PH’s quantum tech has ‘big’ potential with involvement of youth
DepEd launches ten-year plan to improve learning quality
Stocks extend slide before Fed, tariff deadline
PHILIPPINE SHARES on Wednesday extended their losing streak to a fifth straight session as investors stayed on the sidelines before the US Federal Reserve’s policy decision overnight and the Trump administration’s Aug. 1 tariff deadline.
The benchmark Philippine Stock Exchange index (PSEi) dropped by 0.11% or 7.19 points to close at 6,381.23, while the broader all shares index fell by 0.09% or 3.49 points to 3,776.59.
“The local market declined for a fifth straight day as investors take a cautious stance while dealing with global trade uncertainties as the US’ Aug. 1 tariff negotiations deadline draws near,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message. “Investors are also waiting for clues on the Fed’s policy outlook.”
“The PSEi slid down as investors are still watching if there would be still further developments on the upcoming tariff deadline on Aug. 1,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message. “Moreover, companies are still releasing earnings reports, and this will probably remain as one of the sentiment drivers of the market for the next few weeks.”
The Fed was set to conclude its two-day meeting overnight, where it was widely expected to keep rates unchanged but provide clues on its policy path moving forward.
Meanwhile, ahead of US President Donald J. Trump’s deadline to reach a deal to avert “Liberation Day” tariffs, some countries’ talks with the US looked set to go down to the wire, Reuters reported.
US and Chinese officials agreed to seek an extension of their 90-day tariff truce on Tuesday, though no major breakthroughs were announced.
US officials said it was up to Mr. Trump to decide whether to extend a trade truce that expires on Aug. 12 or potentially let tariffs shoot back up to triple-digits.
Meanwhile, three South Korean cabinet-level officials met with US Commerce Secretary Howard Lutnick in a last-ditch push for a deal.
Most sectoral indices closed lower on Wednesday. Financials sank by 0.58% or 13.18 points to 2,223.13; holding firms declined by 0.33% or 17.97 points to 5,385.81; mining and oil retreated by 0.13% or 11.87 points to 9,082; and services went down by 0.11% or 2.45 points to 2,221.94.
Meanwhile, property increased by 0.6% or 14.17 points to 2,373.59 and industrials climbed by 0.28% or 26.06 points to 9,123.03.
“Ayala Land, Inc. was the day’s index leader, climbing 2.38% to P25.80. Converge ICT Solutions, Inc. was at the tail end, falling 3.14% to P17.90,” Mr. Tantiangco said.
Value turnover dropped to P4.66 billion on Wednesday with 800.01 million shares traded from the P6.86 billion with 1.04 billion shares exchanged on Tuesday.
Decliners beat advancers, 95 versus 87, while 62 names were unchanged.
Net foreign selling went down to P57.49 million on Wednesday from P429.15 million on Tuesday. — Revin Mikhael D. Ochave with Reuters
EDSA rehab start pushed back to 2026 or 2027
By Ashley Erika O. Jose, Reporter
REHABILITATION WORK on Epifanio de los Santos Avenue (EDSA), Metro Manila’s main circumferential road, is now expected to start as late as 2027, the Department of Public Works and Highways (DPWH) said.
“It is not feasible anymore to begin the project this year (due to the rains). We can do this maybe next year” or even 2027, Public Works Secretary Manuel M. Bonoan told reporters on the sidelines of the post-State of the Nation Address briefings on Wednesday.
The rehabilitation of EDSA was initially set to begin on June 13 with completed expected by 2027. However, President Ferdinand R. Marcos, Jr. ordered the suspension of the project, citing the need for further study and to reduce its expected impact on commuters, motorists, and broader economic activity. Mr. Marcos also instructed his officials to look into the possibility of shortening the project’s duration.
Mr. Bonoan said another consideration arguing against a 2025 start date is the expected hosting of the Association of Southeast Asian Nations Summit in 2026.
Nigel Paul C. Villarete, senior adviser on public-private partnerships at the technical advisory group Libra Konsult, Inc., said it is not advisable to further delay projects as massive as the EDSA rebuild.
“Economic costs increase over time, much more if it involves a delay of economic benefits which are crucial in transport infrastructure,” Mr. Villarete said.
Rene S. Santiago, former president of the Transportation Science Society of the Philippines said traffic would be worse in 2027.
“It merely postpones the pain,” he added.
A 2018 Japan International Cooperation Agency study estimated the economic cost of road congestion in Metro Manila at around P3.5 billion per day.
“It will always be more difficult to do infrastructure when you postpone, especially in transport since demand and volume always increases over time,” Mr. Villarete said.
The DPWH has a best-case estimate of 6 months for rehabilitating EDSA and noted the possibility of coming in under the initially estimated cost of P15 billion.
The Department of Transportation has said that it is working with other agencies to assess options for expediting the rehabilitation, including innovative construction methods that promise shorter completion times over conventional methods.
Government ready to take over power generation in Siquijor
THE GOVERNMENT signaled its readiness to take over Siquijor Island Power Corp. (Sipcor), the province’s sole power generator, if Sipcor proves unable to deliver continuous power, energy officials said.
“If we can prove that Sipcor can no longer manage, then by all means, I would strongly suggest, and I’m sure my Secretary will agree with me, we should exercise police power to take over operations,” Antonio Mariano C. Almeda, administrator of the National Electrification Administration (NEA), said during the post-State of the Nation Address (SONA) briefings on Wednesday.
Siquijor was placed under a state of calamity in June due to the deteriorating power situation.
According to the Department of Energy (DoE) Electric Power Industry Management Bureau, Sipcor’s capacity is 11.58 megawatts (MW), but only 8.816 MW is being contracted to the Provincial Electric Cooperative of Siquijor.
In his fourth SONA, President Ferdinand R. Marcos, Jr. ordered NEA, the DoE, and the Energy Regulatory Commission to resolve electricity crisis in Siquijor before the end of the year.
Mr. Marcos said that initial investigations showed that Sipcor has “expired permits, broken generators that were clearly neglected, slow response times, and the lack of a system for purchasing fuel and spare parts.”
Energy Secretary Sharon S. Garin reported violations on Sipcor’s part in terms of its ability to maintain an adequate number of generator sets.
“I think we’ve been quite lenient because we’ve been giving chances over and over again. Even in finding those gensets, we’ve been helping look for solutions — but now, we’re back to where we started,” she said.
Mr. Almeda also said that NEA is tapping third-party surveyors composed of engineers from the University of the Philippines to “evaluate the viability of whether or not (Sipcor) can still continue to perform its obligations.”
“If we are not convinced that they can still continue according to the provisions of the contract, and I believe contractual obligations should always give way to the interest of public welfare, and that’s the time that the government will step in,” he said. — Sheldeen Joy Talavera
Employers point to digitalization as most worrisome force affecting PHL economy
THE Employers Confederation of the Philippines (ECoP) said the government must confront the challenges posed by the digital transition, among other rapidly evolving factors altering the economy.
ECoP 46th National Conference of Employers (NCE) Chair Cesar Mario O. Mamon said global institutions are now calling for public-private initiatives to address the interconnected challenges brought about by the so-called triple transition — the shift to more digitalized, and greener society amid rapidly changing demographics.
“The government plays a crucial role in shaping a more sustainable future for the next generation of Filipinos and must lead the initiatives to negate the ill effects of environmental degradation, technological advancements, and shifting demographics,” Mr. Mamon said at the conference.
In particular, he said that global warming has increased the frequency of weather disturbances, while the demographic shift is disrupting the population structure and the labor market.
Meanwhile, he said artificial intelligence could outcompete humans in most tasks, putting some jobs at risk.
Noting resolutions passed by ECoP, Mr. Mamon said that the government must work with the private sector, academia, and other partners “to develop and implement appropriate policies, strategies, and programs to address the triple transition.
ECoP Governor Arturo C. Guerrero III said the most worrisome is the ill effects of the digital transition.
“They say that a lot of jobs are going to be lost to digitalization. In fact, this was the cornerstone of the conference: that everything is going digital … and some people and businesses are not able to cope,” he told BusinessWorld.
“Some people are not able to upskill and reskill. We are afraid of this transition, because you can’t stop it,” he added.
He said that steps should be taken to ensure that employees and businesses are not left behind.
“Our responsibility as employers is to make sure that no employees are left behind, and we need the assistance of the government to help us alleviate the change,” he said.
“We need to talk and have social dialogue so that we can know how we can proceed and how we can do it so that we won’t have a hard time in the transition,” he added.
He said President Ferdinand R. Marcos, Jr.’s promise of putting laptops in schools is a step in the right direction but noted that Filipinos still need to strengthen the basics to adapt.
“For you to adapt, you need to have the basics. You need to have creativity, you have to have knowledge, you have to have understanding, and you have to have basic writing, reading, and arithmetic,” he said.
“Our students right now are not capable of understanding and solving problems on their own. So this is where the government, especially the education sector, can focus,” he added.
He said that addressing the challenges will make the Philippines more attractive for foreign direct investment.
“They are not looking at the Philippines on its own. We are being looked at as members of the Asia-Pacific region. We are being compared to Vietnam, Indonesia, and Malaysia, among others,” he added. — Justine Irish D. Tabile
Export dev’t seen outweighing favorable US tariff — Balisacan
By Kyle Aristophere T. Atienza, Reporter
THE Department of Economy, Planning, and Development (DEPDev) said any tariff concessions the Philippines may yet wrest from the US won’t matter much if its export industries remain underdeveloped.
“Unless you improve your productive capacity here, then even if the US or any country open up their doors as big or as wide as possible, you don’t have anything to export,” Economy Secretary Arsenio M. Balisacan told reporters.
The Philippines is undertaking continued negotiations with the US via electronic communications after it was assigned a 19% tariff on goods shipped to the US.
“The tariff was higher for Vietnam. Before Trump reduced their tariff, it was high… But the question is, do you have exports (like Vietnam does?) Do you have rice to export? Do you have coffee to export?” he noted.
“The issue is really addressing constraints to grow productivity,” he added. “We’re not competitive.”
The Philippine tariff is now level with Indonesia’s, and slightly lower than Vietnam’s 20%. Singapore was assigned the lowest tariff in the region, 10%.
Mr. Balisacan also called for equal attention to domestic issues that affect entrepreneurial growth, including weak infrastructure.
“I would like to say that we need to diversify our export markets,” he said, but not before “improving our production” and “addressing those issues that are being raised by the business community.”
The Philippines’ weak exports reflect the absence of a concrete blueprint for industrial policy, Diwa C. Guinigundo, Philippine analyst for GlobalSourcePartners, said via Viber.
“If we could produce more and achieve greater total factor productivity, any possible decline in exports to the US could very well be matched by higher sales in other markets as we aim to diversify,” he said.
“The point is not just to improve productivity in our current exports — that would enhance our global competitiveness — but to also, and equally important, to expand the whole range of products that we could manufacture and sell abroad,” he added.
“That could likely bring us higher up the value chain.”
Mr. Guinigundo urged DEPDev to pursue private sector partnerships for “technology-driven innovation in production, logistics and other services,” citing the need to deploy artificial intelligence and big data to upgrade production.
“Other important elements are of course ensuring we achieve a critical mass of connectivity, both through physical infra and communication. We also reduce the cost of doing business by having a whole variety of energy including renewable sources,” he added.
Mr. Balisacan said the 19% US tariff won’t significantly hurt growth, noting that there are other export markets and that the Philippines is in better position than many other Southeast Asian countries.
“Much more exports go to many other countries, and what happens to those exports with all this reconfiguration of tariffs matters more. Also, how imports are affected by the tariffs is really more significant in terms of quantitative impact,” he said.
“Of course, we would want to improve the terms of what we can get as much as possible with the US, but insofar as the government targets, for example, our GDP, that would have… no effect.”
Finance Secretary Ralph G. Recto on Tuesday said the government is projecting up to P6 billion in foregone revenue due to the zero tariffs on some US exports such as automobiles, wheat, soy and pharmaceuticals.
Leonardo A. Lanzona, an economics professor at Ateneo de Manila, said even though exports contribute relatively little to the economy, the US tariffs cannot be ignored as “exporting is supposed to be our exit plan for all our productivity programs.”
“We need to create more markets to sustain our productivity in the long run.”
Boosting productivity alone cannot sustain long-term industrial growth because limited competition breeds inefficiency and small demand hinders scalability, he noted.
“Exporting forces firms to improve quality to meet international standards, lower costs to compete with foreign rivals, and innovate to differentiate products,” he added.
The US accounted for about 16% of Philippine exports in the first five months, led by semiconductors and electronic products.
The US trade deficit with the Philippines widened 21.8% in 2024 to nearly $5 billion with US exports to the Philippines amounting to $9.3 billion against imports of Philippine goods of $14.2 billion.
AmCham backs reforms focused mainly on technology upgrades
THE American Chamber of Commerce of the Philippines (AmCham) urged President Ferdinand R. Marcos, Jr. and the 20th Congress to work on reforms mainly focused on improving the country’s technology infrastructure to support the goals outlined in the fourth State of the Nation Address (SONA).
In a statement, AmCham said its reform wish list can “accelerate economic growth, foster sustainable development, and significantly enhance the country’s investment climate.”
These measures include the E-Governance Act, the Digital Economy Act, the Artificial Intelligence Act, the Konektadong Pinoy Act, the National Land Use Act, the Blue Economy Act, the Freedom of Access to Information Act, the Holiday Rationalization Act, and the National Single Window System.
AmCham also expressed support for amending to the Foreign Investors’ Long Term Lease Act, the Electric Power Industry Regulation Act, and the charters of the Civil Aviation Authority and the Philippine Ports Authority.
“We reiterate our strong support for these national policy measures and believe these complement the President’s priorities and support the goals outlined in the SONA,” it added.
In a separate statement, the European Chamber of Commerce of the Philippines (ECCP) welcomed the President’s commitment to transparency and fighting corruption.
“We firmly believe these efforts will only serve to heighten investor confidence, improve market access, and reinforce the country’s position as a credible and attractive destination for trade and investment within the region,” the ECCP said.
The ECCP continued to push for improving the ease of doing business in the Philippines.
“European investors have remained at the forefront of contributing to the development of strategic sectors in the country, especially in renewable energy, which further highlights their willingness to invest in large-scale projects so long as the government maintains an enabling and conducive business environment,” it added.
The group also highlighted the President’s focus on infrastructure development, energy security, education and human capital, digital transformation, defense and security, and disaster preparedness.
“The ECCP remains committed to collaborating with the Philippine government and relevant stakeholders to translate these strategic visions into tangible benefits that will greatly advance good governance, a sound regulatory environment, and sustainable economic growth,” it added. — Justine Irish D. Tabile
DBM sees reenacted 2026 budget setting back PHL growth, upper middle-income aspirations
By Aubrey Rose A. Inosante, Reporter
DEPARTMENT of Budget and Management (DBM) Secretary Amenah F. Pangandaman said a reenacted national budget for 2026 would hurt the economy and derail its transition to a higher income tier.
“A reenacted budget would set us back, delay our vital programs, and jeopardize our targets for economic growth, including our goals of achieving single-digit poverty levels, and upper middle-income status,” she told BusinessWorld via Viber on Tuesday.
The Philippines narrowly missed the World Bank’s threshold for reclassification as an upper middle-income economy.
Gross national income (GNI) per capita stood at $4,470 — just $26 short of the low end of the $4,496-$13,935 GNI range for the tier.
Apart from the risk to the budget, analysts are projecting a slowdown in gross domestic product (GDP) growth, citing global uncertainties like those posed by US tariffs.
In the first quarter, GDP grew by a weaker-than-expected 5.4%.
“Under a reenacted budget, our National Government agencies will be forced to operate using a budget that does not align with the programs and projects planned or proposed by the government agencies for 2025,” Ms. Pangandaman said.
President Ferdinand R. Marcos, Jr. warned legislators that he would not sign a General Appropriations Bill (GAB) that significantly departs from the National Expenditure Program, the document prepared by the Executive branch that serves as the basis for budget legislation.
If the GAB remain unsigned, the government automatically reenacts the previous year’s budget running in the same spending allocations, as prescribed by the constitution.
The 2025 spending plan is 6.87% lower than the proposed P6.793-trillion budget for 2026.
Finance Secretary Ralph G. Recto has said that a reenacted budget next year is unlikely, with Congress expected to fall in line after the President’s warning.
The last major reenacted budget crisis was in 2019 under President Rodrigo R. Duterte. After a standoff with Congress, the government operated under the P3.757-trillion national budget from 2018 until the 2019 budget bill was signed four months later.
The delay caused many projects to miss part of the dry season, which is prime weather for construction works. The building slowdown put a damper on government spending, which the economy depends on for much of its growth.
The reenacted budget resurfaced in 2020, though the standoff lasted less than a week, with Mr. Duterte signing the bill for the new year on Jan. 6.
Ms. Pangandaman also noted that a reenacted budget would hinder the creation of new government positions and block salary increases for public-sector employees, including teachers, nurses, and doctors in government hospitals.
“That’s a problem because it delays new projects, slows down disbursement, and hurts economic momentum,” Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas said via Viber.
Public spending is a major driver of growth, rising 18.7% in the first three months this year, with the government frontloading much of its spending to skirt the spending ban that set in just before the May midterm elections.
“We’re talking about missed opportunities — especially for infrastructure, social programs, and climate resilience. It’s like trying to grow with last year’s shoes — too tight, not fit for today’s needs,” Mr. Ravelas said.
Ateneo Center for Economic Research and Development Director Ser Percival K. Peña-Reyes said a budget deadlock would not maximize the impact of government spending.
“The budget is best spent on things that generate the greatest benefit for the greatest number of people in the economy through the widest network of industry linkages,” he said.
He urged the government to allocate more funding to agriculture, health, and education, “with meaningful, long-lasting impact, and less on ayuda (cash aid for the poor), whose effects are merely transitory.”
Spaceport, airport upgrades added to P2.86-trillion PPP project pipeline
THE GOVERNMENT now has 230 public-private partnership (PPP) projects in the pipeline valued at P2.86 trillion, including facilities for the Philippine Space Agency to conduct space launches and landings.
In a document released to reporters, the PPP Center said the P17.5-billion Philippine Spaceport solicited project will seek to leverage the Philippines’ location near the equator.
Out of the six new listings, five are national projects.
The second biggest new entry is the bundled project to upgrade the Francisco Bangoy International Airport in Davao City, the Southern Luzon International Airport in Legazpi City and Sayak Airport in Siargao.
The project estimated cost is P16.05 billion and its private partner is Philippine Regional Airports Consortium. The implementing agencies are the Civil Aviation Authority of the Philippines and the Davao International Airport Authority.
The P12.9-billion Francisco Bangoy and P856-million Sayak Airport projects were delisted and merged into a bundled offering.
Also added to the pipeline was the P9.7-billion Renewstable Green Hydrogen Power Plant in Marinduque, with HDF Energy Philippines as the private partner and National Power Corp. as the implementing agency.
The Municipal Government of Naawan in Misamis Oriental will lead the P260-million LUMINA Cluster Water Development Plan and Septage Management Program, with Total Water Solutions, Inc. as the private proponent.
The PPP Center also included two projects from the Department of Finance — the Cross-Border Electronic Invoicing (CBEI) System and the Fuel Marking Program.
The CBEI will be used by verified and registered foreign exporters to generate export invoices on a single electronic platform, the Bureau of Customs said.
Five projects were delisted, including the previously separate upgrades of Sayak and Francisco Bangoy airports.
Other delisted projects include the P1.56-billion unsolicited Metropolitan Manila Development Authority Emergency Response Center project and the P1.42-billion Traveler Information and Data Security System (eTRAVELPLUS) of the Department of Information and Communications Technology.
The PPP Center also delisted the upgrading and improvement of the Iloilo Commercial Port Complex of the Philippine Ports Authority and the P160-million operation and maintenance contract for the Palayan City Hospital in Nueva Ecija were removed from the pipeline.
The hospital project was delisted following its award and is now on the PPPC database as a project under implementation. — Aubrey Rose A. Inosante
KADIWA stores to get priority when pork MAV is expanded
GOVERNMENT-SUBSIDIZED stores in the Kadiwa network will obtain the bulk of pork imports entering the Philippines when the minimum access volume (MAV) for pork is expanded by 150,000 metric tons, according to the Department of Agriculture (DA).
Agriculture Secretary Francisco Tiu Laurel, Jr. said the DA is seeking an MAV Plus quota for pork imports ahead of the holiday season.
MAV items enter the country under favorable tariffs, which escalate for import volumes in excess of the quota.
“The volume that we are asking for under MAV Plus is 150,000 tons. But the majority of this will only be sold to Kadiwa,” he said, noting that the Kadiwa platform will be leveraged to influence the market price for pork.
About 100,000 MT will go to Kadiwa stores, and 30,000 MT to meat processors to stabilize the price of canned goods, he said.
The DA plans to ask meat processors to reduce prices once the pork shipments arrive, he added.
“What we’re trying to do is approve all of this so that by December, rice and pork will be cheaper,” there will be less of a spike, and Christmas will be easier for all of us.”
Mr. Laurel said there will also be an allocation for the food services industry.
The Meat Importers and Traders Association supports imports of at least 200,000 MT in excess of MAV for three years to address what it said is inadequate swine production.
Mr. Laurel said the proposal has been discussed with Finance Secretary Ralph G. Recto.
“It’s already in Malacañang and more or less okay,” he said.
“The rules say that if Congress doesn’t act on this within 15 days, it is considered approved,” he added.
The proposed MAV Plus scheme will be in effect for the whole year. — Kyle Aristophere T. Atienza
Social housing shift to horizontal projects expected to address complaints about cost
THE Department of Human Settlements and Urban Development (DHSUD) said it is adding horizontal projects to its social housing portfolio to address complaints about the high cost of tower units.
Department Order No. 2025-21 authorizes the Pambansang Pabahay para sa Pilipino (4PH) Program to offer more housing projects configured as subdivisions.
The order also simplified the application process for homebuyers, the department said.
The government has set a target of building six million housing units by 2028. This has since been scaled down to 3.2 million units due to financing and construction issues.
“These new guidelines transform the flagship program into a people-centric, stakeholder-friendly initiative with simplified processes, both for the homebuyers/beneficiaries, our attached agencies and private developers,” Housing Secretary Jose Ramon P. Aliling said.
Since taking office in May, Mr. Aliling has sought to expand the 4PH program to include alternative forms of occupancy like rentals.
Mr. Aliling also approved the revival of 34 projects under the community mortgage program (CMP), which would benefit 5,000 member-beneficiaries.
Overseen by the Social Housing Finance Corp., the CMP assists legally organized associations of low-income persons to acquire and develop plots of land.
“This is to ensure that the expanded programs are not only affordable and accessible but also to promote dignified living conditions and sustainable communities for buyers or beneficiaries,” Mr. Aliling said. — Beatriz Marie D. Cruz