Family businesses in the Philippines are the most assured in Southeast Asia about their future-readiness, according to a new SAP-sponsored study by The Economist Intelligence Unit.
As part of the regional study, family business leaders from Southeast Asia including Indonesia, Malaysia, Philippines, Singapore, and Thailand rated their future readiness across categories of people, environment, processes, and technology.
The study revealed that family firms in the Philippines report the highest levels of confidence or readiness in Southeast Asia, averaging 8.29 on a ten-point scale, 10 being most confident, across the four categories. The country also scored the highest in terms of the development of skills (8.6, tied with Thailand.)
According to the study, Filipino family businesses are positive towards their capabilities to deploy the latest technology such as cloud computing (8.25 score versus SEA benchmark of 7.88) and automation (8.125 score versus SEA benchmark of 7.86). Family businesses in the Philippines also report one of the highest likelihoods to adopt new business models and enter new markets.
Despite the optimism, Filipino family businesses report the highest concern in the region for regulatory and regional geopolitical risks.
“This strong level of optimism among family businesses in the Philippines will greatly help in supporting the country’s growth agenda,” said Michael Gold, EIU editor of the report. “To strengthen their legacy and seize opportunities in the digital economy, they cannot continue to depend solely on connections or customer loyalty. Family businesses and SMEs need to future-proof themselves with digital know-how and innovation, in order to compete successfully in the international arena.”
Pressing onto to the future, they expect the most prominent benefit to collaborations will be in developing new products and services and in expanding reach into new geographical markets, which is in line with the country’s growing economic growth and reported high levels of consumer optimism.
Edler Panlilio, managing director of SAP Philippines, added that, “these high levels of confidence of family firms in the Philippines just shows how savvy they are for technology and continue to look forward to grow further in innovating products and reach new markets. With majority of businesses in the Philippines being family-owned, intelligent technologies such as analytics, machine learning, and cloud computing can help support these businesses to become intelligent enterprises and create experiences that matter for Filipino consumers.”