Market Update: We break down the business implications, market impact, and expert insights related to Market Update: Philippine business group warns Middle East tensions could hit economy – Full Analysis.
MANILA (Xinhua): The Philippine Chamber of Commerce and Industry (PCCI) on Monday expressed “grave concern” over the escalating military tensions in the Middle East, warning of serious repercussions for the Philippine economy, particularly on oil prices and remittance inflows from overseas Filipino workers (OFWs) in the region.
In a statement posted on its social media account, the country’s largest business group said it joins the international community in calling for an immediate ceasefire and a return to diplomatic dialogue, stressing that “we wish to sound the alarm on the serious economic consequences this crisis poses on our economy and the Filipino people”.
The PCCI noted that the Philippines sources 100 per cent of its crude oil imports from the Middle East, making it highly vulnerable to supply disruptions.
With oil prices surging amid fears of instability in the Strait of Hormuz, the group urged the government to seek alternative fuel sources.
The chamber also raised concerns over the safety of more than 2 million overseas workers currently deployed across the Middle East.
The PCCI called on authorities to activate emergency protocols, maintain constant communication with workers on the ground, and fast-track evacuation and repatriation plans where necessary.
On the domestic front, the PCCI warned that higher fuel costs, supply chain disruptions, and potential declines in remittance inflows could reignite inflation and erode the purchasing power of ordinary Filipinos. — Xinhua