Cebu business leaders remain optimistic amid political noise

CEBU, Philippines — Cebu business leaders remain optimistic about the province’s economic future despite growing political uncertainties that may affect investor confidence.

In a statement, the Cebu Chamber of Commerce and Industry (CCCI), through its president Jay Yuvallos, acknowledged the concerns of the local business community, emphasizing that the Chamber is committed to addressing these challenges.

“We understand the concerns expressed by the business sector during these times. However, we encourage all Cebuanos to stay positive as we work toward fostering economic growth and stability. Our collective resilience and the strength of our business sector will help us continue attracting local and foreign investors,” said the CCCI, the largest business organization in Cebu province.

While uncertainty may raise questions among investors, CCCI believes responsible leadership and sound economic policies will lead to long-term stability.

“This period presents an opportunity for reflection and renewal. We trust that it will result in stronger governance, more robust policies, and a better business environment for all,” the statement reads.

Similarly, Mandaue Chamber of Commerce and Industry (MCCI) President Mark Ynoc acknowledged that political noise in the Philippines could disrupt economic growth and deter foreign direct investment.

“Foreign investors hesitate to invest in destinations with high risks or uncertainty. Adding to this concern is the impact on tourism, which contributes 8.6 percent to the country’s GDP, especially now that some countries are issuing travel warnings,” Ynoc said in an interview.

Despite these challenges, Ynoc remains hopeful that the country can still meet this year’s projected GDP (gross domestic product) growth of 6.0 percent and maintain controlled inflation at 3.5 percent.

Ynoc emphasized the need to focus on reducing power costs, improving ease of doing business, enhancing infrastructure, strengthening connectivity, and aligning training and education with global standards.

Former MCCI President Steven Yu echoed this sentiment, saying that the current political situation has not had a significant impact on Cebu’s local business climate.

“It’s business as usual. The local business sector is more focused on global developments, especially the economic moves of the United States and their effects on international trade. While there is caution, many remain hopeful for a positive turnaround,” Yu noted.

Both CCCI and MCCI reaffirmed their commitment to supporting the local business community by maintaining transparency and open communication.

“By staying united and focusing on progress, we will continue to thrive and contribute to Cebu’s economic prosperity,” CCCI assured.

Meanwhile, Jayant Menon, Senior Fellow at the ISEAS-Yusof Ishak Institute, noted that while the recent arrest of former Philippine President Rodrigo Duterte has created political noise, it is unlikely to cause significant instability.

In an interview with OneNews, Menon said the impact on the country’s political risk premium—which investors assess when making decisions—remains uncertain.

“Certainly, it’s concerning. From an economic perspective, this could affect the political risk premium that investors consider in their portfolios and direct investment decisions. But it’s too early to tell how much of an impact it will have,” Menon explained.

Despite the political turmoil, Menon believes the Philippines’ long history of navigating political uncertainties has made the economy resilient.

“The Philippines has endured a lot of political instability in the past. This resilience helps buffer the economy against these disruptions, and investors have already factored this into their expectations. As a result, any negative impact is likely to be minimal,” he said.

However, the economic expert, Menon highlighted that the Philippines faces more pressing economic challenges than political instability.

“The country is competing with fast-rising neighbors like Vietnam, Indonesia, and Cambodia for investments. At the same time, it’s grappling with mega-trends such as climate change, rising protectionism, and technological disruption—issues that are far bigger than the current political situation,” he pointed out.

Like Cebuano business leaders, Menon remains optimistic about the Philippines’ economic outlook.

The Philippines, Menon added is set to grow rapidly, and many opportunities are emerging from global disruptions. The reconfiguration of supply chains due to the US-China trade war and increasing global uncertainty on protectionism offer significant potential. However, the Philippines has yet to fully capitalize on these opportunities.