By Mhicole A. Moral, Special Features and Content Writer
Executives worldwide are advancing into 2025 with optimism about economic advancement but confront increasing pressure to transform their organizations for enduring sustainability.
As highlighted in PwC’s 28th Annual Global CEO Survey, nearly 60% of chief executive officers (CEOs) foresee an increase in global economic growth over the upcoming year — nearly double last year’s statistics. Nevertheless, 42% of CEOs assert that their enterprises will struggle to remain viable beyond the next decade without substantial change.
Macroeconomic fluctuations and inflation at 27% lead the list of worldwide anxieties, while regional distinctions emphasize specific hazards. For example, geopolitical turmoil ranks as the most significant threat in the Middle East at 41%; meanwhile, in Western Europe, cybersecurity at 27% surpasses inflation and labor shortages.
Regulatory hurdles also influence corporate strategy, with 42% of global CEOs identifying policy alterations as the greatest danger to long-term viability. Over a third have ventured into new industries in the last five years to diversify income sources, yet advancement is gradual.
Two-thirds of organizations reallocate less than 20% of their financial and human resources each year, raising concerns regarding corporate adaptability.
Concurrently, the same report indicated that chief executives based in the Philippines exhibit more optimism regarding the nation’s economic progress compared to their global peers.
The study, which included 32 Filipino CEOs out of 1,520 participants from the Asia-Pacific region, disclosed that 78% of domestic executives predict an improvement in local economic growth within the next year. Conversely, 9% foresee no significant alteration, while 13% expect a decline.
Regarding confidence in revenue growth, 38% of participants are extremely confident in achieving growth, while another 38% are reasonably confident. Additionally, 19% voiced only minimal confidence. Looking forward, 44% of CEOs express strong confidence in revenue growth over the next three years.
One of the most significant observations from the report reveals early productivity advancements from generative AI. Filipino CEOs are utilizing artificial intelligence to improve efficiency and optimize operations. Simultaneously, investments in sustainability are yielding increasing returns, indicating that companies are beginning to benefit from eco-friendly strategies.
Likewise, McKinsey & Company mentioned that artificial intelligence continues to dominate global conversations, with generative AI presenting a $4.4 trillion economic opportunity. However, only 11% of AI pilot initiatives have successfully scaled.
Nonetheless, 69% of Filipino CEOs contend that their firms will remain economically viable for the next decade or less if they persist on their current path. This statistic contrasts with the global average, where 55% of CEOs foresee sustainability beyond ten years.
Balancing growth and challenges
As Frederic C. DyBuncio, president and chief executive officer of SM Investments Corp. (SM Investments), noted, the economic fundamentals of the country remain robust.
“The Philippines continues to demonstrate strong economic growth fundamentals in 2025, primarily driven by substantial domestic consumption, recovery in key sectors such as tourism, and steady remittance inflows,” Mr. DyBuncio informed BusinessWorld in an email.
While the economic outlook appears favorable, he warned against emerging challenges that could hinder growth. In particular, Mr. DyBuncio emphasized that inflation remains a primary concern, as increasing prices of goods and services impact purchasing capacity.
Despite the obstacles, the SM Investments executive sees potential, highlighting that the Philippines’ demographic dividend, specifically its youthful populace and expanding middle class, continues to stimulate market demand across various sectors.
Furthermore, Mr. DyBuncio pointed out that retail, logistics, renewable energy, and digital services are projected to lead economic growth in 2025. He stated that the ongoing expansion of the middle class, an uptick in digital adoption, and improved infrastructure connectivity will further propel these sectors.
Tourism also offers a promising pathway for growth, with the hospitality sector presenting strong recovery prospects. As infrastructure projects enhance connectivity across the archipelago, the logistics sector is expected to gain, creating opportunities for optimizing the supply chain.
“Businesses can maximize these opportunities by investing in scalable technologies, enhancing customer experiences, and aligning with shifting consumer preferences,” he elucidated. “Companies that adopt operational efficiency, innovation, market expansion, and customer-focused strategies will be better positioned to flourish.”
Meanwhile, ride-hailing giant Grab praised the economic trajectory of the Philippines as Southeast Asia’s fastest-growing economy.
“This accomplishment emphasizes the resilience and potential of the nation under the Marcos administration’s guidance. The enactment of transformative policies like the CREATE MORE Act indicates a forward-looking approach to economic reform, thereby bolstering investor assurance. We remain dedicated to deepening our presence and investments in this vibrant and thriving market,” Grab was quoted in a statement.
The CREATE MORE Act has played a vital role in boosting investor confidence by providing tax incentives and streamlining regulatory procedures to foster an environment conducive to long-term economic sustainability.
Business magnate and industry figure Manny V. Pangilinan also conveyed renewed hope for the country’s advancement while underscoring the necessity for tactical actions.
“Another new year — with new aspirations, fresh beginnings, and revitalized optimism,” he was cited as saying in his New Year’s message released two months ago.
This year, Mr. Pangilinan’s perspective focused on enhancing Filipinos’ lives through job creation and attracting greater investments.
“I anticipate a better Philippines — where the quality of life improves through increased investments; where businesses collaborate with each other and with the government to uplift the welfare of our people,” he added.
With the nation encountering evolving economic and geopolitical challenges, he believes that a clear articulation of national economic objectives is essential. Businesses and policymakers, Mr. Pangilinan stated, must collaborate to implement strategic initiatives that will drive growth and innovation.
He also emphasized the significance of cooperation between the private sector and the government in achieving long-term economic stability, aiming to define and synchronize economic priorities for the next four years towards sustainable growth.
Economic growth through digital transformation
For fintech leader GCash, this year offers an avenue to highlight the ongoing financial inclusion efforts of the country through digital financial services. GCash President and CEO Martha Sazon emphasized that emerging technologies, including artificial intelligence (AI), are being utilized to ensure accessibility and efficiency in financial transactions, benefiting Filipinos across all socio-economic strata.
“We highlighted that GCash is leveraging innovations and emerging technologies such as AI to enhance the accessibility, efficiency, and customer-centric nature of our services, ensuring that no Filipino is left behind in our quest for financial inclusion,” Ms. Sazon stated.
Theincreasing acceptance of AI-driven financial technologies corresponds with the Philippine administration’s broader initiative toward digital transformation. GCash reiterated its dedication to collaborating closely with policymakers to cultivate a more inclusive digital economy.
Year of possibilities for sustainability projects
As stated by AboitizPower Chief Financial Officer Sandro A. Aboitiz, the government’s aim of at least 6% gross domestic product (GDP) growth this year may lead to increased electricity demand, requiring new generation capacities.
“A 6% GDP growth will necessitate additional baseload, mid-merit, and peaking generation capacities,” he mentioned in a discussion with BusinessWorld.
With La Niña anticipated to influence energy consumption trends, the nation is projected to activate approximately 6,841 megawatts (MW) of new capacity in 2025. This includes 3,930 MW from solar, 1,320 MW from natural gas, 773 MW from wind, 500 MW from coal, 107 MW from hydro, and 104 MW from geothermal sources.
Despite these advancements, Mr. Aboitiz underscored the necessity for caution amidst global economic uncertainties and swift technological changes, which may affect public policy and business expenses.
The executive indicated that AboitizPower has integrated environmental, social, and governance (ESG) principles into its business framework to generate shared value for investors, clients, and local communities.
“In its 2024 Corporate Sustainability Assessment, S&P Global positioned AboitizPower in the 73rd percentile among its international peers, while Sustainalytics categorized the company within a Medium Risk rating,” Mr. Aboitiz noted. The organization has also been honored with the Golden Arrow Award, a significant acknowledgment in corporate governance, for three consecutive years.
He further emphasized the significance of innovative approaches, scenario analysis, change management, and risk evaluation to navigate industry disruptions. “The digital era relies on electricity, and the role of the power sector is to deliver electricity where and when it’s needed at a reasonable price,” Mr. Aboitiz elaborated.
AboitizPower’s strategy towards harmonizing energy affordability, reliability, and decarbonization involves an “all-options-on-the-table” approach. This includes utilizing dispatchable fossil fuel sources as today’s economical baseload energy while simultaneously developing alternatives such as nuclear, offshore wind, and battery storage to achieve scalability.
Appeal for initiatives and collaborations
Mr. DyBuncio expressed that entities like SM Investments are devoted to overcoming economic challenges through innovation, investments, and consumer-focused strategies.
“The private sector, including the SM group, plays an essential role in capitalizing on these growth opportunities,” he asserted. SM Investments, a conglomerate with endeavors in retail, banking, and property development, continues to broaden its portfolio to align with changing market requirements.
Mr. DyBuncio underscored the significance of seizing opportunities by investing in scalable technologies, enhancing customer experiences, and aligning with evolving consumer behaviors.
“At SM, we persist in utilizing these strategies alongside robust partnerships to ensure our enterprises remain accessible, dynamic, and responsive to market demands,” he stated. We remain dedicated to fostering businesses that not only achieve strong financial outcomes but also make a meaningful difference for communities and stakeholders. By nurturing resilience and embracing transformation, entrepreneurs and executives can help mold a stronger and more dynamic Philippine economy.”
For AboitizPower, ensuring economic stability and promoting growth necessitate enhanced collaboration between the public and private sectors. Mr. Aboitiz mentioned that the requirement for a long-term energy strategy transcends political administrations, permitting businesses to invest confidently.
“In the electricity sector, which is heavily regulated and has high upfront capital expenses, there should be a long-term energy strategy that can be passed on from one administration to another to ensure continuity. This will enable developers to invest confidently,” he added.
Ayala Corp. Chairman Jaime Augusto Zobel de Ayala is urging investors to capitalize on the Philippines’ ongoing economic momentum as the nation retains resilience amid global uncertainties.
“We in the Philippine business community remain optimistic about the country’s growth prospects, which have not diminished despite a turbulent global landscape,” Mr. Zobel de Ayala was quoted as saying during a board meeting of the US-Philippines Society, where he serves as co-chair. “The country is unquestionably prepared to welcome substantial partnerships and investments from our friends around the region, particularly from the United States.”
Mr. Zobel de Ayala also emphasized that the economy could achieve even greater success with a stronger collaboration between the public and private sectors.
“Consistent six-percent growth is certainly an admirable accomplishment, but imagine what more could be attained if we maintained a continuous growth rate of eight percent or higher over a sustained duration, which economists believe is achievable if the government and private sectors collaborate,” he concluded.
