EXPANSION PLANS may have to be put on hold as companies seek more clarity in the direction of global trade, according to the Management Association of the Philippines (MAP).
“I’m sure the companies will tighten their belts if they know their revenue lines are not coming in,” MAP President Alfredo S. Panlilio said in the sidelines of a BusinessWorld Economic Forum on May 22.
He expects an episode of minimal growth as trade stalls in the face of the US tariffs.
Mr. Panlilio noted that Semiconductor and Electronics Industries in the Philippines, Inc. President Danilo C. Lachica expects “modest” growth for the leading Philippine commodity export.
The Philippines exported $12.14 billion worth of goods to the US in 2024. Of the total, 53% consisted of electronic products.
“We were going to continue with the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act roadshows, but we were kind of distracted by the reciprocal tariffs. But again, we’re employing about 3 million direct and indirect workers. We expect, trade negotiations and all, to see modest growth for the industry,” Mr. Lachica said.
“How is a Chief Executive Officer to manage business? There are always uncertainties. There are always new things that come onto your plate,” Mr. Panlilio said.
The Philippines posted weaker-than-expected 5.4% growth in the first quarter, with gross capital formation growth dampened in the face of a lack of clarity in global trade.
US President Donald J. Trump paused his reciprocal tariffs in April for 90-days but continues to apply a 10% “baseline” tariff rate for most trading partners. — Aubrey Rose A. Inosante