Poll: GDP growth likely slowed in Q3
By Heather Caitlin P. Mañago
THE PHILIPPINE ECONOMY likely cooled in the third quarter as soft government spending, typhoons and corruption scandals weighed on growth momentum, economists said.
However, resilient household spending supported by the central bank’s rate cuts may have helped anchor economic activity, they added.
Philippine gross domestic product (GDP) likely grew by 5.3% in the third quarter, based on a median forecast of 18 economists and analysts polled by BusinessWorld.
This is slower than the 5.5% expansion in the second quarter, but a tad faster than the 5.2% expansion in the July-to-September period of 2024.
If realized, this would bring the average GDP growth to 5.4%, falling short of the government’s 5.5%-6.5% full-year target.
The Philippine Statistics Authority is scheduled to release third-quarter GDP data on Nov. 7.
In a research note, Chinabank Research said that government consumption may have declined due to the timing of disbursements and slower releases for some programs.
“Capital formation was likely weighed down by reduced public infrastructure spending due to the ongoing probe on infrastructure projects,” it said.
HSBC Global Investment Research economist for the Association of Southeast Asian Nations Aris D. Dacanay said that since public construction usually represents 5-6% of GDP, the 20% year-on-year drop in public infrastructure spending in July and August may have cut GDP growth by around one percentage point.
Public spending or government final consumption expenditure accounts for almost 18% of the country’s GDP.
Angelo B. Taningco, vice-president and Research Division head at Security Bank Corp., said sluggish capital formation and weak government spending may have dampened growth in the third quarter.
“[This is] hampered by tepid public infrastructure works tainted by corruption in flood control projects,” he said in an e-mail.
Data from the Bureau of the Treasury also showed the National Government disbursed P1.46 trillion in the third quarter, P141.73 billion less than its P1.6-trillion program for the period. This is mainly due to lower spending by the Department of Public Works and Highways, which is at the center of a corruption scandal involving flood control projects.
Ser Percival K. Peña-Reyes, director of the Ateneo Center for Economic Research and Development, said the corruption scandal involving infrastructure projects was the greatest domestic risk in the third quarter.
“Investor confidence has been shaken. Foreign investors are pulling back…, the scandal has created a toxic mix of political risk, fiscal uncertainty, and social unrest. It threatens our investment-grade rating and undermines our medium-term fiscal framework,” he said in an e-mail.
Mr. Peña-Reyes also noted that in the third quarter, the peso weakened past the P58-per-dollar mark, and the Philippine Stock Exchange index (PSEi) fell below the 6,000 psychological support level, reflecting political instability and capital flight.
BAD WEATHER
Several typhoons may have also dragged economic activity during the period, analysts said.
Bank of the Philippine Islands Lead Economist Emilio S. Neri, Jr. estimated GDP growth at 4.9%, largely due to the series of typhoons and disasters combined with significant decline in infrastructure spending.
In the third quarter, a total of 14 tropical cyclones formed or entered the Philippine Area of Responsibility as reported by the Philippine Atmospheric, Geophysical and Astronomical Services Administration.
According to the National Disaster Risk Reduction and Management Council, Typhoon Bising and the southwest monsoon caused P12 million in infrastructure damage in July. By August, the combined effects of the monsoon and tropical cyclones Crising, Dante, and Emong resulted in over P21 billion in agricultural and infrastructure losses nationwide.
“Furthermore, agricultural output also declined due to the typhoons. This may have also tempered household spending due to limited movement,” Reinielle Matt M. Erece, an economist at Oikonomia Advisory and Research, Inc., said in an e-mail.
The agriculture sector accounts for about a tenth of the country’s GDP and provides about a quarter of all jobs. Third-quarter agricultural output data will be released on Nov. 6.
HOUSEHOLD CONSUMPTION
Maybank Investment Bank economist Azril Rosli said that sustained private consumption continues to anchor economic activity, supported by the Bangko Sentral ng Pilipinas’ (BSP) rate cuts.
“The BSP’s monetary easing cycle, which began in mid-2024, is providing gradual relief to households and businesses, helping to sustain domestic demand momentum,” Mr. Rosli said.
He added that private consumption remains fundamentally sound, underpinned by steady wage growth and a relatively resilient labor market condition.
Household final consumption expenditure, which accounts for 68% of the economy, rose by 5.5% in the second quarter, faster than 4.8% in the same period last year.
The BSP has now slashed borrowing costs by a cumulative 175 basis points since it began its rate cut cycle in August 2024. This brought the policy rate to 4.75%, the lowest in over three years.
BSP Governor Eli M. Remolona, Jr. also signaled another rate cut is on the table at its next policy meeting in December.
Meanwhile, Moody’s Analytics economist Sarah Tan expects the economy to grow by 5.9%, faster than 5.5% in the previous quarter.
“The improvement reflects stronger household spending as monetary policy easing feeds through to lower borrowing costs and improved credit conditions,” she said in an e-mail.
She added that “softer inflation has improved households’ purchasing power and given the central bank space to maintain an accommodative stance.”
In September, inflation quickened to a six-month high of 1.7% in September from 1.5% in August. In the nine-month period, inflation averaged 1.7%, lower than the 3.4% in the same period in 2024.
For Nicholas Antonio T. Mapa, chief economist at the Metropolitan Bank & Trust Co., household consumption will likely deliver a sizable contribution to growth although the pace of expansion may be similar to the previous quarter.
“Despite slower inflation; price levels remain elevated while households rely more on credit,” he said in a Viber message.
Chinabank Research noted that household consumption remained the key driver of GDP growth, supported by low inflation.
“Additionally, the trade deficit narrowed during the quarter, helped by front-loading by US importers early in the period and resilient demand for semiconductors,” it added.
Moody Analytics’ Ms. Tan also noted that on the external side, exports have held up relatively well through July and August, which should support overall trade performance in the third quarter.
However, Mr. Erece said export growth may have slowed as front-loading tapered off with the 19% US tariff on Philippine goods taking effect on Aug. 7.
OUTLOOK
Meanwhile, economists expect Philippine GDP growth to accelerate in the remaining months of 2025.
“We expect growth to average 5.6% for the full year of 2025, settling within the government’s revised growth target range of 5.5% to 6.5%,” Moody’s Analytics’ Ms. Tan said.
She added that monetary easing, a strong labor market, and steady remittances will help sustain growth.
“These factors will sustain consumption, while external trade, on average across the year, should continue to contribute positively despite a softer global backdrop,” she said.
Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines, said that modest improvement is expected in the fourth quarter as fiscal spending catches up and monetary easing gains traction.
For Miguel Chanco, chief emerging Asia economist at Pantheon Macroeconomics, “there should be something of a bounce in the fourth quarter.”
“For the most part, we’re sticking to our below-consensus view that 2025 full-year growth will come in at 5.3%, well below the government’s aspirations.”
Mr. Erece said that apart from tighter public spending, the recent corruption scandal may have negatively affected foreign investments, given its impact on trust.
Still, he expects holiday spending to drive fourth-quarter GDP growth.
“However, global trade jitters and public spending scrutiny may continue to drag down growth,” he said.
Maybank’s Mr. Rosli said he expects growth to remain solid at 5.5-5.9% in the fourth quarter, driven by year-end spending from both the government and private sector. The full impact of BSP’s monetary easing is also likely to support consumption and revive investment.
“Overall, our full-year 2025 GDP forecast of 5.6% represents solid and sustainable growth, underpinned by the economy’s fundamental strengths,” Mr. Rosli said.
Philippine manufacturing PMI bounces back to 50.1 in October
By Aubrey Rose A. Inosante, Reporter
PHILIPPINE MANUFACTURING activity rebounded in October, despite a further drop in new orders and output, according to S&P Global.
The S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI) improved to 50.1 in October, a turnaround from 49.9 in September.
A PMI reading above 50 denotes better operating conditions from the preceding month, while a reading below 50 shows a deterioration in operating conditions.
S&P Global noted that the latest PMI reading indicates “broadly stable” operating conditions.
Maryam Baluch, economist at S&P Global Market Intelligence, said the Philippine PMI reading in October reveals a “mixed picture.”
“The two largest segments, new orders and output, indicated further declines. Additionally, fresh contractions were observed in new export orders and purchasing activity, highlighting underlying demand conditions,” she said.
S&P Global noted that output and new orders “have now failed to record any growth for a second consecutive month, a trend not seen in over four years.”
“The decline in output was closely associated with falling new orders, which panelists linked to adverse weather conditions and the end-of-life status for certain products,” it said, adding that the pace of contraction slowed month on month.
S&P Global said new factory orders “fell at a stronger rate” in October, amid a “sluggish demand climate, with clients often putting orders on hold.”
“In addition, new export orders fell for the first time since May and at a solid pace which was the most pronounced for a year. Companies reported weaker demand from international clients,” it added.
S&P Global said the sharp drop in new orders led manufacturing firms to scale back their purchasing activity. This was the first decline in purchasing activity in nearly two years.
“However, according to anecdotal evidence, last-minute cancellations of orders meant that both pre- and post-production inventories recorded marginal increases. The latter registered a fresh uptick, marking the first expansion in three months,” it said.
Delivery times for inputs also lengthened in October, it said.
S&P Global said October marked a “further alleviation of underlying cost pressures.”
“The rate of input price inflation was modest and the weakest in three months. However, where goods producers reported higher prices, this was attributed to rising supplier and material costs,” it said.
Ms. Baluch said Filipino manufacturers also offered discounts in October to stimulate demand in a subdued market.
“Charges levied for Filipino manufactured goods fell for the first time in 19 months. The rate of decrease was marginal but the strongest since April 2020,” S&P Global said.
Business confidence also improved, nearing August levels, as manufacturers anticipated stronger output and strengthening demand trends” over the next 12 months.
“On a more positive note, manufacturers grew more optimistic about their growth prospects for output in the coming year. Companies also continued increasing their workforce numbers, with the latest rise in staffing numbers the strongest in three months,” Ms. Baluch said.
Ms. Baluch said the manufacturing sector remained in sluggish territory for most of the second half.
“Whether it can see a notable recovery in performance in the coming months will depend greatly on efforts to stimulate consumer demand,” she said.
S&P Global Marketing Intelligence Economics Associate Director Jingyu Pan said Philippine factory output in October showed that conditions are stabilizing.
“We have the output index falling at a less pronounced, in fact, very marginal pace. I think that’s a positive sign,” she said in an interview on Money Talks with Cathy Yang on One News on Monday.
However, Ms. Pan partly attributed the decline in output to a series of earthquakes in Cebu, a key electronics manufacturing hub, which damaged some business facilities.
Global trade tensions are expected to weigh on new export orders, with subdued demand already seen in October.
“I think, reflecting the kind of worries we had in terms of trade tensions coming through to actually impact the manufacturing economy in a more pronounced phase, especially now that as we enter the final quarter of the year with the tariffs settled in. I think that is something that we have to watch,” she said.
The US implemented the 19% tariff on Philippine-made goods on Aug. 7.
Better weather conditions may have also helped lift the Philippine manufacturing activity in October.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said factory activity shifted to expansion mode partly due to better weather conditions followed by two months of adverse weather and earthquake disruptions.
“(This is) also partly due to the positive effects of the local policy rate cuts that reduced borrowing costs for some local manufacturers,” he said in a Viber message.
In the coming months, Mr. Ricafort warned that political noise could dampen manufacturing activity, especially among firms linked to infrastructure supply chains.
PHL industry ‘at its lowest point in recent years’ — Balisacan
THE PHILIPPINES’ INDUSTRY sector — including manufacturing and construction — may have slumped to its lowest level in recent years, dragging third-quarter economic growth, Economy Secretary Arsenio M. Balisacan said.
“I am not as optimistic (on growth) as I used to, given what the data that have been coming out in recent weeks, and particularly the performance of our industry,” he told reporters on the sidelines of an event on Monday.
“The industry is probably at its lowest point in recent years.”
He did not provide details on the gross domestic product (GDP) data, which will be released by the Philippine Statistics Authority on Nov. 7.
Mr. Balisacan said the corruption scandal, weather-related disruptions and mounting global uncertainties may have weighed on GDP growth in the third quarter.
He said there was a slowdown in government spending and fixed-capital formation, as well as other areas like industry and services.
A crackdown on anomalous flood control projects alongside a corruption probe may have affected government disbursements.
The Marcos administration only disbursed P1.46 trillion in the third quarter, data from the Bureau of the Treasury showed, P141.73 billion less than its P1.6-trillion program for the period. This is mainly due to lower spending by the Department of Public Works and Highways, which is at the center of a corruption scandal involving flood control projects.
Mr. Balisacan also noted that adverse weather conditions that led to the suspension of work and classes may have contributed to slower growth in the July-to-September period.
However, he expects the impact on growth to be temporary, with a recovery likely in the next few quarters.
In the first six months of 2025, the economy grew by an average of 5.4%. The government is targeting 5.5-6.5% GDP growth this year.
“Our economic fundamentals have remained strong. The potentials have remained strong, our GDP growth potential is quite high, 6% and above. But reaching those potentials is another matter, and those are affected by instability, uncertainty, and we’ll see,” he said.
The country’s GDP likely grew by 5.3% in the third quarter, based on a median forecast of 18 economists and analysts polled by BusinessWorld. This is slower than the 5.5% expansion in the second quarter, but a tad faster than the 5.2% expansion in the July-to-September period of 2024.
RICE TARIFF REVIEW
Meanwhile, Mr. Balisacan said the Economic Development Council is scheduled to convene on Tuesday to tackle the proposal to raise rice tariffs to 35% from the current 15%.
The Department of Trade and Industry will present its recommendation on rice tariff adjustments during the meeting. This recommendation was endorsed to the Council by the Tariff-Related Matters Committee.
The Department Agriculture earlier recommended raising the rice import tariff to its original 35% rate from the current 15%.
Philippine President Ferdinand R. Marcos, Jr. on Sunday approved the extension of the country’s rice import ban until yearend.
Sought for comment, Mr. Balisacan said the government has “good enough supply” of rice to temper increases in retail prices.
“The overall goal of that is to protect farmgate prices from further falling, because in the past almost a year now, farmgate prices have dropped by more than 30%,” he said.
Farmer groups have blamed the current 15% tariff for keeping farmgate prices low by encouraging cheaper imports, undermining local producers.
However, Mr. Balisacan warned that tweaking the rice import tariff alone won’t fix the farmers’ problems.
“You have to use a combination of policy tools to address those problems, and that’s what we are going to present tomorrow,” he said noting that this approach will ensure the market will support medium-term and long-term development efforts.
Samahang Industriya ng Agrikultura spokesman Jayson H. Cainglet argued that the rice tariff cut to 15% has failed to benefit consumers, with importers and traders instead pocketing the savings.
He noted that palay production cost is P14.61 per kilo, but palay is only being bought at P8-12 per kilo, he told BusinessWorld in a Viber message on Monday.
He also noted that the reduced tariff has resulted in P25-billion foregone revenues from the imported rice as of end-August.
Separately, Mr. Balisacan led the opening of the Presidential Filipinnovation Awards that will select five winners out of 15 finalists which receive a cash grant and post-competition support package worth up to P3.5 million, including coaching and mentoring.
“Our goal here is that we can mainstream innovation in the private sector, that we can increase the success rate of our innovators,” he said during a briefing in Crowne Plaza Manila Galleria.
Economy Undersecretary Rosemarie G. Edillon said the government is targeting to raise the Philippines’ rank in the Global Innovation Index (GII) by 2028. The Philippines is currently at 50th place out of 139 economies in the 2025 GII. — Aubrey Rose A. Inosante
Philex Mining targets 1st Silangan output by Q1
PHILEX MINING CORP. said its Silangan Copper-Gold project in Surigao del Norte province is entering the final stretch of development and remains on schedule to produce its first metal by the first quarter of 2026, positioning it among the country’s biggest mining ventures in decades.
In a disclosure on Monday, the listed miner said construction and underground works are advancing steadily, with Level 95 mine development and production drifts expected to be completed by February.
Commissioning of the processing plant is targeted for end-January, with the first metal output by March.
“The company continues to stockpile development ore for expected use in charging up the process plant during commissioning by end-January 2026,” Philex said. “[About] 66,000 metric tons (MT) of ore are already stockpiled at the surface, equivalent to a month’s production at the programmed initial rate of 2,000 MT per day.”
Samples from the mining zones confirm the presence of high-grade mineralization consistent with findings in its 2019 technical report, it said, adding that additional testing is under way to validate early results.
“In a race, there are two important points: the start and the finish. The runner needs a strong start and will exert his last force of energy closest to the finish line,” Philex President and Chief Executive Officer Eulalio B. Austin, Jr. said in a statement.
“We are now at the most critical part of the race, so we focus all our energy on winning at the finish line. We do this not just for our own success, but for the betterment of the lives of our stakeholders, particularly the host and neighboring communities,” he added.
The Silangan project’s process plant is about 70% complete, while the tailings storage facility is 76% finished, according to the update. Work continues on the main embankment, clean-water dams and pipeline systems connecting to the plant.
The company has also completed a six-kilometer tailings pipeline road linking the process plant to the tailings storage facility, allowing for early access and construction logistics.
The main embankment is 85% done, and Philex said the final stage involves connecting an open channel to ensure proper runoff and avoid premature pumping. The high-voltage switchyard is expected to be energized by January 2026.
The Silangan project is central to Philex’s long-term strategy to extend its life-of-mine operations beyond the Padcal Mine in Benguet that has been producing for more than six decades.
Once operational, Silangan is expected to deliver an average annual output of about 81 million pounds of copper and 34,000 ounces of gold during its first phase.
The project — one of the biggest investments in Mindanao’s mining sector — is projected to generate thousands of direct and indirect jobs, alongside tax and royalty payments to local governments and indigenous communities.
Despite construction progress, Philex’s nine-month attributable net income dropped 24% to P481.81 million from a year earlier due to higher costs and lower copper prices. Gross revenues, however, rose 2.9% to P6.28 billion, lifted by stronger gold prices.
The miner said average realized gold prices climbed sharply to $3,642 per ounce in the third quarter compared with $2,336 a year ago. For the nine months to September, average gold prices were $2,874 per ounce, up from $2,115 a year ago.
Copper prices, meanwhile, weakened slightly to $4.43 per pound in the third quarter from $4.59 a year earlier. The nine-month average was $4.28 per pound, down from $4.52 in 2024.
Tonnage milled increased marginally year on year, but overall gold and copper output was slightly lower or close to 2024 levels, the company said.
The Silangan mine’s completion will mark a key milestone for the Philippine mining sector, which has been undergoing regulatory reforms aimed at attracting foreign investment and expanding downstream processing. The project is among several large-scale developments expected to boost the country’s mineral exports and support President Ferdinand R. Marcos, Jr.’s goal of maximizing resource-based industries for economic growth.
At the Philippine Stock Exchange on Monday, Philex Mining shares fell 0.87%, or P0.07, to close at P8 apiece.
Philex is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Metro Pacific Investments Corp. and PLDT, Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Alexandria Grace C. Magno
AboitizPower unit retires 12.4-MW Cebu diesel plant
ABOITIZ POWER CORP. (AboitizPower) said its unit East Asia Utilities Corp. has decommissioned a 12.4-megawatt (MW) diesel generator unit in Cebu after concluding that the facility was no longer viable for continued operation.
In a stock exchange disclosure on Monday, AboitizPower said East Asia Utilities completed the process of deregistering the asset from the system operated by the Independent Electricity Market Operator of the Philippines.
The move followed the company’s receipt of clearances from the Department of Energy and Energy Regulatory Commission, in compliance with guidelines for decommissioning or mothballing power plants.
The decision stemmed from a technical incident in May 2024 which, after evaluation, rendered the generator beyond economic repair, the company said. East Asia Utilities’ three other generating units remain unaffected and continue to operate.
Located within the Mactan Export Processing Zone 1 in Lapu-Lapu City, the unit’s bunker oil-fired power plant began commercial operations in 1998. It supplies electricity to industrial locators in the economic zone and to the Wholesale Electricity Spot Market.
AboitizPower is the Aboitiz Group’s holding firm for investments in power generation, distribution and retail electricity services.
Shares of AboitizPower fell 3.03% or P1.25 to close at P40 each on Monday. — Sheldeen Joy Talavera
T-bill rates end mixed before Oct. inflation data
THE GOVERNMENT upsized its award of the Treasury bills (T-bills) it offered on Monday, with yields ending mostly slightly higher as Philippine headline inflation likely picked up last month.
The Bureau of the Treasury (BTr) raised P25 billion from the T-bills it auctioned off, above the P22-billion plan, as the offer was over four times oversubscribed, with total bids reaching P99.095 billion. This was also higher than the P85.365 billion in tenders recorded at last week’s auction.
The Auction Committee hiked its T-bill award as all tenors fetched average rates that were lower than those quoted at the secondary market, the BTr said in a statement.
Broken down, the Treasury borrowed P7 billion as planned via the 91-day T-bills as total tenders for the tenor reached P30.58 billion. The three-month paper was quoted at an average rate of 4.874%, up by 1.6 basis points (bps) from 4.858% in the previous auction. Yields accepted were from 4.848% to 4.887%.
The government also sold the programmed P7.5 billion in 182-day securities as tenders for the tenor totaled P37.255 billion. The average rate of the one-year T-bill inched down by 1.8 bps to 5.026% from 5.044% previously. Bids awarded carried yields from 5% to 5.049%.
Meanwhile, the Treasury upsized its award of 364-day debt to P10.5 billion from the P7.5-billion plan as the tenor drew demand amounting to P31.26 billion. This prompted the BTr to double its acceptance of noncompetitive bids for the tenor to P6 billion, it said.
The average rate of the one-year T-bill was at 5.099%, inching up by 0.6 bp from the 5.093% fetched last week. Accepted rates ranged from 5.085% to 5.113%.
At the secondary market before Monday’s auction, the 91-, 182-, and 364-day T-bills were quoted at 4.8951%, 5.0966%, and 5.1781%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data provided by the Treasury.
The Treasury made a full award of its T-bill offer as yields mostly moved sideways and demand remained strong, a trader said in a text message.
“Higher demand is likely due to the preference for short-term tenors at the moment, while the lack of movement in yields reflects the general lack of activity in the market recently,” the trader said.
T-bill yields mostly edged up before the release of October consumer price index (CPI) data on Wednesday (Nov. 5), Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
“[The] latest inflation data is expected to be slightly higher versus the 1.7% in September 2025,” he said, adding that the peso’s recent weakness could lead to higher importation costs that could further drive up the CPI.
The peso logged a new record low of P59.13 against the dollar on Oct. 28.
A BusinessWorld poll of 17 analysts yielded a median estimate of 1.8% for October headline inflation.
If realized, this would have picked up from the 1.7% clip in September but slowed from the 2.3% seen in the same month last year. It would also be the fastest clip in eight months or since the 2.1% in February and would match the 1.8% in March.
Still, the median estimate falls within the Bangko Sentral ng Pilipinas’ (BSP) 1.4-2.2% forecast for October. It would also mark the eighth month in a row that inflation undershot the BSP’s 2-4% annual target.
T-bill rates also went up after US Federal Reserve Chair Jerome H. Powell signaled that a December rate cut could be unlikely, Mr. Ricafort added.
On Wednesday, after the Fed’s policy-setting committee voted 10-2 to lower its benchmark interest rate to the 3.75%-4% range, Mr. Powell delivered an unusually clear warning to markets: given “strongly differing views” about how to proceed in December, he said, a rate cut was “not a foregone conclusion, far from it,” Reuters reported.
Financial markets pared what had been near-certain pricing for a December rate cut after Mr. Powell’s remarks, although bets still reflect twice as high a chance of a rate cut as none.
On Tuesday, the government will offer P35 billion in a dual-tenor Treasury bond (T-bond) offering. Broken down, it wants to raise P20 billion via reissued seven-year papers with a remaining life of four years and eight months, and P15 billion in reissued 10-year securities with a remaining life of nine years and five months.
The BTr is looking to raise P158 billion from the domestic market this month, or P88 billion via T-bills and P70 billion through T-bonds.
The government borrows from local and foreign sources to finance its budget deficit, capped at P1.56 trillion or 5.5% of gross domestic product this year. — Aaron Michael C. Sy
PHL firms told to boost mobile app security as cyberattacks rise
By Beatriz Marie D. Cruz, Reporter
PHILIPPINE COMPANIES should boost investments in mobile app security as cybercriminals increasingly exploit artificial intelligence (AI) tools to bypass traditional defenses, according to cybersecurity firm Appdome, Inc.
“Recent studies have shown that the Philippines is pretty much the biggest market in Southeast Asia for fraudulent activity,” Jan Sysmans, Appdome mobile app security evangelist, said in a video interview.
“In the past, security and information technology (IT) budgets focused on protecting the perimeter. In a mobile-first world, the focus has to shift to protecting the mobile business,” he added.
Filipino consumers downloaded 3.39 billion mobile apps in 2024, ranking the Philippines among the top 10 globally in app downloads and usage hours, according to a 2025 report by analytics firm SensorTower, Inc.
The surge in mobile banking, e-commerce and digital entertainment has also widened the attack surface for cybercriminals.
Advances in AI have rendered traditional biometric authentication such as facial recognition and fingerprints less secure, Mr. Sysmans said, citing remarks from OpenAI Chief Executive Officer Sam Altman.
AI-driven deepfakes can now generate hyper-realistic data, effectively defeating identity-based security, he pointed out.
Cyber-incidents in the Philippines have accelerated alongside digital adoption. Data breaches jumped 49% in the third quarter, compromising more than 52 million credentials in just three months, based on a report by Viettel Cyber Security.
“What we’re seeing already is criminal organizations hacking into AI agents, presenting themselves as customer support agents,” Mr. Sysmans said, noting that such tactics exploit user trust and the growing sophistication of conversational AI.
He urged Philippine companies to prioritize securing mobile application programming interfaces (API) and user identity data — areas often neglected in traditional cybersecurity frameworks.
“If the mobile device or the APIs that the mobile app uses to connect to the backend are unprotected, then a criminal organization can leverage those connections to access resources or websites and try to inflict damage,” he said.
Despite rapid growth in mobile use, cybersecurity spending across Southeast Asia remains uneven. Industry analysts say organizations still allocate the bulk of IT budgets to legacy systems and network firewalls rather than app-layer protections.
The shift to mobile-first business models means companies can no longer afford to treat app security as an afterthought because the threat has moved to where the users are — on mobile.
Banks keep lending standards steady
PHILIPPINE BANKS expect to keep their lending standards largely unchanged this quarter as they expect steady credit demand from both businesses and households, a survey by the Bangko Sentral ng Pilipinas (BSP) showed.
According to the BSP’s latest Senior Bank Loans Officers’ Survey (SLOS) published on Monday, 86% of banks expect to keep their standards for business loans this quarter, higher than the 78.9% seen in the July-September period, based on the modal approach.
“The rest of the respondents are split between easing (3.5%) and tightening (10.5%),” the BSP added.
For households, 87.5% of banks also expect to keep the same lending standards, up from 77.5% last quarter.
“Around 10% expect to tighten standards, while 2.5% may ease them.”
Lending standards are used by banks when approving loans. These include interest rates, loan size, collateral, loan conditions, and repayment terms.
Through the SLOS, the BSP analyzes the quarter-on-quarter changes in banks’ loan officers’ perceptions of their overall credit standards and the factors affecting loan supply and demand. It uses both the modal approach, which requires a categorical response, and the diffusion index (DI) method, which reflects the net difference between the respondents’ answers.
The BSP surveyed 58 banks in the country for the latest SLOS from Sept. 11 to Oct. 21, translating to a 96.7% response rate.
Meanwhile, under the DI method, the survey showed that a net 7% and 7.5% of banks said they expect to tighten rather than loosen standards for business loans and household credit, respectively, in the period.
“This indicates that any future change in credit standards is more likely to reflect tightening than easing,” the BSP said.
LOAN DEMAND
This comes as 73.7% of banks surveyed said they see steady demand for business loans this quarter, based on the modal approach, slightly lower than the 75.4% in the third quarter.
“Meanwhile, 1.8% of banks anticipate a decline in loan demand, compared to 5.3% in the previous quarter. About 24.6% of banks expect loan demand to increase, up from 19.3% in the third quarter,” the central bank said.
For household loans, 65% of the respondent banks said they see stable demand for credit, lower than the 75% recorded in the third quarter.
Meanwhile, some 25% said they anticipate higher demand, up from 17.5% previously, and 10% expect a decline, up from 7.5% last quarter.
Bank lending increased by 11.2% year on year to P13.62 trillion at end-August, slower than the 11.8% growth in July, latest BSP data showed. — K.K. Chan
LANDBANK streamlines digital agri lending with AGRISENSO Plus
NEGROS OCCIDENTAL — LANDBANK continues to make agricultural financing more accessible with the integration of online applications under the AGRISENSO Plus Lending Program, allowing farmers to conveniently apply for loans anytime and anywhere, underscoring the Bank’s commitment to simplify access to affordable credit.
LANDBANK President and CEO Lynette V. Ortiz and Department of Agriculture (DA) Secretary Francisco P. Tiu Laurel, Jr. led the launch on Oct. 30, 2025 at the Cadiz City Arena, attended by more than 1,700 farmers from Cadiz and neighboring towns.
They were joined by Philippine Crop Insurance Corporation (PCIC) President Atty. Jovy C. Bernabe, Agricultural Credit Policy Council (ACPC) Deputy Executive Director Ma. Cristina G. Lopez, Cadiz City Mayor Salvador G. Escalante, Jr. and Vice-Mayor John Vincent I. Escalante, EB Magalona Mayor Matthew Louis Malacon, Sagay City Mayor Leo Rafael M. Cueva, Silay City Mayor Joedith C. Gallego, and Valladolid Mayor Ricardo P. Presbitero, Jr.
“Sa pamamagitan ng pakikipagtulungan sa LANDBANK at iba pa nating katuwang, titiyakin natin na ang benepisyo ng AGRISENSO Plus ay makarating sa lahat ng magsasaka at mangingisda, saan mang sulok ng bansa,” said DA Sec. Laurel.
In 2024, Mayor Escalante shared his vision of transforming Cadiz and its neighboring towns into a primary agricultural hub in Negros Occidental, with the AGRISENSO Plus Program expected to play a vital role in realizing this vision by improving farmers’ access to affordable financing and agribusiness support.
“LANDBANK has seen how our farmers continue to face so many challenges — from the recent eruption of Mt. Kanlaon, to the impact of climate change, unstable farmgate prices, and market access. This is why we designed AGRISENSO Plus to provide holistic and practical solutions to the challenges faced by our farmers and fisherfolk,” LANDBANK President and CEO Ortiz emphasized.
Inclusive and holistic agri financing
The Program, developed in partnership with the DA, ACPC, Department of Agrarian Reform (DAR), National Irrigation Administration (NIA), and private sector partners, is a value chain-based financing initiative that provides holistic support to agricultural stakeholders, with simplified documentary requirements, free life and credit life insurance, and expanded access to technical and market support to help boost productivity and profitability.
It offers a lowered fixed interest rate of only 3.0% per annum — down from 4.0% — for small farmers, fishers, and agrarian reform beneficiaries (ARBs), with competitive rates for their associations, cooperatives, micro, small, and medium enterprises (MSMEs), large enterprises, anchor firms, and agriculture graduates.
Complementing the Lending Program is the LANDBANK ASCEND (Agri-Fishery Support through Capability Enhancement for Nationwide Development), a capacity-building initiative that equips farmers and fishers with training in digital financial literacy, sustainable agriculture, and enterprise development.
As of August 2025, LANDBANK has released P1.78 billion in loans under the AGRISENSO Plus Lending Program, supporting over 12,000 borrowers nationwide. The Negros Occidental rollout follows successful launches in Pampanga, Cagayan, Isabela, Batanes, Bukidnon, Iloilo, and Palawan.
Expanding digital convenience for farmers and MSMEs
Further advancing its digitalization efforts, LANDBANK successfully piloted the first provincial rollout of its Person-to-Merchant (P2M) QR payment facility in Negros Occidental.
The P2M facility delivers a two-fold benefit for both consumers and LANDBANK-accredited merchants. It is an interoperable payment channel that allows consumers to avail of free transfer fees for purchases worth P500 and below when paying via QRPh-P2M using the LANDBANK Mobile Banking App (MBA), other banking apps, or digital wallets. Meanwhile, participating merchants benefit from waived merchant fees for every transaction.
This digital innovation further empowers farmers and MSMEs by offering a faster, more convenient, and secure way to receive payments, while reducing their reliance on cash transactions and promoting wider digital adoption across agricultural communities. Business owners can enroll their existing LANDBANK accounts, with P2M activation completed within just 24 to 48 hours.
Enhanced reach in Negros Occidental with new one-stop hub
LANDBANK also strengthened its presence in Southern Negros with the opening of the Negros Occidental South Corporate Center in Kabankalan City, highlighting the Bank’s commitment to accessible and inclusive financial services.
The new facility will serve as a one-stop hub for farmers, fishers, cooperatives, micro, small and medium enterprises (MSMEs), local government units (LGUs), and private depositors from the cities of Kabankalan, Sipalay, and Himamaylan, and the municipalities of Ilog, Cauayan, Candoni, Hinoba-an, Hinigaran, and Binalbagan.
LANDBANK President and CEO Ortiz and Negros Occidental 6th District Rep. Mercedes K. Alvarez led the inauguration ceremony on Oct. 29, 2025, joined by Kabankalan City Mayor Benjie M. Miranda and Vice-Mayor Divina Gracia S. Miranda, Candoni Mayor Ray R. Ruiz, Sipalay City Mayor Maria Gina M. Lizares, other local partners, and LANDBANK senior officials.
“Today’s inauguration of the LANDBANK Negros Occidental South Corporate Center reaffirms our deep commitment to stand with Kabankalan and the entire Negros Occidental. This new facility strengthens our presence in Southern Negros — so that together, we can continue providing every Negrense with better, more efficient, and more inclusive financial services,” said LANDBANK President and CEO Ortiz.
Located along Justice JY Perez Highway, the center houses the upgraded LANDBANK Kabankalan Branch — the first “phygital” branch in Negros Occidental, with modern facilities and ample space that offers a comfortable environment for clients and staff.
It combines physical and digital banking, featuring LEA (LANDBANK Easy Access) for paperless queuing, the LANDBANK Digital Online Banking System (DOBS) for faster account opening, four ATMs, a cash deposit machine, and meeting pods for client consultations.
The second floor hosts the LANDBANK Negros Occidental South Lending Center, offering easier access to loans and credit assistance, eliminating the need to travel to Bacolod City. Other LANDBANK units such as the Loan Operations Field Unit (LOFU), Field Support Services Center (FSSC), and Field Legal Services (FLS) are also housed in the building to provide integrated services.
LANDBANK currently operates 16 branches, two lending centers, 76 ATMs, four CDMs, and 51 LANDBANKasama partners in Negros Occidental, plus 80 ATMs in 7-Eleven stores where customers can withdraw cash free of charge.
ABOUT LANDBANK
LANDBANK is the largest development financial institution in the country promoting financial inclusion, digital transformation, and sustainable national development. Present in all 82 provinces in the county, the Bank is committed to provide accessible and responsive financial solutions to empower Filipinos from countryside to countrywide.
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Bugallon Green gets P826-M loan for Pangasinan solar plant
YUCHENGCO-LED Bugallon Green Energy Corp. has secured a P826-million loan from Rizal Commercial Banking Corp. (RCBC) to fund the construction of its 25-megawatt (MW) solar power project in Bugallon, Pangasinan.
In a statement on Monday, Bugallon said it had signed an omnibus loan and security arrangement with RCBC to support the development of the Bugallon Solar Power Project, which is slated for completion within the year.
Once operational, the facility is expected to generate about 36 gigawatt-hours (GWh) of electricity annually — enough to supply power to more than 15,000 households — and offset about 25,000 metric tons of carbon emissions each year.
Bugallon is a unit of Rizal Green Energy Corp., a joint venture between Japan’s Taisei Corp. and PetroGreen Energy Corp., which is part of the Yuchengco Group of Companies.
“This financing milestone reflects our unwavering commitment to increase the country’s power supply from indigenous energy sources,” PetroGreen President and Chief Executive Officer Francisco G. Delfin, Jr. said in the statement.
RCBC Executive Vice-President and Head of Institutional Banking Group Elizabeth E. Coronel said the loan was undertaken under the bank’s sustainable finance framework, reinforcing its role in promoting climate-resilient and environmentally responsible investments.
The Bugallon Solar Power Project forms part of Rizal Green Energy’s pipeline of four utility-scale, ground-mounted solar projects with a combined capacity of 111.58 MW. — Sheldeen Joy Talavera
EastWest Bank net profit rises to P6.6B
EAST WEST Banking Corp.’s (EastWest Bank) net income climbed by 14% year on year to P6.6 billion in the first nine months on higher revenues from its core businesses.
This translated to a return on equity of 11.6%, the bank said in a disclosure to the stock exchange on Monday.
Its financial statement was unavailable as of press time.
“Our core consumer banking business is thriving, aligning perfectly with the evolving needs of our customers. Our strategic funding initiatives are likewise effectively supporting our growth plans and fortifying our funding structure. These critical components have significantly contributed to our steady revenue generation. At the same time, we continue to manage risks actively and ensure that provisions are adequate. Combined with our operational efficiencies, these have resulted in robust and sustainable profitability,” EastWest Bank Chief Executive Officer Jerry G. Ngo said.
The bank’s revenues rose by 16% year on year to P37.3 billion in the nine-month period.
This was mainly driven by an 18% growth in net interest income to P29.7 billion, which was backed by the 17% growth of its consumer lending business.
It added that consumer credit now makes up 85% of its loan portfolio.
EastWest Bank’s fee income also jumped by 27% to P5.3 billion.
Its double-digit revenue growth more than offset the 7% increase in its operating expenses to P19.2 billion in the period, which it said went to “investments in people and business expansion.”
As a result, the bank’s cost-to-income ratio improved by 412 basis points to 51.4%, “supported by the faster growth of revenues, productivity gains, and digital efficiencies.”
On the funding side, total deposits rose by 12% to P415.8 billion at end-September, 81% of which are current account, savings account or CASA deposits.
EastWest Bank’s priority banking business also grew as its assets under management breached the P100-billion mark at end-September, it added.
These supported its asset base, which grew by 11% to P552.9 billion.
“Meanwhile, capital ratios remain strong and supportive of future growth, with capital adequacy ratio at 13.6% and common equity Tier 1 ratio at 12.7%, well above regulatory standards,” the bank said.
EastWest Bank’s shares went down by six centavos or 0.52% to close at P11.44 apiece on Monday. — A.M.C. Sy
Still standing: 22 years of live music at 19 East
ONE VENUE immediately comes to mind for those recalling enjoying live music in the southern part of Metro Manila. Standing tall after over two decades of welcoming artists, bands, and music lovers with open arms (and a killer sound system!) is 19 East, which is turning 22 this month.
“We’re passionate about the art of sound,” owner and musician Wowee Posadas told BusinessWorld in a Facebook message. “We constantly find ways to improve our already impressive audio quality.”
This explains 19 East’s stacked lineup every month, showing how the guest performers themselves can never really stay away from the magic of this venue.
October alone saw a number of familiar names grace the stage — MYMP, Side A, Apo Hiking Society, Freestyle, 6cyclemind, Imago, Moonstar88, and Gracenote — the majority of whom will return in November as well. Unbeknownst to many, 19 East also hosts comedy gigs, with Alex Calleja and The Comedy Crew coming over this month.
Located at Km 19, East Service Road, Muntinlupa, the physical space itself is clearly thoughtfully planned. From sound absorbers in the ceiling to acoustic panels on the walls to the impeccable lighting that elevates the atmosphere of every show, it’s easy to see how this venue has stood the test of time.
We asked Mr. Posadas how 19 East has kept itself afloat over the years — notwithstanding the universal challenge that was the pandemic.
Surprisingly, despite the venue’s impressive audio mixer and the well-maintained speaker system, his response focused more on the people behind the equipment rather than the equipment itself.
“It’s the top-of-the-line gear as well as the know-how to use it. Great tools are nothing without the proper skill set,” he said. “Huge thanks to our staff who’ve worked very hard, all the brilliant artists who’ve shared their talent, and, most of all, our beloved customers who’ve patronized 19 East throughout the years. We couldn’t have reached these milestones without them.”
He added that, though bands play in other bars, many customers prefer catching them at 19 East for the “unmatched aural experience.”
“I was a keyboard player for various bands for more than 30 years, and I had the pleasure of performing in a number of bars. In designing 19 East, I learned from those venues’ strengths and weaknesses,” he said.
CHANGES
Since the venue opened in 2003, there have been a lot of changes in the Philippines’ live music culture, especially after the COVID-19 pandemic. Mr. Posadas discussed some of them.
“We’re exerting effort to discover and promote new acts that will cater to a much younger crowd,” he said, referring to the shifting age demographics of music lovers — many of whom are better equipped to spread the word about live gigs online.
“Another is operating hours,” he added.
Thanks to the change in sleeping habits brought about by the pandemic, he observed that guests aren’t willing to stay up too late anymore.
“When we started, shows [would] usually last until 2 a.m. Nowadays, customers tend to go home after midnight,” he said.
This has also led to the opening of 19 Inn, a quaint space by the entrance of the bar’s front lawn. A boutique hotel with three stories and 10 rooms, its location just a few steps from the music venue, allows patrons who come from faraway places to stay the night.
Prices range from P1,300 to P1,800 a night, depending on the room size.
TRY AGAIN
Not all of 19 East’s ventures outside of the music hall have been successful, though. Mr. Posadas said that they tried offering curbside pick-up service during the pandemic, when the quarantines and lockdowns were in place, but it never really took off.
Operations were temporarily stopped, as with all live music bars, and employees had to work elsewhere while 19 East was closed.
“Actually, we survived the pandemic only because we own the lot on which 19 East sits. It would have been impossible to still be here if such was not the case,” he said.
Thankfully, once things eased again, the staff returned, and so did the market — lasting even beyond the “revenge spending” phase.
Just a cursory look at their Facebook page, which boasts nearly a million followers, will reveal how the music hall reaches full capacity at least every few weeks. Whenever this happens, 19 East welcomes guests to stay in the al fresco dining area, where a large video wall is installed so that they can still watch the show going on inside.
Back in 2023, they even expanded the hall to accommodate the crowds when popular acts come on.
‘I’M STILL STANDING’
We talk about the demand for live shows even with the advent of online platforms and digital streaming. “It is definitely there,” he noted.
“We often have sold-out nights. As long as new exciting bands continue to emerge, music venues will thrive,” he said.
“In my long experience in the music industry, I’ve never witnessed a shortage of musical talent in this country. Just browse YouTube and you’ll know what I mean.”
A musician himself when he’s not being a lawyer, Mr. Posadas heaped praise on the younger generation: “The dedication, creativity, and emotion poured by young artists into their craft are just remarkable.”
There’s a 1983 song sung by Elton John called “I’m Still Standing,” which Mr. Posadas cited as an encapsulation of 19 East’s journey over the years. Here, Elton John sings, “Don’t you know that I’m still standin’ better than I ever did? /
Lookin’ like a true survivor, feelin’ like a little kid.”
Like the song says, 19 East has been a true survivor among live music bars, standing tall and proud in the south of Metro Manila, with artists and bands coming back regularly.
“We had our share of struggles. We’re just grateful to be around after 22 years,” said Mr. Posadas who noted: “We’ll celebrate our 22nd anniversary this Nov. 27.” — Brontë H. Lacsamana
19 East is at Km 19, East Service Road, Muntinlupa. Its gigs for the month can be found on its Facebook page, with admission fee details varying per show.