Philippine businesses remain optimistic about long-term growth, but financial executives are exercising greater discipline as global uncertainties persist, according to Carlo Lazatin, president of the Financial Executives Institute of the Philippines (FINEX).
Lazatin described sentiment among finance leaders as “cautiously confident but strategically disciplined,” reflecting a supportive domestic economy tempered by the need to monitor global developments closely.
“The Philippine economy remains fundamentally resilient, although the global environment has become more complex,” Lazatin said.
Over the next 12 to 18 months, the country is expected to maintain relatively healthy growth compared with many regional peers. Domestic consumption, fueled by remittances, services exports, and the nation’s young population, continues to anchor expansion. Infrastructure projects and private sector investment are also expected to sustain momentum.
Despite optimism, companies are prioritizing productivity, capital efficiency, and disciplined investment strategies. The cost of capital remains a key factor.
Although interest rates are stabilizing after earlier tightening by the Bangko Sentral ng Pilipinas, borrowing costs are higher than in previous years, prompting firms to focus on balance sheet strength and careful project evaluation.
Global developments are another major consideration. Geopolitical tensions could affect energy markets, supply chains, and capital flows, requiring constant vigilance.
Even so, Lazatin noted that the Philippines’ strong financial system and sound macroeconomic framework provide buffers against external shocks. Companies are therefore able to continue investing while emphasizing risk management, operational resilience, and long-term value creation.
For financial executives, the challenge is to pursue growth confidently, but never lose sight of the global variables that could tip the scales.
