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

Food health, safety concerns starting to influence consumer purchasing behavior

Food health and safety are now major factors in Filipino consumers’ purchasing choices, signaling a new openness to healthier options in the market, PwC Philippines said, citing the results of a study.

The 2025 Voice of the Consumer Report indicated that about 60% of consumers now worry about the risks associated with ultra-processed foods and pesticides, outweighing concerns about cost.

Source: Pwc

“The survey results in terms of clamor for affordable food weren’t a surprise, but focus on health and food safety was something that was top of the list,” Mary Jade Roxas-Divinagracia, deals and corporate finance managing partner at PwC Philippines, told reporters at a briefing.

“I think Filipinos are sort of leveling up in terms of what they want and where they want to put their money in. It’s not just about volume or getting more food, but buying better-quality food.”

At least 60% of consumers said they are most concerned about pesticides in their food, while 57% think about the health risks of ultra processed foods and 56% consider food safety to be a major consideration.

However, PwC noted that increasing food prices and persistent cost-of-living challenges are making it more difficult for consumers to meet such goals.

In the Philippines, 45% of respondents said they opt for budget or value brands, while 56% purchase in bulk to maximize their funds.

The study also found that spending habits depend on whether consumers spend more time at home or outside.

“The more time they spend at home, the more they do what we call planned purchases, which means you go to a market, you know exactly what you want to buy, and you’re filling your pantry,” Rakesh Mani, Asia-Pacific consumer markets leader at PwC Southeast Asia said. “The more time spent outside the house, the more you see impulse purchases.”

PwC surveyed 21,075 consumers across 28 countries, including 501 from the Philippines.

Source: Business World

CEO optimism remains high

A majority of chief executive officers (CEOs) in the Philippines are confident that their organizations will see revenue growth in the next 12 months, despite geopolitical uncertainties, a survey showed.

Results of the survey conducted by PwC Philippines in partnership with the Management Association of the Philippines (MAP) showed that 85% of 168 CEOs are optimistic that their companies will post revenue growth in the next 12 months.

The results of the survey, which ran from July 8 to Aug. 9, showed improved optimism compared with the 79% of 157 CEOs who said they were confident of topline growth last year.

Meanwhile, 86% of CEOs are confident of revenue growth in the next three years, slipping from 87% in the previous survey.

The survey also showed that 86% of the CEOs are confident about industry prospects for the next 12 months, higher than the 83% seen in the previous survey. This is the highest level of optimism since the pandemic.

“What helped drive optimism among our CEOs here in the Philippines is mainly our country’s economic growth,” said Karen Patricia A. Rogacion, deals and corporate partner at PwC.

She noted the Philippines recorded faster economic growth despite geopolitical uncertainties, which have affected economies in the United States and Europe.

“When the year started, at the global level, we had a slow start. We are still feeling the impact of the Russia-Ukraine war as well as the impact of China’s real estate crisis,” she said.

“Several economies, such as the US and even Europe, were expecting a recession because of the high interest rates and unstable market conditions. In the Philippines, however, we showed fast growth,” she added.

The Philippine economy grew by 6% in the first six months of the year, hitting the low end of the government’s target of 6-7% this year.

In the survey, CEOs said infrastructure development, domestic consumption, and foreign direct investments are the main drivers of growth in the next 12 months.

“Given the top three drivers, it’s also been consistent that the CEOs say that our government is doing a good job in pushing for infrastructure development, forging stronger relationships with other nations, and also managing inflation,” Ms. Rogacion said.

However, 62% of the CEOs said geopolitical uncertainties arising from the Russia-Ukraine war, conflicts in the West Philippine Sea, and upcoming elections in other countries are keeping them awake at night.

“We have actually been indirectly and directly affected by challenges due to global supply chain pressures, inflation, and other related threats,” she said.

Donald L. Lim, chair of the MAP CEO Conference Committee, said CEOs fear geopolitical uncertainties as these may suddenly disrupt supply chains and operations.

“I think the geopolitics, whether Ukraine-Russia or even the West Philippine Sea, are a great unknown. We don’t know what will happen. But if that happens, it will have a severe impact on the business,” he added.

However, Roderick M. Danao, chairman and senior partner of PwC, said that some companies are already starting to manage and mitigate the effects of geopolitical uncertainties.

“A few local companies have effectively tried to manage to mitigate the effect [through] product diversification, market diversification, and supply-chain diversification,” Mr. Danao said.

“Of course, all of these have to be backed up by long-term risk management plans for the company to adapt and to proactively manage the impact of the geopolitical conflicts,” he added.

TECHNOLOGICAL INNOVATION

Meanwhile, the survey showed that 46% of the CEOs believe that their company will no longer be viable after 10 years if it continues running on its current path.

According to PwC, new technologies such as generative artificial intelligence (GenAI) are set to revolutionize business models, redefine work processes, and transform industries.

“I always believe that AI will certainly bring more opportunities rather than threats,” said Mr. Danao.

In the survey, 40% of the CEOs said that they have already adopted the technology, while 71% believe that GenAI will change how their companies create, deliver, and capture value.

Even though 78% of the leaders believe that the technology can improve the quality of their company’s products and services, the survey also showed 61% of the CEOs said that they are not yet widely adopting the technology in their operations.

Asked why there is still low adoption, Mr. Danao and Mr. Lim said that AI in the Philippines is still in its nascent stage.

“The awareness is still very low at the Philippine corporate level. We are all excited about what this AI can bring into our organization. But embedding AI is still a work in progress. There will be investments and workforce upskilling needed,” Mr. Danao said.

“We are just at the tip of the iceberg. I think you’ll be lucky to have real AI adoption across the majority, meaning more than 50%, in five years. It will be a long time,” Mr. Lim said.

Mary Jade Roxas-Divinagracia, deals and corporate finance managing partner at PwC, said AI adoption will be led by industries like healthcare, banks, financial institutions, and retail.

“And then you have one of the major industries in the Philippines, the business process outsourcing, and this can be a game changer for them, not just on the risk side, but on the opportunity side as well,” she added.

However, Mr. Lim said that the full adoption of AI may result in job losses if the workforce will not be able to keep up.

“AI won’t replace jobs. Those people who use AI will replace those who do not know how to use it. So, I think the problem is more on education because the teachers do not understand this,” he said.

“So, we have to make sure that the educational system prepares our next three batches of graduates to use and harness AI. Will there be a loss of jobs? I think there will be. Because it won’t be able to catch up,” he added.

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Source: Business World