Philippine chief executives are cautiously optimistic about 2025, with mergers and acquisitions (M&A) a key growth strategy, a recent survey showed.
Eighty-six percent of Philippine CEOs are prioritizing investments to boost operational efficiency and growth, with M&A and joint ventures topping their strategic agendas, according to the survey.
“M&A activity is poised to accelerate as companies look to expand their capabilities, enhance service delivery, and leverage synergies in a rapidly evolving market,” said Noel Rabaja, head of strategy and transactions at SGV, the Philippine member firm of Ernst & Young (EY).
While 62 percent of Philippine CEOs are slightly optimistic about the domestic business environment, their outlook is tempered by global headwinds, including inflation and global trade uncertainties, the survey found.
Rabaja said the growing interest in M&A reflects a trend towards consolidation and expansion, particularly in sectors such as technology, finance, and customer experience.
“The Philippines is poised to see more M&A transactions in the coming months, which could attract more foreign investors looking to participate in the country’s growth through strategic acquisitions. This increased activity could not only drive local growth but also bolster the nation’s appeal as an investment destination,” Rabaja said.
Aside from M&A, 80 percent of Philippine CEOs are focusing on investments in emerging technologies for 2025, including accelerating digital transformation with AI and automation.
Recent examples include a fintech firm partnering with a Japanese financial group to enhance its digital payments platform, and a business services provider acquiring a customer experience firm to strengthen its AI capabilities.
Despite the positive outlook, CEOs are concerned about external risks, including supply chain disruptions, global market volatility, and regulatory changes.
Rabaja said Philippine CEOs are taking a balanced approach, recognizing both opportunities and challenges in a globalized market.
“While Philippine business leaders remain optimistic, they understand that successful transformations will require resilience, agility, and a strategic approach to managing costs and risks,” Rabaja said.
SGV and EY Philippines conducted the survey among 50 Philippine CEOs.