A shadow of doubt hangs over the Philippine economy, cast by a significant corruption scandal. Despite this challenge, leading business figures insist recovery is within reach, but only if the government can swiftly restore trust and chart a clear course forward.
Amando Tetangco, Jr., former central bank governor and Chairman of SM Investments Corp., emphasized the importance of strong institutions during times of uncertainty. He stated that markets aren’t swayed by fleeting “noise,” but by the enduring strength of a nation’s core economic principles.
The current scandal, he acknowledged, has undeniably dampened spirits and slowed economic activity. However, Tetangco urged a response rooted in fairness and complete transparency, stressing that clarity in policy and consistent execution are vital for both investors and consumers.
He powerfully asserted that credibility is the bedrock of trust, and trust, in turn, fuels confidence. Despite the present difficulties, the Philippines’ inherent resilience and robust macroeconomic fundamentals continue to offer a stable foundation.
Looking ahead, Tetangco pinpointed key areas for improvement to attract further investment: lowering energy costs, diversifying energy sources, streamlining the permitting process, and modernizing ports and logistics infrastructure. He remains cautiously optimistic about the 2026 outlook.
Eduardo Francisco, President of BDO Capital & Investment Corp., echoed this sentiment, stating that continued private sector investment is crucial. He believes that sustained economic activity will demonstrate to the government the urgent need for infrastructure development.
Francisco noted a subtle but encouraging trend: consumer spending is picking up, hinting at a more positive holiday season. He expressed growing confidence that private sector momentum can overcome lingering uncertainties and reinforce growth.
The Asian Development Bank’s Country Director, Andrew Jeffries, anticipates faster economic expansion in 2026, driven by a resurgence in public infrastructure spending. He emphasized that internal improvements and proactive change, rather than external factors, will be the primary drivers of growth.
Jeffries highlighted the remarkable resilience of Filipino households and the economy’s fundamentally sound position. The ADB remains committed to providing both financial and technical support, with a strong emphasis on oversight and transparent procurement practices.
Divina Law’s Managing Partner, Nilo T. Divina, added a crucial element: unity and shared values. He believes that a collective commitment to ethical principles is essential for navigating these challenges and achieving lasting recovery.
Metrobank Chief Economist Nicholas Antonio T. Mapa urged a return to fundamental economic principles and policy discipline. He predicted a return to 6% growth, contingent upon maintaining price stability and a sound monetary policy.
The first nine months of the year saw 5% growth, but officials have signaled a likely shortfall in meeting the annual target due to adverse weather and the impact of the ongoing investigation. The scandal’s reach extends beyond immediate financial losses.
Miguel Belmonte, CEO of BusinessWorld Publishing Corp., described the situation as a “sinister form of disruption,” compounded by political instability. This has weakened the peso, depressed the stock market, and eroded overall business confidence.
Belmonte powerfully stated that the embezzlement of public funds is unacceptable and that transparency is not merely a virtue, but an economic necessity. Investors demand clarity and trustworthy leadership to restore their faith.
He acknowledged the unpredictable global landscape, but emphasized that the domestic corruption crisis poses the most significant threat. Rebuilding confidence requires either technological innovation or fundamental institutional reform.
The government, however, is responding. Finance Assistant Secretary Neil Adrian S. Cabiles outlined measures to mitigate risks, including accelerated spending plans, governance reforms, labor market adjustments, and enhanced disaster preparedness.
Despite current challenges, Cabiles affirmed the Philippines’ strong economic fundamentals and promising trajectory. The nation’s potential remains significant, provided these pressing issues are addressed with urgency and resolve.
