CEOs see Philippine economic recovery in 3 years

MANILA, Philippines — Over 80 percent of chief executive officers in the country expect the economy to recover from the coronavirus disease 2019 or COVID-19 pandemic within one to three years, according to a survey of PwC Philippines and the Management Association of the Philippines (MAP).

The PwC MAP 2020 CEO Survey released yesterday showed 83 percent of the 161 CEO respondents see economic recovery taking place within one to two years from the contraction as the lockdown imposed to contain the spread of the virus has resulted in a slowdown in consumption and investment, as well as business closures and loss of income.

The respondents come from micro (six percent), small (10 percent), medium (34 percent) and large (50 percent) enterprises engaged in sectors including professional and business services; financial services; technology; manufacturing; transport and logistics; retail and wholesale; and healthcare, pharma and life sciences.

Of the total respondents, 57 percent said they think the Philippine economy would contract by more than two percent this year, while 65 percent said real gross domestic product growth could be between one and four percent next year.

In line with the expected economic recovery, 90 percent said they are upbeat on higher revenues in the next three years, while 59 percent said they are confident about their revenue growth prospects in the next 12 months.

To enable the economy to bounce back from the pandemic, the CEOs identified the healthcare system, infrastructure, and agriculture and food security as top areas the government should focus on.

Disruptions and closures due to the pandemic have caused great concern among CEOs, and 87 percent said they expect losses due to the crisis.

Industries most likely to be affected by the pandemic are tourism or airlines, manufacturing and retail.

Given the expected impact on operations, most CEOs plan to implement cost containment measures (80 percent) and sustainable practices (57 percent).

More than half, or 51 percent, said they are deferring or cancelling planned investments, while 50 percent are focusing on upskilling the human resources team.

To rebuild their revenue streams, CEOs said they plan to focus on the following: products and services (68 percent), strategic partnerships and collaborations (50 percent), and talent or workforce (38 percent).

In terms of how the government could help companies get back on their feet from the impact of the crisis, 70 percent said providing industry-specific measures would be needed to restore confidence.

More than half, or 54 percent, said introducing more tax incentives and creating a strong recovery plan specific for each sector would also help businesses recover.

Given the role of technology in the new environment, 80 percent said they plan to increase investments to such to adjust to the current reality.

Emerging technologies CEOs plan to invest in are data platforms, contactless payment, artificial intelligence and robotics.

Over 90 percent said they plan to invest in environmentally sensitive practices in the next two years.

The survey, likewise, showed 73 percent of CEOs see their organization implementing a work-from-home policy even after the pandemic.

MAP President Francis Lim is hopeful the CEO Survey results, as well as the group’s CEO conference being held today, would guide participants in transforming their businesses as the world order reshapes itself.