asiaMANILA, PHILIPPINES — As Filipino households struggle with rising prices and businesses confront an increasingly uncertain economic environment, billionaire businessman Manuel V. Pangilinan is delivering a message to the country’s corporate leaders: difficult times should not become an excuse to stop investing.
Pangilinan, who chairs major companies including PLDT Inc., Metro Pacific Investments Corporation and Manila Electric Company (Meralco), warned on October 28 that the Philippine economy could face even tougher conditions in the months ahead.
Inflation, elevated borrowing costs, the weakening peso and the threat of El Niño are placing pressure on businesses and consumers.
Yet Pangilinan believes that suspending investments could make economic recovery more difficult.
Instead, he is encouraging companies to remain proactive while exercising financial discipline.
His position comes as Meralco continues major infrastructure spending, including investments in electricity distribution, renewable energy and battery storage.
But the call to keep investing raises an important question.
Can Philippine businesses help sustain jobs, infrastructure development and economic growth by continuing to invest—or could rising costs and weakening consumer demand make aggressive expansion increasingly risky?
MVP WARNS THE PHILIPPINE ECONOMY COULD GET TOUGHER
Speaking to reporters on October 28, Pangilinan acknowledged the difficult economic environment facing the country.
He pointed to elevated prices, interest rates, the peso’s depreciation and the potential impact of El Niño.
He suggested that businesses should prepare for additional challenges rather than assume conditions will improve immediately.
His concerns reflect pressures already affecting Philippine households and companies.
Higher fuel and food prices reduce consumers’ purchasing power.
Expensive financing can discourage business expansion.
Currency depreciation can raise the peso cost of imported fuel, equipment and other products.
El Niño may add further pressure through agricultural losses and water-supply concerns.
Together, these factors create a challenging environment for new investment decisions.
‘NO RETREAT’ BECOMES THE CENTRAL MESSAGE
Pangilinan challenged the idea that companies should simply wait for difficult conditions to pass.
Rather than withdrawing from productive activity, he argued that businesses should take an active role in supporting recovery.
His message was not a call for reckless spending.
He emphasized that new investments should be carefully evaluated.
This distinction is important.
Companies must assess their financial resources, borrowing costs and the commercial prospects of individual projects.
Continuing to invest does not mean every project should proceed regardless of the risks.
The broader message is that responsible investment can support economic activity even when the outlook is uncertain.
WHY INTEREST RATES WORRY PANGILINAN
Pangilinan identified borrowing costs as a particularly important concern.
Higher interest rates make it more expensive for companies to finance infrastructure, equipment and business expansion.
This matters especially for capital-intensive industries.
Electricity generation, telecommunications and major infrastructure projects often require substantial upfront investment.
Borrowing costs can influence the profitability of these developments and their ability to attract financing.
Pangilinan indicated that interest rates were a more significant concern for his businesses than the peso’s depreciation, noting that much of their revenue and borrowing is denominated in Philippine pesos.
However, this does not mean the companies are completely insulated from exchange-rate movements.
Imported equipment, fuel and other costs can still be affected.
THE WEAK PESO IS INCREASING ECONOMIC PRESSURE
The Philippine peso’s recent weakness has created additional concerns about imported goods and services.
GMA News reported that the currency reached ₱64.17 against the US dollar on October 27.
A weaker peso means that goods priced in US dollars generally become more expensive when converted into Philippine currency.
This can affect fuel, machinery and imported inputs.
For consumers, the impact may eventually appear in transportation expenses, electricity bills and product prices.
However, exchange-rate changes do not affect every business equally.
Companies with dollar revenues may benefit from a weaker peso in some circumstances, while those with significant dollar-denominated costs can face additional pressure.
MERALCO WARNS OF POSSIBLE HIGHER ELECTRICITY COSTS
The currency issue has immediate implications for the electricity sector.
Meralco officials warned on October 28 that a weaker peso could increase power-generation costs because a substantial portion of the company’s electricity supply is exposed to foreign-exchange movements.
The utility said it was looking for ways to manage or offset the resulting increases.
For October, Meralco’s household electricity rate rose by 31.91 centavos per kilowatt-hour to ₱15.0615 per kWh.
That compared with ₱14.7424 per kWh in September.
For a household consuming 200 kWh, the monthly increase was approximately ₱64, before considering differences in actual consumption and billing adjustments.
This illustrates how macroeconomic pressures can reach ordinary consumers.
DISTRIBUTION CHARGES AND GENERATION COSTS ARE DIFFERENT
Pangilinan clarified that Meralco’s electricity distribution business does not carry foreign-currency debt that would directly increase its distribution charges because of peso depreciation.
However, electricity bills contain several components.
Generation charges reflect the cost of purchasing electricity from power producers.
Distribution charges relate to delivering that electricity through the utility network.
Other charges also apply.
The absence of foreign debt in the distribution business therefore does not mean the total electricity bill is protected from currency fluctuations.
Customers may still face higher generation costs when exchange-rate movements affect imported fuel and other expenses.
MERALCO CONTINUES INVESTING DESPITE THE CHALLENGES
Meralco’s latest financial results provide a concrete example of Pangilinan’s investment strategy.
During the first nine months of 2026, the utility reported consolidated capital expenditures of approximately ₱76 billion.
This money supported power-generation investments, renewable energy, battery storage and distribution network improvements.
The amount represents reported spending during January through September.
It is not merely a future investment pledge.
However, the figure belongs to Meralco and its consolidated operations.
It should not be reported as the total capital expenditure of every company associated with Pangilinan.
₱54.6 BILLION GOES TO ENERGY AND BATTERY PROJECTS
Of Meralco’s approximately ₱76-billion capital expenditure, ₱54.6 billion was allocated to renewable energy and battery energy storage initiatives under Meralco PowerGen Corporation.
These investments are part of the group’s efforts to expand and diversify its power-generation activities.
Battery storage systems can help manage electricity supply by storing energy for later use.
Renewable generation projects may also reduce dependence on some conventional sources of electricity.
However, energy investments do not automatically guarantee lower consumer bills.
Their impact depends on operating costs, project financing, electricity contracts, grid conditions and regulatory arrangements.
The projects must also be completed and perform as expected.
ANOTHER ₱21.2 BILLION SUPPORTS DISTRIBUTION INFRASTRUCTURE
Meralco also reported approximately ₱21.2 billion in expenditures for distribution network modernization, new connections and related infrastructure.
These investments can support the reliability and capacity of the electricity distribution system.
Network modernization may involve improving equipment, expanding infrastructure and introducing technology designed to manage operations more efficiently.
But a higher investment budget does not guarantee that power interruptions will disappear completely.
System performance depends on maintenance, weather, equipment conditions and the quality of project execution.
The financial benefits of new infrastructure also need to be considered against costs passed through the regulated electricity system.
MERALCO REPORTS ₱44.8 BILLION IN NINE-MONTH CORE PROFIT
Despite the difficult environment, Meralco reported approximately ₱44.8 billion in consolidated core net income from January through September 2026.
That represents a 12% increase from approximately ₱40 billion in the comparable period last year.
The company’s electricity distribution business contributed ₱20.1 billion.
Power generation contributed ₱18.2 billion.
Retail electricity supply and other businesses accounted for the remaining ₱6.5 billion.
These results show that Meralco’s earnings sources have become more diversified.
However, core net income is a company-defined performance measure and should not be confused with every measure of statutory net income.
FULL-YEAR EARNINGS COULD REACH ₱56.6 BILLION
Pangilinan said Meralco was on track to achieve approximately ₱56.6 billion in consolidated core net income for the full year.
If achieved, that would represent a roughly 12% increase from the previous year’s record ₱50.6 billion.
The estimate reflects management’s current expectations.
It is not a completed financial result.
The company also cautioned that unforeseen developments could affect performance.
Factors such as energy prices, regulatory changes and operational conditions may influence the final outcome.
The distinction between a forecast and actual earnings is important for investors and consumers.
THE IMF SEES A SLOWER PHILIPPINE ECONOMY
Pangilinan’s comments come against a challenging macroeconomic outlook.
In September, the International Monetary Fund projected Philippine gross domestic product growth of 3.4% in 2026.
It also forecast average headline inflation of 5.6% for the year.
The IMF expected growth to improve to 5.1% in 2027.
However, the outlook remained subject to significant risks.
These included high energy prices, the effects of El Niño and delays affecting public construction activity.
The estimates show why business leaders are concerned about weakening demand and investment conditions.
But forecasts are not guarantees.
Actual economic performance may differ as conditions change.
EL NIÑO ADDS ANOTHER LAYER OF RISK
Pangilinan specifically identified El Niño as a potential source of additional economic pressure.
Dry conditions can affect agricultural production and water availability.
Reduced agricultural supply can contribute to higher food prices.
Electricity and water utilities may also face additional operating challenges during prolonged drought.
For households, these risks can compound existing financial pressures.
However, El Niño’s actual impact depends on rainfall patterns, water-management decisions and the resilience of infrastructure.
It would be inaccurate to state that every Philippine region will necessarily face the same level of disruption.
WHY BUSINESS INVESTMENT MATTERS DURING AN ECONOMIC SLOWDOWN
When private companies invest, they may create demand for construction, equipment, professional services and other economic activities.
Completed projects can also support longer-term production and employment.
In infrastructure, the benefits may extend to the reliability of electricity, telecommunications and transport services.
These investments can support the economy beyond the period in which construction takes place.
But not every investment delivers the same results.
Poorly chosen projects can generate losses or increase debt burdens.
Pangilinan’s emphasis on disciplined capital allocation acknowledges the need to balance opportunity with financial responsibility.
THE PANGILINAN GROUP CONTINUES STRENGTHENING ITS POWER INVESTMENTS
Earlier in October, Metro Pacific Investments Corporation completed a ₱12.4-billion acquisition of additional Meralco shares from San Miguel’s power arm.
The transaction increased MPIC’s direct and indirect interest in Meralco to approximately 49.4%.
The transaction was separately reported by InsiderPH and The Philippine Star.
The completed purchase demonstrates continued capital deployment within Pangilinan’s business interests.
However, buying existing shares differs from constructing new power plants or expanding an electricity distribution network.
A share acquisition transfers ownership and financial claims.
Its immediate economic effects should not be confused with the creation of new physical infrastructure.
PLDT AND DIGITAL INFRASTRUCTURE REMAIN PART OF THE GROUP’S STRATEGY
Pangilinan also chairs telecommunications giant PLDT.
The company is involved in mobile, broadband and enterprise connectivity through its telecommunications businesses.
Digital infrastructure is important to the broader economy because businesses increasingly rely on internet connectivity and data services.
Additional investment can support network improvements and new services.
However, Pangilinan’s October 28 remarks did not establish a newly announced PLDT capital expenditure amount for 2027.
Any specific future spending target must be based on a separate company disclosure.
The general call for continued investment should not be treated as an authorization of an undisclosed project.
MAYA AND VITRO COULD SEEK STOCK MARKET LISTINGS IN 2027
Pangilinan has also discussed potential public offerings involving Maya and VITRO REIT.
The businessman said on October 28 that both companies could pursue listings in 2027.
Maya operates in digital payments and banking, while VITRO’s planned REIT involves data center properties.
These possible transactions could provide access to capital and investment opportunities.
However, neither listing is a completed IPO.
Their final timing, structure and offer terms remain subject to further decisions and market conditions.
An IPO plan is also distinct from actual capital expenditure.
The amount raised in a future offering would depend on the number and price of shares sold, among other factors.
WHY HIGH BORROWING COSTS COULD DELAY PROJECTS
Large businesses often finance investment through a combination of internal funds and debt.
When borrowing costs rise, projects may become less financially attractive.
Higher interest expenses can reduce the returns available to shareholders.
They can also place pressure on companies with existing loans.
For businesses dependent on infrastructure development, financing conditions can influence when construction begins.
This explains Pangilinan’s concern about interest rates.
His call to keep investing does not mean companies should ignore the higher cost of capital.
Instead, it suggests that investment decisions should prioritize projects capable of delivering sustainable benefits.
CAN PRIVATE INVESTMENT REPLACE GOVERNMENT SPENDING?
Private-sector investment can support economic activity, but it cannot perform every function of government.
Public infrastructure, regulation, education and essential services remain important responsibilities of the state.
Businesses can contribute through projects that expand services, create employment and support productivity.
However, some investments depend on regulatory approvals, public infrastructure connections and appropriate policy frameworks.
Private capital and public policy therefore often work together.
Pangilinan’s argument is that businesses should participate in economic recovery rather than simply wait for conditions to improve.
It is not evidence that the private sector can replace government investment entirely.
HIGHER CORPORATE PROFITS DO NOT AUTOMATICALLY BENEFIT HOUSEHOLDS
Meralco’s stronger earnings and continued spending provide evidence of resilience within one major business group.
But consumers may still face expensive electricity and higher everyday costs.
Corporate profitability does not automatically lead to lower household bills.
The transmission of investment benefits to consumers depends on the type of project, regulatory decisions, competition and operating costs.
This creates an important policy question.
Economic growth should be assessed not only through corporate profits and investment spending but also through service reliability, affordability and employment outcomes.
The impact on households is ultimately one of the most important measures.
WHAT OTHER NEWS OUTLETS CONFIRM
InsiderPH published Pangilinan’s call for continued investment on October 28.
GMA News separately reported his concerns about inflation, interest rates, the weakening peso and El Niño.
ABS-CBN News also covered the remarks, confirming that Pangilinan saw no reason for businesses to halt investments despite deteriorating conditions.
The Philippine Star independently documented Meralco’s ₱76-billion capital expenditure and its expected ₱56.6-billion full-year core earnings.
BusinessMirror reported the utility’s nine-month profitability and continued infrastructure investment.
GMA News separately explained how peso depreciation could affect electricity generation costs and reported the October household rate increase.
The International Monetary Fund’s September assessment provides independent macroeconomic context, including its forecasts for growth and inflation.
Together, these sources establish Pangilinan’s public position and the economic pressures surrounding it.
However, his remarks do not represent a formal commitment by every Philippine business to increase spending.
WHAT INVESTORS SHOULD WATCH NEXT
Investors will be watching whether major Philippine companies maintain capital expenditure programs despite higher financing costs.
For Meralco, important factors include the completion of generation and distribution projects.
Electricity prices and regulatory developments will also affect consumer demand and investment economics.
For PLDT and other Pangilinan-linked businesses, future disclosures will help clarify specific investment targets.
Potential 2027 listings involving Maya and VITRO may provide additional opportunities, but they remain subject to market conditions.
The wider economic environment will also matter.
Inflation, exchange rates and interest rates can influence whether planned investments move forward.
THE BIGGER QUESTION: CAN THE PHILIPPINES INVEST ITS WAY THROUGH THE SLOWDOWN?
Pangilinan’s message comes at a difficult moment for the Philippine economy.
Consumers are dealing with higher costs.
Companies are assessing uncertain demand and more expensive financing.
The threat of El Niño creates additional risks.
Yet Pangilinan argues that stopping investment could weaken the country’s prospects for recovery.
Meralco’s ₱76-billion capital expenditure demonstrates that significant projects are continuing despite these pressures.
But private investment is not a guaranteed solution to inflation, expensive electricity or slowing growth.
Its effectiveness depends on project quality, financing discipline, regulatory stability and the benefits eventually delivered to communities.
The test will be whether continuing to invest produces reliable infrastructure, sustainable jobs and stronger long-term productivity without exposing businesses and consumers to excessive costs.
And as Philippine companies confront another period of economic uncertainty, one question remains:
Will Pangilinan’s call for disciplined investment help keep the economy moving—or will inflation, high interest rates and El Niño overwhelm even the country’s biggest business groups?
