By the staff
BDO Unibank Inc. said it expects a cautious business climate going into 2026 as companies delay investment decisions amid political and economic uncertainties, even as growth pockets continue to emerge in the provinces and in selected sectors.
Speaking at the bank’s media gathering on Thursday night, chairperson Teresita Sy-Coson said BDO is pushing ahead with its plans despite persistent external risks.
“We’ll just have to do our work in spite of all of the political noises,” she said. “So for us, we’re going to continue what we have planned. And I think we will be able to achieve our targets next year.”
BDO president and CEO Nestor Tan said 2025 proved to be a volatile period for businesses, describing it as a “rollercoaster year” marked by rapid shifts in sentiment following geopolitical events and domestic disruptions.
“We started out very strong, honestly. I’m talking about the bank and the business environment. We had a very strong fourth quarter last year… and then, liberation day happened. So people started to pull back,” Tan said.
He added that the uncertainty lingered throughout the year. “As things are starting to stabilize… then we have geopolitical risks, problems, and then… supply chains are being normalized, then we have the flood control thing. And now, the mood is I would say at best, somber.”
Tan said he expects the cautious stance to extend into 2026.
“The business community is not sure what’s likely to happen… and therefore, if they’re not sure, then they will hold back. Not because they don’t want to invest, but they will hold back a little,” he said.
Still, he noted that expansion in the provinces, as well as infrastructure and energy projects, continue to post gains, offering “some positive light” to investors.
Tan also warned of potential pressure on the peso, saying sentiment could weaken if economic growth forecasts are revised downward, prompting businesses to delay capital plans.
Addressing concerns over slower foreign direct investment flows in September, Tan said he remains guardedly optimistic.
“We still have a very good economy. There’s still a lot of opportunities here for most investors. It’s just a question of timing because they don’t want uncertainty,” he said.
