GCash launches two game-changing solutions for MSMEs, freelancers
The Philippines’ leading finance super app, GCash, has introduced two new game-changing products — GCash PocketPay, which allows merchants to accept card payments seamlessly, and the GCash Virtual US Account, which enables freelancers to receive salaries straight to their e-wallet accounts without additional charges.
Helping MSMEs grow their businesses through card payments
MSMEs are limited to cash only and miss out on additional purchases from credit cards. With the launch of PocketPay, micro, small, and medium enterprises (MSMEs) can now grow their businesses by accepting card payments directly through an Android smartphone.
The tap-to-pay functionality is especially built for mobile sellers, delivery-based vendors, and pop-up merchants operating outside traditional retail channels. It allows businesses to meet customer demand for card payments without investing in costly hardware. The feature is available with zero transaction fees until Dec. 3, 2025, and can be activated via the GCash for Business portal.
“GCash PocketPay makes accepting card payments available for all MSMEs. It’s an easy-to-use and reliable business solution that meets their needs wherever they are,” GCash for Business Head Jong Layug said.
Apart from initiatives for MSMEs, GCash has also launched an offering targeting Filipino freelancers servicing clients from the United States.
Better take-home pay for Filipino remote workers earning in USD
GCash is also addressing a persistent pain point for Filipino freelancers who often lose a portion of their income to costly fees, reducing their take-home pay and delaying access to funds they rely on for daily expenses.
The GCash Virtual US Account, powered by global payments network Meridian1, promises reduced platform fees and forex costs, allowing gig workers to have bigger take-home pay. In addition, the GCash Virtual US Account eliminates high withdrawal fees and hidden charges.
Fully verified GCash users are eligible for account opening. They can transfer funds from different payment platforms, payroll platforms, and marketplaces such as PayPal, Payoneer, Gusto, Deel, Upwork, Freelancer.com, Fiverr, and Onlinejobs.ph.
This feature is seen to boost inflows of dollars into the country from the US, which is a top remittance source for the Philippines. According to the Bangko Sentral ng Pilipinas, about 40% of cash remittances from January to August this year came from the US.
“With the GCash Virtual US Account, we’re enabling Filipino freelancers to take full control of their hard-earned income, allowing them to maximize every peso they earn,” GCash General Manager for International Paul Albano said.
Through GCash PocketPay and GCash Virtual US Account, GCash strengthens its goal of enabling both MSMEs and freelancers by breaking barriers to financial access — whether through effortless card acceptance for small businesses or faster, more affordable cross-border payments for gig workers.
1GCash Virtual US Accounts are issued and maintained by Meridian Payments US under a “for benefit of” arrangement. These are not bank accounts and do not qualify as deposits; hence, they are not covered by any deposit insurance schemes.
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Nvidia’s Jensen Huang: ‘China is going to win the AI race,’ FT reports
NVIDIA CEO Jensen Huang has warned that China will beat the United States in the artificial intelligence race, the Financial Times reported on Wednesday.
“China is going to win the AI race,” Mr. Huang told the newspaper on the sidelines of the Financial Times’ Future of AI Summit.
“As I have long said, China is nanoseconds behind America in AI,” Nvidia CEO Jensen Huang said in a statement posted on X late on Wednesday.
“It’s vital that America wins by racing ahead and winning developers worldwide,” he added.
The artificial intelligence chip leader’s chief in October said that the US can win the AI battle if the world, including China’s massive developer base, runs on Nvidia systems. He, however, lamented that the Chinese government has shut it out of its market.
China’s access to advanced AI chips, particularly those produced by Nvidia — the world’s most valuable company by market capitalization — remains a flashpoint in its tech rivalry with the United States, as both nations vie for supremacy in cutting-edge computing and artificial intelligence.
“We want America to win this AI race. No doubt about that,” Mr. Huang said in the Nvidia developers’ conference held in Washington last month.
“We want the world to be built on American tech stack. Absolutely the case. But we also need to be in China to win their developers. A policy that causes America to lose half of the world’s AI developers is not beneficial in the long term, it hurts us more,” he added.
US President Donald Trump said in an interview aired on Sunday that Nvidia’s most advanced Blackwell chips should be reserved exclusively for American customers.
Nvidia has not applied for US export licenses to sell the chips in China, citing Beijing’s stance toward the company, Mr. Huang previously said.
Mr. Trump added that Washington would allow China to engage with Nvidia, but “not in terms of the most advanced” semiconductors.— Reuters
Philippines declares national calamity as typhoon kills over 100
The Philippines declared a state of national calamity after Typhoon Kalmaegi (locally known as Tino) left more than 100 people dead and widespread destruction across the Visayas and Mindanao, with another powerful storm expected to hit within days.
President Ferdinand R. Marcos, Jr. said the measure would fast-track the release of emergency funds and ease procurement rules to speed up aid delivery.
“Several regions — almost 10 to 12 — have been or will be affected,” he said at a situation briefing in Quezon City. “With that scale and scope, it’s clear that this is a national calamity.”
The National Disaster Risk Reduction and Management Council recommended the declaration as Typhoon Tino unleashed torrential rains and strong winds that triggered landslides, floods and power failures, displacing thousands of families.
Authorities are now bracing for Typhoon Uwan, forecast to intensify into a super typhoon by Friday, threatening areas still reeling from Tino’s destruction.
Government data showed at least 114 people have died, while dozens remained missing. The state of calamity will allow quicker fund access for relief, rehabilitation and price control measures in affected areas. — Chloe Mari A. Hufana
Agriculture output growth slows to 2.8% as livestock, fisheries drag
Agricultural output growth slowed to 2.8% year-on-year by value in the third quarter, with strong crop production helping offset significant drops in livestock and fisheries production, the Philippine Statistics Authority (PSA) reported.
The PSA said the value of agriculture and fisheries production rose 2.8% in the three months to September to P408.94 billion, following a contraction of 3.6% contraction in the same period last year. Compared to the second quarter, growth slowed from 5.7%/
“This growth was driven by the increases in the value of crop and poultry production. However, the value of livestock and fisheries production contracted during the period,” the PSA said.
Analysts and farm groups earlier projected a decline or slowdown in output growth driven by a decrease in fisheries and livestock outputs due to weather disturbances and the threat of African Swine Fever (ASF).
Crop output, which accounted for 53.3% of the total value of agricultural production, grew 3.0% to P218 billion in the third quarter.
Palay (unmilled rice) production rose 12.6%, while corn and coconut registered declines of 2.9% and 2.1%, respectively.
Crops that posted double-digit increases by value included onion (77.3%), potato (47.8%), sugarcane (42.0%), coffee (25.9%), monggo (16.9%), tobacco (15.7%), and cabbage (13.3%).
On the other hand, the value of production contracted for abaca (15.4%) and sweet potato (11.4%).
The PSA reported that poultry grew 10.6% year-on-year to P75.96 billion in the third quarter, accounting for 18.6% of total farm production.
Chicken production posted a gain of 12.4% by value, while chicken eggs and duck posted 7.7% and 0.6% growth, respectively.
Duck eggs, on the other hand, declined 4.3% during the quarter.
Livestock, fisheries outputs slip
Meanwhile, the value of livestock production posted a year-on-year decline of 1.9% in the third quarter. The subsector accounted for P60.51 billion or 14.8% of the total value of agricultural production.
Dairy was the lone bright spot in livestock, posting a 34.7% improvement.
Carabao and goat recorded the biggest decrease in production value at 9.0% and 7.7%, respectively.
Cattle and hog production slumped in the third quarter by 2.7% and 1.4%, respectively.
Meanwhile, fisheries production fell 2.7% to P54.47 billion in the third quarter, accounting for 13.3% of total output.
Double-digit declines were seen for cavalla (talakitok, 20.3%), Bali sardinella (tamban, 13.3%), tiger prawn (sugpo, 11.6%), and P. Vannamei (10.8%).
The value of seaweed production dropped 15.7% in the third quarter.
Meanwhile, double-digit growth was posted by bigeye tuna (tambakol/bariles, 52.8%), squid (22.6%), and skipjack (gulyasan, 15.9%). — Vonn Andrei Villamiel
Typhoon Kalmaegi death toll hits 114 in the Philippines; storm rebuilds strength as it heads to Vietnam
CEBU, Philippines — The death toll in the Philippines from Typhoon Kalmaegi rose to 114 with another 127 people still missing, the disaster agency said on Thursday, as the storm that devastated the country’s central regions regained strength as it headed towards Vietnam.
In Vietnam’s Gia Lai province, some 350,000 people were expected to have been evacuated by the middle of the day as authorities warned of heavy rains and damaging winds that could cause flooding in low-lying areas and disrupt agricultural activity.
In the Philippines’ hardest-hit province of Cebu, the scale of the destruction became clearer as floodwaters receded to reveal flattened homes, overturned vehicles and streets choked with debris.
More than 200,000 people were evacuated in the Philippines ahead of Kalmaegi hitting on Tuesday. Some have returned to find their homes destroyed, while others have begun the arduous cleanup, scraping mud from their houses and streets.
“The challenge now is debris clearing… These need to be cleared immediately, not only to account for the missing who may be among the debris or may have reached safe areas but also to allow relief operations to move forward,” Raffy Alejandro, a senior civil defense official, told DZBB radio.
NEW STORM DEVELOPING
Even as Typhoon Kalmaegi, locally named Tino, exited the Philippine monitoring zone, weather forecasters were tracking a brewing storm east of Mindanao that could strengthen into a typhoon, raising concerns for potential impacts early next week.
The devastation from Kalmaegi, the 20th storm to hit the Philippines this year, comes just over a month after a magnitude 6.9 earthquake struck northern Cebu, killing dozens and displacing thousands.
As Kalmaegi moved over the South China Sea ahead of its landfall in Vietnam, it was regaining strength. It is forecast to impact several central provinces, including key coffee-growing areas, where the harvest season is currently underway.
Authorities were mobilizing thousands of soldiers to assist with potential evacuations, rescue operations, and recovery efforts.
Vietnam’s aviation authorities said operations at eight airports, including the international airport in Da Nang, are likely to be affected. Airlines and local authorities have been urged to closely monitor the storm’s progress to ensure passenger safety.— Reuters
Philippine jobless rate creeps up as disasters hit hiring
The Philippines’ unemployment rate rose to 3.8% in September from a year earlier, signaling a fragile labor recovery as natural disasters disrupted hiring ahead of the holiday season, data from the Philippine Statistics Authority (PSA) showed on Thursday.
About 1.96 million Filipinos were jobless during the month, up from 1.89 million a year earlier, when the jobless rate was 3.7%, National Statistician Claire Dennis S. Mapa told a news briefing, citing the impact of typhoons and earthquakes on employment.
The latest reading improved from August’s 4%, when 2.03 million were out of work. Employment stood at 49.6 million, slightly below September 2024’s 49.87 million.
Job quality strengthened year on year as the underemployment rate — the share of workers seeking more hours or jobs — eased to 11.1% from 11.9%, though it worsened from 10.7% in August due to slower activity in construction.
The labor force participation rate slipped to 64.5% from 65.7% a year earlier, translating to 208,000 fewer people in the workforce, the statistics agency said. Roughly 572,000 workers also left the labor force month on month. — Chloe Mari A. Hufana
Brazil launches plan to scale climate finance to $1.3 trillion a year
BELEM, Brazil — After a year of talks, COP30 host Brazil on Wednesday laid out a plan to scale climate finance to $1.3 trillion a year and faced several early signs of the testing political backdrop as the Amazonian city of Belem prepares to welcome world leaders.
The near 100-page document, dubbed the Baku to Belem Roadmap, follows months of talks with stakeholders since the close of last year’s event in Azerbaijan.
Providing more finance is central to maintaining trust in multilateral climate efforts as emissions continue to rise, leaving some of the poorest countries at more risk of extreme weather events.
Yet the push to rein in emissions took a fresh knock overnight as the European Union agreed a final-hour deal to cut emissions by 90% by 2040 but only by baking in flexibility that weakens it.
“The EU has made a perilous choice today,” said Jeroen Gerlag, director of the European office at Climate Group. “It’s a disappointing signal of leadership as we go into COP30 next week.”
While the site of the talks remains under construction, the area set aside for the leaders’ speeches was almost ready, with construction crews making last-minute repairs and putting plants and furniture in place.
In another test for Brazil, Britain said it would not commit money at the event to a plan to protect the world’s rainforests, the Tropical Forests Forever Facility – seen as a flagship goal of the hosts that aims to raise $125 billion.
The decision disappointed Brazilian President Luiz Inacio Lula da Silva, sources told Reuters, particularly given Britain had helped create it and Mr. Lula had personally written to Prime Minister Keir Starmer last Friday to request an investment.
Separately, Mr. Lula met with the President of the European Commission Ursula von der Leyen, President of Finland Alexander Stubb, and Ding Xuexiang, vice premier of the State Council of China, to ask for contributions, according to sources who asked to remain anonymous to be able to speak freely.
A GLOBAL BLUEPRINT FOR COOPERATION
As global development aid is slashed, the authors of the Roadmap called it a “blueprint for cooperation and tangible results”.
Mukhtar Babayev, the President of COP29, who helped oversee the Roadmap, cautioned at a press conference that it was important to acknowledge the scale of the challenge.
“We are trying to intervene in the normal functioning of the world economy, we are attempting to direct the forces of global finance. This is an immense task.”
“Success will require great political will. It will need sustained focus, and it will demand relentless action from all of us. Countries simply cannot cut emissions or adapt to rising temperatures if they cannot count on capital,” he added.
Ideas to scale finance include giving more in the form of grants and making it easier for developing countries to access private capital, the report said, while multilateral banks should help ease the debt burden of developing countries and take on more risk themselves.
“The resources exist, the science is clear, and the moral imperative is undeniable. What remains is the resolve to act – to turn the unimaginable into the inevitable, and to make this decade of accelerated implementation the one in which humanity’s response finally matches the scale of its responsibility,” the report said.
Rob Moore, associate director, Public Banks & Development at think tank E3G, said the document “lays down the gauntlet” and set out clearly what was needed.
“For it to have the impact it is capable of, we now need to see governments in wealthy countries and international financial institutions respond and be accountable for delivery. We need to leave COP30 with a plan for turning these words into reality.”— Reuters
Tino to still bring rains to Palawan, Mindoro, other areas even after exiting PAR
Typhoon Kalmaegi (local name: Tino) is likely to continue bringing rain to Palawan, Mindoro, and other areas even after exiting the Philippine Area of Responsibility (PAR) early Thursday morning, according to the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA).
“Due to the trough or extension of Typhoon Tino, scattered rain showers are still possible over Palawan and Occidental Mindoro,” PAGASA weather specialist Chenel Dominguez said during a 5:00 a.m. advisory.
The same weather condition is also expected in areas of Aurora and Quezon Province due to the typhoon’s trough.
A trough of a typhoon is an extended band of clouds and winds that stretches outward from the storm’s center, causing rain and thunderstorms in affected areas.
Kalmaegi has maintained its typhoon strength even after multiple landfalls, packing sustained winds of 155 kilometers per hour (kph) and gusts of up to 190 kph, PAGASA said in its 5:00 a.m. bulletin.
It was last spotted 265 kilometers north-northwest of Pagasa Island, Kalayaan, Palawan, moving west-northwest at 35 kph.
PAGASA has lifted almost all Tropical Cyclone Wind Signals hoisted in more than a dozen areas, except Signal No. 1, which remains in effect over the Kalayaan Islands where minimal to minor wind impacts are expected.
Kalmaegi is expected to move farther away from the country and make landfall in Vietnam by early Friday morning. — Edg Adrian A. Eva
US orders 10% flights cut at major US airports due to shutdown
WASHINGTON/CHICAGO — US Transportation Secretary Sean Duffy said on Wednesday that he would order a 10% cut in flights at 40 major US airports, citing air traffic control safety concerns as a government shutdown hit a record 36th day.
The drastic plan sent airlines scrambling to make significant reductions in flights in just 36 hours and passengers flooded airline customer service hotlines with concerns about air travel in the coming days.
Mr. Duffy said the cuts could be reversed if Democrats agreed to reopen the government.
The shutdown, the longest in US history, has forced 13,000 air traffic controllers and 50,000 Transportation Security Administration agents to work without pay.
The Trump administration has sought to ramp up pressure on Democrats to end the shutdown and has increasingly raised the specter of dramatic aviation disruptions to force them to vote to reopen the government. Democrats contend Republicans are to blame for refusing to negotiate over key health care subsidies.
Tens of thousands of flights have been delayed since the shutdown began because of widespread air traffic control shortages. Airlines say at least 3.2 million travelers have already been impacted by air traffic control shortages
“We had a gut check of what is our job,” Mr. Duffy told reporters, citing a confidential safety assessment of the impact of the shutdown on controllers that raises concerns about their performance. “Our job to make sure we make the hard decisions to continue to keep the airspace safe.”
Reuters earlier reported the plan.
At a call with major US carriers, the FAA said capacity reductions at the airports would start at 4%, rising to 5% Saturday and 6% Sunday, before hitting 10% next week, industry sources told Reuters. The FAA also plans to exempt international flights from the cuts.
“When we see pressures building in these 40 markets, we just can’t ignore it,” FAA Administrator Bryan Bedford said at a press conference. “We can take action today to prevent things from deteriorating so the system is extremely safe today, will be extremely safe tomorrow.”
While the government did not name the 40 airports affected, the cuts were expected to hit the 30 busiest airports including those serving New York City, Washington, D.C., Chicago, Atlanta, Los Angeles, and Dallas. This would reduce as many as 1,800 flights and over 268,000 airline seats, according to aviation analytics firm Cirium.
The move is aimed at taking pressure off air traffic controllers. The FAA is about 3,500 air traffic controllers short of targeted staffing levels and many had been working mandatory overtime and six-day weeks even before the shutdown.
The FAA also warned that it could add more flight restrictions after Friday if further air traffic issues emerge.
Airlines for America, a trade group representing major US carriers such as Delta, United, American, and Southwest, said its members were trying to understand the next steps.
“We are working with the federal government to understand all details of the new reduction mandate and will strive to mitigate impacts to passengers and shippers,” it said.
Officials said nothing would be final until the FAA published an order on Thursday.
The federal government has mostly closed as Republicans and Democrats are locked in a standoff in Congress over a funding bill. Democrats have insisted they would not approve a plan that does not extend health insurance subsidies, while Republicans have rejected that.
President Donald Trump and Republicans have been trying to intensify pressure on Democrats by increasing the pain felt by average Americans from the government shutdown.
The closure, which began October 1, left many low-income Americans without food assistance, closed many government services and led to the furlough of about 750,000 federal employees.
Mr. Duffy had warned on Tuesday that if the federal government shutdown continued another week, it could lead to “mass chaos” and force him to close some of the national airspace to air traffic.
Airlines have repeatedly urged an end to the shutdown, citing aviation safety risks.
AIRLINE STOCKS DIP
Shares of major airlines including United and American were down about 1% in extended trading.
Airlines said the shutdown has not significantly affected their business but have warned bookings could drop if it drags on. More than 2,100 flights were delayed on Wednesday.
On Tuesday, Mr. Bedford said that 20% to 40% of controllers at the agency’s 30 largest airports were failing to show up for work.
Mr. Duffy said the authorities would also limit space launches to certain times of the day and are expected to impose restrictions on general aviation flights.— Reuters
North Korea says antagonized by US sanctions, will respond
SEOUL — North Korea slammed the US President Donald Trump’s administration for imposing sanctions that “antagonize” it, and vowed to respond correspondingly, state media KCNA said on Thursday.
The US Treasury Department on Tuesday sanctioned eight individuals and two entities that it said were involved in a variety of North Korean cyber-related money-laundering schemes, in a move aimed at cutting off funding for the country’s weapons programs.
“There is nothing so silly as to expect a new result while following the old screenplay of the failed past,” KCNA said, in a statement citing the country’s vice foreign minister in charge of US affairs.
“The US needs to realize that no matter how much sanctions it mobilizes, the possibility of changing the current strategic situation…between the US and North Korea to its advantage is less than zero.”
“As long as the current US administration has expressed its stance to antagonize us to the end, we will also be patient and respond correspondingly,” KCNA said.
South Korea’s spy agency said this week there is a high possibility that North Korea and the United States will hold a summit early next year. Mr. Trump had repeatedly called for a meeting with North Korean leader Kim Jong Un during his trip to Asia last month and had left the door open to a future meeting.— Reuters
Inflation holds steady at 1.7% in Oct.
By Katherine K. Chan
PHILIPPINE HEADLINE inflation steadied in October as slower price increases in vegetables and meat offset higher utility costs during the month, the Philippine Statistics Authority (PSA) said on Wednesday.
PSA data showed that the consumer price index (CPI) stood at 1.7% in October, unchanged from September’s print but eased from 2.3% a year ago.
This was a tad slower than the 1.8% median forecast from a BusinessWorld poll of 17 analysts conducted last week, but within the Bangko Sentral ng Pilipinas’ (BSP) 1.4-2.2% forecast.
October also marked the eighth straight month that inflation fell below the central bank’s 2-4% target band.
In the 10 months to October, average inflation matched the BSP’s full-year target of 1.7%.
Meanwhile, core inflation, which discounts volatile prices of food and fuel, eased to 2.5% from 2.6% in September. Still, it was slightly faster than the 2.4% print in October 2024.
This brought year-to-date core inflation to 2.4%, easing from the 3.1% clip seen in the comparable year-ago period.
Housing, water, electricity, gas and other fuels contributed most to the CPI during the month and posted a 2.7% inflation rate, National Statistician Claire Dennis S. Mapa said.
Electricity alone posted a 4.1% inflation in October, accelerating from the 1.2% clip seen in September.
In October, the Manila Electric Co. hiked the overall electricity rate by P0.2331 per kilowatt-hour (kWh) to P13.3182 per kWh. This means residential customers consuming 200 kWh had to pay an additional P47 in their bill last month.
Meanwhile, inflation for water supply also quickened to 5.7% in October from 5.3% a month earlier.
In September, the Metropolitan Waterworks and Sewerage System okayed the proposed P0.14 per cubic meter (cu.m.) hike for Maynilad and a P0.15 per cu.m. rollback for Manila Water for the October-December period.
Department of Economy, Planning, and Development Secretary Arsenio M. Balisacan said the government’s efforts to manage supply conditions and ensure price stability helped inflation hold steady in October.
“The steady headline inflation rate shows that our coordinated interventions are helping to maintain adequate supplies and keeping essential goods affordable,” he said in a statement. “We remain vigilant in managing risks from weather disturbances, global market volatility, and other domestic factors that may affect prices in the coming months.”
Meanwhile, slower inflation for food and non-alcoholic beverages tempered inflationary pressures in October.
The heavily weighted food and nonalcoholic beverage index eased to 0.5% in October from the 1% clip logged the month earlier.
“Our food basket, food and non-alcoholic beverages, has the biggest weight in the inflation basket at 37.75% more or less,” Mr. Mapa said.
Food inflation slowed year on year to 0.3% from 0.8% the previous month and 3% in October 2024.
This came as inflation for vegetables, tubers, plantains, cooking bananas and pulses eased to 16.6% from 19.4% in September.
Likewise, the PSA recorded slower inflation for meat and other parts of slaughtered land animals in October at 5.2% from 6% a month ago.
However, Mr. Mapa noted that inflationary pressures from food remain as prices of fish and other seafood picked up to 8.2% from 7.9% in September.
RICE PRICES
Rice inflation remained in the negative for the tenth month in a row at -17% in October from -16.9% in September.
Mr. Mapa said rice prices continued to decline amid increased unmilled rice production in the last quarter of the year.
“Our production is high, but of course, prices in the world market are also starting to drop. So that actually affected, in a good manner, our retail rice prices, because it continues to decline,” he said in Filipino.
Citing PSA data, Mr. Mapa said a kilo of regular-milled rice was sold at an average price of P40.09 in October, dropping by 20.2% from P50.22 a year ago. Well-milled rice was also cheaper at an average P46.49 per kilo, down 15.9% from P55.28 last year. Meanwhile, special rice was priced at P56.39 per kilo last month, falling by 11.8% from P63.97 in October 2024.
“Despite the import ban on rice, the price of the grain was largely stable while meat and dairy prices eased, offsetting the increase in utility rates,” Aris D. Dacanay, economist for the Association of Southeast Asian Nations at HSBC Global Investment Research, said in an e-mailed note.
Earlier, President Ferdinand R. Marcos, Jr. ordered a 60-day freeze on regular and well-milled rice imports from Sept. 1 to Nov. 2 to support local farmers amid the harvest season and to stabilize rice prices.
The suspension has been extended until yearend, with the government eyeing to open an import window in January before reimposing the ban from February to April.
Meanwhile, PSA data also showed that inflation in the National Capital Region (NCR) picked up to 2.9% in October from 2.7% in the previous month and 1.4% in the same month in 2024.
Outside NCR, inflation eased to 1.3% from 1.5% in September and the 2.6% clip a year ago.
Central Visayas still saw the highest inflation print among other regions at 2.6%, while prices in Bangsamoro Autonomous Region in Muslim Mindanao declined the fastest at -1.3%.
Inflation for the bottom 30% of income households declined at a faster pace of -0.4% in October from -0.2% in September. For the 10-month period, it averaged 0.3%, slower than 4.5% a year ago.
INFLATION AHEAD
The BSP still sees inflation settling below its 2-4% target by yearend, citing the recent easing of rice prices in the country.
“Inflation is projected to average below the low end of the target range in 2025, primarily due to the easing of rice prices in previous months,” it said in a statement. “The risks to the inflation outlook are limited as price pressures are expected to ease amid stabilizing global commodity prices.”
However, the central bank said the outlook for domestic economic growth has weakened.
“This outlook reflects in part the impact on business confidence of governance concerns about public infrastructure spending. Indications of slowing demand also reflect lingering uncertainty from the external environment,” the BSP said.
For November, Mr. Mapa said fuel prices will likely drive up inflationary pressures following the latest pump price adjustment.
Oil firms in the country implemented fuel price hikes on Tuesday, amounting to P1.70 per liter for gasoline, P2.70 per liter for diesel and P2.10 per liter for kerosene.
Mr. Mapa said they will continue to monitor the impact of recent typhoons on consumer prices, as well as Mr. Marcos’ earlier directive to impose a price freeze on basic and prime commodities until yearend.
“There are threats to overall food inflation. Some items are increasing, (such as) the price of fish (and) vegetable,” Mr. Mapa said, noting vegetable prices are sensitive to weather conditions.
In a note on Wednesday, Chinabank Research said inflation will likely remain low in the coming months, but noted that pump price adjustments and the weather’s impact on food prices still pose risks.
“We expect overall inflation to remain low for the rest of the year, though upward price pressures may arise from energy — a hefty increase in local pump prices was announced this week — as well as from weather-sensitive food prices,” it said.
Meanwhile, HSBC’s Mr. Dacanay said the benign inflation and clearer rice policies could push the BSP to cut rates by 25 basis points (bps) in December.
“All in all, we think October inflation plus the clarity over rice policies strengthen the case for a December rate cut by the BSP,” he said. “With no issues in inflation, monetary policy has the runway to pump the economy to, hopefully, offset the fiscal fallout brought by a sharp drop in public infrastructure spending.”
Since it began its easing cycle in August 2024, the Monetary Board has cut its key policy rate by 175 bps to a three-year low of 4.75%.
BSP Governor Eli M. Remolona, Jr. has signaled further easing until early next year to support the economy as the ongoing flood control anomalies have hit business sentiment, clouding their growth outlook.
The Monetary Board will hold its last rate-setting meeting this year on Dec. 11.
Wave of telco investments seen as Konektadong Pinoy IRR finally released
By Ashley Erika O. Jose, Reporter
THE Philippines expects a wave of investments in the telecommunications sector, as the government on Wednesday released the implementing rules and regulations (IRR) of its open access law.
Department of Information and Communications Technology (DICT) Secretary Henry Rhoel R. Aguda said that about six to seven foreign companies plan to enter the Philippine telecommunications sector once the IRR of the Konektadong Pinoy Act takes effect. He did not name the firms.
Mr. Aguda told reporters that two of these players are expected to come in sooner.
“These are reputable companies. Out of the seven, two of these will hit the ground running,” he said.
The government is still in talks with the foreign players, Mr. Aguda said, noting that these companies will provide a variety of services particularly mobile, fiber and satellite services.
“Most of them are fiber. They will have to go through their due diligence. It is easy to say that they are interested. The rubber meets the road when they start digging the fiber and building the tower,” Mr. Aguda said.
The Konektadong Pinoy Act, or the Open Access in Data Transmission Act, lapsed into law on Aug. 24, while the IRR was signed on Wednesday.
The law streamlines the licensing process for new entrants, boosting competition in data transmission.
“We need the type of telco industry that is vibrant. The IRR will be effective within 15 days after we publish it,” Mr. Aguda said.
Expanding connectivity from 30,000 to 100,000 cell sites and achieving full fiberization will require investments that are at least equal to previous benchmarks, Mr. Aguda said.
“A typical telco company invests around a billion US dollars to $1.5 billion annually when expanding its network,” Mr. Aguda told a Palace briefing in Filipino. “If they’ve been investing about one to $1.5 billion every year, I think that’s the minimum amount of investment that should come in,” he added.
Mr. Aguda said the IRR addresses the concerns of the telecommunications companies, particularly on the issue of cybersecurity and a level playing field.
The IRR provides transparency in pricing and the timely regular publication of updated pricing information to ensure fair trading within and between each data transmission.
Data transmission industry participants (DTIPs) will be allowed to construct, install, establish, maintain, lease or own, networks or facilities without the need of a legislative franchise, while also promoting asset sharing between current and new players.
The DICT, through its ICT Industry Development Bureau, will develop and issue guidelines outlining minimum cybersecurity standards and requirements, aligned with the DTIP’s risk profile for each data transmission segment
“The State shall promote data transmission infrastructure sharing and co-location to eliminate the uneconomic duplication of these facilities in the data transmission industry,” according to the IRR.
Mr. Aguda said the DICT will be the primary policy, planning and coordinating body of the government for the Konektadong Pinoy Act. It is tasked to formulate plans and policies to implement an open access mechanism in the industry.
The DICT will implement initiatives to encourage DTIPs to adopt and deploy new and next-generation technologies, prioritizing unserved or underserved areas, including educational institutions.
Incentives include income tax holidays, value-added tax exemptions, zero-rating from the date of registration, and duty exemption.
For Samuel V. Jacoba, founding president of the National Association of Data Protection Officers of the Philippines (NADPOP), the IRR addresses the concerns of telcos, particularly with the IRR remaining firm on requiring entrants to secure cybersecurity certifications after two years of operations.
“Within two years from registration or authorization, DTIPs shall secure a cybersecurity certification or cybersecurity compliance from the DICT Cybersecurity Bureau,” the IRR said.
Mr. Jacoba said two years will be enough time for new operators to establish baseline cybersecurity compliance anchored on global standards.
He noted incumbent telco operators should already have baseline cybersecurity compliance, so this requirement should not be an issue.
“Incumbent telco operators at this time should already have baseline cybersecurity compliance, so they need not look into this requirement as an issue,” Mr. Jacoba said.
Sought for comment, PLDT Inc. and Smart Communications, Inc. Chairman and Chief Executive Officer Manuel V. Pangilinan said: “It is probably not as bad as we expected, is my impression.”
However, Mr. Pangilinan declined to further comment on the Konektadong Pinoy, noting that he has not personally read it. He added that this will make PLDT evaluate and change its strategy.
LOWER PRICES?
Mr. Aguda said the DICT, in partnership with the Australian government, has completed a real-time mapping of all fiber optic lines nationwide.
This will guide efforts to expand connectivity to 100% of households, supporting the government’s goal of providing every Filipino with fast, stable and reliable internet access.
Mr. Aguda also expects internet prices in the country to drop further and service quality to improve with the entry of new players.
While the IRR has yet to set out specific fees for new entrants, he said the DICT has already begun easing regulatory requirements to encourage participation.
For instance, the operating licenses of tower companies have been extended to 15 years from five years at no additional cost, he noted.
Mr. Aguda also noted that even before the IRR was released, existing telecommunications companies had already lowered rates.
“Right now, you can already get unlimited data for less than P500 — a substantial drop from last year,” he said.
The IRR would also further enhance competition, leading not only to lower prices but also to improved internet quality.
“What we want is not just cheaper service, but reliable service. With the same amount, you’ll get more data and better quality once the IRR is fully implemented,” Mr. Aguda said.
Incumbent telecommunications players are expected to expand and improve their services beyond urban centers with the expected entrants of more foreign players in the telco industry with the Konektadong Pinoy Act, Digital Pinoys said.
“We do anticipate increased investment in the connectivity sector as a result of the Konektadong Pinoy law. It provides predictability and policy direction — two major factors that investors look into before committing capital to infrastructure, particularly in underserved and far-flung areas,” Ronald B. Gustilo, a national campaigner for the Digital Pinoys said via Viber.
Konektadong Pinoy will drive growth because it will expand the market base, he said, adding that when more Filipinos gain reliable access to the internet, the demand for digital service such as e-commerce and financial technology rises.
“For telcos already operating, they will have to see the law as both a challenge and an opportunity. It will push them to move beyond the urban centers and improve their service quality, while also opening doors for public-private partnerships, shared infrastructure, and alternative connectivity models, he said,
Despite being a national priority since 2022, the Philippines’ digital transformation has progressed slowly due to weak broadband infrastructure and outdated policies that hinder competition and investment, a World Bank report from July said.
Only 28% of households had fixed broadband access in 2023 — far behind neighboring countries — and the country accounts for over half of the region’s unconnected mobile broadband users.
The digital divide is also widening, with internet access rising much faster among wealthier households than poorer ones. — with Chloe Mari A. Hufana