Philippine Firms Seek Overseas Growth Amid Domestic Volatility

MANILA, Philippines — More Philippine companies are looking beyond the domestic market for growth as geopolitical tensions, volatile commodity prices and supply-chain disruptions encourage businesses to diversify their operations, according to Citi Philippines. Citi Philippines corporate banking head Manish Bajaj said the global bank has seen a significant increase in clients exploring opportunities within Southeast Asia and other international markets. “We are seeing a lot more clients looking to focus on diversification, thereby driving growth. So they are looking outside the Philippines, both within the Asia-Pacific, ASEAN region and outside globally as well,” Bajaj said during a recent media roundtable. The shift comes as companies navigate a challenging operating environment marked by tariff uncertainty, the continuing conflict in the Middle East and swings in currencies, commodities and interest rates. Bajaj said volatile oil prices, in particular, remain a major concern for companies because of their impact on operating costs, consumer prices and overall economic activity. Bajaj said the bank’s network in more than 180 countries and jurisdictions globally allows it to connect Philippine companies with market information and banking services as they expand overseas. Apart from geographic diversification, Citi said companies are investing more heavily in treasury modernization and digital systems to improve liquidity, unlock working capital and support business growth. Companies are also reviewing their trade and supply-chain arrangements following disruptions caused by tariffs, geopolitical tensions and energy-market volatility. Citi said clients are exploring supply-chain financing and other working-capital solutions to secure supplies at appropriate prices without placing excessive pressure on their balance sheets. Artificial intelligence, cybersecurity and operational resilience have likewise become major areas of discussion, particularly for companies in the Philippines’ large services industry. Meanwhile, Citi said global debt markets remain open to Philippine companies and the government despite heightened volatility. Asked whether issuers could still tap the international bond market this year, Citi Philippines CEO and banking head Paul Favila said: “The answer is a simple yes.” “Is capital available? Absolutely. Of course, it comes at a particular price, which is determined pretty much by what’s happening to the rest of the world. So timing is also very key,” Favila said. According to Favila, any fundraising plan must be aligned with an issuer’s broader strategy rather than driven solely by short-term market windows. Citi also highlighted continued momentum in its global operations after reporting its strongest quarterly revenue performance in a decade. Favila said Citi’s second-quarter revenues rose by 14 percent, with double-digit growth recorded across the group and in four of its five core businesses. “The progress Citi is delivering today reflects years of purposeful investment and consistent execution,” Favila said. “We’ve built stronger capabilities, deepened our client relationships and are seeing the impact of those efforts in the momentum across our franchise,” he added. Citi has operated in the Philippines for nearly 125 years, serving government agencies, large corporations and institutional clients.