believe European companies are at a competitive disadvantage against businesses benefiting from Asean trade agreements.
About 74 percent favor an EU-Asean region-to-region free trade agreement over separate bilateral deals, while 49 percent hope negotiations will be launched in 2027, when the two regions mark 50 years of relations.
