Leaders of the Federation of Filipino Chinese Chambers of Commerce and Industry Inc. are turning cautiously optimistic on the Philippine economy, even as geopolitical tensions threaten to drive global oil prices higher.
Victor Lim, president of the federation, said businesses are closely watching the escalating crisis in the Middle East, warning that a prolonged conflict could fuel inflation and squeeze both companies and consumers.
“This Middle East crisis is a very serious problem, but we hope it will be short-term,” Lim said. “If it drags on, oil prices will continue to rise and that will increase inflation.”
At the start of the year, the group projected strong momentum for the domestic economy, supported by consumption, infrastructure spending and steady investment.
But mounting global risks have since tempered that enthusiasm. Lim said uncertainty tied to geopolitics and energy costs has pushed many firms to adopt a more conservative stance.
Still, the federation said its members are not retreating from expansion plans. Instead, many entrepreneurs are scanning the market for openings that often emerge during periods of volatility.
Some investors, Lim noted, are studying property and other asset-heavy sectors where valuations could soften if economic jitters deepen.
But he cautioned that rising fuel costs could quickly ripple across the economy, lifting transport, production and retail prices.
To cushion the impact, Lim urged businesses and households to conserve energy wherever possible.
“If we all cooperate and reduce fuel use, we can help control inflation and protect the economy,” he said.
The message, he said, is simple: stay prudent, watch global risks closely and keep investing where opportunities appear, ensuring Philippine businesses remain resilient despite an uncertain and potentially volatile energy market ahead today.
