MVP flags tougher economic conditions, but sees no reason to halt investments

MANILA — Business tycoon Manuel V. Pangilinan on Wednesday warned that economic conditions in the Philippines could worsen, with the potential impact of a super El Niño adding to existing pressures such as the peso’s depreciation, high inflation and elevated interest rates.

“It’s tough out there. It could get tougher with the impact of the El Niño, right? And it concerns us,” Pangilinan told reporters on the sidelines of Meralco’s financial briefing.

Pangilinan even quipped that seeing the peso slide to P64 against the dollar hurts more than his knees as he recovers from surgery.

Asked whether he was more concerned about the weakening peso or high interest rates, Pangilinan said borrowing costs were a bigger worry, as most of his group’s businesses borrow and earn in pesos.

But rather than waiting for conditions to improve, he urged big firms to continue to invest to help support economic recovery.

“In a situation like this, what do you do? Do you dig yourself a foxhole and just hibernate until hopefully this thing blows over? I think that’s not the right thing to do. We have to be proactive in helping the economy recover and helping the government do that in whatever way we can,” he said.

“The best way for us (is) to continue investing, judiciously, of course… It’s not to retreat and hibernate,” he added.

President Ferdinand Marcos Jr. earlier urged Filipinos not to panic despite the local currency hitting record lows, stating the country had “all the means”—including “healthy” foreign exchange reserves—to continue defending the peso.