The easing of tensions between the US and Iran could provide much-needed relief to Philippine manufacturers, but industry leaders say the opportunity will be meaningful only if it is matched by structural reforms at home.
Federation of Philippine Industries (FPI) Chairperson Elizabeth H. Lee said the peace agreement has the potential to stabilize global oil markets after months of uncertainty triggered by disruptions around the Strait of Hormuz. Lower fuel prices, a stronger peso, and improved investor sentiment could help ease pressure on local industries that have been grappling with elevated operating costs.
“This is good news, cautiously good news,” Lee said. “The US-Iran peace deal gives the Philippines breathing room, but it also exposed how vulnerable we remain compared with our ASEAN neighbors.”
Energy costs have been a major concern for manufacturers, particularly those dependent on fuel-intensive logistics and cold-chain operations. A sustained decline in oil prices could lower transportation expenses and reduce production costs across supply chains. Import-dependent industries may also benefit from a firmer peso, which would lessen the cost of bringing in raw materials such as chemicals, metals, and packaging inputs.
Yet Lee argued that external developments alone will not be enough to make the Philippines more competitive as investors reassess opportunities across the region.
“We need to accelerate ease of doing business, tighten anti-smuggling operations, strangle corruption, and fully implement the Tatak Pinoy Act and the CREATE MORE Act,” she said. “The peace deal resets the global backdrop. Our job is to reset the Philippine investment story.”
The recent energy shock served as a reminder of the country’s reliance on imported fuel and the limited depth of its industrial base. While the Philippines avoided severe economic disruption, Lee said the episode exposed weaknesses that could resurface during future crises.
“The Philippines has survived this crisis with its fundamentals intact but its vulnerabilities exposed,” she said. “History tells us there will always be a next shock. The real question is whether we learn from this one.”
