Business groups split over Marcos’ energy emergency EO

Major business organizations in the country are divided in their reactions to the release of Executive Order 110 by President Ferdinand Marcos Jr., placing the entire country under a National State of Energy Emergency on Tuesday, following rounds of significant fuel price hikes that have been crippling various sectors, particularly the transport sector.

“EO 110 may be a bit late, but it remains a necessary and urgent response and opportunity for policy changes to diversify our energy sources, hasten the development of renewables, and provide relief to all sectors affected by the escalating Middle East war,” said Employers Confederation of the Philippines chair Edgardo Lacson in a Viber message to DAILY TRIBUNE.

“However, its success will depend on execution. Emergency powers must be executed with clear, transparent, and accountable action that should not compromise long-term plans,” Lacson further adds.

The President, in his order released on Tuesday night, stated that “the declaration of a state of national energy emergency will enable the government, through the DOE and other concerned agencies, to implement responsive and coordinated measures under existing laws to address the risks posed by disruptions in the global energy supply and the domestic economy.”

The President also ordered the formulation of a crisis mitigation team, calling it the Unified Package for Livelihood, Industry, Food, and Transport (UPLIFT), composed of the President as chairman, with members including the Executive Secretary and the Secretaries of DOE, Transportation, Social Welfare and Development, Agriculture, Finance, Economy, Planning, and Development (Secretariat), and Budget and Management, excluding the Department of Trade and Industry and the Department of Migrant Workers.

Timely, necessary

For its part, the Federation of Philippine Industries said the declaration of a National Energy Emergency under EO 110 is timely and necessary.

FPI chairperson Elizabeth Lee said the UPLIFT framework provides a coordinated approach to cushion industries and communities from global energy shocks.

She said the ongoing Middle East crisis is already driving oil price spikes, tighter shipping schedules, and rising input costs. For manufacturers, the pressure is multi-layered—hitting energy, transport, imported input materials, and production timelines.

“These pressures are expected under current conditions. Manufacturers are responding with a strong focus on continuity, cost discipline, and resilience. Businesses are built for the long term, and operations are being actively managed to withstand volatility,” Lee said.

“Firms are prioritizing uninterrupted production while safeguarding workforce stability, even as margins tighten. Mitigation measures are being intensified across operations. These include optimizing production schedules to off-peak energy hours, enhancing workforce flexibility where cross-trained team members adopt flexible roles and responsibilities, and adopting remote work arrangements for non-production functions where feasible,” added Lee.

On the cost side, Lee said companies are renegotiating supplier contracts, tightening energy efficiency across production lines through lean manufacturing, and streamlining logistics—such as consolidating shipments and maximizing load efficiency to reduce fuel consumption (co-loading) where applicable.

Further, she said the current environment reinforces longer-term strategic shifts.

Manufacturers are accelerating supply chain diversification and deepening local sourcing where viable. The adoption of renewable energy is also gaining ground, with more facilities integrating solutions such as rooftop solar.

“This crisis magnified our country’s vulnerabilities. Reforms that will deepen and expand local manufacturing as a national imperative will help the Philippines secure resilience, drive job creation, and help better shield the Philippine economy from global energy shocks. Industrial growth at scale—anchored on job creation, innovation, and sustainability—is no longer optional; it is the foundation of a more secure and competitive economy moving forward,” according to Lee.