Philippines CEOs most bullish since pandemic – survey

MANILA, Philippines — Philippine chief executive officers (CEO) are at the most optimistic they have ever been in terms of industry prospects since the pandemic, but geopolitical uncertainty is a major concern keeping them up at night, according to a survey of the Management Association of the Philippines (MAP) and PwC Philippines.

Results of the 2024 Philippine CEO Survey presented in a press conference yesterday showed that 86 percent of the surveyed Philippine CEOs are confident about their industry’s prospects for the next 12 months.

Trissy Rogacion, deals and corporate finance partner at PwC Philippines said this is the highest level of optimism since the pandemic.

Conducted from July to August, the survey covered 168 business leaders.

The survey also showed that 86 percent are upbeat their company would experience revenue growth in the next three years.

“What helped drive optimism among our CEOs here in the Philippines is mainly our country’s economic growth,” Rogacion said.

The Philippine economy posted 6.3 percent growth in the second quarter of this year, faster than the 4.3 percent growth in the same quarter last year and the revised 5.8 percent growth in the first quarter of 2024.

This brought economic growth in the first semester to six percent, within the six to seven percent target of the government for this year.

Key growth drivers expected by Philippine CEOs to drive the Philippine economy in the next 12 months include infrastructure development (59 percent), domestic consumption (51 percent) and foreign direct investments (41 percent).

Despite the optimism, geopolitical uncertainty is a major concern for CEOs, with 62 percent saying it keeps them awake at night.

Ongoing events such as the Russia-Ukraine war, Israel-Hamas conflict and territorial disputes in the South China Sea have affected businesses directly and indirectly in terms of supply chains, inflation and other related threats.

In terms of the most pressing threats they face in the next 12 months, Philippine CEOs cited macroeconomic volatility (91 percent), inflation (89 percent) and exposure to cyber risks (83 percent).

“Business leaders in the Philippines have been faced with significant challenges stemming from global economic uncertainties, geopolitical tensions and inflationary pressures, but they are continuously adapting and innovating,” PwC Philippines chairman and senior partner Roderick Danao said.

He said some companies have effectively managed risks from geopolitical uncertainty by diversifying products, markets and the supply chain.

“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 conflict,” he said.

Should businesses continue running on their current path, 46 percent of CEOs believe their company will no longer be viable after 10 years.

In terms of how they are reinventing their businesses to ensure longevity, CEOs said they plan to invest in upskilling their workforce in priority areas (71 percent), automating processes and systems (70 percent) and deploying technology such as cloud, artificial intelligence (AI) and other advanced technology (49 percent).

While 71 percent of CEOs believe Generative AI will significantly change the way their companies create, deliver and capture values, only 39 percent have adopted the technology.

Danao said this is due to the still low awareness on AI at the corporate level.

MAP CEO Conference Committee chair Donald Lim said he is hopeful the Philippines can leapfrog in terms of AI adoption by spending time learning the technology.

When it comes to challenges of having a multigenerational workforce, over 75 percent of respondents cited differences in management and leadership styles as their biggest challenge.