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US, China reach framework deal on TikTok; Trump and Xi to speak on Friday

MYRIAMMIRA-FREEPIK

MADRID/WASHINGTON – US and Chinese officials said on Monday they have reached a framework agreement to switch short-video app TikTok to US-controlled ownership that will be confirmed in a Friday call between US President Donald Trump and Chinese President Xi Jinping.

The potential deal on the popular social media app, which counts 170 million US users, was a rare breakthrough in months-long talks between the world’s No. 1 and No. 2 economies that have sought to defuse a wide-ranging trade war that has unnerved global markets.

After a meeting with Chinese negotiators in Madrid, US Treasury Secretary Scott Bessent said a September 17 deadline that could have disrupted the popular social media app in the US encouraged Chinese negotiators to reach a potential deal.

He said that deadline could be extended by 90 days to allow the deal to be finalized, but declined to discuss specifics of the deal.

Bessent said when commercial terms of the deal are revealed, it will preserve cultural aspects of TikTok that Chinese negotiators care about.

“They’re interested in Chinese characteristics of the app, which they think are soft power. We don’t care about Chinese characteristics. We care about national security,” Bessent told reporters at the conclusion of two days of talks.

Trump, when asked if China would hold a stake in the company, told reporters, “We haven’t decided that but it looks to me, and I’m speaking to President Xi on Friday, for confirmation of that.”

It is the second time this year that the two sides have said they were nearing a TikTok deal. The earlier announcement in March ultimately did not pan out.

Any agreement could require approval by the Republican-controlled Congress, which passed a law in 2024 requiring divestiture due to fears that TikTok’s US user data could be accessed by the Chinese government, allowing Beijing to spy on Americans or conduct influence operations through the app.

But the Trump administration has repeatedly declined to force a shutdown, which could anger the app’s millions of users and disrupt political communications. Trump has credited the app with helping him win re-election last year, and his personal account has 15 million followers. The White House launched an official TikTok account last month.

“A deal was also reached on a “certain” company that young people in our Country very much wanted to save. They will be very happy! I will be speaking to President Xi on Friday. The relationship remains a very strong one!!!” Trump wrote on his Truth Social platform.

Bessent did not say whether parent company ByteDance would transfer control of the app’s underlying technology to the unnamed US buyer. Wang Jingtao, an official at the Chinese cyberspace regulator, said the deal could licence intellectual property rights, including algorithms.

Aside from TikTok, the US has cited national security concerns to block shipments of semiconductors and other advanced technology to China, and ban Chinese products that Washington has concluded could be used to spy on Americans or gather intelligence.

China’s top trade negotiator, Li Chenggang, told reporters that those concerns amounted to “unilateral bullying.”

“The United States cannot on the one hand ask China to take care of its concerns, and on the other hand continue to suppress Chinese companies,” Li said.

Li said the two sides had reached a “basic framework consensus” on resolving TikTok-related issues – a slight variation from the language used by the US side.

The US-China meeting at the Spanish foreign ministry’s baroque Palacio de Santa Cruz was the fourth round of talks in four months to address strained trade ties as well as TikTok’s divestiture deadline.

Delegations led by Bessent and Chinese Vice Premier He Lifeng have met in European cities since May to try to resolve a trade war that has seen tit-for-tat tariff hikes and a halt in the flow of rare earths to the United States.

TRUMP, XI TO DISCUSS MEETING

Trump has repeatedly expressed interest in a meeting with Xi, and China is trying to woo Trump to Beijing for a summit. Bessent said it was up to the leaders to discuss whether to meet during Friday’s call.

A source familiar with the talks said the US team told the Chinese side that any potential meeting this fall would have been off the table if the two failed to reach a deal on TikTok in Madrid.

The talks took place as Washington demands that its allies place tariffs on imports from China over Chinese purchases of Russian oil, which Beijing on Monday said was an attempt at coercion. Bessent said the issue of Russia was briefly discussed.

Beijing separately announced on Monday that a preliminary investigation of Nvidia found the US chip giant had violated its anti-monopoly law. Bessent said the announcement on Nvidia was poor timing.

The probe is widely seen as a retaliatory shot against Washington’s curbs on the Chinese chip sector. — Reuters

Cash remittances hit 7-month high at $3.18 billion in July

PHILIPPINE STAR/ MIGUEL DE GUZMAN

By Katherine K. Chan

FILIPINOS ABROAD sent more money home in July, hitting a seven-month high as remittances from sea-based workers grew at a slightly quicker pace than those from land-based workers, the Bangko Sentral ng Pilipinas (BSP) said on Monday.

Cash remittances coursed through banks jumped by 3% to $3.179 billion in July from $3.085 billion in the same month a year ago, data from the central bank showed.

This marked the highest monthly remittance level since the $3.38 billion posted in December last year.

250916OFW_Remittances

Month on month, remittances grew by 7% from $2.987 billion previously.

“The Philippines saw sustained growth in cash remittances in July of this year, with remittances from sea-based overseas Filipinos (OFs) increasing slightly faster than funds from land-based OFs,” the BSP said in a statement.

Money sent home by land-based workers made up the bulk of cash remittances in July, which went up by 3% year on year to $2.59 billion.

Remittances from sea-based workers rose by 3.1% year on year to $585 million in July.

“The peso’s relative weakness against the US dollar also encouraged higher remittances, as families received greater peso value,” Ruben Carlo O. Asuncion, chief economist at the Union Bank of the Philippines (UnionBank), said in a Viber message.

In July, the peso performed weaker at an average P56.7523 per US dollar from the P56.3586 recorded in June.

Jonathan L. Ravelas, senior adviser at Reyes Tacandong & Co., said in a Viber message that the remittances growth in July was also driven by the start of the school season which meant overseas Filipino workers (OFWs) sent more money to their families to pay for tuition fees and school supplies.

Mr. Ravelas said global job stability may have allowed sea-based workers to send home more money.

Mr. Asuncion said the increase in remittances by sea-based workers reflects “strong demand in the maritime sector, buoyed by stable global trade and the recovery of cruise operations.”

“Higher dollar-denominated wages and renewed contracts for seafarers contributed to this growth, underscoring the sector’s resilience and its role as a stabilizing force for overall remittance inflows,” he said.

Meanwhile, personal remittances, which include both cash coursed through banks and informal channels and in-kind remittances, climbed by 3.1% to $3.53 billion in July from $3.43 billion in the same month last year.

Most of the personal remittances that month came from workers with contracts of one year and above, amounting to $2.81 billion, up 3% from a year earlier.

Those with contracts of less than one year sent home $650 million, rising by 3.3% year on year.

SEVEN-MONTH PERIOD
In the first seven months of the year, cash remittances from OFWs increased by 3.1% to $19.932 billion from $19.332 billion a year ago.

This as remittances sent by land-based workers rose by 3.3% to $15.97 billion during the period, while sea-based workers’ remittances inched up by 2.3% to $3.96 billion.

Filipinos in the United States accounted for 40.3% of the total cash remittances sent in the January-to-July period.

This was followed by OFWs in Singapore (7.1%), Saudi Arabia (6.2%), Japan (5%), the United Kingdom (4.8%), the United Arab Emirates (4.4%), Canada (3.4%), Qatar (2.9%), Taiwan (2.8%) and South Korea (2.7%).

Personal remittances in the first seven months reached $22.206 billion, up by 3.1% from $21.532 billion a year prior.

Mr. Asuncion said the upcoming holiday season will allow remittances to sustain its growth in the coming months.

“Looking ahead, remittances are expected to maintain an upward trajectory in the coming months, supported by seasonal inflows during the ‘-ber’ months and the holiday season,” he said.

However, the UnionBank economist also noted that global economic uncertainty and policy changes across the world pose risks to the country’s remittances growth.

“Nonetheless, steady overseas employment and a competitive peso should help sustain positive momentum,” he added.

The BSP expects cash remittances to grow by 2.8% to $35.5 billion this year.

Marcos vows independent probe into flood-control irregularities

President Ferdinand R. Marcos, Jr. holds a press conference in Kalayaan Hall, Malacañan Palace on Sept. 15. He named former Justice Andres B. Reyes, Jr. as the head of the Independent Commission for Infrastructure. — PHILIPPINE STAR/RYAN BALDEMOR

By Chloe Mari A. Hufana, Reporter

PHILIPPINE President Ferdinand R. Marcos, Jr. on Monday said his newly created commission investigating irregularities in the multibillion-peso flood-control projects would operate independently and free of political bias, seeking to distinguish it from congressional inquiries that he said risk conflicts of interest.

The President issued the remarks as he appointed retired Supreme Court Associate Justice Andres B. Reyes, Jr. as chairman of the Independent Commission for Infrastructure (ICI).

“It will be completely independent,” Mr. Marcos told a Palace briefing. “That’s something that cannot be said if, for example, the Senate conducts [an investigation]… People ask why they are investigating themselves, which is always a little bit of a difficult situation.”

The ICI has been formed to probe alleged corruption in public works, zeroing in on defective flood control projects that drew criticism after heavy rains and storms submerged several towns and cities in recent months.

Mr. Marcos vowed the ICI will be independent, adding he will not interfere or direct the body on how their investigations are done.

He said the commission’s members have no ties to government, except for Baguio City Mayor Benjamin B. Magalong who was appointed as special adviser but opted to retain his local post.

“We have taken great pains to make sure that independence is recognized,” he added.

“There’s only one way to do it… they will not be spared,” Mr. Marcos said when asked about his cousin and House Speaker Ferdinand Martin G. Romualdez’s alleged role in the scams.

This comes after Navotas Rep. Tobias M. Tiangco implicated Mr. Romualdez and former House Appropriations Chair Elizaldy S. Co as some of the lawmakers who allegedly received kickbacks from government contractors. They both have denied all allegations.

Mr. Romualdez, in a separate statement, said the chamber will not shield lawmakers implicated in anomalous flood control projects, stressing the issue is “bigger than personalities.”

He vowed the House would cooperate with Mr. Marcos’ independent commission, calling it a chance to “cleanse the system.”

ICI CHAIRMAN
Mr. Marcos on Monday announced the appointment of Mr. Reyes as chairman of the ICI, saying the former SC Justice has a “very good record of honesty and fairness.”

“We have to make it nothing less than a turning point in the conduct of governance in the Philippines. We have to make a change, and it is a fundamental change in the way that we do business,” he said, quoting the ICI chief.

The President created the commission through Executive Order No. 94 to investigate anomalies in flood control and other infrastructure projects, with authority to recommend criminal, civil and administrative charges.

“The power to hold people in contempt, I think, was not necessary (to the ICI) simply because this is not a prosecutorial body — this is an investigative body,” Mr. Marcos said.

The commission is set to meet daily to finalize its organizational matters, including the structure of the secretariat, staffing needs, officer assignments and necessary forms. Whether their meetings will be held privately or publicly will be left to their discretion.

Mr. Reyes, 75, was an appointee of former President Rodrigo R. Duterte and a graduate of the Ateneo de Manila University School of Law. He was a Supreme Court justice from 2017 until his retirement in 2020.

Mr. Reyes earned a master’s degree in public administration from the Philippine Women’s University. He is a “third-generation justice” in the family, according to his profile on the Supreme Court website. His grandfather Alex A. Reyes, Sr. was a justice of the Court of Appeals and Supreme Court.

Joining him as members of the fact-finding body are former Public Works Secretary Rogelio L. Singson and SGV & Co. Country Managing Partner Rossana A. Fajardo.

Ederson DT. Tapia, a political science professor at the University of Makati, said Mr. Marcos’ approach of sparing no one builds the credibility of his anti-graft push.

He expressed confidence in the commission’s members, Mr. Reyes, Mr. Singson, and Ms. Fajardo, citing their track record.

“I think they are also well aware that all eyes are on them, so I suppose they will not leave any stone unturned in their quest for accountability,” he said via Facebook Messenger.

Arjan P. Aguirre, who teaches political science at the Ateneo de Manila University, said that the new independent commission suffers from a “capability deficit” because it is an executive creation still subject to Mr. Marcos’ influence, has vague powers limited to seeking agency cooperation, and lacks transparency in member selection. 

He said the move appears poorly planned or possibly designed to let the administration control the investigation and shield allies.

“This most recent political move of Marcos, Jr. can be perceived as something that is not well-thought-of, or if it is, it can be interpreted as a way to control the investigative process — perhaps to protect some of its key allies,” he said via Facebook Messenger.

FLOOD CONTROL FUNDS
Meanwhile, Mr. Marcos said the funds from canceled flood control projects in the 2026 budget will be redirected to key sectors, including education, health, agriculture, housing, infrastructure, information and communications technology, labor, social services, and energy.

He said a detailed spending “menu” has been prepared to guide lawmakers in reallocating the funds.

“Now that we have canceled all flood control projects for 2026, we have already prepared a menu for those savings so that, first of all, even in the budget now being drafted, it will be very clear that the funds will go to the proper places,” he said in mixed English and Filipino.

While no fresh allocation will be made for flood control in 2026, the President clarified that the P350 billion already set aside for 2025 projects must first be fully utilized.

The President also said local governments will again be authorized to inspect national projects before completion and turnover, a safeguard scrapped under the previous administration.

‘EXPRESS IT’
Meanwhile, Mr. Marcos backed planned protests against corruption on Sept. 21.

Mr. Marcos, the son of the late strongman who stole as much as $10 billion (P503 billion) from the Filipino people according to government estimates, said that if he were not a President, he would also join the demonstrations.

“They are enraged, of course they are angry. I’m angry, we should all be angry, because what is happening is not right,” he said.

“So, yes, express it. You come, make your feelings known to these people, and make them answerable for the wrongdoings that they have done.”

Two major demonstrations are scheduled on Sunday (Sept. 21) — one at Luneta Park in Manila and another at the People Power Monument in Quezon City.

The date also marks the country’s commemoration of the declaration of Martial Law by the late President Ferdinand E. Marcos, Sr.

Philippines now a step closer to re-entering JPMorgan’s bond index

The logo of J.P. Morgan is seen in Zurich, Switzerland July 8, 2021. — REUTERS/ARND WIEGMANN

By Bettina Faye V. Roc, Banking Editor

THE PHILIPPINES is now on the positive watchlist for JPMorgan Chase & Co.’s emerging market government bond index, putting it a step closer to re-entering the list that could help bring in more foreign investments.

JPMorgan said in a report on Sept. 12 that Philippine peso-denominated government bonds (RPGB) have been tagged as “Index Watch Positive,” according to statements from the Bangko Sentral ng Pilipinas (BSP) and the Department of Finance (DoF).

This is the final review phase for the bonds’ potential inclusion in the bank’s Government Bond Index for Emerging Markets (GBI-EM) series.

“Inclusion would be expected to attract more foreign investments, increasing liquidity and lowering borrowing costs for the government and eventually the private sector… While the Philippines has been able to raise funds from foreign investors through its dollar-denominated bonds since the early 2000s, inclusion in the GBI-EM series is expected to help the government draw more foreign investors to its larger peso-denominated bond market,” the BSP said.

JPMorgan’s GBI-EM tracks the performance of sovereign and quasi-sovereign bonds issued by emerging market countries. The country’s inclusion will need to be approved by a certain percentage of investors reviewing the index.

The Philippines would have a weight of about 1% of the GBI-EM Global Diversified Index if included, according to JPMorgan.

The Philippines’ global peso notes were removed from the GBI-EM in January last year due to illiquidity. For potential inclusion in the index are RPGBs issued from 2023 with tenors up to 20 years, the DoF said.

“Getting on the positive watchlist is a testament to the work the government and financial market leaders has done especially in the last few years to expand our capital markets, particularly our local bond market. This news serves as further impetus to execute more changes and reforms,” BSP Governor Eli M. Remolona, Jr. said.

“This is a promising development for the Philippines as the potential inclusion of our government bonds into this global index means increased capital inflows and therefore more funds for the government to better serve Filipinos. This is an excellent opportunity for us to promote our capital markets to a wider range of investors,” Finance Secretary Ralph G. Recto said.

National Treasurer Sharon P. Almanza earlier said it could take the Philippines two to three years to re-enter the bond index after getting added to JPMorgan’s watchlist.

The bank said it will conduct its Index Watch assessment within six to nine months and will provide updates in the first quarter of 2026.

The BSP and the DoF said that JPMorgan cited the Philippines’ “proactive market reforms,” including reviving the repo market, launching the Philippine Peso interest rate swap market, and the consolidation of benchmark tenors, in its decision to put the country on its index watchlist.

“JP Morgan also noted positive feedback from GBI-EM investors, particularly on the accessibility of the RPGB market via Brussels-based clearing house Euroclear, as well as improvements in secondary market liquidity through the consolidation of benchmark tenors… Due to reforms, foreign ownership of RPGBs has doubled from 1.8% in 2021 to 5.2% as of June 2025, JPMorgan said,” the BSP said.

Meanwhile, secondary market liquidity and taxation issues were among the key concerns raised by investors, it added.

AMLC says PHL unlikely to return to ‘gray list’

PHILIPPINE STAR/WALTER BOLLOZOS

By Katherine K. Chan

THE Anti-Money Laundering Council (AMLC) on Monday said the Philippines is unlikely to return to the Financial Action Task Force’s (FATF) “gray list,” despite a probe into allegations that former Public Works engineers laundered billions of pesos through casinos using funds meant for flood-control projects.

Asked if the Philippines may once again be included in the FATF’s gray list, AMLC Executive Director Matthew M. David said: “Hindi, hindi totoo ’yun (No, that’s not true).”

“We’re doing our best for the Philippines not to enter the gray list anymore,” he told reporters in Filipino on the sidelines of a Senate briefing on Monday.

The FATF removed the Philippines from its gray list of jurisdictions under increased monitoring for “dirty money” in February.

Mr. David said the Philippines is now preparing for the FATF’s next mutual evaluation in 2027.

Mutual evaluation is a process wherein the FATF, through the Asia Pacific Group for Money Laundering, assesses the Philippines for its compliance with the FATF recommendations and standards, he said.

However, Mr. David said the AMLC is now working on tracking potential money laundering by individuals involved in anomalous flood-control projects.

He said they are looking into the covered transaction reports (CTRs) and suspicious transaction reports (STRs) that have been filed to uncover possible money laundering.

“Because of the recent events regarding the flood-control project involving our public officials and the contractors, what we did was identify if there is a money laundering aspect through corruption,” he told reporters in Filipino.

“We see those from the CTRs, from the STRs, which were submitted by the covered persons including casinos and banks.”

Once these transaction reports are submitted, Mr. David said the AMLC will conduct an investigation and then file a freeze order, a civil forfeiture case or a money laundering case, accordingly. Then the AMLC will begin prosecution of the case.

Last week, Senate President Pro Tempore Panfilo “Ping” M. Lacson revealed a money laundering scheme allegedly conducted by some officials of the Department of Public Works and Highways (DPWH). These DPWH officials were allegedly using money siphoned off flood-control projects to play in casinos and exchange them for chips.

However, Russell Stanley Q. Geronimo, founder and managing lawyer of Geronimo Law, said recent corruption and money laundering controversies could bring the country back to the FATF’s gray list but not immediately.

“Evidence of illicit large-scale cash movement, such as the one testified on by DPWH Engineer Brice Hernandez, is unlikely, by itself, to cause immediate re-listing,” Mr. Geronimo told BusinessWorld in an e-mail.

“But if combined with other structural weaknesses, then there is a real risk of being placed back on the FATF gray list and the European Union and UK high-risk lists,” he added.

In a post on social media platform LinkedIn last week, Mr. Geronimo called on the FATF to revisit the Philippines’ removal from the gray list.

Besides money laundering, the officials may face charges of plunder, graft, malversation and tax evasion, among others, according to Mr. Geronimo.

“Officials can be charged with plunder if their kickbacks exceed P50 million, graft under Republic Act No. 3019 for taking percentages from contracts or granting unwarranted benefits, malversation for misappropriating public funds, and falsification for fake accomplishment reports and vouchers,” he said.

“They may also face direct or indirect bribery, and violations of the procurement law if bidding was rigged. The BIR (Bureau of Internal Revenu) could also pursue tax evasion since presumably kickbacks were not declared as income,” he added.

Mr. Geronimo also noted that no suspicions were raised from the AMLC or banks when the government released large funds for the DPWH’s flood projects, noting that oversight bodies are “mainly reactive.”

“The BSP (Bangko Sentral ng Pilipinas) imposes no ceiling on domestic cash withdrawals. This enabled large-scale illicit cash hoarding of proceeds of ghost or substandard projects,” he added.

John Paolo R. Rivera, senior research fellow at the Philippine Institute for Development Studies, said the country might return to these dirty money watchlists if the AMLC and the government fail to enforce anti-money laundering and combating the financing of terrorism (AML/CFT) policies and measures.

“Given the ongoing flood control corruption scandal, and now these alleged laundering schemes through casinos, the risk of relisting on the FATF gray list or the EU’s high-risk third country list is real, especially if the AMLC and government fail to show consistent enforcement,” he said in a Viber message.

Mr. Rivera noted that corruption in public infrastructure projects undermines investor confidence and weakens fiscal institutions’ credibility.

“When ill-gotten funds are funneled through opaque channels like casinos, it signals to both domestic and foreign investors that the rule of law and anti-corruption safeguards are fragile,” he said. “This raises perceived political and regulatory risk premiums, potentially dampening infrastructure investments and development lending.”

Mr. Rivera said the AMLC should enhance its casino-related reporting, prosecution of high-level offenders, audit of STRs and inter-agency coordination to ensure compliance with AML/CFT policies.

“To restore confidence, AMLC must tighten enforcement on casino-related reporting, increase prosecutions of high-level offenders, and demonstrate inter-agency coordination with PAGCOR (Philippine Amusement and Gaming Corp.), DoJ (Department of Justice), and CoA (Commission on Audit) in investigating politically exposed transactions,” he said. 

“Equally important is the protection of whistleblowers and a push for asset recovery mechanisms to ensure public funds are returned,” he added.

Meanwhile, Mr. Geronimo said the AMLC should take a more proactive approach and use its artificial intelligence and machine learning system to detect structuring across various accounts, track multi-bank transfers and link transactions involving several beneficial owners.

He added that the council should improve the quality of STRs from banks and casinos and use joint analytics to identify high-risk patterns.

“For credibility, AMLC must show that the system is working,” he added. “AMLC should coordinate with the BSP to address the absence of a domestic cash withdrawal limit. Very large encashments should trigger mandatory reviews or temporary holds, not just transaction reports.”

BIR INVESTIGATION
Meanwhile, the Bureau of Internal Revenue (BIR) said it tapped AMLC to help audit flood-control contractors for tax fraud.

In a statement on Monday, BIR Commissioner Romeo D. Lumagui, Jr. said AMLC’s access to financial data is crucial in verifying whether contractors involved in anomalous infrastructure projects have declared their income properly.

“The BIR is in close coordination with the AMLC in relation to the tax fraud audit of companies and individuals involved in anomalous flood control projects,” Mr. Lumagui said.

Mr. Lumagui met with AMLC’s Mr. David on Sept. 12, to discuss how tax evasion and money laundering charges may be filed against those found to have discrepancies between their bank records and tax filings.

“These bank reports and transactions can be analyzed with tax returns and payments in conducting a tax fraud audit. If the wealth of the contractor or individual as stated in bank records does not have corresponding tax payments, then there is a case for tax evasion,” the BIR said.

This move comes after the BIR’s announced a tax fraud audit to the top 15 flood-control contractors that cornered around 20% or P100 billion worth of flood-control projects since 2022. — with Aubrey Rose A. Inosante

DPWH sacks 3 Bulacan officials over anomalous flood control projects

Former Department of Public Works and Highways (DPWH) Assistant District Engineer Brice Ericson D. Hernandez (on screen) speaks at the House Infrastructure Committee (InfraComm) hearing on anomalous flood control projects. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Erika Mae P. Sinaking

THE DEPARTMENT of Public Works and Highways (DPWH) on Monday formally dismissed three officials of the Bulacan first district Engineering Office after finding them guilty of multiple administrative offenses linked to anomalous flood control projects.

In a decision dated Sept. 15 signed by DPWH Secretary Vivencio “Vince” B. Dizon, former Assistant District Engineer Brice Ericson D. Hernandez, Construction Division Chief Jaypee D. Mendoza, and Accountant Juanito C. Mendoza were ordered removed from service.

The officials were found guilty of “disloyalty to the Republic of the Philippines and to the Filipino people, grave misconduct, gross neglect of duty, and conduct prejudicial to the best interest of the service.”

Aside from dismissal, they are permanently barred from holding public office and forfeited any retirement benefits. Their civil service eligibility has also been canceled.

The order stated the penalty is “without prejudice to the filing of separate civil or criminal charges.”

Political analyst and University of the Philippines Diliman professor Danilo A. Arao said the dismissal of erring DPWH officials is “a step in the right direction.”

“But all of those found guilty after due diligence in investigating should be sanctioned appropriately. The investigation should extend to CoA (Commission on Audit), DBM (Department of Budget and Management), Congress, and even Malacañang,” Mr. Arao told BusinessWorld via chat.

“The concerned private contractors and DPWH officials are just the tip of the iceberg, so to speak,” he added.

Perlita M. Frago, associate professor of political science at UP Diliman, said firing these government officials will not solve systemic issues, adding that mechanisms must be implemented at all levels.

“Removing people from their positions will not eradicate systemic corruption unless they are the only problem. There should be mechanisms at all levels to ensure these anomalies do not happen again, and there should be more transparency in the process,” she told BusinessWorld via chat.

“More importantly, politicians and elected officials should be excluded from the process; otherwise, permanent disqualification from public office should serve as a deterrent,” she added.

Ken Abante, co-convener of the People’s Budget Coalition, said the government should not just prosecute the “small fish but the masterminds behind this flood control scandal.”

CREC switches on P10-B Batangas solar farm with battery storage

PHILIPPINE STAR/NOEL B. PABALATE

CITICORE Renewable Energy Corp. (CREC) has energized a P10-billion, 197-megawatt-peak solar farm in Batangas with battery storage, marking the company’s first large-scale attempt to deliver baseload-like power from solar.

“Our Citicore Solar Batangas 1 is the first in the Philippines to prove that solar can be true baseload power. This is a huge step forward in the country’s renewable energy transition,” CREC President and Chief Executive Officer Oliver Tan said in a statement on Monday.

CREC Chairman Edgar B. Saavedra said the battery support allows the plant to dispatch electricity 24 hours a day, seven days a week.

The newly energized facility forms part of CREC’s plan to deliver its first gigawatt (GW) of renewable energy capacity by yearend through 11 projects in Pangasinan, Pampanga, Batangas, Quezon, and Negros Occidental.

Three of the Batangas sites will also host battery energy storage systems with a combined capacity of 760 megawatt-hours (MWh).

“With 1.5 GWh of battery energy storage systems in place, we are prepared to replicate this breakthrough starting in Batangas,” Mr. Tan said.

The projects under development are on track for energization by 2025, expected to cut nearly 2.8 billion tons of carbon emissions and generate electricity sufficient to power about 800,000 homes annually.

At present, CREC has 587 MW of combined gross installed capacity across 13 solar facilities in the country.

It aims to complete its first GW by end-2024 before moving to its second GW of projects, which will include solar, integrated renewable energy and energy systems, and onshore wind.

CREC was among the major winners in the fourth round of the Department of Energy’s green energy auction, which awarded 9,423.622 MW of renewable capacity for delivery between 2026 and 2029. — Sheldeen Joy Talavera

SM Prime files with SEC for P17-B fixed-rate bond issuance

SMPRIME.COM

SM PRIME HOLDINGS, INC. (SMPH) is hoping to raise up to P17 billion from a peso-denominated fixed-rate bond issuance, following its $350-million debut offering of US dollar-denominated senior notes.

In a stock exchange disclosure on Monday, the listed property developer said it filed an application with the Securities and Exchange Commission (SEC) to issue P12 billion in fixed-rate bonds, with an oversubscription option of up to P5 billion.

The proposed issue represents the third tranche of SM Prime’s P100-billion debt securities program cleared by the SEC in June 2024.

Philippine Rating Services Corp. (PhilRatings) assigned the bonds the highest rating of PRS Aaa with a “stable” outlook, indicating “extremely strong” capacity to meet financial commitments.

PhilRatings also affirmed the PRS Aaa rating of SM Prime’s P141.5-billion outstanding bonds.

The offer will consist of five-year Series AB bonds due in 2030, seven-year Series AC bonds due in 2032, and 10-year Series AD bonds due in 2035.

SM Prime said proceeds will help fund its 16 major redevelopments and 12 new lifestyle malls scheduled until 2030, as well as the opening of new malls in Xiamen and Fujian, China.

“After the strong demand for its oversubscribed dollar-denominated issuance, SMPH’s planned P17-billion offering is also expected to attract solid investor interest,” First Metro Securities Brokerage Corp. Equity Research Analyst Nicole Aquino said in a Viber message.

“While indicative rates have yet to be disclosed, pricing is expected to be close to the previous 6% to 6.4%, offering an attractive spread over the PH 10-year bond yield,” she added.

Last week, the company raised $350 million from its first dollar bond issuance, while shelving its planned $1-billion real estate investment trust listing to beyond 2026 due to unfavorable market conditions.

SM Prime reported an 11% rise in its first-half net income to P24.5 billion.

Shares in SM Prime slipped 0.21% or five centavos to P23.85 apiece on Monday. — Beatriz Marie D. Cruz

DoubleDragon retail bond offer ends oversubscribed

HOTEL101 MADRID — HOTEL101 GLOBAL PTE. LTD.

DOUBLEDRAGON CORP. (DD) said its P10.9-billion retail bond offering closed on Sept. 15 oversubscribed, after triggering the oversubscription option on the second day of the offer period.

The option was triggered after subscriptions exceeded 80% of the total base and maximum oversubscription amount as of Sept. 12, the company said in a statement on Monday.

The offer period started on Sept. 11 and closed on Sept. 15 at 5 p.m., with listing on the Philippine Dealing & Exchange Corp. set for Sept. 19.

The bonds carry a fixed annual interest rate of 7.7%, payable quarterly, with tenors of 3.5 and 5.5 years. The minimum placement is P50,000.

Philippine Rating Services Corp. (PhilRatings) gave the issuance its highest grade of PRS Aaa, reflecting a “very strong” capacity to meet financial commitments relative to other local firms.

The issuance is part of DoubleDragon’s bond program cleared by the Securities and Exchange Commission under a 2024 shelf registration.

DoubleDragon said the fundraising aims to improve its cash position and strengthen its balance sheet, aligned with its goal of becoming a Tier-1 mature company by 2025.

“The Double-Seven 7.7% interest rate signifies number 7 twice, as 7 is a number believed by many as lucky and the number forms similar to the shape of an auspicious Dragon,” the company said in a Sept. 11 filing.

DoubleDragon’s equity has surpassed P100 billion, placing it among a handful of local companies with 12-digit equity.

Rizal Commercial Banking Corp. and Unicapital, Inc. underwrote the issuance, while Land Bank of the Philippines served as selling agent.

“The company continues to attract strong investor appetite for its top-grade bonds given the high interest rate as well as the global expansion of its Hotel 101 platform,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.

“Investors have also been locking in high yields as benchmark rates move lower on the back of the Bangko Sentral ng Pilipinas’ monetary policy easing cycle,” he added.

Shares in DoubleDragon climbed 1.24% or P0.12 to close at P9.80 apiece on Monday. — Alexandria Grace C. Magno

The Pitt and The Studio land top awards at TV’s Emmys

SETH ROGEN accepts the award for Lead Actor in A Comedy Series for The Studio from Stephen Colbert at the 77th Primetime Emmy Awards. Later that evening, Colbert himself accepted the award for Best Talk Series for The Late Show with Stephen Colbert. — REUTERS/MIKE BLAKE

LOS ANGELES — Emergency room saga The Pitt was toasted as the year’s best television drama, and show-business satire The Studio was crowned best comedy, as Hollywood stars handed out trophies at the annual Emmy Awards on Sunday.

HBO series The Pitt was the upset winner over Severance, a surreal commentary on corporate power that went into the red-carpet ceremony in Los Angeles with the most nominations.

The Pitt star Noah Wyle earned his first Emmy, taking the prize for best drama actor. He had previously been nominated five times for his role in the medical drama ER, but never won.

“Wow. What a dream this has been,” Mr. Wyle said on stage before thanking healthcare workers. “To anyone going on shift or coming off shift tonight, thank you for being in that job.”

Seth Rogen, star and co-creator of The Studio, also claimed his first Emmy for best comedy actor, along with another for directing the Apple TV+ show with his producing partner, Evan Goldberg.

“I’m legitimately embarrassed by how happy this makes me,” Mr. Rogen said as he held the comedy series trophy.

The Late Show with Stephen Colbert was celebrated as best talk series for the first time in its decade-long run. CBS, the network that broadcast the Emmys on Sunday, announced in July it was canceling the show for financial reasons, a decision that sparked an outcry.

A smiling Mr. Colbert offered gratitude to his employer on Sunday. “I want to thank CBS for giving us the privilege of being part of the late-night tradition, which I hope continues for a long time,” Mr. Colbert said.

Earlier, when presenting an award, Mr. Colbert joked about needing a job. “While I have your attention, is anyone hiring?” he asked the audience.

Adolescence, a dark Netflix story about a teen accused of murder, received the best limited series honor.

Its 15-year-old star, Owen Cooper, was named best supporting actor in a limited series, becoming the youngest winner in that category.

The English actor said he started taking drama classes a couple years back. “If you listen and you focus and step out of your comfort zone, you can achieve anything,” Mr. Cooper said. “I was nothing three years ago.”

In other awards, Jeff Hiller was the surprise winner of best supporting comedy actor for the HBO show Somebody Somewhere. Mr. Hiller thanked HBO executives for “putting sweaty, middle-aged people on the same network as the sexy teens of Euphoria.”

Hacks stars Jean Smart and Hannah Einbinder claimed actress and supporting actress awards in the comedy field. Their show tells the story of a comedian who clashes with the network that airs her late-night talk show.

The award was Ms. Smart’s fourth Emmy for the Hacks role and the first for Ms. Einbinder despite three previous nominations. Ms. Einbinder said she had convinced herself that “it was cooler to lose.”

“This is cool, too,” she said with a smile, before ending her speech with “Free Palestine,” one of the few political moments of the night.

Winners were chosen by the roughly 26,000 performers, directors, producers, and other members of the Television Academy.

First-time host Nate Bargatze offered an incentive for honorees during the live ceremony on CBS to keep their speeches short. The comedian promised a $100,000 donation to charity but warned he would reduce the amount each time a speaker exceeded their allotted 45 seconds.

At the end of the show, Mr. Bargatze announced that long-winded remarks had left his charitable fund in deficit. He said he and CBS would, however, donate $350,000 to the Boys & Girls Clubs of America. — Reuters

And the winner is…

THE EMMY AWARDS, the highest honors in US television, were handed out at a live ceremony in downtown Los Angeles on Sunday. The following is a list of winners in key categories.

Best Drama Series – The Pitt

Best Comedy Series – The Studio

Best Limited or Anthology Series – Adolescence

Best Reality Competition Program – The Traitors

Best Talk Series – The Late Show with Stephen Colbert

Best Scripted Variety Series – Last Week Tonight with John Oliver

Best Variety Special (Live) – “Saturday Night Live 50th Anniversary Special”

Best Comedy Actor – Seth Rogen, The Studio

Best Comedy Actress – Jean Smart, Hacks

Best Drama Actor – Noah Wyle, The Pitt

Best Drama Actress – Britt Lower, Severance

Best Actor, Limited Series or Movie – Stephen Graham, Adolescence

Best Actress, Limited Series or Movie – Cristin Milioti, The Penguin

Best Supporting Actor in a Comedy Series – Jeff Hiller, Somebody Somewhere

Best Supporting Actress in a Comedy Series – Hannah Einbinder, Hacks

Best Supporting Actor in a Drama Series – Tramell Tillman, Severance

Best Supporting Actress in a Drama Series – Katherine LaNasa, The Pitt

Best Supporting Actor in a Limited or Anthology Series or Movie – Owen Cooper, Adolescence

Best Supporting Actress in a Limited or Anthology Series or Movie – Erin Doherty, Adolescence

Best Directing for a Comedy Series – The Studio: “The Oner,” Seth Rogen and Evan Goldberg

Best Directing for a Drama Series – Slow Horses: “Hello Goodbye,” Adam Randall

Best Directing for a Limited or Anthology Series or Movie – Adolescence, Philip Barantini

Best Writing for a Comedy Series – The Studio: “The Promotion,” Seth Rogen, Evan Goldberg, Peter Huyck, Alex Gregory, and Frida Perez

Best Writing for a Drama Series – Andor: “Welcome to the Rebellion,” Dan Gilroy

Best Writing for a Limited or Anthology Series or Movie – Adolescence, Jack Thorne and Stephen Graham

Best Writing for a Variety Series – Last Week Tonight with John Oliver

Bob Hope Humanitarian Award – Ted Danson and Mary Steenburgen

Charting the future in a multipolar world: Reflections from the 23rd MAP CEO Conference

STOCK PHOTO | Image by Vectorjuice from Freepik

Conferences can sometimes feel like familiar rituals: greetings are exchanged, insights are shared, and then the world carries on as before. But the 23rd Management Association of the Philippines (MAP) International CEO Conference, held on Sept. 9 at Shangri-La The Fort, was different. It was not a ritual; it was a reckoning.

The theme — “Leading Amidst Invisible Disruptions: Agility and Resilience in a Multipolar Era” — captured the mood of our times. The disruptions may be invisible, but their consequences are not. Trade corridors shift. Technologies redefine industries. Leadership legacies are tested. Yet within these uncertainties lies the chance to shape a future that is not just survivable, but sustainable.

WHEN DISRUPTION BECOMES A COMPANION
MAP President Alfredo Panlilio set the tone with a reminder that every insight counts. He spoke of the MAP Conference as a safe space for bold ideas — a place where leaders can step back, reflect, and acknowledge that the future is not something we stumble into, but something we deliberately shape.

Echoing him, Orlando Vea of Maya offered a disarming truth: “Disruption is a friend if we turn it into game-changing decisions.” That was the frame for the day: disruption not as an adversary, but as a constant companion.

TRADE WINDS AND THE PHILIPPINE ADVANTAGE
Ines Lam of HSBC gave us a sobering view of the trade environment. Tariffs, once unpredictable, are now solidifying — bringing relief, but also hesitation. Some corridors are shrinking; others are quietly expanding. Investment flows in Asia are slowing, but new opportunities are being carved out for those agile enough to claim them.

Her message to Filipino businesses was clear: lean on our unique value proposition, particularly in services, such as BPOs, and be unafraid to forge alliances that matter. She left us with a practical framework — assess demand sensitivity, evaluate supply chain exposures, benchmark competitiveness, and, above all, stay agile.

REINVENTION AS A NATIONAL IMPERATIVE
Angelo Estrera of PwC Australia then shifted the lens from caution to possibility. By 2035, he projected, the Philippines could join the ranks of the world’s top 20 economies. But the road to that future requires reinvention.

Estrera’s four-step model for disruptive innovation sounded deceptively simple: define value, build a profit formula, develop capabilities, and forge partnerships. Yet the power of his vision lay in its insistence that data must be married with empathy, and innovation must walk hand in hand with human connection. Growth without compassion, he implied, is growth that does not last.

THE HUMAN ADVANTAGE IN AN AI AGE
Oseas Ramirez Assad of Axialent Global addressed perhaps the most pressing disruption of our era: artificial intelligence (AI). With refreshing candor, he noted that AI is neither friend nor foe — it is a mirror that reflects the choices we make.

His counsel was practical: learn and experiment with AI personally; encourage organizational discovery; move from pilots to production; and manage risks without being paralyzed by them. But his warning was sharper: without alignment, readiness, and cultural change, AI will remain a tool we admire from afar rather than one we harness for transformation.

WHAT LEGACY DO WE LEAVE?
Joey Bermudez of iskaparate.com took the discussion to a more personal plane. In an age of volatility, uncertainty, complexity, and ambiguity, he asked: What do we pass on to those who will come after us?

His answer was as much a challenge as it was an invitation: pass on freedom, not burdens. Give the next generation a blank canvas, unmarked by our fiscal mistakes. Build ecosystems where wealth creation is democratized, where shared prosperity is not an aspiration but a reality.

In those words, he reminded us that the true measure of leadership is not only in profit margins but in the legacy we leave behind.

PROFIT ANCHORED IN PURPOSE
Finally, Dr. Charo Santos-Concio brought us back to the heart of it all: purpose. “Profit and purpose reinforce each other and are not opposing goals,” she said.

She called for a shift from corporate social responsibility to corporate social strategy — embedding sustainability, employee well-being, and ethical use of technology into the core of business. Quoting Eugenio Lopez, Jr., she reminded us: “The only reason we’re in business is to render public service to the Filipino. If a company were to live only for profit, it cannot grow. In the end, it will wither on the vine.”

Dr. Santos-Concio imparted us with the unflinching message of MAP CEO Conference Chair Alma Rita Jimenez — adaptability without integrity becomes opportunism, innovation without empathy deepens inequality, and progress without responsibility endangers society.

THREADS FOR TOMORROW
Taken together, the conversations at the conference revealed a clear arc. They reminded us that the future is not something we simply inherit, but something we can shape with intention. They underscored that leadership, if it is to be truly responsible, must weigh its impact not just on the present but on generations yet to come. They affirmed that reinvention is not a short-term maneuver but a long-term discipline that must outlast political cycles. They showed us that technology, when guided by care and ethics, is not a threat but a powerful tool for growth. And above all, they drove home that profit, to endure, must always be anchored in purpose.

As I closed the conference, one truth crystallized. Disruption will not go away. But disruption is not the end of the story. It is the beginning of a new one.

The 23rd MAP International CEO Conference reminded us that agility, resilience, and empathy are not abstract virtues — they are survival skills in a multipolar age. And more than that, they are the foundation of nation-building.

For those who were not in the room that day, let this be the takeaway: the challenges we face are immense, but so is our capacity to lead through them. The task before us is not simply to withstand disruption, but to choreograph it — to write a future worthy of our people’s trust, hope, and dreams.

 

Junie S. Del Mundo is the vice-chair of the MAP CEO Conference Committee, the chair of the MAP International Relations Committee, and chief executive of The EON Group.

map@map.org.ph

junie.delmundo@eon.com.ph

Treasury bill yields drop with Fed set to resume easing cycle

BW FILE PHOTO

THE GOVERNMENT made a full award of the Treasury bills (T-bills) it offered on Monday as average rates dropped across the board, with the three-year tenor’s yield falling below the 5% mark, as the US Federal Reserve is expected to resume its easing cycle this week.

The Bureau of the Treasury (BTr) raised P25 billion as planned from the T-bills it placed on the auction block as the offering was more than six times oversubscribed, with total bids reaching P154.154 billion. However, this was slightly lower than the P156.428 billion in tenders recorded on Sept. 8.

Broken down, the Treasury borrowed P8.5 billion as planned via the 91-day T-bills as total tenders for the tenor reached P47.86 billion. The three-month paper was quoted at an average rate of 4.95%, down by 9.6 basis points (bps) from the 5.046% recorded in the previous auction. Yields accepted were from 4.908% to 5%.

The government likewise raised P8.5 billion as programmed from the 182-day securities as tenders amounted to P53.92 billion. The average rate of the six-month T-bill was at 5.148%, easing by 7.4 bps from the 5.222% fetched last week, with accepted rates spanning from 5.11% to 5.175%.

Lastly, the Treasury sold the planned P8 billion in 364-day debt as demand for the tenor totaled P52.374 billion. The average rate of the one-year T-bill dropped by 10.4 bps to 5.272% from 5.376% previously. Tenders awarded carried rates from 5.263% to 5.283%.

At the secondary market before Monday’s auction, the 91-, 182-, and 364-day T-bills were quoted at 5.0896%, 5.2143%, and 5.3531%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data provided by the Treasury.

The government fully awarded its T-bill offer as the auction saw strong demand amid expectations of a rate cut at this week’s Federal Open Market Committee meeting, a trader said in a text message.

“Yields fell by 7.4 to 10.4 bps across the board with all the tenors fully awarded. Notably, the 91-day bill’s yield has fallen below the 5% overnight RRP (reverse repurchase) rate,” the trader said.

The last time the 91-day T-bill was awarded at an average rate below 5% was in March 2023, BTr data showed. This was when the Bangko Sentral ng Pilipinas (BSP) was in the middle of an aggressive tightening cycle due to red-hot inflation as the economy came out of the coronavirus pandemic.

“Treasury bill average auction yields were again mostly slightly lower for the 11th straight week… amid the series of BSP rate cuts in recent months and possible BSP and Fed rate cuts in the coming months,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

He said that soft US economic data released recently bolstered bets of a 25-bp cut from the Fed at their Sept. 16-17 meeting and also caused markets to price in further reductions this year.

The US central bank has kept its target rate at the 4.25%-4.5% range since December 2024 as officials preferred to stay cautious while assessing the impact of President Donald J. Trump’s trade policies on inflation and jobs.

The Fed is almost certain to resume its easing cycle this week and perhaps leave the door wide open to a series of cuts, Reuters reported.

Markets are 100% priced in for an easing of 25 bps from the Fed, taking its funds rate to 4-4.25%, with futures implying just a 4% chance of 50 bps.

Just as important will be Fed members’ “dot plot” projections for rates and guidance from Fed Chair Jerome H. Powell on the extent and pace of any further easing.

Futures already have 125 bps of cuts priced in by late 2026, so anything less than dovish will disappoint investors.

Meanwhile, the BSP last month lowered benchmark borrowing costs by 25 bps for a third consecutive meeting to bring the policy rate to 5%. It has now cut benchmark rates by a total of 150 bps since it began its easing cycle in August 2024.

BSP Governor Eli M. Remolona, Jr. said the current policy rate is now at a “sweet spot” for both inflation and output, although one more reduction is possible within this year to support the economy if needed, which would likely mark the end of their rate-cut cycle.

The Monetary Board’s last two meetings this year are scheduled on Oct. 9 and Dec. 11.

On Tuesday, the government will offer P25 billion in reissued 10-year Treasury bonds (T-bonds) with a remaining life of nine years and seven months.

The BTr is looking to raise P220 billion from the domestic market this month, or P100 billion via T-bills and P120 billion through T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.56 trillion or 5.5% of gross domestic product this year. — Aaron Michael C. Sy with Reuters

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