Logistics costs top MSME concerns for 2027 – study

Business & FinanceStartup
29 Oct 2026 • 6:45 AM MYT
The Manila Times
The Manila Times

One of the longest-running English broadsheets in the Philippines

Logistics costs top MSME concerns for 2027 – study

OPTIMISM was the most common outlook for 2027 among Philippine micro, small and medium enterprises (MSMEs) surveyed by delivery platform Lalamove, although high logistics costs remained their biggest concern.

The study was conducted in September among more than 1,100 Lalamove business users in the Philippines.

It found that 35.8 percent of respondents were optimistic about their business, while 22.5 percent were cautious, 16.2 percent uncertain, 13.5 percent expected no change, and 12 percent were pessimistic.

High logistics costs topped the perceived obstacles to growth over the next 12 months at 42.2 percent, followed by interest rate hikes and inflation at 39.5 percent, and weak consumer spending at 38.2 percent.

While 52 percent expected transport and logistics costs to remain broadly unchanged, 36.2 percent anticipated increases.

Small businesses are also adopting digital tools to meet demands for faster operations. Some 62.4 percent planned to continue using artificial intelligence in 2027.

Respondents reported using AI for creative work (29.5 percent), marketing (27.8 percent), research (24.3 percent), and business operations (18.4 percent).

Some 14.8 percent said AI had made their operations much faster than a year earlier, while 26.6 percent reported slightly faster operations.

The survey also pointed to rising customer expectations for delivery and response times, with 23.7 percent reporting slightly higher expectations and 14.5 percent much higher expectations than a year earlier.

Delivery needs were changing alongside these demands. Some 58.8 percent reported greater need for urgent same-day deliveries, 23.4 percent for deliveries outside regular business hours, and 21.2 percent for trips serving multiple drop-off points.

Lalamove said speed and cost control would be priorities for MSMEs in 2027. Its on-demand service allows businesses to adjust deliveries to order volumes without maintaining their own delivery operations, the company said.

Lalamove Philippines Managing Director Djon Nacario said the company aims to provide a flexible option as demand for urgent and after-hours deliveries grows.

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