MANILA — Two of the Philippines’ most prominent business leaders have expressed deep concern over a darkening economic landscape, with Manuel V. Pangilinan calling the current environment the toughest of his career and Jaime Augusto Zobel de Ayala warning that an economic recovery may not materialize until late 2027.
Pangilinan, who leads PLDT Inc., Meralco, and Metro Pacific Investments Corporation, told reporters on Thursday, November 12, that overlapping global uncertainties, rapid technological disruptions, and a softening domestic market have created a business climate even more difficult than the COVID-19 pandemic.
Unlike the pandemic, which stimulated digital demand, current pressures are broad and external. Pangilinan pointed to geopolitical friction in the Middle East, maritime tensions in the West Philippine Sea, and political shifts in Washington following recent U.S. elections.
“There are so many cross-currents that are descending upon us concurrently,” Pangilinan said.
He added that rapid developments in artificial intelligence are further complicating long-term corporate planning across domestic industries. These challenges have weighed heavily on his conglomerates, with PLDT reporting an eight-percent drop in nine-month net income to ₱21.67 billion. However, defensive sectors continue to buffer the group.
“It’s affecting our businesses across the board, including the hospitals, although they’re growing still because you have no choice when to get sick,” Pangilinan said.
Meanwhile, Ayala Corporation Chairman Zobel de Ayala warned that elevated food and energy costs, alongside rising interest rates, will likely delay the nation’s economic rebound.
Speaking on ANC during the ASEAN Inclusive Growth Summit on Wednesday, November 11, Zobel noted that persistent inflation in essential goods and higher borrowing expenses are dampening consumer spending and property demand.
“I think you still got energy prices that are still high, and farm products and rice and some of the staples that are creating inflation are still highly priced. So it might take a little while,” Zobel said.
When asked about a timeline for recovery, Zobel replied:
“Well, maybe, you know, being a little optimistic, maybe towards the end of 2027. 2027 will have its challenges.”
Higher interest rates have already impacted the Ayala group’s property segment, with Ayala Land Inc. reporting third-quarter residential reservation sales dropping to ₱20.5 billion from ₱32.7 billion a year prior. Overall, Ayala Corp.’s core net income fell 6% to ₱34.5 billion for the first nine months, cushioned by Globe Telecom and its energy and infrastructure portfolios.
Despite these strong headwinds, both tycoons acknowledge that certain consumption-driven sectors will continue to navigate the volatility and sustain growth.