Tessie Sy-Coson sees strength in local business sector

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SM Investments Corp. vice chairwoman Tessie Sy-Coson continues to believe in the strength of the Philippine business community even as the country faces strong economic headwinds that may continue to depress the local economy next year.

In her address to media guests at BDO’s Christmas gathering Wednesday evening, she remains optimistic that if the local business community continues to invest and work together, the Philippine economy will grow even in the face of the global economic uncertainties created by changing trade and economic policies, geopolitical risks and the new challenges posed by artificial intelligence.

Nestor Tan, president and chief executive officer of BDO Unibank Inc., in his own remarks at the gathering, acknowledged  that the economic downturn experienced this year would likely spillover to next year.

He pointed that while the economy performed well in 2024 and early in 2025, the series of shocks that started with the “Liberation” tariffs of US President Donald Trump, continuing geopolitical conflicts and the local controversy over corruption in flood control projects have depressed economic growth this year, and would likely continue in 2026.

The SM Group, despite its concern about the economy moving forward, has been steadily pursuing expansion and growth plans for almost all of its key interests in banking, the retail sector, real estate and property development, and so much more.

The optimism over the Philippine economy is also reflected in the recent announcement of the Asian Development Bank (ADB) to grant a $400 million policy-based loan to the country to support government reforms to improve ease of doing business and help position the Philippines as a top investment destination in Asia and the Pacific.

The Business Environment Strengthening with Technology Program Subprogram 1 is intended to support private sector development reforms to streamline and improve transparency of regulatory requirements and processes for businesses.

The  ADB policy loan seeks to facilitate investment in priority sectors with strong development impact and strengthen digital delivery of government services to businesses and investors.

In a statement, ADB country director for the Philippines Andrew Jeffries said that “the private sector is an important engine of growth and job creation. Their role in the country’s overall economic development cannot be overstated.”

The ADB, Jeffries assured, is “committed to assisting the Philippines in finding innovative ways to create an enabling environment that would spur a more dynamic business sector – one that will help drive faster economic growth.”

In 2024, the Philippines ranked 52nd out of 67 economies in the International Institute for Management Development’s World Competitiveness Ranking, while it placed 36th out of 50 economies in the operational efficiency pillar of the World Bank’s Business Ready framework.

The rankings point to regulatory and bureaucratic frictions that hinder new businesses and slow productivity and innovation, particularly for micro, small and medium-sized enterprises.

The ADB, however, has noted that the Philippine  government has prioritized addressing existing barriers in doing business to boost the country’s competitiveness and drive increased investments and job creation.

The program seeks to establish better legal, regulatory and institutional frameworks to facilitate starting and operating a business, including faster permit and licensing procedures and government approval of new ventures.

The program also supports whole-of-government solutions to raise investments and support sustainable economic growth in the country. It aims to improve investor experience through strengthening investment facilitation.

It will also provide clear, updated and reliable information via online investors’ guidebooks and a digital database of business regulations through the Philippine Business Regulations Information System launched by the Anti-Red Tape Authority (ARTA).

The program also focuses on facilitating investments in priority sectors such as renewable energy and digital infrastructure. These sectors are crucial for development, as greater investment in renewable energy generation and enhanced digital infrastructure both help reduce greenhouse gas emissions.

The program builds on the strong ADB-Government of the Philippines partnership in pursuing reforms to strengthen public sector management systems through the Public Financial Management Reform Program, Domestic Resource Mobilization Program and Business and Employment Recovery Program, among others.

ADB provided complementary technical assistance to support the reforms under the program and assist implementing agencies ARTA, Department of Trade and Industry-Board of Investments, and the Department of Information and Communications Technology in developing and rolling out new systems and improved processes.

ADB is a leading multilateral development bank supporting inclusive, resilient and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard the planet. Founded in 1966, ADB is owned by 69 members – 50 from the region.

Uncertainty is the new normal

No less than International Monetary Fund managing director Kristalina Georgieva, described in a recent guest piece for The Economist’s World Ahead 2026 issue that while the global economy has proven resilient, “uncertainty is the new normal” as the global economy now faces fragmented trade, fiscal pressures, social unrest and rapid technological changes.

According to an index co-developed by IMF staff, overall policy uncertainty is at a record high. “How these forces will interact is hard to predict. But it is already clear that the policy choices countries make today will define the ultimate shape of the emerging landscape.”

Georgieva highlighted several priorities: from bringing down debt and rebuilding fiscal space to reducing excessive external imbalances – starting with domestic macroeconomic adjustments. To boost long-term growth prospects, countries will also need to foster innovation and entrepreneurship and maintain trade as an engine of growth.”