Business shares gov’t growth forecasts but acknowledges threats

Majority of business executives shared the Duterte administration’s bullish growth forecasts but their optimism was tempered by the increasing number of new threats and aggravation of existing ones, survey results showed.

The M.A.P (Management Association of the Philippines)-PwC CEO Survey 2017 Report, which was conducted by Isla Lipana & Co./PwC Philippines (PwC), showed that 68 percent of CEOs, 63% of whom likewise believe that growth forecasts will be met. The government is confident of hitting 7 to 8-percent GDP growth for 2017 and 2018 given the strong macroeconomic fundamentals and positive indices.

The survey on 120 CEOs was conducted by PwC for the 15th M.A.P. International CEO Conference held on 12 September 2017 at the Makati Shangri-La Hotel reflected the theme, “ASEAN in Business: Building Partnerships in a Growth Network”.

Respondents were asked about their sentiments in reshaping their organizations through partnerships, chasing talent and innovation, improving success rates in partnerships, and partnerships in ASEAN.

The survey result showed that the prevailing business climate has certainly been seen as an opportunity for revenue growth for the next three years by 57 percent of CEOs who have expressed high confidence in the prospects of their companies.

In the same manner, 54 percent of CEOs say that they are very confident about opportunities in their industries over the next three years.

While CEOs recognize that opportunities still abound, their optimism was tempered by the increasing number of new threats and aggravation of existing ones, the survey said.

CEOs continue to express concern over threats of terrorism, increasing tax burden, inadequate basic infrastructure, geopolitical uncertainty, and overregulation.

From the business standpoint, CEOs view bribery and corruption, technological changes including cybersecurity, and the ability to respond to crisis as the main risks that may hinder growth.

Increased emphasis to implement cybersecurity has been prompted by persistent attacks that have, in certain cases, crippled operations.

Mary Jade Roxas-Divinagracia, PwC Philippines’ Managing Partner for Deals and Corporate Finance, noted that as in most things in life, there is no one-size-fitsall framework to a successful partnership.

Yet companies that go into partnership built on trust and gain-sharing, combined with adequate preparation and well-executed strategy, will improve their chances of success and will be well on their way to growth,” she said.

Atty. Alexander Cabrera, PwC Philippines’ Chairman and Senior Partner, said that CEOs believe that collaborations will help them grow at a faster pace within and outside the Philippines.

“I’d like to thank the 120 CEOs who shared their insights with us. We’d also like to express our sincerest gratitude to the 10 leaders who allowed us to tell our readers their stories and aspirations,” said Cabrera.

The M.A.P. is pleased to work with Isla Lipana & Co., PwC member firm for the third of a series of annual CEO Surveys, which benchmark the changes in how CEOs think, respond, and innovate,” said Marife Zamora, M.A.P. President.