Confidence level among top business executives in the Philippines dropped along with declines in government performance areas – corruption, interest rates, relationships with other nations, and infrastructure, based on the latest Philippine CEO Survey 2025.
Led by Isla Lipana & Co./PwC Philippines in collaboration with the Management Association of the Philippines (MAP), the survey tried to assess the confidence level about the CEOs industry prospects for the next 12 months. The survey was conducted from July 22 to August 25 this year covering 175 CEOs from financial services, technology, education, manufacturing, transport and logistics, consumer and retail, among others.
Results showed that 31 percent of CEOs said they are “very confident”, lower compared to 36 percent in 2024, while 52 percent answered “somewhat confident” for a total confidence vote of 83 percent, lower than the 85 percent rate in 2024.
Of five areas that CEOs think the government is performing well at the moment, “fighting corruption” is the lone area where the government scored the least and lowest at 9 percent from 10 percent last year. The closer the percentage to zero indicates poor performance.
Notably, the latest Corruption Perceptions Index (CPI) showed that the Philippines ranked 114th out of 180 countries in 2024, with a score of 33, a slight regress from a score of 34 in 2023, based on the Transparency International. The lower the score the more corrupt a country is perceived.
The Philippine CEO Survey 2025 further showed that at least 53 percent of CEOs believe the government is doing well in terms of managing interest rate, but still lower than the 54 percent last year. There were also fewer CEOs or 65 percent that said the government is forging stronger relationships with other nations from 74 percent, and only 69 percent said the government is pushing for infrastructure from 83 percent in the previous survey.
The only area the government performed well according to the surveyed CEOs is on “managing inflation” with 70 percent as against 58 percent last year.
During the press conference, PwC Philippines Managing Partner Aldie P. Garcia also said that CEOs are aware of the ongoing investigations and controversies hounding the multi-billion flood control projects stating it is of “national concern.”
PwC Philippines Managing Partner Mary Jade T. Roxas-Divinagracia cited the public clamor for credible investigation and with that the business community will be closely watching as he stressed this is “not something to be swept under the rug.”
Despite the decline in confidence level, Roxas-Divinagracia said the 83 percent confidence level is “significant still”.
The CEO optimism for the next 12 months rests on solid macroeconomic fundamentals: the country’s monetary policy and banking system remain robust, and inflation remains within the government’s target. Consumer spending has been sustained, boosted by inward remittances as well as infrastructure expenditures and other capital outlays. The Bangko Sentral ng Pilipinas also reported sustained growth in bank lending and domestic liquidity in July 2025.
“CEOs in the Philippines see both the risks and opportunities that lie ahead, such as the rising digital economy, sustained consumer spending, robust banking system, and lower inflation and interest rates, among others,” said Roderick Danao, Chairman and Senior Partner, PwC Philippines. “They remain optimistic while at the same time anticipating the headwinds arising from fracturing geopolitics and global trade disruptions, which can trigger inflation.”
Unseen pressures, visible shifts
More than half, 52 percent, of Philippines-based CEOs say their companies will not be economically viable beyond ten years if they continue running on their current paths. When asked about the key threats facing their organizations, 94 percent identified the risk of inflation, while 93 percent pointed to macroeconomic volatility. These concerns are not unfounded: geopolitical conflicts such as the Ukraine–Russia war and the Israel–Hamas dispute, as well as shifting global trade policies and climate change pose supply chain disruptions and inflationary pressures, which would affect the Philippine economy as a net importer of goods.
Another major concern is the rise in cyber risks, cited by 84 percent of CEOs this year. As the country’s digital economy grows, so does its exposure to cyber risks. And despite enhanced laws against cyber-enabled economic crimes, malicious activities like phishing remain prevalent. This puts significant pressure on CEOs to invest in advanced cybersecurity solutions and controls.
AI adoption and the intelligence-intuition shift
The massive impact of AI and other technologies on delivering sustained outcomes such as increasing productivity and efficiency, boosting revenues, and enhancing customer relationship and experience has compelled CEOs to adapt. Digital transformation has thus evolved to be among the most critical boardroom agenda. Sixty-eight percent have integrated AI initiatives into strategy and plans, and 60 percent have started implementation. Expectations for Generative AI are clear: 89 percent say it will improve products or services, and most acknowledge the need to upskill their workforce to enhance their organizations’ long-term viability. To translate this optimism into tangible, measurable results, CEOs must take the lead in integrating AI deeply into their organizations’ culture, operating policies and internal processes.
