Relief from Iran peace deal could distract from reform urgency — FPI

By Beatriz Marie D. Cruz, Senior Reporter

THE Iran peace deal promises relief to manufacturers, but should be taken as an opportunity to address the Philippines’ vulnerabilities, the Federation of Philippine Industries (FPI) said.

“The US-Iran peace deal gives the Philippines breathing room — but it also exposed how vulnerable we remain compared with our ASEAN neighbors,” FPI Chairman Elizabeth H. Lee said in a statement.

“This stability gives businesses the space we need to rebuild margins, restore predictability, and strengthen our footing,” she said.

The peace deal is also expected to strengthen the peso, which will favor import-dependent manufacturers, Ms. Lee said.

The possible easing of tensions could also help boost investor confidence, the FPI said, adding that the reform push needs to continue.

“We need to accelerate ease of doing business, tighten anti- smuggling operations, strangle corruption, and fully implement our industrial policy tools — the Tatak Pinoy Act, which mandates upgrading, diversification, and economic complexity, and the CREATE MORE (Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy) Act, which sharpens incentives and improves investor predictability,” Ms. Lee said.

She noted that the peace deal, which has resulted in the decline in global oil prices, will provide relief to the logistics, cold chain, and transport industries.

“Diesel-linked costs will soften gradually, giving manufacturers room to rebuild margins, stabilize production schedules, and restore predictability,” Ms. Lee said.

Donald Patrick L. Lim, president of the Management Association of the Philippines, said the gains from the peace deal could easily be lost if the peace process hits snags.

“Markets respond not to announcements but to certainty, and any breakdown in negotiations could quickly reverse these gains,” he said via text message.

“At a time when the global economy remains fragile, the Philippines cannot afford another geopolitical shock that raises costs, delays investments, and slows growth,” Mr. Lim added.