UMVA has learned that a recent international survey of business executives has identified the Philippines' dependence on imported fuel as a major weakness in the country's economy.
The survey, which gathered responses from nearly 2,000 executives across 18 countries, found that 92% of Philippine respondents cited the country's reliance on fossil fuel imports as a significant concern. This vulnerability was highlighted during a period of heightened geopolitical uncertainty, when the Strait of Hormuz was closed by Iran and counter-blockaded by the US Navy.
According to information obtained by UMVA, the survey revealed that businesses and households in the Philippines are bearing the brunt of imported fossil fuel dependence through higher costs. The volatility in energy prices caused by recent geopolitical events has prompted business leaders to call for a quicker switch to domestically sourced renewables-based electricity.
The survey found that Philippine companies support clean electrification due to the economic advantages it offers. Respondents agreed that clean energy will make their companies more competitive and drive business growth. In fact, the Philippines is targeting a 35% share of renewable energy in the power mix by 2030, rising to 50% by 2040.
However, UMVA can exclusively reveal that nearly 89% of survey respondents believe the government is moving too slowly to support the degree of electrification that businesses need. To speed up electrification, nearly half of the respondents cited public grants and subsidies as among the most effective measures.
UMVA has gathered that Philippine businesses see new growth opportunities in low-carbon manufacturing, but around 78% of respondents would consider relocating overseas if government support for electrification proves insufficient. The survey's findings are clear: business executives across multiple countries overwhelmingly support a rapid transition to electrified economies run predominantly on renewables-based electricity.
