By Bjorn Biel M. Beltran, Special Features and Content Assistant Editor

When success is achieved once but is fleeting and irreplicable, it is regarded as a fluke, a statistical anomaly. But when success happens again and again, when it is consistent and intentional, that is called greatness. The key, therefore, is persistence.

Attaining such persistence was explored in this year’s BusinessWorld Forecast forum, which tackled the theme “PH Forward: Towards A Sustained Growth Path,” gathering the foremost authorities, leaders, and luminaries in the Philippine business community and beyond to discuss the coming year, the economic outlook for 2025, as well as the challenges and trends that can impact the country’s ongoing growth.

“[T]he Philippine government is confident that the country will still end the year as one of Southeast Asia’s fastest-growing economies. This means that our collective efforts and the resilience of our economy, supported by infrastructure investments, a robust services sector, and a thriving digital economy, are paying dividends,” Miguel G. Belmonte, president and CEO of BusinessWorld, said in his welcome remarks.

“Our ability to keep moving forward, however, will continue to be tested by threats, both persistent and unforeseen. Our constants include political and geopolitical uncertainty; climate events; rising debt and fiscal deficits, to name a few. So, what will drive us towards sustained and meaningful growth? This is a question which we hope today’s forum will help us unlock some answers to.”

Towards this goal, Finance Undersecretary and Chief Economist Domini S. Velasquez shared the Philippine government’s vision in a keynote address on “Outlook and Agenda for the Philippine Economy in 2025,” where she discussed the country’s growth prospects and how momentum can be sustained amid global challenges and uncertainties.

“The Philippines is no longer just preparing for economic take-off. We stand ready to soar as a global economic superstar, fueled by resilience, innovation and the determination of our people. Now more than ever is the perfect time to ride its momentum, by transforming opportunities into milestones and aspirations into realities. Together, we will shape a brighter, more prosperous future for the country,” she said.

In particular, she pointed out that the country is poised to ascend to upper middle-income in 2025, through a steady reduction in deficit and debt, the financing of long-term investments, the recently-signed Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, and the creation of better jobs in the goal of boosting incomes and reducing poverty rate to single-digit levels by 2028.

The government is also looking to initiate reforms to increase foreign direct investments, such as reducing the tax on stock transactions to help boost the Philippine capital markets.

Nothing worthwhile comes easy

Such high aspirations come fraught with risk. Zafer Mustafaoğlu, country director for the Philippines, Malaysia, and Brunei at the World Bank, highlighted the challenges that the country might face towards its goal of being an economic giant in the coming decades.

“The path to a trillion-dollar economy is not easy. It’s a very important and ambitious target. It is not easy, but certainly it is feasible under certain conditions,” Mr. Mustafaoğlu said in his keynote on navigating the future of the Philippine economy, noting the country’s sustained growth rate of 6% could be a solid foundation for the goal.

Specifically, he highlighted the significance of improving human capital through education, nutrition and health, and the country’s physical and digital infrastructure through connectivity, energy security, and disaster resilience. “That investment in infrastructure, human capital, resilience agenda or facilitating technology adoption will require fiscal space,” he added.

Moreover, Pavit Ramachandran, country director for the Philippines at the Asian Development Bank (ADB), talking about “Sustaining Philippines’ Growth in Stabilizing Global Economy,” said that while the country’s growth trajectory remains “very promising,” there are a number of factors that could pose a threat to sustained growth such as an unexpected slowdown in major economies, geopolitical tensions, supply chain disruptions, and climate change.

“The global environment today is presenting unprecedented challenges for highly integrated economies like the Philippines,” he said in a speech delivered via video.

“I want to highlight that the Philippines stands at a critical junction in its trajectory, an inflection point if you like. By leveraging its strengths, embracing innovation, and investing in resilience, the country can navigate through these challenges and chart a path towards sustained inclusive growth,” he said.

With so many different moving parts in the Philippines’ economic narrative, the country is also at risk of meandering instead of flourishing. In a presentation, McKinsey & Co. Manila Managing Partner Jon Canto stressed the need to focus on the big picture as he talked about the investment outlook for the Philippines for 2025.

“Investment is a necessary, but not a sufficient condition, for growth. Ultimately, our objective as a country is not investment, but growth. There’s a lot more factors that influence growth than investments,” he said, adding that the Philippines needs to focus on key economic enablers that would define its future.

“How do we choose which sectors we are going to focus on? We cannot continue to spread ourselves too thin. We need to make some bets and make them very clear. And what do we want to be known for as a country, beyond English-speaking, beyond low-cost, beyond typhoons? And let’s build a plan towards it,” he said.

Where should our focus be?

The first panel of the conference set its sights on answering that question, addressing “Gearing the Investment Space for Sustained Economic Growth” which featured George S. Uy-Tioco, Jr., chief financial officer of GT Capital Holdings, Inc.; Cosette Canilao, president and chief executive officer (CEO) of Aboitiz InfraCapital, Inc.; Maria Carmela Laarni G. Felicidario, chief operating officer at Global Dominion Financing, Inc.; Erwin G. Pato, executive vice-president for treasury, finance, and planning at SM Investments Corp.; and Alberto De Larrazabal, senior managing director, chief finance, and finance group head at Ayala Corp.

Afterwards, bringing the discussion back to key sectors of the economy, the second panel, discussed “Infrastructure, Mobility, and Real Estate: Pillars of Long-Term Economic Growth.” Jamie Alfonso Zobel De Ayala, chief executive officer of ACMobility; Jean-Baptiste Dreanic, deputy general manager of Engie Services Philippines; and Roderick M. Danao, chairman and senior partner of PwC Philippines, shared their insights.

Talking about “Philippine Tourism: Maximizing Present Gains and Building its Sustainable Future,” Tourism Secretary Ma. Esperanza Christina G. Frasco discussed onstage the government’s current plans to reinvigorate the sector.

A panel discussion on “Keeping Retail’s Pace with Consumers’ Changing Ways” gathered Vicky Abad, country director at Ipsos Philippines, Inc.; Sherisa Nuesa, chairperson at Metro Retail Stores Group, Inc.; and Jennifer Jane G. Echevarria, vice-president for enterprise data and strategic services at Globe Telecom, to illustrate the latest shifts in the consumer market.

Meanwhile, the panel on “Supercharging Philippine Businesses and Workforces in the AI Age” looked towards the country’s workplaces to gauge the impact of artificial intelligence. Peter Maquera, president and CEO of Microsoft Philippines; Pia Azarcon, managing partner for consulting at IBM Philippines; Gian Paulo Dela Rama, chief product officer of Sprout Solutions and head of Sprout AI Labs; and Dominic Ligot, founder, CEO, and CTO of Cirrolytix, shared their expertise.

Among fireside chats, Dr. Jesus Felipe, distinguished professor at the De Le Salle University Carlos L. Tiu School of Economics, shared his thoughts on “Priming Philippine Economy’s Growth Through Timely Policies;” while Anthony Oundjian, managing director and senior partner at Boston Consulting Group, presented on “Managing the Generational Divide in the Workplace.”

The forum was hosted by TV5 News Anchor Jester Delos Santos, while the sessions were moderated by BusinessWorld journalists — Editor-in-Chief Cathy Rose A. Garcia, Corporate News Editor Arjay L. Balinbin, Research Head Mark T. Amoguis, Reporters Luisa Maria Jacinta C. Jocson and Revin Mikhael D. Ochave, and Multimedia Producer Patricia B. Mirasol.

BusinessWorld Forecast 2025 was supported by gold sponsors Ayala Corp., Federal Land NRE Global, Megaworld Corp., SM Investments Corp., SM Supermalls, and Globaltronics, Inc.; silver sponsors BDO Unibank, Inc., Engie Services Philippines, Global Dominion Financing, Inc., Globe Telecom, Inc., and San Miguel Corp.; and bronze sponsors FWD Insurance, Manila Electric Co., Metropolitan Bank & Trust Co., National Grid Corporation of the Philippines, SGV & Co., Shang Properties, Standard Chartered Bank, Gokongwei Group, Megawide Construction Corp., PLDT, Inc., and Philippine Amusement and Gaming Corp. Partner organizations were the Asian Consulting Group; American Chamber of Commerce of the Philippines; Bank Marketing Association of the Philippines; British Chamber of Commerce of the Philippines; Management Association of the Philippines; Philippine Chamber of Commerce and Industry; Philippine Franchise Association; Philippine Retailers Association, and J. Legaspi Computer Graphics. One News and The Philippine STAR served as media partners.

By Bjorn Biel M. Beltran, Special Features and Content Assistant Editor

The Philippines stands at a critical juncture in its economic trajectory, poised to transition from lower-middle to upper-middle-income status in the fiscal year, according to many international financial organizations like the World Bank.

However, this optimistic outlook hinges on the nation’s continued development through structural reforms, and a strong commitment to long-term investments in human and physical capital. Courting foreign direct investments, which have dwindled in recent years, remains a key aspect in enabling this growth.

This was the theme of the first panel discussion of this year’s BusinessWorld Forecast 2025 forum, which revolves around “Gearing the Investment Space for Sustained Economic Growth.” The panel gathered industry leaders for their insights on the current investment climate in the Philippines and where investments have to be made to foster inclusive and sustainable growth.

The opportunities, of course, are abundant and evident. Erwin G. Pato, executive vice-president for treasury, finance, and planning at SM Investments Corp. (SMIC), believes the Philippines has immense untapped potential.

“The key challenge, really, is how to unlock that potential,” he said, emphasizing the need for collaboration between stakeholders, including government and private entities.

Mr. Pato called for a clear framework that investors can understand, which would foster inclusive growth and provide a road map for sustained development. In a short presentation, he likened SMIC to a proxy for the country’s economic trends and shared their strategy of leveraging diversification across key sectors such as infrastructure like logistics and renewable energy to capitalize on current growth opportunities while mitigating risks posed by external factors.

George S. Uy-Tioco, Jr., chief financial officer of GT Capital Holdings, Inc, echoed his sentiments, underscoring their confidence in the Philippines’ growth prospects, which remain strong and supported by robust domestic demand and continued public investment.

“In general, we are optimistic about the economy moving forward simply because we are growing, and we expect that growth to continue,” he said.

Yet, Mr. Uy-Tioco underscored the importance of strategic planning to manage potential headwinds. “The challenge is really how do we support that growth… How do we manage the potential headwinds that we anticipate in the years to come?”

These headwinds include geopolitical tensions, inflation, and the need to remain competitive in a rapidly evolving global economy. Most recently, China’s recent ban on exporting rare earth metals to the United States, signaling a global trade war that would disrupt supply chains and impact industries reliant on these materials like technology and energy.

For now, the Philippines has the time to react to such risks to its development, but not a lot of it. For Mr. Uy-Tioco, foreign investment is a critical piece of the puzzle.

“If this government is seen as sufficiently addressing these challenges and executing their solutions and programs in a timely fashion, then it will draw attention,” he noted, adding that urgency is crucial to leverage the country’s demographic edge effectively. “We need to think about five years from now, 10 years from now, and put our plans in place.”

Unlocking the nation’s potential

Cosette V. Canilao, president and chief executive officer of Aboitiz InfraCapital, Inc., pointed to infrastructure as a key driver of economic growth but advocated for a more holistic approach.

“When we talk about infrastructure, we don’t really talk about only the roads, the bridges, and airports,” she said. “We also talk about financial inclusion, technology, healthcare, and agriculture.”

Speaking from the perspective of Aboitiz InfraCapital, Ms. Canilao highlighted the private sector’s own pivotal role in supporting infrastructure development, emphasizing collaboration with the government to develop human capital.

“We are addressing different areas of infrastructure, all of us, and the private sectors need to engage with the government actively,” she explained. Streamlined processes and risk mitigation, she argued, would also make the Philippines more attractive to foreign investors.

Maria Carmela Laarni G. Felicidario, chief operating officer of Global Dominion Financing, Inc., agreed, pointing out the importance of marketing the country as an investment destination for both domestic and foreign investors. “Most of the foreign investors are just waiting for us to lower the risk of investing in us. They are waiting to lower their risk and expand their business with us,” she said.

Ms. Felicidario sees targeted efforts to reduce investment risks as key to unlocking funding for sectors critical to economic development. At the same time, making it easier for businesses, big or small, to expand will be crucial, as micro, small, and medium enterprises (MSMEs) account for nearly all (99.6%) of the business in the country.

She noted that this is based on Global Dominion’s own strategy for growth, which seeks to empower Filipino businesses, improving their access to financing, and foster transformative and impactful development.

In a similar vein, Alberto M. de Larrazabal, senior managing director, chief finance, and finance group head at Ayala Corp., pointed out that for the private sector aligning their business with national interests is key for long-term growth.

“The most recent thing is about financial inclusivity,” he cited as an example. “That’s one major pain point we wanted to address. Think about the fact that 70% of the population is unbanked and underserved. And it was a structural problem. Traditional banks could not service this segment of the market their needs given the transaction values they represent compared to the cost it would take to service them.”

This is how GCash came to be as successful as it is, as it utilized technology to serve public interest and capitalize on the opportunities that were there. And opportunities like these were everywhere.

Mr. Larrazabal then noted that the Philippines’ demographic dividend is its most powerful competitive edge. “Our people, their age, their capabilities — that is what will continue to provide us the opportunities as a country to grow to become one of the largest consumer economies in the region,” he said.

Nurturing this asset, however, requires significant investment in education and healthcare. He lamented the fact that 60% of Filipinos will never see a doctor in their lives, according to statistics from the Philippine Institute for Development Studies.
Ultimately, the consensus is clear: the Philippines has the tools, resources, and opportunities to achieve sustained economic growth. Most of all, the country has its people; and taking care of its people will be paramount if the country ever hopes to truly unlock its latent potential.

By Angela Kiara S. Brillantes, Special Features and Content Writer

Developing the Philippines’ fundamental sectors, coupled with more predictable economic policies, are seen to push the country further towards steady and even faster growth, helping it to navigate through economic headwinds and uncertainties, adapt to shifts, and build a more robust, resilient, and sustainable economy.

Dr. Jesus Felipe, distinguished professor at the De Le Salle University (DLSU) Carlos L. Tiu School of Economics, stated that the country’s economic growth has set the Philippines for positive prospects, among them becoming one of the fastest-growing economies in the world.

“Economic growth is going to continue for a couple of years at around 6%-7% but it’s going to go down to around 3% in 2050. That is a sign that the economy is improving,” he said during the first fireside chat of the BusinessWorld Forecast 2025 forum last Nov. 26 at the Grand Hyatt Manila.

However, growth alone won’t cut it, and the big question now is how to sustain its growth momentum in the new few years. For the distinguished professor, the country needs to increase its potential, accelerate progress, and start changing the structure of the economy.

“[Growth in economies] is determined by factors such as activity or how much they grow. In the last few years, it has been 6%. We need to understand that it (the Philippines) has been one of the fastest-growing economies in the world today. The question is, can we grow faster? It is about increasing the potential; and with the economy we have today, it is extremely difficult, and the way to do it is by changing the structure of the economy that will allow us to grow significantly faster.”

Developing fundamental sectors

The first approach to sustaining growth momentum, according to Mr. Felipe, is focusing on agriculture, labor, and manufacturing — sectors that are fundamental for a nation to grow, at the same time yet hardly ever mentioned.

More often, agriculture is facing key challenges like labor migration. As the economy develops, workers in this field may be drawn to higher-paying jobs in other sectors. From this issue, Mr. Felipe then highlighted the importance of incentives, which can drive increased productivity in the sector.

“That’s a way to increase productivity in agriculture. What we need to do is create employment in all sectors. With that, there will be a way to increase productivity in agriculture,” the professor said.

Another point of focus in the fireside chat was the importance of the manufacturing sector in boosting the economy. Mr. Felipe stressed that the Philippines’ manufacturing sector needs to be further developed, alongside maximizing advantages such as a large labor force and its demographic location.

Manufacturing plays a crucial role in driving economic growth because of its ability to enhance productivity across sectors. And for that, many countries have leveraged this sector to create jobs, increase income, reduce poverty, and help them achieve their development plans.

Having a robust manufacturing sector would help the country to stay ahead and compete with the rest of the world. However, Mr. Felipe finds, the Philippine manufacturing sector needs to catch further up.

This echoes Dr. Felipe’s answers to the question, “What can significantly boost the Philippine economy?” in an article published on DLSU’s website. Manufacturing, he pointed out, is a key for economic development because it drives up high income per capita, fosters innovation, and provides opportunities that can help the country advance to industrialization.

“There are always opportunities out there in terms of niches. In the manufacturing sector, it is a big aggregate that, in reality, is thousands of products. And I’m familiar with manufacturing companies in the Philippines in most of the sectors, including chemicals. So, the challenge is how to multiply that experience in the next few years, in the next couple of decades, to be able to develop some niches where we may have opportunities,” the professor said.

Recognizing this, Mr. Felipe explained that other developed countries who have industrialized through manufacturing have risen above poverty. A prime example is South Korea during the 1960s, which was a pivotal time in their history. Their strategy focused on manufacturing as a key driver of economic growth, helping them transform to the economic powerhouse they are today.

“South Korea realized that the world is very large. It was producing manufacturing products, not just for the South Korean consumers but for the world,” he added.

Prioritizing industrialization

Dr. Felipe also emphasized that industrializing the country should be a top priority of the country’s policy agenda, since moving towards a more industrialized path has the potential to propel the country further forward.

“How do we become an industrial nation? How do we strengthen the niches that are going to help us?” he was quoted as saying in the aforementioned article. “To achieve higher wages and higher-capita income, it needs to create a wide base of domestic industrial companies that produce the myriad of basic products across the whole manufacturing spectrum that support national development. This is something that everybody needs to be aware of,”

Another approach in priming the country’s economic growth is through implementing timely policies that are vital for economic growth and prosperity, as he highlighted during the fireside discussion. If those policies are constantly changing, however, then it can create more uncertainties. Thus, Mr. Felipe stressed the importance of having a certain form of predictability among these policies.

“Predictability is a challenge. We’re talking about investments in sectors, whether it be agriculture, or manufacturing, or to attract investments. There has to be a certain form of predictability,” according to the professor.

Dr. Felipe also emphasized that this is particularly true for long-term investments that require significant capital in order to unlock the country’s economic potential and achieve sustainable growth.

By Angela Kiara S. Brillantes, Special Features and Content Writer

In the Philippines’ quest for sustained economic development, infrastructure and mobility are growth engines that come hand-in-hand in improving the quality of life for Filipinos and building a sustainable future for the country. In essence, infrastructure enables mobility and facilitates connectivity, while mobility drives infrastructure demand.

In the second panel discussion of BusinessWorld’s Forecast 2025 last Nov. 26 at the Grand Hyatt Manila, ACMobility Holdings, Inc. Chief Executive Officer Jaime Alfonso Zobel De Ayala, ENGIE Services Philippines Deputy General Manager Jean-Baptiste Dreanic, and PwC Philippines Chairman and Senior Partner Roderick M. Danao shared their outlook for the infrastructure and mobility sectors in the upcoming year, highlighting challenges and strategies that can be optimized towards long-term growth and development in the country.

Over the years, the Philippine economy have visibly seen shifts and transformations, intrinsically uplifting the economy and keeping ahead with the times. Yet, while the country poses so much potential, it still needs to speed up growth for it to achieve its goals.

For a developing country like the Philippines, a robust infrastructure network is what it needs, built up with the right kind of infrastructure that provide seamless connections across the country, thus attracting more investments and making an inclusive economy more achievable.

“If the Philippines wants to socially and economically improve, it has to industrialize; and we need infrastructure for that to happen. These are critical to the future of the economy and the future of Filipinos in the next few years,” Mr. Danao of PwC Philippines said.

Mr. Danao also emphasized that infrastructure is a key part of unlocking opportunities in the local economy, especially in terms of fostering physical connectivity, supporting power and energy demands, and enabling digital networks, services, and applications.

The latest technological advancements have further amplified the role of infrastructure in economic development. For Mr. Zobel de Ayala of ACMobility, catalyzing such transformation brings tons of benefits and solves so many problems at once.

“We started noticing that [mobility industry] was going through a massive transformation… Technology was evolving in a way that it was becoming accessible from a pricing perspective for customers. We saw these kinds of technologies contribute significantly to sustainability. Technology also provides significant health benefits when we utilize this, and we felt that this was an evolution that we wanted to contribute to,” he said.

The development of electric mobility has been a game-changer for mobility, the ACMobility CEO added, because it is more efficient, sustainable, and low-cost — all contributing to a better ecosystem for mobility.

“It’s a technology that’s more efficient than its traditional counterparts. It allows Filipinos to save more because your peso goes further in a more efficient vehicle,” Mr. Zobel de Ayala said. “I think that’s really an exciting part of this evolution. Innovations are supposed to get incrementally better at this game.”

“The charging infrastructure can bring the resource to you. We can create a charging product for you at home, we can bring a charging product to where you’re at work — and all that being done with a significant discount,” he added.

Closing infrastructure gaps

Yet, even with progress, persisting gaps remain a toll, stalling progress and holding back the country’s potential. One of these gaps is traffic congestion. Nonetheless, this still stands as an opportunity to develop better infrastructure, especially in urban areas in the country.

According to Mr. Danao, one way to move things forward is by shifting from car-centric urban planning to designs focused on railways and mass transit systems.

“If you want a sustainable solution to all our traffic problems, this is the way to go. Merge real estate planning together with the power of mass transport systems. It’s good for the business, good for tourism, and good for the country. We need to see the shift. When we start doing these mass transport systems, you’ll see a lot of real estate investments pouring into these mass transport systems that we’ll be building in the next five to 10 years,” he said.

Meanwhile, for the mobility sector, streamlining policies and regulatory processes is found to be important in fostering innovation and growth. Having an efficient regulatory environment allows businesses to operate, innovate, support sustainability, and even attract more investors. Mr. Zobel de Ayala emphasized the need for this kind of environment, particularly through consistent frameworks for and standardization of electric vehicle (EV) charging stations.

“There’s going to be charging stations with a lot of different formats, and making sure there’s consistency in how we’re managing safety regulations across is quite important,” he said.

“There are mandates set by the public sector, and there are targets and goals to do that,” Mr. Zobel de Ayala added. “We [partner with] the private sector to make sure that we’re bringing in the right partners and we’re delivering a service that’s also meeting those targets. So, there’s a lot of collaboration in that space and I think that’s because there’s a lot of interest in the benefits,” he said.

Mr. Dreanic of low-carbon energy provider ENGIE Services Philippines also noted that efficient regulatory frameworks are crucial in supporting the adoption of sustainable solutions, especially with the Philippines becoming a promising market for sustainable energy solutions.

“Today, there are some ease of doing business and tax incentives in place, which is very promising. We need to continue to do those initiatives,” he said.

Powering moves through sustainability

Another key point during the discussion was how crucial sustainability in mobility and infrastructure is as it brings environmental, social, and economic benefits to communities. For instance, EVs are a perfect example of sustainability in action because they emit zero emissions and are chargeable by renewable energy.

“They offer solutions that other types of technologies don’t have. With regards in the mobility landscape, a lot of environmental benefits… can come from an integrated strategy of [ensuring] that charging stations consume renewable energy,” Mr. Zobel de Ayala said. “We want to make mobility a much more efficient ecosystem in the Philippines. We want to do it in a way that it does not affect our environment, and we also want to make sure that the positive externalities are felt in the communities.”

ENGIE Services Philippines is focused not only on creating sustainable energy solutions but also expanding the renewable energy footprint in the country. In line with this, Mr. Dreanic mentioned the company’s renewable energy projects, including energizing two solar projects in December and up to 10 more projects planned for the next year.

Beyond solar power, nonetheless, the company has also been exploring and investing in other renewable energy technologies.

“We are exploring offshore wind in the Philippines,” Mr. Dreanic shared. “We would love to explore [hydro as well], but [there is] a market already with very good local experts that are willing to invest… But, it’s really something we like to invest in.”

ENGIE’s current projects in the Philippines include developing large-scale renewable energy projects with a total capacity of 300 megawatts-peak (MwP). The company also collaborates with local or international companies for its projects, such as Filinvest Development Corp. for its next solar venture.