How PSEi member stocks performed — September 11, 2025
Here’s a quick glance at how PSEi stocks fared on Thursday, September 11, 2025.
July Misery Index climbs to 1-year high
The Philippines’ adjusted misery index climbed to 20.2% in July, the highest in a year when it logged 20.7%. It reflected easing inflation but worsening labor market conditions. The index, which now incorporates adjusted underemployment rate* alongside inflation and unemployment rates, offers a broader measure of economic discomfort. Originally developed by economist Arthur Okun, the misery index serves as a proxy for economic distress. A lower reading typically signals better economic health, though structural issues may still persist beneath the surface.
Manila rejects Beijing plan to set up nature reserve at Scarborough Shoal
By Adrian H. Halili and Kenneth Christiane L. Basilio, Reporters
THE PHILIPPINES on Thursday rejected China’s plan to set up a national nature reserve at Scarborough Shoal, saying it is “patently illegal.”
In a statement, National Security Adviser Eduardo M. Año said the plan is a strategic move to project greater control over the rocky atoll, a prime fishing patch located within the Philippines’ 200-nautical mile (370 kilometers) exclusive economic zone.
“This move by the People’s Republic of China is less about protecting the environment and more about justifying its control over a maritime feature that is part of the territory of the Philippines,” he said.
“It is a clear pretext towards eventual occupation,” he added.
The Chinese Embassy in Manila did not immediately reply to a Viber message seeking comment.
Mr. Año said the plan violates the United Nations Convention on the Law of the Sea (UNCLOS), the 2016 arbitral ruling by a United Nations-backed tribunal and the 2022 Declaration on the Conduct of Parties.
The Department of Foreign Affairs (DFA) in a separate statement said it would file a formal diplomatic protest against the plan.
“The Philippines will be issuing a formal diplomatic protest against this illegitimate and unlawful action by China as it clearly infringes upon the rights and interests of the Philippines in accordance with international law,” the agency said in a statement.
Beijing recently approved the creation of the reserve at Scarborough Shoal — which Manila calls Bajo de Masinloc — one of the most contested areas in the South China Sea.
China’s State Council said the nature reserve is an important measure to maintain the “diversity, stability and sustainability of the natural ecosystem” of the maritime feature.
The reserve will cover more than 3,500 hectares at Huangyan Island, the Chinese name for Scarborough Shoal, with its coral reef ecosystem as the main protection target, according to China’s National Forestry and Grassland Administration.
The DFA said it “strongly protests” the move, stressing that the shoal is “a long-standing and integral part of the Philippines over which it has sovereignty and jurisdiction.”
“The Philippines likewise has the exclusive authority to establish environmental protection areas over its territory and relevant maritime zones,” it said. “Refrain from enforcing and immediately withdraw its State Council issuance and comply with its obligations under international law.”
Scarborough Shoal, located about 120 nautical miles (222 kilometers) off Zambales province, has been under de facto Chinese control since 2012.
In 2016, a Hague-based arbitral tribunal voided China’s sweeping South China Sea claims, but Beijing has ignored the ruling.
The South China Sea has become a regional flashpoint as China continues to assert its sweeping claim over almost the entire sea, a vital global trade route that is also believed to be rich in undersea gas and oil deposits.
‘EFFECTIVE PUSHBACK’
Manila and Beijing have repeatedly locked horns over maritime features that both nations claim in the disputed waters, including Scarborough Shoal. The atoll lies about 222 kilometers west of Luzon Island and is nearly 900 kilometers away from Hainan, the nearest major Chinese landmass.
Access to Scarborough has been restricted after China seized control of the atoll in 2012 following a standoff with Philippine forces.
The Philippines brought its dispute over the contested shoal to a UN-backed tribunal in 2013, which ruled in 2016 that China had interfered with Filipino fishermen’s access to the area.
But sovereignty over the rocky atoll remains unresolved as the ruling did not assign ownership despite voiding China’s expansive South China Sea claims.
The Philippines should strongly respond to China’s plan to put up a national nature reserve in Scarborough Shoal, according to analysts, warning that the move could undermine Manila’s posture in the South China Sea.
They said Beijing is likely testing Manila’s resolve in asserting its claim over the region, and a weak response could embolden China to push similar assertions over other contested maritime features.
“China will likely want to see what the response will be from the Philippines,” Julio S. Amador III, chief executive officer at Manila-based geopolitical risk firm Amador Research Services, said in a Viber message.
“If it sees that there is no effective pushback, then there is a strong possibility that it will try to do the same over other features,” he said.
The Philippines should establish a consistent presence in the shoal amid Beijing’s plan to establish a nature reserve, Sherwin E. Ona, a security analyst and political science associate professor at De La Salle University, said in a Viber message.
“I will not be surprised if China builds structures in Bajo de Masinloc, claiming it to be a fishing sanctuary,” he said.
“We could summon the Chinese ambassador to the Philippines to discuss and shed light upon the matter,” Josue Raphael J. Cortez, a diplomacy instructor at De La Salle-College of St. Benilde’s School of Diplomacy and Governance, said in a Facebook Messenger chat.
The Philippine delegation may also raise China’s reserve plan to both the nation’s bilateral consultation mechanism as it presents challenges to Manila’s sovereignty if enacted, he added.
The bilateral consultation mechanism was established in 2017 amid disputes in the waters where trillions worth of shipborne trade passes through annually.
“If left unaddressed, this may be problematic as to how our two countries will move forward,” said Mr. Cortez.
China’s reserve plan may also stoke further tension in the contested shoal, said Chester B. Cabalza, founding president at Manila-based think tank International Development and Security Cooperation.
“It would make Scarborough a flashpoint area, escalating more chaos with anticipated restriction of access and deprivation of resources,” he said via Messenger chat.
DPWH files graft cases vs 20 workers, 4 contractors over flood control projects
By Erika Mae P. Sinaking and Kenneth Christiane L. Basilio, Reporters
PUBLIC WORKS Secretary Vivencio “Vince” B. Dizon on Thursday filed criminal complaints against 20 workers and four contractors before the Office of the Ombudsman in connection with anomalous flood control projects in Bulacan province.
“The President told me that everything that needs to be answered should be answered,” he told a news briefing. “Enough talk, enough process, let’s take action, and this is our first action.”
The respondents were accused of graft, malversation and violations of the procurement law. Mr. Dizon said the offenses involve more than P8.8 million, making them nonbailable. “The penalty for all counts of these offenses is life in prison,” he added.
The Department of Public Works and Highways (DPWH) officials charged include former district engineers, assistant engineers, project engineers and cashiers who allegedly authorized questionable payments. Among them are Henry Alcantara, Bryce Erickson Hernandez and JP Mendoza, who have all appeared at a House of Representatives probe of bogus flood control projects.
Four contractors were also impleaded. The charges cover five flood control projects in Bulacan, with evidence gathered over the past week.
Mr. Dizon said more cases would be filed in the coming weeks and vowed full cooperation with the planned independent commission that will probe flood control anomalies nationwide.
“We will serve as a resource for the independent commission. Whatever documents and testimonies they need, we will provide, and we will give full cooperation,” he said.
The secretary also urged citizens to participate in the accountability drive by monitoring projects, checking if they exist on the ground, and submitting documentation of irregularities.
“Let us channel our anger to catch these people,” he said, noting that evidence of unexplained wealth posted on social media could also be submitted.
Mr. Dizon also sought to address concerns of harassment against ordinary DPWH employees, stressing that “just because they are wearing a DPWH uniform does not mean they’re thieves.”
On Wednesday, he issued a memo temporarily suspending the prescribed office uniform amid the ongoing investigation. “It is pitiful… sometimes they get caught, they get harassed when they ride jeeps, buses, the MRT,” he said, citing requests from the DPWH union to protect innocent workers from unfair treatment.
Meanwhile, the Commission on Audit (CoA) has flagged billions of pesos in questionable DPWH disbursements over the past decade.
The agency had issued 10,333 notices worth about P308 billion against DPWH spending since 2010, CoA Chairman Gamaliel A. Cordoba told lawmakers at a House hearing. These include 1,985 disallowance notices worth P5.79 billion, which cover transactions deemed unnecessary, excessive or illegal.
Another 8,294 suspension notices worth P303.67 billion were issued, temporarily holding state spending that may be irregular or unlawful.
CoA also issued 54 charge notices against DPWH worth P8.8 million for unremitted revenues.
The flood control controversy has intensified scrutiny of the agency’s infrastructure projects, long plagued by allegations of corruption and fund misuse.
Risks, gaps in blockchain-based budget plan flagged
By Beatriz Marie D. Cruz, Reporter
A PROPOSAL to use blockchain technology to enhance transparency in the national budget process would require significant investment in digital infrastructure and safeguards to prevent insider misuse, analysts said.
“Blockchain technology is not a silver bullet,” Lito M. Villanueva, founding chairman of FinTech Alliance Philippines, said in a Viber message. “While it ensures immutability of records, risks can still emerge from endpoints, insider misuse or poorly designed smart contracts.”
He said the proposed blockchain-based budget system should be rolled out in phases and anchored on clear governance standards, with public-private collaboration to ensure effective oversight. “Safeguards must therefore cover the whole ecosystem, not just the blockchain ledger itself,” he added.
Senate Bill No. 1330, filed last week by Senator Paolo Benigno “Bam” A. Aquino IV, seeks to establish a blockchain-based budget system that records transactions across the entire budget cycle in real time and immutable form. Budget preparation, legislation, execution and audit would all be logged into digital public assets accessible through a public-facing portal.
Mr. Aquino said the measure would help deter corruption. “No more fly-by-night contractors. No more hidden projects unknown to local governments,” he said in the bill’s explanatory note.
The Philippines, struggling with record-high debt and limited fiscal space, has faced growing scrutiny over corruption in infrastructure projects. Last month, the Department of Budget and Management (DBM) launched its own blockchain platform to track public funds.
“From our own rollout of blockchain for budget documents in DBM, we’ve seen that the technology works,” Budget Secretary Amenah F. Pangandaman told BusinessWorld in a Viber message. “The challenge is really about making it fit with existing government systems and making sure people know how to use it.”
She said training would be crucial to ensure government workers, auditors and the public understand and apply the system. “Even if the system is secure, it won’t be effective unless our government workers and the public can easily understand and apply it.”
Paul Soliman, chairman and chief executive officer at BayaniChain Ventures, the local firm behind DBM’s blockchain platform, said the system must align itself with cybersecurity standards.
“Vulnerabilities in government applications, identity theft of officials approving transactions, or poorly secured nodes could become attack points,” he said.
Mr. Soliman recommended hybrid security measures such as strong encryption, zero-trust frameworks and continuous monitoring. He added that inclusivity is also vital, with blockchain records viewable through public dashboards, SMS queries or mobile apps.
“Blockchain is not a magic solution, but it can be a strong foundation,” Ms. Pangandaman said. “If we combine the right technology, good governance and support from institutions, we can open a new era of transparency and accountability in government.”
Palace creates body to probe flood control, infrastructure anomalies
By Chloe Mari A. Hufana, Reporter
MALACAÑANG on Thursday issued Executive Order (EO) No. 94 establishing the Independent Commission for Infrastructure (ICI), as the government probes irregularities in flood control and other public works projects.
The six-page order, signed by Executive Secretary Lucas P. Bersamin, said the ICI would act as an ad hoc fact-finding body “to investigate and undertake appropriate measures against those involved in irregularities in government infrastructure projects.” It will be composed of a chairman and two members.
The body may initiate probes on its own or act on complaints to “hear, investigate, receive, gather, and evaluate evidence, intelligence reports, and information” against officials, employees, or people linked to anomalies in the planning, financing and implementation of government projects, according to the order.
Its mandate covers flood control and other infrastructure projects undertaken within the past 10 years.
The commission will recommend the filing of criminal, civil or administrative cases before the Office of the President, Office of the Ombudsman, Department of Justice (DoJ) and Civil Service Commission. It may also propose corrective measures or legislative reforms to improve oversight and prevent misuse fund misuse.
The body can hold hearings, issue subpoenas, request financial records and recommend preventive suspensions. It may also endorse evidence for prosecution and collaborate with technical experts in support of its investigations.
The ICI can refer witnesses to the Witness Protection Program, recommend state witnesses and access information from Congress, the courts and other authorities.
It may request documents, financial records, hold departure orders and asset freezes related to anomalous projects, as well as recommend preventive suspensions, transfer evidence for prosecution and collaborate with experts or advisers.
It is also empowered to draft its own rules and perform other functions necessary to fulfill its investigative mandate or as directed by the President.
The ICI will be supported by a secretariat led by an executive director, appointed by the President with the rank of undersecretary, to oversee daily operations and implement policies under the chairman’s supervision.
The secretariat will have its own staff, and within 30 days, the executive director must propose its organizational structure and staffing for approval by the President or Department of Budget and Management.
All relevant government agencies, including DoJ, the National Bureau of Investigation, Department of Public Works and Highways, Department of the Interior and Local Government and the Philippine National Police must provide full assistance and cooperation to the ICI.
To promote transparency, the EO mandates the ICI to submit regular updates.
“The ICI shall provide monthly reports to the Office of the President, through the Office of the Executive Secretary. The ICI shall likewise cause the publication of its accomplishments and such other relevant reports,” according to the EO.
“The effective implementation of government flood control and related projects is vital to safeguarding the lives, property, and welfare of the Filipino people, who have repeatedly suffered from the devastating impacts of natural calamities and disasters,” it added.
In his fourth State of the Nation Address on July 28, President Ferdinand R. Marcos, Jr. called for an investigation into irregular flood control projects, noting how billions of pesos had been allocated to these initiatives, yet many areas remained prone to flooding.
He stressed that such anomalies not only squander public funds but also leave communities vulnerable to the intensifying impact of typhoons and heavy rainfall.
Earlier, Mr. Marcos revealed that the sumbongsapangulo.ph website, launched on Aug. 11, had received more than 12,000 complaints related to flood control and similar projects within just a month.
PHL-Japan RAA enters into force
A DEFENSE pact between the Philippines and Japan allowing reciprocal access to military forces has taken effect, Manila’s Defense department said on Thursday.
Both the nations’ Reciprocal Access Agreement (RAA) would help elevate Manila and Tokyo’s security ties and help boost deterrence in the contested South China Sea, it said in a statement, amid Chinese assertiveness in the waters.
The Defense department said the military agreement underscores “the strength of our people-to-people ties, shared values and international principles, and common purpose for the security and stability of the region.”
Signed by Manila and Tokyo last year, the RAA allows for the entry of equipment and troops for military drills and disaster responses on each other’s soil.
It was ratified by the Philippine Senate in December 2024, while Japan’s National Diet ratified it in early June.
Manila has sought to expand its web of alliances to bolster its efforts to push back against Beijing’s sweeping claims in the South China Sea, entering into similar agreements with New Zealand, Australia and the US earlier. Talks for visiting forces agreements with Canada and France are also underway. — Kenneth Christiane L. Basilio
Marcos signs E-Governance Act
PRESIDENT Ferdinand R. Marcos, Jr. has signed Republic Act No. 12254 or the E-Governance Act, which seeks to streamline government processes and improve transparency through a unified digital system.
Signed on Sept. 5, the law designates the Department of Information and Communications Technology (DICT) as the lead implementor of the law. It will craft an e-government master plan to modernize services and align with the Philippine Development Plan.
The measure mandates the integration of agencies such as the Land Transportation Office and Department of Foreign Affairs into a single digital platform accessible via a mobile app.
Local government units (LGUs) must also establish their own digital portals or adopt the eLGU system within a year.
The law further requires agencies and LGUs to improve their websites and set up e-bulletin boards to ensure timely and efficient public information. — Chloe Mari A. Hufana
VP’s travel spending hits P20.68M
THE Office of the Vice-President (OVP) spent P20.68 million on travel in the first seven months of 2025, accounting for nearly a third of its annual travel budget.
Vice-President Sara Duterte-Carpio spent P13.27 million on domestic travel from January to July this year, with P3.1 million allotted for her security detail and P10.49 million for accompanying personnel, an infographic posted on the OVP’s Facebook page showed.
The office, meanwhile, spent P7.47 million on international travel, exclusively covering costs for Ms. Duterte’s security and staff as she covered her own expenses abroad, it added.
“We’d like to emphasize that all the travel overseas of the Vice-President is covered by travel authority, and did not use any public funds,” OVP Budget Division Chief Kelvin Gerome L. Tenido said in a media briefing.
The Vice-President’s travel has come under scrutiny from critics following a series of trips, some of which are tied to calls for the release of her father, ex-President Rodrigo R. Duterte.
Mr. Duterte has been detained at the International Criminal Court in The Hague since March on charges of crimes against humanity linked to his administration’s deadly anti-drug campaign. — Kenneth Christiane L. Basilio
BoC: Discaya’s unpaid tax at P72M
THE Bureau of Customs (BoC) has uncovered P71.66 million in unpaid duties and taxes linked to luxury vehicles imported by the Discaya family.
In a statement on Wednesday, the BoC said an investigation revealed that Cezarah Rowena “Sarah” Discaya and Pacifico “Curlee” F. Discaya II declared only P33.06 million in duties and taxes for vehicles brought in through various ports, far below the assessed total of P104.72 million.
“The investigation revealed that eight motor vehicles were imported without any corresponding entry, classifying them as smuggled and subject to the issuance of Warrants of Seizure and Detention,” the BoC said.
The seven other vehicles, while covered by import entries, lacked Certificates of Payment and showed deficiencies in declared duties and taxes.
Meanwhile, only 14 vehicles have filed import entries and supported by Certificates of Payment will also undergo verification under Post Clearance Audit Group’s transaction audit. Another vehicle will undergo verification.
The BoC said it has now seized 30 vehicles linked to the Discayas, up from the initial 12 confiscated.
“The BoC will not allow any attempt to evade the payment of lawful duties and taxes. The deliberate evasion of customs laws, particularly involving high-value goods, undermines government revenue and erodes public trust,” Customs Commissioner Ariel F. Nepomuceno said.
The Omega & Alpha Construction and St. Timothy Construction, allegedly owned by the Discayas, were among the top 15 flood-control contractors that cornered P100 billion worth of projects since 2022. — Aubrey Rose A. Inosante
Israel eyes PHL as key health market
THE PHILIPPINES is becoming a key market for Israeli health companies, driven by cultural similarities and opportunities to address gaps in the country’s healthcare system, according to an official from Israel’s economic mission in Manila.
Ofek Venecianer, head of the Israel Economic Mission to the Philippines, told BusinessWorld during a health tech forum that the Philippines offers significant growth potential for Israeli firms.
“Israel is a small market, and I think that all start-ups know they’ll begin in Israel and then scale up abroad,” she said. “The Philippines is one of the most interesting countries for Israeli companies to scale up in.”
Ms. Venecianer also cited cultural commonalities, noting that both countries share warm and welcoming people.
Telemedicine is one area where Israeli health firms see significant opportunity. The Philippines’ archipelagic geography presents challenges to healthcare delivery, making remote access to services highly beneficial.
“The number of people that need telemedicine and remote access to health services is really big,” Ms. Venecianer added.
Beyond healthcare, she identified agriculture and cybersecurity as sectors where Israeli firms could make an impact.
“We had to grow our own food in this desert, so we have a lot of technologies that can definitely be suitable for the challenges the Philippines is facing,” she said. “We’re also leading in the market when it comes to cybersecurity solutions.”
Bilateral trade between the Philippines and Israel reached $400.4 million last year, down 16.3% from a year earlier. Both countries are working toward finalizing a free trade agreement by 2028.
During Thursday’s forum, five Israeli health companies presented solutions designed to address gaps in the Philippines’ healthcare system. One of them, Envomed, showcased a solution for safely treating hazardous biomedical waste. The company’s model reduces carbon emissions by 95% and offers a cost-effective treatment method for hospitals.
Envomed is set to pilot its solution at a Department of Health hospital in Las Piñas City and is in talks for further expansion, according to local partner ITech, Inc.
“Most of them are willing to try this kind of technology to address the problem of medical waste,” ITech Chief Executive Officer Glenn Ampongan said. — Edg Adrian A. Eva
Lacson wants ex-DPWH engineer under Senate custody
A PHILIPPINE Senator on Thursday said that he will request the return of a former Public Works engineer involved in anomalous flood control project to the Senate’s custody after being transferred to the Pasay City.
In a news briefing, Senate President Pro Tempore Panfilo “Ping” M. Lacson pushed for ex-Public Works Assistant District Engineer for Bulacan Brice Ericson Hernandez to be returned to the Senate premises.
“I have to clear this with the Senate President if he will approve that after the next hearing on Thursday (Mr. Hernandez) will remain in the Senate,” Mr. Lacson, who also heads the Blue-ribbon committee, told reporters.
Last Monday, Mr. Hernandez was cited in contempt and detained at the Senate after allegedly lying that he frequented casinos and had won millions of pesos.
Following a lengthy debate last Wednesday, senators had agreed to move Mr. Hernandez to the Pasay City jail from Camp Crame in Quezon City. This came after senators had questioned the Senate chief’s order to move him to the custody of the Philippine National Police.
Mr. Lacson added that the committee will also investigate the money laundering scheme allegedly conducted by Mr. Hernandez and other Public Works officials.
The Senator had previously revealed that some officials of the Department of Public Works and Highways (DPWH) have been using flood control funding to play in casinos ang exchange them for chips.
Meanwhile, a senator said that he has filed a bill seeking to expand jail time for public officials found guilty of graft and corruption.
“Public officers and employees must at all times be accountable to the people, serve them with utmost responsibility, integrity, loyalty, and efficiency, act with patriotism and justice, and lead modest lives,” Senator Erwin T. Tulfo said in a statement on Thursday.
Senate Bill no. 1359 seeks to amend Republic Act 3019 or the Anti-Graft and Corruption Practices Act by increasing the jail time for graft and corruption to 12-20 years from the current six to 15 years.
“By increasing the penalties, we are sending a clear message that betrayal of public trust has severe consequences,” Mr. Tulfo said in his explanatory note.
During separate Congressional investigations, lawmakers and government officials have been tagged to be involved in a multibillion-peso infrastructure scandal involving flood control projects. — Adrian H. Halili