METRO Pacific Investments Corp. (MPIC) is reviewing its budget for the year as the ongoing war in the Middle East raises uncertainties over costs and growth, Chairman Manuel Pangilinan said.
The infrastructure conglomerate said it still expected to post growth this year, although the pace could slow as the impact of rising fuel and power prices filters through operations.
“I think we still grow. Definitely grow,” Pangilinan told reporters. “There might be some slowdown in the rate of growth, especially profits, because the impact is not yet felt.”
He said the group had asked its major businesses to reassess budgets given evolving global conditions.
“We’re redoing our budget ... and [rethinking] whether we should update based on these latest trends,” Pangilinan said, noting that uncertainty over the duration of the Middle East war remains a key concern.
Despite the risks, he said capital expenditures were unlikely to be reduced, including those of Manila Electric Co. and Meralco PowerGen Corp., as well as MPIC.
“I doubt whether we will reduce it,” he said.
He added that higher oil prices could affect some segments, particularly tollways, as elevated fuel costs may dampen traffic.
Still, Pangilinan pointed to the resilience of essential services, noting that demand for electricity, water and food is expected to remain steady.
“In challenging times like this, the basics are food ... you still need water, you need power, you need to eat,” he said.
He also said that a planned sale of hospital assets had been postponed, although the business continues to perform well and may present opportunities for further acquisitions.
The timing of the planned listing of digital bank Maya, meanwhile, remains uncertain given global developments, including the situation in the Middle East, the MPIC chairman added.