The BGA Philippines Team, led by Managing Director Victor Andres Manhit, wrote an update to clients on the geopolitical risks and opportunities in Philippines in 2025.

Context

  • The Philippines faces a complex array of geopolitical risks and opportunities in 2025, necessitating a multifaceted approach to ensure national stability and growth. According to the latest Global Risks Report by the World Economic Forum for 2025, the top five risks in the Philippines are economic downturn, poverty and inequality, inflation, food supply shortages, and unemployment or lack of economic opportunities. These indicate that people’s concerns remain largely economic in nature.
  • This update emphasizes the interconnectedness and multidimensionality of geopolitical risks and opportunities in the Philippines. A recognition of these challenges and opportunities not only enables the Philippines to strategically navigate and position itself amid the growing complexities of a multipolar world but also empowers it to mitigate risks and leverage opportunities for sustainable growth, reinforcing the nation’s resilience and competitiveness on the global stage.

Significance

  • The Philippines faces rising security challenges, especially in the West Philippine Sea (also known as the South China Sea), where China’s military actions and cyber threats demand stronger strategies to safeguard sovereignty and maritime stability. With a more complex geopolitical environment, the country must enhance its resilience in managing risks, while working with regional and global partners to promote peace and uphold international law. 
  • Sustaining growth that creates jobs requires maintaining a consumption-driven economy while spurring investment-driven, job-generating growth. A conducive investment climate is essential to sustain long-term growth and development, leading to substantial improvements in the country’s overall national welfare. The newly enacted Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act aims to further strengthen the country’s capacity to attract strategic investments, which can help generate more jobs for Filipinos.

Implications

  • Governance challenges require the institutionalization of a transparent, accountable and responsive public sector, supported by a stable regulatory environment to foster investments. Eliminating corruption could lead to significant positive outcomes, including increased public trust in the government, improved quality of life for ordinary citizens and economic growth.
  • In 2025, the Philippines has the opportunity to tackle challenges like inflation, poverty and other risks by strengthening global alliances, attracting investment and advancing sustainable practices. By embracing a holistic approach that integrates economic, environmental, governance and technological strategies, the Philippines can foster stability and resilience. This approach will enable the country to address pressing issues, such as energy security, digital transformation and climate change, while creating a conducive environment for long-term growth.

We will continue to keep you updated on developments in the Philippines as they occur. If you have any comments or questions, please contact BGA Philippines Managing Director Victor Andres “Dindo” Manhit at vmanhit@bowergroupasia.com.

Best regards,

BGA Philippines Team

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Managing Director

Dindo is recognized as one of Manila’s most well-connected and savvy advisors on developments in government and business in the Philippines. Concurrent to his role as managing director for BGA’s operations in the Philippines, he is also the founder and managing director of the Stratbase Group and president of its policy think tank, the Albert del Rosario Institute for Strategic and International Studies. Since 1991, Dindo has served as a member of the faculty and is the former chair of the Political Science Department and a senior fellow of the La Salle Institute of Governance at the De La Salle ... Read More