Most chief executive officers (CEOs) in the country are optimistic about investing in new opportunities such as joint ventures and mergers and acquisitions (M&A), as well as accelerating technology adoption, based on the latest Philippine edition of Ernst and Young CEO Survey, disclosed by SGV and Company in a forum in Makati City on Thursday.

The survey, which was taken from 50 Philippine CEOs, said that in the Philippines, 60 percent of CEOs identified M&A as a potential transaction, surpassing the global average of 56 percent and closely aligning with the Asia Pacific average of 61 percent.

This was due to the country’s strong 5.6 percent GDP growth in 2024 and investor-friendly policies targeting high-growth industries such as transportation, renewable energy, and telecommunications that have created a fertile ground for increased M&A activity, positioning the Philippines as a dynamic player in the APAC region.

“Looking ahead to 2025, CEOs are expected to take a more active role in leveraging M&A to accelerate both operational efficiency and customer-centric innovation. By synergizing with other companies, businesses can benefit from economies of scale, streamline processes, and integrate advanced technologies to improve cost structures,” according to the poll.

Acquisitions in AI, automation, and cloud computing can boost productivity and efficiency, which ultimately leads to bottom-line improvements,” the survey said.

According to Noel Rabaja, SGV & Co. head of Strategy and Transaction Services Group, the growing number of CEOs eyeing M&A, would result in more foreign investments coming into the country.

“As there are more M&A transactions in the Philippines, that may attract more foreign investors coming in, by way of participating in M&A transactions,” he said.

Tool to stay ahead

Moreover, the survey said M&A enables companies to stay ahead of evolving consumer demands.

Through acquisitions, businesses can rapidly expand product offerings, integrate new service models, and improve customer experience. Strategic deals in fintech, customer experience platforms, and digital infrastructure highlight how Philippine companies are using M&A to strengthen customer propositions.

Further, the survey revealed that 62 percent of the country’s CEOs have a slightly optimistic outlook on the business environment but have expressed high confidence when asked from a global (46 percent) and sector-specific (48 percent) perspective.