Business Outlook: Insights for 2025 and beyond from banking, real estate, tourism, and new economy leaders

As the Philippines is a consumption-driven economy, HSBC sees increased loan demand in retail, consumer goods, healthcare, infrastructure and renewable energy. Uppal also names various industry opportunities, noting the investments that foreign businesses might explore in the ASEAN. There is promising growth in the “new economy”, powered by e-commerce, digital payments, artificial intelligence (AI) and machine learning. He says, “Our clients see the opportunity here and are investing heavily in digitisation—we want to support them.”

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Counting a PhP 1 billion green loan for PLDT and a maiden trade mission to India with the Philippine Exports Zone Authority (PEZA) to explore opportunities in Information Technology and Business with Process Outsourcing among their milestones of 2024, Uppal sums up how he’s approaching the final stretch of the year as “positive”. He acknowledges the efforts exerted by the private and public sectors, adding, “We will continue to support these by bridging our clients and public sector stakeholders to opportunities across our international markets. We believe that as the country grows, so do we.”

From the office market collapse to the residential and credit card crises, the property sphere appears to be teetering on the edge. Yet, Leechiu is cautiously optimistic that the country is well-positioned to weather what’s coming. “This massive storm that’s brewing right now is going to create more jobs in the Philippines at a much faster pace,” assures the real estate veteran, drawing parallels to past economic downturns that fuelled the BPO sector’s boom.

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The top commercial real estate broker envisions the country experiencing “accelerating growth in the next five years”, citing factors like political stability, infrastructure development, remittances and an influx of new talent. “AI deployment is a concern that many have. But I think that is further down the timeline,” Leechiu predicts. “Work-from-home will likely convert to work-near-home. Companies will decide to break up their offices and have many, smaller offices closer to where people work, bringing the commute time from two hours down to 20 minutes.”

Although vacancy has reached 3.1 million square metres, the office sector is expected to balance out in two to three years as the workforce expands. Meanwhile, the residential landscape shows mixed trends—the high-end market is thriving, while the mid-range condominium market is recovering. Apart from the steady demand in Makati and Bonifacio Global City, with available supply at only about 4,350 developer units for the two districts, there is robust price growth in villages south of the metro and Leechiu eyes Bohol as the most exciting tourism destination.

When asked about the one word that best represents the Philippine economy today, Leechiu offers “springboard” as he envisions a promising five years ahead. His confidence extends to his own company’s performance. The brokerage firm’s expansion into new sectors, such as the residential, industrial and hospitality markets, demonstrates its well-founded belief in the country’s potential.

In July, the Department of Tourism (DOT) reported an estimated PhP 282.17 billion worth of tourism earnings from inbound visitors and roughly three million foreign arrivals in the first half of 2024 alone. Anticipated to increase in the latter half, these will translate to “more opportunities and improved livelihoods for Filipinos, reinforcing the critical role this industry plays in our nation’s progress”, as Secretary Christina Frasco stated in the official release.

The TPB, DOT’s marketing arm, has likewise experienced unprecedented numbers across critical markets. “The world loves the Philippines, and we can see they want to come,” Nograles exclaims. It is simply a matter of levelling supply and demand, ensuring the private sector keeps pace through the TPB’s valuable role as a connector.

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The agency continually imparts this: at this stage of the “revenge travel” boom, wherein inflation is an undeniable threat, people are more enticed by the richness of “meaningful experiences”. Sustainability remains top-of-mind, and AI has begun to creep in across different tools and channels. One example is the DOT’s Travel Philippines app, which harnesses the latest technology, highlights the beauty of our islands and seals it with a human touch. 

The TPB focuses on a definite goal: strengthening the Meetings, Incentives, Conferences and Exhibitions (MICE) industry. Nograles says, “We are working to prepare our destinations to accept more MICE visitors around the world, and that entails more infrastructure investments.” One is Cebu’s soaring SMX Convention Centre, slated to open in 2026. AI is also expected to aid more MICE gatherings, enabling real-time translation, transcription, analytics and more.

Embracing the capacities and uniqueness of each region, especially those outside Metro Manila, is another crucial move for the industry—further highlighted by the TPB’s steadfast commitment to community-based tourism. Nograles muses, “We have to know what is uniquely ours, and what is uniquely the Philippines is our indigenous communities—the people who have the stories of our age-old traditions and crafts…We fight to keep their stories alive.”

Crucial to discussions of national progress today is the emergence of high-growth, tech-driven industries known as the “new economy,” a buzzword for which Grab is a prime example. Amidst the wearisome pandemic, this ride-hailing service turned leading “super app” rose to the occasion with its innovative operational model, generating flexible and sustainable jobs for thousands of our countrymen. Its mission to shape a progressive and inclusive digital economy has since become a cornerstone of the Philippines’ growth, particularly in the first quarter of 2024. 

Read more: How Grab Philippines aspires to be a partner in nation building 

Along with its eager commitment to creating 500,000 livelihood opportunities, Grab Philippines is driven to ensure that regional cities also participate in this thriving landscape. Roda remarks, “Our expansion into eight new cities across Visayas and Mindanao reflects our dedication to inclusive growth outside the capital, ensuring that our services contribute to modernising transport ecosystems and traditional mobility options, like trikes and taxis, and digitalising entrepreneurial ventures across the country.” This determination towards accessibility also led to the launch of GrabCar Saver in January 2024, a transport option designed to offer rides at a reduced cost for passengers who are flexible with their time. 

The biggest challenge for businesses like Grab has been inflation, a pressing concern for several stakeholders. With inflation impacting consumers’ spending habits and increasing operational costs of drivers and merchants, Roda says they continuously find and leverage ways to optimise the productivity and earnings capacity of their partners, while keeping fair and accessible fares and delivery fees for all customers.

He finally describes how they’re heading into the final quarter as vital. “The Christmas season is an important time for Grab, and we’re gearing up to meet the increase in consumer demand,” explains Roda, broaching how their partnership with the government is critical to establishing a balanced demand and supply condition in the ride-hailing industry. He adds, “Despite the volatile macroeconomic landscape, I am confident in our ability to navigate the rest of 2024 and beyond with optimism and resilience.”

Looking ahead, the Philippines has rigorous work to do indeed. And yet, hinged on its people’s dynamic and persevering spirit, opportunities for growth and success abound.

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