AT least 83 percent of Chief Executive Officers (CEOs) surveyed in the Philippines said they are confident in their industry prospects for the next 12 months, according to the Philippine CEO Survey 2023 conducted by PwC Philippines in collaboration with the Management Association of the Philippines (MAP).
Based on the survey, 83 percent of the 157 CEOs who answered the online survey expressed optimism about their industry prospects for 2023.
However, businesses face threats from inflation, macroeconomic instability, cyber risks, and supply chain constraints.
The survey had 39 percent of the CEOs saying they believe their company will be highly exposed to the threat of inflation in the next 12 months; 35 percent said they will be highly exposed to supply chain constraints;
and 31 percent said they will be highly exposed to macroeconomic volatility.
Moving forward, businesses have their respective strategies to mitigate potential economic challenges and volatility in 2023.
For one, 42 percent of the CEOs said their companies are considering raising prices of products and services in the next 12 months; 39 percent intend to diversify their product/service offering; while 28 percent plan to reduce operating costs.
Currently, 54 percent of the CEOs are already reducing operating costs to cushion the impact of potential economic challenges and 49 percent are already diversifying their products/service offering.
Despite these potential economic threats, 79 percent of the CEOs expressed confidence that their company will experience revenue growth in the next 12 months, while 87 percent said they are confident their company will experience revenue growth in the next three years.
Key growth drivers
Meanwhile, the CEOs said that infrastructure development, domestic consumption, and the (business process outsourcing) BPO and services sector will be the “key growth drivers” of the Philippine economy in the next 12 months.
The survey showed that 59 percent of the CEOs said infrastructure development will be a key growth driver; 59 percent said domestic consumption would spur the country’s economic growth; while 38 percent said the BPO and services sector would drive the Philippine economy.
The executives were asked to evaluate the Philippine government, and 64 percent of the CEOs said the government is forging stronger relationships with other nations; 62 percent said the government is performing well in the area of infrastructure development and 46 percent said it is
performing well in promoting foreign investment.
In contrast, only 3 percent of the CEOs said the government performs well in fighting corruption; only 19 percent said the government is doing well in managing interest rates; only 31 percent said the government is doing well in terms of managing inflation; and only 34 percent agreed that the government is doing well in promoting trade.
In a statement on Monday, MAP and PwC said that although the CEOs believe that the government’s performance in infrastructure development, forging stronger relationships with other nations, and promoting foreign investments have been satisfactory so far, there is still “room for improvement.”
The CEOs suggest that the government prioritize improving the ease of doing business in the Philippines and enhancing technology and infrastructure across the country to further boost collaborations with other countries.
“The government’s support is crucial in ensuring that businesses continue to thrive amid the challenges. We need to work together towards a more favorable business environment that fosters innovation and growth,” said Roderick M. Danao, Chairman and Senior Partner of Isla Lipana & Co./PwC Philippines.
Image credits: Nonie Reyes
