By Mhicole A. Moral, Special Features and Content Author
Business leaders world wide are heading into 2025 with confidence about economic growth but face mounting pressure to reinvent their corporations for long-term survival.
In response to PwC’s twenty eighth Annual Global CEO Survey, nearly three in five chief executive officers (CEOs) anticipate global economic growth will rise over the following 12 months — almost double last 12 months’s figure. Nonetheless, 42% of CEOs imagine their corporations won’t remain viable beyond the following decade without significant transformation.
Macroeconomic volatility and inflation at 27% top the list of world concerns, while regional differences highlight specific threats. As an example, geopolitical conflict is the first risk within the Middle East at 41%; whereas in Western Europe, cybersecurity at 27% edges out inflation and labor shortages.
Regulatory challenges also shape business strategy, with 42% of world CEOs citing policy shifts as the best threat to long-term viability. Greater than a 3rd have ventured into latest sectors prior to now five years to diversify revenue streams, but progress is slow.
Two-thirds of corporations reallocate lower than 20% of their financial and human resources year-over-year, raising questions on business agility.
Meanwhile, the identical report said that Philippine-based chief executives are more confident within the country’s economic growth in comparison with their global counterparts.
The report, which surveyed 32 Filipino CEOs out of 1,520 respondents from the Asia-Pacific region, revealed that 78% of local executives expect domestic economic growth to enhance in the following 12 months. Meanwhile, 9% foresee no significant change, while 13% anticipate a decline.
By way of confidence regarding revenue growth, 38% of respondents are highly confident in achieving growth, while one other 38% are moderately confident. Meanwhile, 19% expressed only slight confidence. Looking ahead, 44% of CEOs are strongly confident in revenue expansion over the following three years.
One of the crucial notable findings from the report highlights early productivity gains from generative AI. Philippine CEOs are leveraging artificial intelligence to reinforce efficiency and streamline operations. At the identical time, investments in sustainability are yielding rising payoffs, suggesting that companies are starting to reap the advantages of eco-conscious strategies.
Similarly, McKinsey & Company reported that artificial intelligence continues to dominate global discussions, with generative AI offering a $4.4 trillion economic opportunity. Yet, only 11% of AI pilot projects have successfully scaled.
Nonetheless, 69% of Philippine-based CEOs imagine their corporations will only remain economically viable for the following decade or less in the event that they proceed on their current trajectory. This figure stands in contrast to the worldwide average, where 55% of CEOs foresee longevity beyond ten years.
Balancing growth and challenges
In response to Frederic C. DyBuncio, president and chief executive officer of SM Investments Corp. (SM Investments), the country’s economic fundamentals remain strong.
“The Philippines continues to exhibit strong economic growth fundamentals in 2025, primarily driven by robust domestic consumption, the recovery of key sectors like tourism, and sustained remittance inflows,” Mr. DyBuncio told BusinessWorld in an e-mail.
While the economic outlook stays positive, he cautioned against looming challenges that might impact growth. Particularly, Mr. DyBuncio believes that inflation stays a primary concern, as rising costs of products and services affect purchasing power.
Despite the challenges, the SM Investments executive sees opportunities, emphasizing that the Philippines’ demographic dividend, particularly its youthful population and growing middle class, continues to drive market demand across various sectors.
As well as, Mr. DyBuncio noted that retail, logistics, renewable energy, and digital services are expected to guide economic expansion in 2025. He said the continued expansion of the center class, an increase in digital adoption, and enhanced infrastructure connectivity will help propel these sectors forward.
Tourism also presents a promising avenue for growth, with the hospitality sector showing strong recovery potential. As infrastructure projects improve connectivity across the archipelago, the logistics sector is predicted to learn, creating opportunities for supply chain optimization.
“Businesses can maximize these opportunities by investing in scalable technologies, enhancing customer experiences, and aligning with evolving consumer preferences,” he explained. “Firms that embrace operational efficiency, innovation, market expansion, and customer-centric strategies will probably be higher positioned to thrive.”
Meanwhile, ride-hailing giant Grab commended the economic direction of the Philippines as Southeast Asia’s fastest-growing economy.
“This achievement underscores the resilience and potential of the nation under the Marcos administration’s leadership. The passage of transformative policies, equivalent to the CREATE MORE Act, signals a forward-thinking approach to economic reform, further strengthening investor confidence. We remain committed to deepening our presence and investments on this dynamic and thriving market,” Grab was quoted as saying in an announcement.
The CREATE MORE Act has been pivotal in enhancing investor confidence by offering tax incentives and streamlining regulatory processes for businesses to create an environment conducive to long-term economic sustainability.
Business tycoon and industry leader Manny V. Pangilinan also expressed renewed optimism for the country’s progress while emphasizing the necessity for strategic motion.
“One other latest 12 months — with latest hopes, fresh starts, and renewed optimism,” he was quoted as saying in his Recent Yr’s message released two months ago.
This 12 months, Mr. Pangilinan’s outlook centered on improving the lives of Filipinos through job creation and attracting more investments.
“I wish for a greater Philippines — where people’s lives needs to be improved with more investments; where businesses can work together amongst themselves and with government in lifting the welfare of our people,” he added.
With the country facing evolving economic and geopolitical challenges, he believes a transparent articulation of national economic goals is crucial. Businesses and policymakers, Mr. Pangilinan said, must work hand-in-hand to implement strategic initiatives that can drive growth and innovation.
He also highlighted the importance of cooperation between the private sector and the federal government in achieving long-term economic stability to define and align economic priorities for the following 4 years towards sustainable development.
Economic growth through digital transformation
For fintech giant GCash, this 12 months presents a possibility to showcase the present financial inclusion initiatives of the country through digital financial services. GCash President and CEO Martha Sazon emphasized that emerging technologies equivalent to artificial intelligence (AI) are being leveraged to make sure accessibility and efficiency in financial transactions, benefiting Filipinos across all socio-economic backgrounds.
“We highlighted that GCash has been leveraging innovations and emerging technologies like AI to further enhance the accessibility, efficiency, and customer-centricity of our services, ensuring that no Filipino is left behind in our pursuit of monetary inclusion,” Ms. Sazon said in an announcement.
The increasing adoption of AI-driven financial solutions aligns with the Philippine government’s broader push toward digital transformation. GCash reaffirmed its commitment to working closely with policymakers to foster a more inclusive digital economy.
Yr of opportunities for sustainability initiatives
In response to AboitizPower Chief Finance Officer Sandro A. Aboitiz, the federal government’s goal of at the very least 6% gross domestic product (GDP) growth this 12 months could translate to the next demand for electricity, necessitating latest generation capacities.
“A 6% growth in GDP would require additional baseload, mid-merit, and peaking generation capacities,” he said in an interview with BusinessWorld.
With La Niña expected to affect energy consumption patterns, the country is ready to energise around 6,841 megawatts (MW) of additional capability 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 developments, Mr. Aboitiz emphasized the necessity for vigilance within the face of world economic uncertainties and rapid technological shifts, which could impact public policy and business costs.
The manager said that AboitizPower has embedded environmental, social, and governance (ESG) principles in its business technique to create shared value for investors, customers, and host communities.
“In its 2024 Corporate Sustainability Assessment, S&P Global ranked AboitizPower within the 73rd percentile amongst its global peer group, while Sustainalytics placed the corporate in a Medium Risk rating category,” Mr. Aboitiz noted. The corporate has also received the Golden Arrow Award, a notable recognition in corporate governance, for 3 consecutive years.
He also mentioned the importance of revolutionary pondering, scenario planning, change management, and risk assessment to navigate industry disruptions. “The digital age is powered by electricity, and the role of the ability sector is to supply electricity when and where it’s needed at an inexpensive cost,” Mr. Aboitiz explained.
AboitizPower’s approach to balancing energy affordability, reliability, and decarbonization involves an “all-options-on-the-table” strategy. This includes utilizing dispatchable fossil fuel sources as today’s reasonably priced baseload fuel alongside the event of alternatives like nuclear, offshore wind, and battery storage to achieve scalable viability.
Call for initiatives and partnerships
Mr. DyBuncio said that corporations like SM Investments are committed to navigating economic headwinds through innovation, investments, and consumer-centric strategies.
“The private sector, including the SM group, plays a critical role in harnessing these growth opportunities,” he stated. SM Investments, a conglomerate with interests in retail, banking, and property development, continues to expand its portfolio to align with evolving market demands.
Mr. DyBuncio highlighted the importance of maximizing opportunities by investing in scalable technologies, enhancing customer experiences, and aligning with evolving consumer behaviors.
“At SM, we proceed to leverage these strategies alongside strong partnerships to make sure our businesses remain accessible, dynamic, and conscious of market needs,” he said. We remain committed to constructing businesses that not only deliver strong financial performance but additionally create meaningful impact for communities and stakeholders. By fostering resilience and embracing change, entrepreneurs and executives can assist shape a more robust and dynamic Philippine economy.”
For AboitizPower, ensuring economic stability and fostering growth require stronger collaboration between the private and non-private sectors. Mr. Aboitiz said that the necessity for a long-term energy plan transcends political administrations, allowing businesses to speculate with confidence.
“In the electrical power industry, a segment that’s heavily regulated and wherein upfront capital costs are high, there needs to be a long-term energy plan that will be passed on from one administration to the following and ensure continuity. This may allow developers to speculate with confidence,” he added.
Ayala Corp. Chairman Jaime Augusto Zobel de Ayala is asking on investors to benefit from the Philippines’ sustained economic momentum because the country enjoys resilience amid global uncertainties.
“We within the Philippine business community remain hopeful on the country’s prospects for growth, which haven’t dimmed despite a volatile global environment,” 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 actually ready to just accept high levels of partnerships and investments from our friends across the region, most especially the US.”
Mr. Zobel de Ayala also stressed that the economy could reach even greater heights with stronger alignment between the private and non-private sectors.
“A consistent six-percent growth is actually a good achievement, but imagine what more will be achieved if we hit a continuous growth rate of eight percent or more over a sustained period, which economists feel is feasible if we align the federal government and personal sectors,” he added.
