Biz leaders: PH can withstand MidEast crisis
Some of the country’s biggest conglomerates remain confident that Philippine businesses can withstand the economic impact of the ongoing conflict in the Middle East, although they acknowledge that rising costs and softer consumer demand could pose challenges.
Speaking at the InvestPH 2026 conference hosted by the Philippine Stock Exchange, business leaders Manuel V. Pangilinan, Teresita Sy-Coson and Jaime Augusto Zobel de Ayala said the geopolitical tensions may disrupt markets in the short term but were unlikely to derail their long-term investment plans.
Metro Pacific Investments Corp. chair and CEO Pangilinan said the group’s portfolio of essential services should help shield it from economic volatility.
“Our group should be okay,” he said, explaining that demand for basic services—such as power, water, food and health care—tends to remain steady even during periods of uncertainty.
Still, Pangilinan acknowledged that the conflict could slow earnings growth as its economic effects ripple through the global economy. He said the company was revisiting its financial plans to reflect the latest developments.
“Actually, we’re redoing our budget, we think we should update based on this latest trend. But I think we should push more for the sake of this country, continue to invest as much as we can,” Pangilinan said.
For her part, SM Investments Corp. vice chairperson Sy-Coson said that the conglomerate expects operating expenses to increase as global uncertainties push costs higher.
“I know our capital expenditure will still be there as planned,” she said. “We just thought that maybe this could be a temporary thing, and I hope it is temporary, so that we can prepare for the better days.”
She added that consumer spending could weaken in the near term as inflation pressures weigh on household budgets.
“There could be some softening for now,” she said, noting that higher prices may discourage spending in the near term, although demand could recover later on.
“We just have to make our businesses more efficient, lower our margins, to survive this temporary hiccup. I think most of us are optimistic that it is not going to take very long. We need prayers for that,” she said.
Sy-Coson also noted that companies are preparing for the possibility of higher borrowing costs as monetary authorities respond to global developments.
Businesses, she said, are bracing for a scenario where “all the costs will be higher.”
Meanwhile, Ayala Corp. chair Zobel de Ayala said companies must deal with current disruptions while continuing to pursue long-term strategies.
He noted that businesses are operating on “two fronts”—responding to immediate challenges while keeping an eye on future opportunities.
Zobel de Ayala said he remains hopeful that economic conditions, including prices, could stabilize toward the end of the year.
Despite the risks posed by geopolitical tensions, the country’s top business leaders said companies must stay focused on long-term investments and improve efficiency as they navigate the current volatility.
