Philippine CEOs optimistic, investing in people and tech for growth

Chief executives in the Philippines remain optimistic about industry prospects and are ramping up investments in people and technology to drive growth, a recently conducted survey showed.

“CEOs in the Philippines see both the risks and opportunities that lie ahead, such as the rising digital economy, sustained consumer spending, robust banking system and lower inflation and interest rates, among others,” PwC Philippines Chairman Roderick Danao said in a statement accompanying the release of the 2025 CEO Survey.

Optimism for the next 12 months was said to be strong, with 83 percent of survey respondents confident about the outlook for their industries and 84 percent expecting revenue growth.

The upbeat sentiment was said to be due to the country’s solid macroeconomic fundamentals, including within-target inflation and a robust monetary policy and banking system, sustained consumer spending, lending growth and higher liquidity.

However, more than half of the CEOs (52 percent) raised fears that their companies would no longer be viable after 10 years if changes were not made. Inflation was tagged as a key risk by 94 percent, followed by macroeconomic volatility (93 percent).

Cyber risks are another major concern and were cited by 84 percent of the respondents.

Adapting to change

CEOs were said to be aware of the headwinds with digital transformation particularly high on the agenda: 68 percent said they had integrated artificial intelligence (AI) into strategies and plans and 60 percent claimed implementation had started.

Respondents also had high expectations for generative AI, with 89 percent saying it would improve products and services, and most noted the need to upskill workers to extend business viability.

Eighty-two percent said they were focused on upskilling, 78 percent said they were pushing forward with automation initiatives, and 63 percent claimed to be using advanced technologies.

Sixty-two percent said talent retention and skill shortages were their top concerns, while 51 percent pointed to resource constraints.

Forty-seven percent, meanwhile, tagged the pull between short-term pressures and long-term goals.

As part of adaptation measures, companies were said to be revamping their decision-making processes, with 45 percent claiming shorter timelines and more frequent reviews.

Consultations are also being expanded, with 64 percent drawing on diverse executive perspectives and 62 percent seeking outside views.

‘More agile’

“This year’s survey shows that leaders are being more agile to ensure better service, shorter lead times and sustained outcomes,” PwC Philippines partner Trissy Rogacion said in the statement.

“By accelerating decision-making processes and streamlining workflows, organizations are not only enhancing the customer experience but also maintaining the momentum needed for long-term growth and resilience.” This year’s survey, which was answered by nearly 200 CEOs, was conducted from July 22 to Aug. 25, 2025, with the majority of respondents being members of the Management Association of the Philippines.

Other findings of the poll were that infrastructure development (65 percent) and domestic consumption (62 percent) would be the primary drivers of economic growth over the next 12 months and that the government was doing well in terms of pushing for infrastructure (69 percent).

The state also scored high in terms of foreign relations (65 percent), managing inflation (70 percent) and managing interest rates (53 percent), but just 9 percent of the respondents said it was doing well against corruption.

A quarter (25 percent) expect global economic growth to slightly decline over the next 12 months while just 20 percent said their business was facing threats from US tariffs.

Thirty-five percent said they would be revisiting plans to enter a new industry in the year ahead, 28 percent said they would expand outside the Philippines, and 17 percent would consider selling a stake in existing businesses.

Source: Manila Times

Filipino workers’ paid leave among lowest globally, study says

Filipino workers are entitled to some of the stingiest paid time off in the world, according to a new report by UK-based payroll and HR software provider Moorepay, putting the country behind most of its regional peers in guaranteeing rest days and vacation.

The study, which compared statutory leave entitlements across 187 economies, ranked the Philippines among the lowest globally. While Moorepay said that every country follows its own pattern when it comes to basic paid leave, labor advocates have warned that the lack of generous leave entitlements risks compounding burnout.

When counting both mandated vacation and public holidays, Filipino employees receive just 16 days of leave a year—the fourth-lowest total globally. Only the United States, which guarantees none, fared worse, followed by Japan with 10 days and Guyana with 12.

Within Southeast Asia, the Philippines lags behind Brunei (18), Thailand (19), Malaysia (19), Singapore (19), Vietnam (23), Indonesia (29), Myanmar (32) and Cambodia (40).

Annual leave

On annual leave alone, the Philippines guarantees just five days, the second-lowest in the world after the United States.

At the other end of the spectrum, Yemen offers the most generous statutory leave: 46 days, combining 30 days of annual vacation with 16 public holidays.

“Employers can use this knowledge to ensure their business stays competitive in the recruitment market. The amount of holidays you give as an employer is a major benefit for your employees,” said Michelle Hobson, HR services director at Moorepay.

Top talent

“By offering more than the minimum statutory leave, or offering more than the average pay package for annual leave, you can recruit and retain top talent,” Hobson added.

Looking ahead, Hobson said scant entitlements put extra pressure on employers and HR professionals to decide what their approach to annual leave is.

Not taking breaks, she noted, can lead to employees being stressed and burned out at work. This results in lower productivity and a higher risk of illness and absenteeism.

Paid time off, meanwhile, allows for necessary recuperation and restoring mental resilience, leading to happier employees, fewer sick days and higher levels of productivity.

Source: Inquirer

Philippines’ Misery Index falls in June 2025

The Philippines registered a significant improvement in its adjusted misery index in June 2025, reflecting a more favorable balance between inflation, unemployment, and underemployment. The index fell to 16.1 percent, compared to 18.5 percent in June 2024, signaling relief for Filipino households amid easing price pressures and stronger labor market conditions.

What is the Adjusted Misery Index?

The traditional misery index is calculated by adding inflation and unemployment. The adjusted version, however, includes underemployment—a more comprehensive gauge of economic distress. This provides a clearer picture of how many Filipinos are struggling not only to find jobs but also to secure stable, decent-paying work.

Formula:

Adjusted Misery Index = Inflation Rate + Unemployment Rate + Underemployment Rate

Key Economic Indicators (June 2025)

• Unemployment: Fell to 3.7 percent, equivalent to 1.9 million unemployed, an improvement from 4.5 percent a year earlier.

• Underemployment: Declined to 11.0 percent from 12.7 percent in June 2024, showing progress in creating better-quality jobs.

• Inflation: Registered 1.4 percent, a sharp drop from 3.3 percent in the same month last year, with food inflation almost flat at just 0.1 percent.

Putting these figures together:

June 2025 = 3.7 + 11.0 + 1.4 = 16.1%
June 2024 = 4.5 + 12.7 + 3.3 = 18.5%

What Drove the Decline?

1. Rice Price Stabilization

   • Government interventions, including tariff cuts and expanded supply programs, led to a historic decline in rice prices—down by 14.3 percent, the steepest fall in three decades.

2. Improved Labor Market

   • Expanded government hiring in education and healthcare, combined with job matching, internships, and training programs, reduced both unemployment and underemployment.

3. Lower Inflationary Pressures

   • Cheaper food commodities such as vegetables, corn, and sugar helped pull down consumer prices, benefitting especially low-income households.

Why This Matters

• For Households: The decline translates to greater purchasing power and better job security, particularly for vulnerable groups.

• For Policymakers: The results highlight the effectiveness of targeted programs in controlling food prices and promoting job creation.

• For Investors: Lower inflation and stronger employment signal a healthier macroeconomic environment, boosting investor confidence.

Outlook

While the drop to 16.1 percent is a promising sign, risks remain. Potential volatility in global oil markets, El Niño–driven food supply challenges, and animal disease outbreaks affecting pork prices could put upward pressure on inflation in the months ahead. Sustaining momentum will require continued government vigilance, particularly in keeping food affordable and strengthening inclusive job opportunities.

The Philippines’ adjusted misery index in June 2025 shows a clear improvement from last year’s 18.5 percent, reflecting easing inflation and stronger labor conditions. If these trends continue, Filipino households may enjoy a period of greater economic stability heading into 2026.

Source: Ziggurat Real Estate