MANILA, Philippines — It is high time for the Philippines to become food and energy independent amid increasing headwinds from rising food and fuel costs, according to business titan Manuel V. Pangilinan.
“Unfortunately, we’re now importing most of our food items. I can’t understand why. We have to correct that because independence is necessary now in terms of food, energy, fuel. If we can do that, I think that’s very, very important,” Pangilinan said.
Pangilinan, who chairs conglomerate Metro Pacific Investments Corp. (MPIC), said his group is keen on investing heavily in agriculture.
“As you know, Indofood is also big agriculture company in Indonesia. If they can do it there, I don’t see why we cannot do it here. We just have to choose the right crops that the Philippines can excel in, like coconuts, for example, and our fruits, especially dried fruits,” Pangilinan said.
MPIC has recently diversified its investment portfolio to include the agriculture sector in a bid to reduce the country’s dependence on food imports amid ongoing global supply chain disruptions and high inflation.
On the energy front, Pangilinan said the country should start exploring its own oil and gas resources, especially in the West Philippine Sea.
“The sooner we realize and admit the reality of fuel and because we do not have energy independence, with the decline of the Malampaya reserves, we are now becoming apart from food, very, very dependent on imported fuel. So I think we should try to address that,” he said.
“I think we have some resources that are available to us. Oil and gas resources, particularly gas, in the West Philippine Sea. I think we should get on with that work,” said Pangilinan, who also chairs PXP Energy Corp.
PXP is keen on continuing exploration in its service contract areas in the West Philippine Sea to determine if there is gas in the area.
The Department of Energy last April had put on hold activities in prospects in the West Philippine Sea pending clearance from the Security, Justice and Peace Coordinating Cluster.
“I’ve always maintained like in the case of mining, why pay for somebody else’s gold and silver and copper if you can do it yourself, right? Don’t tell me that we Filipinos cannot regulate our businesses by ourselves if the Indonesians can, if the Canadians can, if the Australians can, the South Africans can. You’re telling me Filipinos cannot do that? I think that’s insulting,” Pangilinan said.
Credit rating agency Moody’s Investors Service in a report last July said the Philippines is considered among countries in Asia-Pacific that are highly vulnerable to volatile food and energy prices as disruptions in supply continues with the Russia-Ukraine war.
Pangilinan said the war has had an extensive impact on global economies, including the Philippines. “So it’s been, for management, a very, very tough situation and we’re seeing that happen, particularly in the second half of this year. We are seeing headwinds, because consumer wallets are getting affected already,” he said.
Pangilinan-led companies have investments in various sectors such as energy and power, telecommunications, toll roads, mining, water, real estate, hospitals, light rail, agribusiness and media.