If the Philippines fails to address the high costs of energy and the ongoing corruption connected with infrastructure projects, it could lose ground in global supply chains, according to a news report by BusinessWorld.
To put things in perspective, posted below is an excerpt from the report of BusinessWorld. Some parts in boldface…
THE PHILIPPINES risks losing ground in global supply chains unless it addresses high energy costs and unresolved corruption issues surrounding infrastructure projects, which continue to weigh on investor sentiment, according to UK-based risk intelligence firm Verisk Maplecroft.
“The Philippines’ biggest infrastructure challenge is its relatively high cost of energy, which has been exacerbated by the Hormuz crisis,” Laura Schwartz, a senior Asia analyst at Verisk Maplecroft, said in an e-mailed reply to BusinessWorld.
“Following the onset of the crisis, there was some movement in fast-tracking renewable energy projects, but more will be needed,” she added.
The Philippines, which sources at least 90% of its oil supply from the Middle East, has been one of the most affected by the global oil crisis.
Ms. Schwartz also said last year’s corruption scandal — which linked state officials and contractors in substandard or nonexistent flood control projects — may deter companies that are seeking to diversify their supply chains from investing in the Philippines.
“High-profile governance issues, particularly the widespread public works corruption allegations and political jockeying, are one of the top factors leading to investor hesitation in the near term,” she said.
In its 2026 Supply Chain Risk Outlook, Verisk Maplecroft identified the Philippines, Thailand, Argentina, Chile, and Uruguay as “rising stars” in the global supply chain.
“Relative to the established hubs, these ‘rising stars’ offer different mixes of sector capability, market openness, regulatory strengths, and labor-risk trajectories for organizations looking to realign their supply chains,” it said in the report released on June 23.
“The businesses that move first — screening these markets now, building supplier relationships before demand spikes, and stress-testing entry strategies against external risk data — will find themselves better positioned to act when faced with disruptive geopolitical realignment, trade restrictions, or conflict outbreaks,” Verisk Maplecroft said.
A third of the world’s busiest ports and airports are vulnerable to disruption amid ongoing geopolitical conflicts, environmental challenges, and domestic security threats, the firm noted.
The closing of the Strait of Hormuz has created near-term headwinds for the Philippines and Thailand, Verisk Maplecroft said.
Despite this, “procurement teams willing to take a longer-term view will find these markets worth their attention,” the company added.
The report cited the Philippines’ strong potential in the global supply chain due to improvements in its market openness, its competitive labor costs, and its young, English-fluent workforce.
“The Philippines performs second-best across the Southeast Asian economies analyzed due to significant improvement in our market openness pillar,” it said.
“Despite lower infrastructure quality and governance challenges, including recent corruption scandals, the Philippines shows notable opportunities in sectors like electronics, auto parts, and food manufacturing,” Verisk Maplecroft said.
Other Southeast Asian economies assessed in the report were Singapore, Cambodia, Indonesia, Malaysia, Vietnam, Thailand, and Myanmar.
Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the government of the Philippines has the will to resolve high energy costs and the ongoing corruption on infrastructure projects? Do you think the Philippines could get more affordable oil from places other than the Middle East?
You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.
+++++
Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at @CarloCarrascoPH as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco
Author Carlo Carrasco 