By Beatriz Marie D. Cruz, Senior Reporter
MOST Philippine chief executive officers (CEOs) remained upbeat about the business outlook over the next 12 months and expect revenue growth despite geopolitical uncertainty and technological disruption, a survey showed.
Results of the survey conducted by Isla Lipana & Co./PwC Philippines in partnership with the Management Association of the Philippines (MAP) showed that 83% of 176 CEOs and business leaders are optimistic about their industry’s prospects over the next year “amid an unpredictable business environment.”
However, this was slightly lower than the 86% of 168 CEOs that were confident of their industry prospects in last year’s survey.
Results of the survey also showed 81% of CEOs are also confident their companies will see revenue growth in the next 12 months, slightly lower than the 85% in last year’s survey.
Also, 91% are confident that their companies will see revenue growth over the next three years.
Most CEOs or 67% expect gross domestic product growth to hit 3% to 4.5% in 2026, mainly in line with the government’s 3.5% to 4.5% goal. On the other hand, 9% see the economy growing by 4.6% to 6% this year.
“Despite persistent headwinds and various inflection points, it’s encouraging to see the resilience and confidence of Philippine CEOs.
The survey findings and our conversations with business leaders reveal a shared confidence in the country’s long-term potential, even as they navigate challenges within their industries, the broader landscape, and the public sector,” Roderick Danao, chairman and Senior Partner of Isla Lipana & Co./PwC Philippines, said in a statement.
“The opportunity now is to convert this confidence into action through innovation, collaboration, and initiatives that promote sustainable growth and national progress.”
Asked about the key drivers of growth, 19% of CEOs cited domestic consumption, followed by infrastructure development (15%), government spending (14%), overseas Filipino worker remittances (12%), business process outsourcing and services sector (10%) and artificial intelligence (AI) and digital transformation (10%).
“This year’s findings paint a picture of confidence in motion. Business leaders continue to see opportunities in the Philippine economy, supported by domestic consumption, infrastructure development, digital transformation, and the enduring strength of Filipino talent. Yet beneath this optimism lies a heightened awareness of disruption,” the report said.
CONCERNS
However, Philippine CEOs are aware of the emerging risks that are reshaping the business world.
Asked about their top concerns over the next 12 months, CEOs cited regulatory uncertainty (93%), climate change (93%), and geopolitical conflict (92%).
Other risks included technology disruption (85%), supply chain constraints (84%), skills shortages (84%), and cyber risks (82%).
“Further, 70% are concerned about macroeconomic volatility, including inflation and interest rates, underscoring how geopolitical tensions and supply chain disruptions continue to shape the broader business environment,” the report said.
The survey showed 54% of CEOs believe that their organizations will cease to exist in the next 10 years if they do not transform their business models.
“Business leaders are confident about the future but know that standing still is not an option,” the report said. “Growth remains attainable, but it increasingly depends on an organization’s ability to adapt, innovate, and reinvent itself.”
A majority or 92% of CEOs consider innovation as critical in their business strategy, followed by collaboration with external stakeholders (73%) and accelerating experimentation (65%).
The survey also noted that eight in 10 CEOs have incorporated AI into their strategies, while 79% have begun implementing their AI initiatives.
Also, Philippine leaders said workforce transformation, reskilling, and talent development account for 15% of their investment priorities over the next 12 months.
“Technology alone won’t transform a business. The real difference comes from how we equip our people to use AI — to innovate, adapt, and create value,” Mary Jade Roxas-Divinagracia, deals and corporate finance managing partner at Isla Lipana & Co./PwC Philippines, said in a statement.
About 24% of CEOs said they “strongly agree” that the culture of their organization enables AI adoption, while 39% agree that their organization has a clearly defined roadmap for AI initiatives.
Nearly half (42%) of CEOs surveyed agree that their organization has formalized responsible AI and risk processes, 37% believe that their AI investment is enough, and 33% agree that they are able to attract high-quality AI talent.
The CEOs surveyed also cited the importance of deeper cooperation with the Philippines’ Association of Southeast Asian Nations partners to help navigate global uncertainties. They identified the energy sector and the digital economy (both 13%) as key areas of regional collaboration in the next five years.
Meanwhile, MAP President Donald Patrick L. Lim said weaker consumer demand and higher operating costs pose risks to CEO sentiment this year.
Citing the Bangko Sentral ng Pilipinas’ latest business expectations survey (BES), he said business confidence remains volatile amid external pressures.
Philippine firms’ current-month confidence index (CI) plunged to -20.3% in July from the neutral 0% in June. A negative CI means that more respondents are pessimistic than optimistic.
“The sharp decline in business confidence is not surprising because businesses are responding to what they are actually seeing on the ground: weaker consumption, higher operating costs, slower investment and continued uncertainty,” he said in a Viber message.
Mr. Lim noted that government spending that supports economic activity would help boost business sentiment.
“We need faster and more efficient implementation of productive infrastructure, measures to address energy and logistics costs, greater policy predictability, and most importantly, stronger governance and transparency in public spending,” he said.
