Biz groups pitch economic contingencies

PHILIPPINE business groups on Monday laid out the challenges the face amid a worsening conflict in the Middle East, and cited possible options for both the government and the private sector.

- BY BLESS AUBREY OGERIO X@blessogerio

The Philippine Chamber of Commerce and Industry (PCCI) warned that logistics, higher fuel costs and uncertainty for Filipino workers loom as Middle East tensions escalate.

On the other hand, the conflict could deliver an inflationary jolt to the country’s economy if tensions drag on, with higher energy and logistics costs likely to spill over to households and industries, the Federation of Philippine Industries (FPI) said in a statement.

The PCCI urged authorities to deploy monetary tools to protect the peso, maintain financial stability, and safeguard investor confidence.

"The safety of every Filipino abroad and the economic well-being of every Filipino at home must remain at the center of our national response," the chamber said in a statement.

The organization highlighted the Philippines’ full reliance on Middle East crude oil imports.

With global oil prices spiking amid fears of supply disruptions through the Strait of Hormuz, the PCCI called for the exploration of alternative fuel sources and accelerated development of renewable and domestic energy options as a long-term solution to energy vulnerability.

The group also underscored the immediate risks to over 2 million Overseas Filipino Workers in the region.