Bilyonaryo Manuel V. Pangilinan says the current business environment is the toughest he has faced in his 45-year career, even more challenging than the COVID-19 pandemic.
By Bilyonaryo staff
Bilyonaryo Manuel V. Pangilinan says the current business environment is the toughest he has faced in his 45-year career, even more challenging than the COVID-19 pandemic.
Pangilinan, chairman and CEO of PLDT Inc. and managing director and CEO of Hong Kong-listed First Pacific Co., cited geopolitical tensions, rapid technological change and growing economic and political uncertainty as the biggest challenges facing businesses today.
“There are so many cross currents that are descending upon us,” Pangilinan said.
“If you set aside the Middle East, the politics of the place, you have tension in the South China Sea, technology is accelerating and there are issues with AI which is affecting many businesses.”
Pangilinan, who co-founded First Pacific in 1981 with Indonesian businessmen Sudono Salim and his son Anthoni Salim, has steered businesses through financial crises and the pandemic. But he said today’s challenges were particularly difficult because many were beyond the control of companies.
Unlike the current environment, the pandemic created opportunities for telecommunications operators as lockdowns drove demand for home broadband and mobile data.
“The pandemic bred certain businesses,” Pangilinan said.
“Now we are faced with significant challenges, and part of these challenges are brought to our shores,” he said, referring to conflicts in the Middle East and other developments overseas that could affect the Philippine economy.
Pangilinan’s concerns extend beyond global developments. At home, he pointed to slowing economic growth, elevated inflation and high interest rates, alongside political uncertainty that could further undermine business and consumer confidence.
He also raised concerns about the potential economic impact of impeachment proceedings, adding to the uncertainty facing companies already dealing with weaker economic conditions.
“I think it will be a tougher economic environment next year,” Pangilinan said.
The warning comes as Philippine economic growth has slowed to its weakest pace since the pandemic, raising concerns about consumer spending and the outlook for businesses heading into 2027.
For Pangilinan, whose First Pacific group has interests in telecommunications, food manufacturing and infrastructure through companies including PLDT, Indofood and Metro Pacific Investments, the pressures are being felt across an increasingly uncertain business landscape.
The telecommunications industry faces its own difficulties, with operators spending heavily on network infrastructure while competing for customers in a relatively small market.
Pangilinan warned that the industry’s current structure could become difficult to sustain, raising the possibility of consolidation or market exits.
“We have to consolidate, or one of us, two of us have to give up some point,” he said.—Bilyonaryo.com
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