Moving from potential to prosperity

BusinessWorld Economic Forum 2025 tracks PHL’s path to maximizing potential

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

For decades, the Philippines has been called a country of potential, one compared to a tiger, emerging from its dormancy, poised to rise.

But, potential is not destiny. To believe that the economy’s rewards are guaranteed is dangerous and harmful to those whose very livelihoods depend on its realization. What potential is, in essence, is a promise; and promises demand effort if they are to be kept.

At this year’s BusinessWorld Economic Forum held at the Grand Hyatt Manila in Bonifacio Global City, Taguig on May 22, the nation’s leaders gathered together to confront that matter head-on: How do we move from potential to performance, from promise to permanence?

Under the theme “Unlocking Philippines’ Potential,” the forum engaged policy makers, economists, top executives and business leaders from various industries in a whole day of discussions about where the country’s economic growth is heading and what challenges must be addressed.

BusinessWorld President and CEO Miguel G. Belmonte — Photo by Philippine Star/Ryan Baldemor

“For many years now, the Philippines has been bucking global trends,” Miguel G. Belmonte, president and CEO of BusinessWorld, said in his opening speech. “It has been showing consistent economic growth e ven during times of hardship and global crisis. We have a young, talented, and growing population that can sustain that growth for years to come. We have a government that is forward-thinking and is committed to values of sustainability and a vision to bring the country into a new era of progress.”

“Today, we as a country find ourselves at a moment of great promise and great struggle. The choices we make now — how we unlock that inherent potential — will define the nation we become.”

A time of profound transformation

Few countries in the region can match the Philippines’ youthful demographics, expanding digital economy and macroeconomic resilience. Yet, myriad obstacles stand between the country and its vision for the future. Global issues, such as fragmenting trade and commerce due to United States’ (US) tariffs, labor conventions being overturned by automation and artificial intelligence (AI), the growing demand for sustainable energy, and the increasing urgency of climate change, make a smooth development anything but certain.

Opening the forum with his keynote speech, Arsenio M. Balisacan, secretary of the Department of Economy, Planning, and Development (DEPDev), said that the narrative of the Philippine economy is a hopeful one — an economy that is resilient and fundamentally sound yet facing deep structural headwinds that demand urgency.

Department of Economy, Planning, and Development Secretary Arsenio M. Balisacan — Photo by Philippine Star/Ryan Baldemor

“We live in a time of profound transformation where influential megatrends disrupt the global landscape, posing risks but presenting opportunities to economies such as the Philippines,” he said, adding that these interconnected and complex forces are pushing nations to adapt.

“The Philippine economy today stands at the crossroads,” Mr. Balisacan said. “Standing here begs the questions: Where do we go? What policy choices do we make? How well do these deliberate choices position our nation at the global stage? Finally, what kind of economy, society, and future are we committed to building in response to the complex process shaping our world?”

The country has the capability to succeed, but it must act decisively to overcome its deep-seated vulnerabilities, especially in matters of investment, infrastructure, and human capital. Dr. Andrew Tsang, country economist for the Philippines at the ASEAN+3 Macroeconomic Research Office (AMRO), offered an external perspective on this current inflection point.

ASEAN +3 Macroeconomic Research Office Country Economist for the Philippines Dr. Andrew Tsang — Photo by Philippine Star/Ryan Baldemor

“Where does the Philippines currently stand? According to the latest World Bank classification, the Philippines remains a lower-middle-income country, while the gross national income (GNI) per capita must increase by another 6.8% to cap from its 2023 level to achieve the upper-middle-income status,” he said in his keynote speech.

“Encouragingly, the country is on track to achieve this milestone by 2026 with expected real GDP (gross domestic product) growth about 5.5% annually from 2024 to 2026. Actually, 2024 has [garnered] 5.7% of real GDP growth, and we expect a slightly faster growth this year and the next.”

“Our growth is the envy of the world,” Special Assistant to the President for Investment and Economic Affairs Frederick D. Go emphatically agreed in his keynote address.

He noted that there is much cause for optimism despite all the challenges facing the global economy.

Special Assistant to the President for Investment and Economic Affairs Frederick D. Go — Photo by Philippine Star/Ryan Baldemor

“Despite global headwinds, investor confidence is rising in our country,” he said. “Growth is strong and resilient; and more importantly, the message is going out all over the world, especially at home, that we are open and ready for business and are welcoming investments.”

The BusinessWorld Economic Forum 2025 explored each of these in-depth, both the challenges and the opportunities. From the issues affecting Philippine industries and society on a local and global scale, to executive perspectives on issues like artificial intelligence and the energy transition.

The first panel discussion, titled “Building An Inclusive and Resilient Future for the Philippines,” dove into strengthening the country’s economic foundation so it can better respond to challenges such as financial disruptions, health emergencies and natural disasters.

On the “Elevating Energy Transition in the Philippines” panel, the forum discussed the country’s growing electricity demand and the shift to renewable energy.

The third panel discussion, “Tariffs, Trade and Trump: How A Second Term Could Hit the Philippines,” examined how the Trump administration could influence — and was influencing — trade and investment flows between the US and the Philippines.

A fireside chat explored the perks and perils of artificial intelligence in “Navigating AI Adoption in the Philippines.”

Finally, the panel titled “Vision 2030: Accelerating The Nation’s Competitiveness Toward Economic Success” mapped out how different sectors can collaborate to boost the Philippines’ position on the global stage by the next decade.

Sustaining momentum amid a turbulent world

“Geopolitical tensions are redrawing supply chains amid shift in power dynamics between major trading partners and economic giants. This has significantly raised uncertainty in the global economic landscape,” Mr. Balisacan said on the challenges facing the global economy.

This year’s BusinessWorld Economic Forum garnered nearly 300 attendees, including three keynote speakers and 16 panelists. — Photo by Philippine Star/Ryan Baldemor

For the Philippines, he mentioned that there are two very clear hurdles that the country must overcome to secure its future: the economic risk and the climate risk.

“Our economy’s long-term competitiveness will hinge on how quickly we transform toward climate-resilient growth,” he said.

Mr. Balisacan of DEPDev noted that the country’s growth so far has been the result of the accumulation of various factors working in its favor, particularly those of human capital and labor. To sustain it and reach projected growth rates ranging from 7%-7.5% over the medium term, however, demands investment.

“Let me emphasize that this estimate is contingent on a range of structural factors, including the country’s investment climate, quality of human capital, technological diffusion, and institutional effectiveness,” he said. “Sustaining growth and building resilience require deliberate actions to reinforce the economy’s growth pillars moving forward.”

These pillars are necessary to transition the country to high-income status by 2050, one of the major goals of the Philippine government. AMRO’s Mr. Tsang noted that to achieve it, much needs to be done to upgrade the nation’s competitiveness and productivity.

“Whenever the Philippines can achieve this high-income country target will depend on how well the country adjusts the long-term structural challenge and implement a comprehensive strategy for upgrading the productivity and enhancing the country’s competitiveness,” he said.

Mr. Tsang pointed out that the past coronavirus disease 2019 (COVID-19) pandemic highlighted many of the crucial structural issues that hold back the Philippine economy, and not much has improved since then.

“The country relies on outdated infrastructure and insufficient logistic networks. The labor skill mismatches the new technology release, which caused the lower productivity growth of the economy,” he said.

From an outsider’s perspective, Mr. Tsang noted that certain sectors of the economy, like the business process outsourcing-information and communications technology (BPO-ICT), tourism, and semiconductor industries, are open windows of opportunity. But, to fully tap into their potential, there is much to be done.

For instance, as a leading country in providing business outsourcing services, the Philippines benefits from the English-speaking operation in setting up the front of global call centers. However, to maintain its leading role in business outsourcing, the Philippines’ digital industry must look towards upgrading their services, such as expanding the scope of business outsourcing to business analytics, as well as asserting to adopt digitalization and leveraging AI.

Tourism can be a key driver of growth as well. Mr. Tsang noted it is possible to attract more international tourists, but only if investment in infrastructure and international promotion are sufficient to support it.

Finally, he said that the semiconductor industry is one of the country’s best assets as it is its best export sector. However, to further integrate into global supply chains, the industry needs massive investments to maintain a product base to meet rapidly growing global demand.

“All these opportunities should be supported by strengthening investment, upskilling the workforce, and ensuring stable and forward-looking regulation,” he said.

“The Philippines stands at a critical moment now. It is possible to turn today’s challenge into future of opportunities, However, to respond effectively to the changing global economy, decisive action is required.”

CignalTV Anchor Dr. Danie Laurel hosted this year’s BusinessWorld Economic Forum. — Photo by Philippine Star/Ryan Baldemor

A golden opportunity

For the government’s part, they have not been idle. Mr. Go outlined several of the key measures that the Marcos administration has implemented to support the Philippines’ growth.

The CREATE MORE (Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy) Act, designed to enhance the ease, reduce the cost, and improve the predictability of doing business in the Philippines, is the centerpiece. The law provides fiscal incentives for investors through income tax holidays, enhanced deductions, and special corporate income tax schemes.

Critically, it also restores the power of investment promotion agencies (IPAs) to approve smaller projects, decentralizing decision-making and speeding up approvals. Mr. Go emphasized that this legislation is a direct result of listening to industry stakeholders and addressing all the pain points of doing business in the country.

“CREATE MORE is a result of our President’s many meetings with the industry stakeholders, asking them what their challenges are, what their concerns are,” he said. “CREATE MORE is a game-changer, a clear signal to the world that the Philippines means business.”

Complementing CREATE MORE, the government also launched initiatives like Green Lanes for Strategic Investments, which fast-track permits for high-priority projects. As of April 2025, over 200 projects worth P5 trillion have been certified, with a large portion focused on renewable energy — a key sector for future development.

Under the newly enacted Public-Private Partnership (PPP) Code, the government has modernized outdated infrastructure laws to actively encourage private sector participation. This has already borne fruit, with the successful privatization of three major airports, including the long-stalled Manila International Airport, and new airports in the Visayas and Mindanao. As of last April, 226 PPP projects worth P3 trillion are under implementation, with 187 more in the pipeline, signaling robust momentum.

Photo by Philippine Star/Ryan Baldemor

This is further bolstered by the Build Better More Program, comprising 212 flagship infrastructure projects valued at P9.8 trillion. These projects span sectors critical to inclusive growth — connectivity, energy, agriculture, water, health, and education — and are intended to catalyze broad-based economic development across the archipelago.

“The Philippines today has never been more open to investments and more welcoming to the private sector than it is today under the administration of President Bongbong Marcos,” Mr. Go said.

“We now have the most liberal, dynamic and forward-looking investment policy environment in our nation’s history. Opportunities abound. Let us not let this golden opportunity pass us by.”

The BusinessWorld Economic Forum 2025 was presented by BusinessWorld Publishing Corp., together with Ayala Corp., ACEN Corp., Metro Pacific Investments Corp., and PLDT, Inc.; and was sponsored by BDO Capital and Investment Corp.; DigiPlus Interactive Corp.; Federal Land NRE Global, Inc.; First Gen Corp.; GCash; GT Capital Holdings, Inc.; Megawide Construction Corp.; Megaworld Corp.; SM Investments Corp.; SM Supermalls; United Coconut Planters Life Assurance Corp. (Cocolife); Development Bank of the Philippines; Filinvest Alabang, Inc.; Filinvest Development Corp.; FWD Life Insurance Corp.; Globe Telecom, Inc.; McDonald’s Philippines; Manila Electric Co.; Meralco PowerGen Corp.; National Grid Corporation of the Philippines; San Miguel Corp.; SGV & Co.; Shell Pilipinas Corp.; and Toyota Motor Philippines Corp.

Partner organizations include the Asian Consulting Group, American Chamber of Commerce of the Philippines, Bank Marketing Association of the Philippines, British Chamber of Commerce of the Philippines, French Chamber of Commerce and Industry Philippines, European Chamber of Commerce of the Philippines, Financial Executives Institute of the Philippines, JLCG Creative and Marketing Solutions, Management Association of the Philippines, Team Executive Decisions Events, Philippine Chamber of Commerce and Industry, Philippine Franchise Association, Philippine Retailers Association, and media partners One News and The Philippine STAR.