MSMEs told to plan ahead as fuel costs rise

By Edg Adrian A. Eva, Reporter

PHILIPPINE MICRO, small and medium enterprises (MSME) should plan ahead as margins get squeezed by mounting operating expenses from rising fuel costs driven by the Middle East war, according to Metropolitan Bank & Trust Co. (Metrobank).

MSMEs, which make up the bulk of businesses in the country, are particularly vulnerable to higher fuel and transport costs that can quickly spill over into production, logistics, and pricing.

“Take stock of what’s important for your business, have a plan and then go out there and act,” Metrobank Chief Marketing Officer Digs A. Dimagiba told BusinessWorld on the sidelines of an event last week.

“Get the help that you need, whether internally within your business or externally from partners, to really go out there and take action, because the last thing you want to do is stay still, feel helpless or be trapped,” he added.

The warning comes as businesses brace for prolonged volatility in global energy markets. The Philippine Chamber of Commerce and Industry earlier said MSMEs would be among the hardest hit if elevated fuel prices persist beyond two to three months.

Higher transport and production costs have already started feeding into inflation, which rose to 4.1% in March from 2.4% in February, according to the Philippine Statistics Authority.

Mr. Dimagiba said reacting to shocks is expected, but businesses that plan ahead are better positioned to manage risks and identify opportunities.

Metrobank refers to this approach as “financial mindfulness,” which emphasizes maintaining control and making deliberate decisions even during uncertain periods.

The bank also used the event to launch its Moneygurado documentary series, which aims to help Filipinos become more intentional in managing their finances through real-life stories across four episodes.

Mr. Dimagiba said crises typically prompt businesses to seek additional financing, either to sustain operations or pivot to more opportunities.

Metrobank offers the SME Puhunan Loan, which provides funding for working capital requirements such as inventory and receivables, as well as for capital expenditures like equipment purchases and expansion.

The loan program features flexible terms to match borrowers’ cash flow and repayment capacity, allowing businesses to better navigate fluctuating economic conditions.

Mr. Dimagiba said the bank remains ready to support MSMEs as they navigate the uncertain environment.

“If you need help navigating this crisis, Metrobank is ready to assist,” he said. “We will share our knowledge and expertise, and if you require our products and services, we will provide them to the best of our ability.”