By Mhicole A. Moral, Special Features and Content Writer

Business leaders around the world are heading into 2025 with confidence about economic growth but face mounting pressure to reinvent their companies for long-term survival.

According to PwC’s 28th Annual Global CEO Survey, nearly three in five chief executive officers (CEOs) anticipate global economic growth will rise over the next year — almost double last year’s figure. However, 42% of CEOs believe their companies will not remain viable beyond the next decade without significant transformation.

Macroeconomic volatility and inflation at 27% top the list of global concerns, while regional differences highlight specific threats. For instance, geopolitical conflict is the primary risk in the Middle East at 41%; whereas in Western Europe, cybersecurity at 27% edges out inflation and labor shortages.

Regulatory challenges also shape business strategy, with 42% of global CEOs citing policy shifts as the greatest threat to long-term viability. More than a third have ventured into new sectors in the past five years to diversify revenue streams, but progress is slow.

Two-thirds of companies reallocate less than 20% of their financial and human resources year-over-year, raising questions about business agility.

Meanwhile, the same report said that Philippine-based chief executives are more confident in the country’s economic growth compared to their global counterparts.

The report, which surveyed 32 Filipino CEOs out of 1,520 respondents from the Asia-Pacific region, revealed that 78% of local executives expect domestic economic growth to improve in the next 12 months. Meanwhile, 9% foresee no significant change, while 13% anticipate a decline.

In terms of confidence regarding revenue growth, 38% of respondents are highly confident in achieving growth, while another 38% are moderately confident. Meanwhile, 19% expressed only slight confidence. Looking ahead, 44% of CEOs are strongly confident in revenue expansion over the next three years.

One of the most notable findings from the report highlights early productivity gains from generative AI. Philippine CEOs are leveraging artificial intelligence to enhance efficiency and streamline operations. At the same time, investments in sustainability are yielding rising payoffs, suggesting that businesses are beginning to reap the benefits of eco-conscious strategies.

Similarly, McKinsey & Company reported that artificial intelligence continues to dominate global discussions, with generative AI offering a $4.4 trillion economic opportunity. Yet, only 11% of AI pilot projects have successfully scaled.

However, 69% of Philippine-based CEOs believe their companies will only remain economically viable for the next decade or less if they continue on their current trajectory. This figure stands in contrast to the global average, where 55% of CEOs foresee longevity beyond ten years.

Balancing growth and challenges

According to Frederic C. DyBuncio, president and chief executive officer of SM Investments Corp. (SM Investments), the country’s economic fundamentals remain strong.

“The Philippines continues to demonstrate strong economic growth fundamentals in 2025, primarily driven by robust domestic consumption, the recovery of key sectors like tourism, and sustained remittance inflows,” Mr. DyBuncio told BusinessWorld in an e-mail.

While the economic outlook remains positive, he cautioned against looming challenges that could impact growth. Particularly, Mr. DyBuncio believes that inflation remains a primary concern, as rising costs of goods and services affect purchasing power.

Despite the challenges, the SM Investments executive sees opportunities, emphasizing that the Philippines’ demographic dividend, particularly its youthful population and growing middle class, continues to drive market demand across various sectors.

In addition, Mr. DyBuncio noted that retail, logistics, renewable energy, and digital services are expected to lead economic expansion in 2025. He said the continued expansion of the middle class, a rise in digital adoption, and enhanced infrastructure connectivity will help propel these sectors forward.

Tourism also presents a promising avenue for growth, with the hospitality sector showing strong recovery potential. As infrastructure projects improve connectivity across the archipelago, the logistics sector is expected to benefit, creating opportunities for supply chain optimization.

“Businesses can maximize these opportunities by investing in scalable technologies, enhancing customer experiences, and aligning with evolving consumer preferences,” he explained. “Companies that embrace operational efficiency, innovation, market expansion, and customer-centric strategies will be better positioned to thrive.”

Meanwhile, ride-hailing giant Grab commended the economic direction of the Philippines as Southeast Asia’s fastest-growing economy.

“This achievement underscores the resilience and potential of the nation under the Marcos administration’s leadership. The passage of transformative policies, such as the CREATE MORE Act, signals a forward-thinking approach to economic reform, further strengthening investor confidence. We remain committed to deepening our presence and investments in this dynamic and thriving market,” Grab was quoted as saying in a statement.

The CREATE MORE Act has been pivotal in enhancing investor confidence by offering tax incentives and streamlining regulatory processes for businesses to create an environment conducive to long-term economic sustainability.

Business tycoon and industry leader Manny V. Pangilinan also expressed renewed optimism for the country’s progress while emphasizing the need for strategic action.

“Another new year — with new hopes, fresh starts, and renewed optimism,” he was quoted as saying in his New Year’s message released two months ago.

This year, Mr. Pangilinan’s outlook centered on improving the lives of Filipinos through job creation and attracting more investments.

“I wish for a better Philippines — where people’s lives should be improved with more investments; where businesses can work together amongst themselves and with government in lifting the welfare of our people,” he added.

With the country facing evolving economic and geopolitical challenges, he believes a clear articulation of national economic goals is crucial. Businesses and policymakers, Mr. Pangilinan said, must work hand-in-hand to implement strategic initiatives that will drive growth and innovation.

He also highlighted the importance of cooperation between the private sector and the government in achieving long-term economic stability to define and align economic priorities for the next four years towards sustainable development.

Economic growth through digital transformation

For fintech giant GCash, this year presents an opportunity to showcase the current financial inclusion initiatives of the country through digital financial services. GCash President and CEO Martha Sazon emphasized that emerging technologies such as artificial intelligence (AI) are being leveraged to ensure accessibility and efficiency in financial transactions, benefiting Filipinos across all socio-economic backgrounds.

“We highlighted that GCash has been leveraging innovations and emerging technologies like AI to further enhance the accessibility, efficiency, and customer-centricity of our services, ensuring that no Filipino is left behind in our pursuit of financial inclusion,” Ms. Sazon said in a statement.

The increasing adoption of AI-driven financial solutions aligns with the Philippine government’s broader push toward digital transformation. GCash reaffirmed its commitment to working closely with policymakers to foster a more inclusive digital economy.

Year of opportunities for sustainability initiatives

According to AboitizPower Chief Finance Officer Sandro A. Aboitiz, the government’s target of at least 6% gross domestic product (GDP) growth this year could translate to a higher demand for electricity, necessitating new generation capacities.

“A 6% growth in GDP will require additional baseload, mid-merit, and peaking generation capacities,” he said in an interview with BusinessWorld.

With La Niña expected to impact energy consumption patterns, the country is set to energize around 6,841 megawatts (MW) of additional capacity in 2025. This includes 3,930 MW from solar, 1,320 MW from natural gas, 773 MW from wind, 500 MW from coal, 107 MW from hydro, and 104 MW from geothermal sources.

Despite these developments, Mr. Aboitiz emphasized the need for vigilance in the face of global economic uncertainties and rapid technological shifts, which could impact public policy and business costs.

The executive said that AboitizPower has embedded environmental, social, and governance (ESG) principles in its business strategy to create shared value for investors, customers, and host communities.

“In its 2024 Corporate Sustainability Assessment, S&P Global ranked AboitizPower in the 73rd percentile among its global peer group, while Sustainalytics placed the company in a Medium Risk rating category,” Mr. Aboitiz noted. The company has also received the Golden Arrow Award, a notable recognition in corporate governance, for three consecutive years.

He also mentioned the importance of innovative thinking, scenario planning, change management, and risk assessment to navigate industry disruptions. “The digital age is powered by electricity, and the role of the power sector is to provide electricity when and where it’s needed at a reasonable cost,” Mr. Aboitiz explained.

AboitizPower’s approach to balancing energy affordability, reliability, and decarbonization involves an “all-options-on-the-table” strategy. This includes utilizing dispatchable fossil fuel sources as today’s affordable baseload fuel alongside the development of alternatives like nuclear, offshore wind, and battery storage to reach scalable viability.

Call for initiatives and partnerships

Mr. DyBuncio said that companies like SM Investments are committed to navigating economic headwinds through innovation, investments, and consumer-centric strategies.

“The private sector, including the SM group, plays a critical role in harnessing these growth opportunities,” he stated. SM Investments, a conglomerate with interests in retail, banking, and property development, continues to expand its portfolio to align with evolving market demands.

Mr. DyBuncio highlighted the importance of maximizing opportunities by investing in scalable technologies, enhancing customer experiences, and aligning with evolving consumer behaviors.

“At SM, we continue to leverage these strategies alongside strong partnerships to ensure our businesses remain accessible, dynamic, and responsive to market needs,” he said. We remain committed to building businesses that not only deliver strong financial performance but also create meaningful impact for communities and stakeholders. By fostering resilience and embracing change, entrepreneurs and executives can help shape a more robust and dynamic Philippine economy.”

For AboitizPower, ensuring economic stability and fostering growth require stronger collaboration between the public and private sectors. Mr. Aboitiz said that the need for a long-term energy plan transcends political administrations, allowing businesses to invest with confidence.

“In the electric power industry, a segment that is heavily regulated and wherein upfront capital costs are high, there should be a long-term energy plan that can be passed on from one administration to the next and ensure continuity. This will allow developers to invest with confidence,” he added.

Ayala Corp. Chairman Jaime Augusto Zobel de Ayala is calling on investors to take advantage of the Philippines’ sustained economic momentum as the country enjoys resilience amid global uncertainties.

“We in the Philippine business community remain hopeful at the country’s prospects for growth, which have not dimmed despite a volatile global environment,” Mr. Zobel de Ayala was quoted as saying during a board meeting of the US-Philippines Society, where he serves as co-chair. “The country is certainly ready to accept high levels of partnerships and investments from our friends around the region, most especially the United States.”

Mr. Zobel de Ayala also stressed that the economy could reach even greater heights with stronger alignment between the public and private sectors.

“A consistent six-percent growth is certainly a respectable achievement, but imagine what more can be achieved if we hit a continuous growth rate of eight percent or more over a sustained period, which economists feel is possible if we align the government and private sectors,” he added.