The British Chamber of Commerce Philippines (BCCP) welcomes the ceasefire between Iran and Israel but remains wary of its potential worldwide economic impacts that could significantly affect oil prices, inflation and supply. It recognized the efforts of the government to stabilize prices and ease inflationary pressures while encouraging diversification of regional and global trade partners.
BCCP Executive Chairman Chris Nelson noted that, “Oil is a continuing risk, particularly for the Philippines, which imports all of its oil and could impact transportation costs. In the current context, it has certainly eased. If you widen this to look across other areas, all the central banks will be looking to manage and, obviously, further reduce interest rates. Very good news that we have a ceasefire—it’s very important that it holds and that we keep oil prices and the actual supply out of that area running smoothly.”
Marking a 6-year low at 1.3% in May 2025, inflation continues to ease due to slower increases on housing, water, electricity, gas and other fuels. Meanwhile, food inflation also remained at 0.7% in the same period, in comparison to 6.1% in May 2024. This signalled the Bangko Sentral ng Pilipinas (BSP) to deliver its second straight rate cut for the year. BSP Governor Eli M. Remolona noted that,
“On balance, the Monetary Board sees the need for a more accommodative monetary policy stance. Emerging risks to inflation from rising geopolitical tensions and external policy uncertainty require close monitoring…”
Ahead of the upcoming Philippine-British Investment Forum on 27 June 2025 hosted by the Philippine Economic Zone Authority (PEZA), in partnership with the British Chamber and HSBC, the delegation visited the UK Department for Business and Trade and discussed investment opportunities in multiple areas such as semiconductor industry and quantum technologies, among others.
(Visit to the Department for Business and Trade with PEZA, BCCP, and ACG)
The potential impacts of global tensions and the US reciprocal tariffs should be seen as an opportunity to diversify the Philippines’ trade partners, as reiterated by Nelson, citing the recent inaugural Joint Economic and Trade Committee (JETCO) meeting, to help address market barriers and establish a sectoral focused approach to agriculture, infrastructure, renewable energy, and overall trade promotion.
Nelson also mentioned that the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to which the UK has recently joined, will further elevate its bilateral trade relations, which now stands at £3.0 billion in the four quarters to the end of Q4 2024.
“UK companies are looking at opportunities in Southeast Asia and in ways where they can do possible trade investment. In that context, we have to keep moving forward on liberalizing the economy,” Nelson said, noting that this will support existing and upcoming regulatory developments to further liberalize the Philippine economy.
