‘78% of business execs may exit Philippines over energy risks’

MANILA, Philippines — Nearly eight in 10 Filipino business leaders are considering relocating operations overseas as the Philippines’ dependence on imported fossil fuels continues to expose companies to recurring energy shocks, according to a global study.

An international survey commissioned by E3G, the We Mean Business Coalition and the Global Renewables Alliance, found that 78 percent of Filipino executives may move operations abroad if government support for electrification remains insufficient.

The study, which surveyed nearly 2,000 executives across 18 countries, including the Philippines, in late April, underscores growing concern over business exposure to global market disruptions and price volatility.

Notably, 92 percent of Filipino respondents believe the country is overly reliant on fossil fuels, a vulnerability heightened by ongoing geopolitical tensions in the Middle East.

As an import-dependent economy, the Philippines sources at least 90 percent of its crude oil from the region, where shipments have been constrained by disruptions in the strategic Strait of Hormuz.

The narrow waterway, which connects the Middle East to global markets, once carried around 20 percent of the world’s oil and gas supplies before the US-Israel war with Iran erupted in late February.

The resulting supply pressures have driven fuel prices to record highs in the Philippines, affecting key sectors such as energy, transport and agriculture.

Against this backdrop, business leaders are increasingly looking to renewable energy and electrification as a long-term solution.

“Prompted by the volatility in energy prices caused by the recent rise in geopolitical uncertainty, business leaders would welcome a quicker switch to domestically sourced renewables-based electricity,” the study said.

The report noted that business leaders view clean electrification as a pathway to stronger energy security, improved competitiveness, sustained economic growth and climate action.

This includes shifting from gas-powered vehicles to electric vehicles (EVs) and replacing fossil fuel-based industrial systems with electrified technologies.

While Philippine companies see emerging opportunities in low-carbon manufacturing, many executives believe the country is lagging in the global transition to cleaner energy.

Under the Philippine Energy Plan, the government aims to increase the share of renewable energy in the power mix to 35 percent by 2030 and 50 percent by 2040, from the current 25 percent.

The Department of Energy is also pursuing an aggressive fuel transition strategy to reduce reliance on imported oil, including a target for EVs to comprise 60 percent of the country’s vehicle fleet by 2040 and 80 percent by 2050.

Despite these goals, the study found that significant barriers remain.

About 89 percent of Filipino executives said policy support is moving too slowly to keep pace with the level of electrification needed by businesses.

Respondents included chief executives, vice presidents, directors and senior managers from medium and large companies with annual revenues of at least $1 million.