Philippine CEOs Maintain Optimism Amid Rising Risks and Economic Challenges

MANILA, Philippines — Despite facing a range of mounting risks including technological disruption, regulatory uncertainty, and geopolitical conflicts, chief executive officers (CEOs) of major Philippine corporations remain confident about their business prospects, according to the latest Philippine CEO Survey released by PwC Philippines in partnership with the Management Association of the Philippines (MAP).

The survey, which gathered responses from 176 CEOs, found that 81 percent expect revenue growth over the next 12 months, while an even higher 91 percent anticipate growth over the next three years. Additionally, 83 percent of respondents expressed optimism about the outlook for their respective industries in the coming year, a figure consistent with the previous year’s survey.

Notably, the survey revealed a shift in the primary drivers of economic growth. While infrastructure development was previously seen as the main growth engine, business leaders are now placing greater emphasis on domestic consumption. Nineteen percent of CEOs identified domestic consumption as the key driver for the next 12 months, followed by 15 percent citing infrastructure development and 14 percent pointing to government spending.

Most CEOs’ expectations align with the government’s economic outlook, with approximately 67 percent forecasting gross domestic product (GDP) growth between 3 and 4.5 percent for the year. Another 9 percent anticipate growth reaching between 4.6 and 6 percent.

Despite this steady confidence, CEOs remain vigilant about various risks. Regulatory uncertainty and climate change were concerns for 93 percent of respondents, while 92 percent flagged geopolitical conflict as a significant risk over the next year.

Ferdinand “Perry” Ferrer, chair and CEO of EMS Group and head of the Philippine Chamber of Commerce and Industry, noted that despite challenges such as tariffs and rising oil prices, the Philippines is well-positioned to capitalize on global shifts as companies seek new partners and supply chains.

Rather than retreating in the face of uncertainty, business leaders are investing heavily in technology and workforce development to maintain competitiveness. The survey showed that 92 percent of CEOs consider innovation critical to their business strategies, and 86 percent have integrated artificial intelligence (AI) into their strategic or business plans.

Investment priorities over the next 12 months include workforce upskilling, reskilling, and talent transformation, cited by 15 percent of respondents. Process automation was the next priority at 14 percent, followed by strategic partnerships and initiatives involving AI, cloud computing, data, and digital transformation programs, each accounting for 12 percent.

CEOs also identified areas where government action could bolster business confidence. The top priority was improving the ease of doing business, mentioned by 22 percent of respondents. This was followed by reducing regulatory burdens at 19 percent and accelerating infrastructure delivery at 16 percent. Energy security and affordability were also highlighted by 13 percent of CEOs.

Manuel V. Pangilinan, chair of PLDT and Metro Pacific Investments Corp., emphasized that the business sector should not adopt a passive stance amid challenges. Instead, he urged companies to continue investing in the country, creating jobs, and developing products and services, maintaining a positive outlook despite the headwinds.