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PAL to resume Manila-Saipan flights by March

Philippine Airlines

FLAG CARRIER Philippine Airlines (PAL) is set to resume its Manila-Saipan service by March as part of its efforts to expand connectivity across the Pacific Islands.

“PAL is dedicated to expanding its global presence to meet the evolving needs of the market, across both passenger and cargo segments, while remaining steadfast in our commitment to delivering service excellence,” PAL President Richard Nuttall said in a media release on Thursday.

The flag carrier will operate the route twice weekly, with departures from Manila every Wednesday and Sunday and return flights on Mondays and Thursdays.

Saipan, a US territory, will mark PAL’s seventh destination in the United States, alongside Los Angeles, San Francisco, New York, Seattle, Guam, and Honolulu.

The Manila-Saipan route will complement PAL’s existing Pacific network, which currently includes flights to Guam, Honolulu, and services to Palau via Cebu. PAL first launched seasonal Manila-Saipan flights in 2016.

The airline is also scheduled to receive its Airbus A350-1000 by December or January.

The aircraft will be deployed on flights to New York as PAL continues to modernize its fleet and expand its US network.

Older aircraft are being refurbished under the carrier’s fleet modernization plan.

Financially, PAL Holdings, Inc., the operator of PAL, reported a 33.58% increase in attributable net income to P9.03 billion from P6.76 billion a year ago, supported by higher passenger revenues of P116.56 billion, up from P115.66 billion.

Cargo and ancillary revenues contributed P6.71 billion and P12.67 billion, respectively.

Total revenues for the nine-month period rose 2.68% to P136.01 billion from P132.45 billion, while gross expenses increased 3.96% to P124.85 billion from P120.09 billion.

At the Philippine Stock Exchange on Thursday, shares in PAL Holdings closed unchanged at P3.80 apiece. — Ashley Erika O. Jose

New Klook lounge at Clark airport targets growing passenger traffic

CLARK INTERNATIONAL AIRPORT

LUZON International Premiere Airport Development Corp. (LIPAD) has partnered with travel and leisure platform Klook to establish its first lounge in the Philippines at Clark International Airport.

“The newly launched Klook Kiosk and Lounge play a valuable role in supporting [our] goal, providing travelers with a welcoming space that enhances their overall journey through Clark International Airport,” LIPAD President and Chief Executive Officer Noel F. Manankil said in a media release on Thursday.

Klook Philippines said the partnership with LIPAD, the operator of Clark International Airport, aims to boost tourism in Clark and the wider Central Luzon region.

The Klook Kiosk and Lounge will provide travelers with a convenient space to manage bookings and access pre-flight assistance.

“We are very happy to be opening Klook’s fourth airport lounge globally, and first lounge locally at the Clark International Airport in partnership with LIPAD. With our growing user base in the Philippines and the increasing number of passengers flying from Clark, we at Klook are always looking for ways to provide travelers with access to unmatched experiences for their trips,” Klook Philippines General Manager Michelle Ho said.

LIPAD is a consortium composed of Filinvest Development Corp., JG Summit Holdings, Inc., Philippine Airport Ground Support Services, Inc., and Changi Airports Philippines (I) Pte. Ltd., a wholly owned subsidiary of Changi Airports International.

For 2025, LIPAD has lowered its passenger volume projection to 3 million, down from an earlier estimate of 3.2 million, following the government’s postponement of the full transfer of turboprop operations from Ninoy Aquino International Airport. — Ashley Erika O. Jose

Iceland to boycott 2026 Eurovision in protest of go-ahead for Israel

https://eurovision.tv/event/vienna-2026

COPENHAGEN — Iceland will not take part in the 2026 Eurovision Song Contest, the country’s public broadcaster RUV said on Wednesday, after the organizer, European Broadcasting Union, last week cleared Israel’s participation.

The decision to allow Israel to take part in the next Eurovision, which will be held in Vienna in May, earlier prompted Spain, the Netherlands, Ireland, and Slovenia to withdraw in protest, citing Israel’s conduct in the Gaza war.

“It is clear from the public debate in this country and the reaction to the EBU’s decision last week that there will be neither joy nor peace regarding RUV’s participation,” the broadcaster’s Director General Stefan Eiriksson said in a statement.

Iceland was among the countries that had requested a vote last week on Israel’s participation. But the European Broadcasting Union, or EBU, decided not to call a vote on Israel’s participation, saying it had instead passed new rules aimed at discouraging governments from influencing the contest.

Iceland has never won the song contest but came second in 1999 and 2009. The Eurovision Song Contest dates back to 1956 and reaches around 160 million viewers, according to the EBU. — Reuters

Filipinos more cautious about finances as expenses rise, TransUnion study shows

PHILSTAR FILE PHOTO

FILIPINO HOUSEHOLDS remain cautious about spending and borrowing even as they see stable incomes as they expect rising expenses in the coming months, a TransUnion Philippines report showed.

The Q4 2025 Consumer Pulse Study by TransUnion showed that Filipinos are tightening their budgets and becoming more intentional with their spending and use of credit.

Half or 50% of respondents said they plan to cut back on holiday spending this year and only a quarter (27%) seek to splurge on costly goods.

This comes even as three in four or 75% of Filipinos see an increase in their incomes over the next 12 months. Based on the study, 80% of the Filipinos surveyed expressed optimism on their household finances next year.

“The trend mirrors the wider economy — still expanding, but at a calmer pace after two years of rebound,” said Weihan Sun, principal of research and consulting for Asia Pacific at TransUnion.

“Consumers are managing spending more pragmatically, especially with Filipinos looking to spend less this holiday season compared to last year. It’s a sign of practical optimism. People are still participating in the economy but are doing so on their own terms and with greater financial intent.”

Most households still had the same concerns as they did last year, with 81% worrying most about inflation on basic commodities, 57% about job stability, and 45% about interest rates.

This indicates that consumers weigh long-term challenges more than short-term issues in budgeting.

Meanwhile, the study also showed that over half or 58% of Filipinos see credit access as crucial in obtaining their financial goals.

A total of 42% expressed confidence in credit access, with Gen X being the most confident with 47%, followed by Millennials with 46%.

However, TransUnion noted that borrowers have shifted to small-scale loan products, with 49% leaning towards personal loans and 35% on buy now, pay later.

“We’re seeing a real shift in how Filipinos view credit. It’s moving from being a necessity to becoming a choice,” Mr. Sun said. “Credit remains available, but consumers are weighing their options more carefully, guided by how secure they feel about their jobs and savings. It’s a more thoughtful use of credit as a tool, not a crutch.”

“As this mindset continues to evolve, it’s equally important for consumers to stay informed by regularly monitoring their credit health,” he added.

TransUnion surveyed 961 Filipinos aged 18 and above from Sept. 25 to Oct. 15. — Katherine K. Chan

Big Tech always gets its way with this White House

STOCK PHOTO | Image by FREEPIKand NVIDIA

IS THE White House’s artificial intelligence policy America First or simply Silicon Valley First? After this week, I’m leaning sharply towards the latter. It’s surely the only way to reconcile Washington’s conflicting policy choices, where China is made a useful bogeyman until Big Tech is interested in selling Beijing its wares. China was prominent this week in White House AI czar David Sacks’ defense of the administration’s “One Rulebook for AI,” which aims to run roughshod over states’ rights. The move is necessary to not “stymie innovation” and let China “race ahead,” he argued. Never mind that it’s also an effort to circumvent the democratic process via executive fiat, overriding the will of Congress and state legislators. But the threat of Chinese competition didn’t prevent the industry from lobbying successfully to remove a clause in a defense spending bill that would have required Nvidia to prioritize the hardware needs of its American customers over foreign sales. This opened the way, on Tuesday, for the US to lift restrictions on the export of Nvidia Corp.’s higher-end AI chips to China.

Whether or not Beijing will permit the use of these chips is an open question: Given American flip-flopping, any Chinese company building AI on the back of Nvidia hardware might wonder how long their availability will last. Still, it is a departure from earlier policymaking that hinged on the idea that American innovation should not be able to find its way to potential Chinese military use. Terrific news for Nvidia, though. And what’s good for Nvidia is good for the wider AI ecosystem, so tightly are its fortunes bound to the perception of AI’s potential. Silicon Valley First.

There was a time when decisions on major industrial policy would be a matter for elected lawmakers, debated in committees and put to the floor. Not anymore. The latest deal to allow Nvidia to sell to China was lobbied for over a Mar-A-Lago tablecloth. The One Rulebook on AI seems to have just one author, Sacks. “This is not an ‘AI amnesty’ or ‘AI moratorium,’” said Sacks, whose venture capital work has taken a backseat to his career in media and politics, in a post on X. “It is an attempt to settle a question of jurisdiction.” His attempt isn’t necessary, of course. The Senate already decided the matter when its members voted 99-1 to remove a measure designed to block state AI laws from Trump’s tax bill.

Sacks was disappointed in that result, however, and has attacked industry figures who he blamed for allowing it to happen. Deciding how AI is developed, Sacks argued, is “exactly the type of economic activity that the Framers of the Constitution intended to reserve for the federal government to regulate.” Trump said he would sign an executive order on the issue this week. As the Bloomberg Editorial Board recently stated, the patchwork of state AI laws is far from ideal. It makes building the technology more complicated and time consuming. But state lawmakers, with memory spans long enough to remember paralysis at the federal level over data privacy and social media harms, have little choice but to take matters into their own hands. Their laws have included efforts to protect minors from the harms of chatbot use amid a flurry of deeply troubling instances of AI-encouraged suicides and other harm. Others look at the risk of discrimination in the hiring process when companies use AI to pick candidates.

Sacks has been blasé in dismissing these concerns by unconvincingly arguing that existing laws can handle them. He has further poisoned the debate by making it a culture war talking point on anti-conservative bias. “The biggest threat of censorship is coming from certain Blue States,” he wrote. “Red States can’t stop this — only President Trump’s leadership at the federal level can.”

Sacks’ stated views are instructive. Saying policymaking should be centralized under a “federal framework” — note he doesn’t say “law” — is far from a commitment to enacting the guardrails the states have sought. Pre-venting the creation of these guardrails, moving fast and breaking things, is at the heart of the Silicon Valley First mindset. Leaving citizens gravely exposed to the risks is not America First. When the midterms roll around, and the presidential election after that, voters might wonder why so little attention has been paid to the impact AI might have on jobs and the economy at large.

The heavy influence of tech interests within the White House is no surprise, of course. Trump placed tech CEOs in front of his own cabinet during his inauguration, as the world looked on and wondered what the industry stood to get in return. Their tireless work to make Trump look and feel good has already offered a healthy return on investment. —BLOOMBERG OPINION

Labor backs bill outlining gig-worker protections

HOUSE BILL 6572 aligns with the rights and protections labor groups have long been seeking for gig and platform workers, a labor leader said.

“This bill is based on our discussions. As such, it contains the key elements of the charter of rights that we have been demanding for platform workers,” Josua T. Mata, secretary-general of Sentro ng mga Nagkakaisa at Pro-gresibong Manggagawa, told BusinessWorld this week via Viber.

“With regular employee status, social protection, transparent algorithms, skills development, and a clear option to remain an independent contractor — work becomes fairer and more secure. It’s a win for workers, for the industry, and for the country.”

Akbayan Party-list Rep. Jose Manuel I. Diokno filed House Bill 6572, also known as the Protektadong Online Workers, Employees, Riders, at Raketera Bill last week.

The measure focuses on the rights and welfare of digital laborers, including delivery riders, virtual assistants, freelancers, and other gig workers, regardless of employment status.

“Many of our youth and fellow citizens today earn a living as online workers, entrepreneurs, riders, and through other side hustles,” Mr. Diokno said in a statement.

He added that while such work offers flexibility, protections for these workers must keep pace.

The bill calls for clear and fair contracts, equitable compensation, night differentials, overtime, holiday pay, and access to social protection benefits, including the Social Security System, PhilHealth, Pag-IBIG, and maternity leave. Workers would also have the right to unionize, bargain collectively, join national or international organizations, and conduct peaceful concerted action.

The bill will seek to provide Technical Education and Skills Development Authority training and tech subsidies and protects them from misclassification as independent contractors. It also bans discrimination based on religion, race, color, marital status, age, disability, or sexual orientation.

Violators are subject to fines of P100,000–500,000 and possible imprisonment, with corporate officers held personally liable.

“Platform companies must recognize that it is unacceptable to earn billions while those who create that value carry all the risk,” Mr. Mata said.

He called on legislation to back the measure and “do what is right.”

“As consumers, we all benefit when the people who deliver our food, medicines, goods, and safely transport our loved ones are treated with dignity, kept safe, and fully protected,” he added. — Erika Mae P. Sinaking

Allowing executives to join industry associations

I’m a human resource (HR) manager with 15 years of work experience under several companies. I would like to join the People Management Association of the Philippines (PMAP) hoping to become a member of its Board of Trustees and expand my professional network. Please help me make my case for joining to our chief executive officer (CEO). — Pepper Pickle.

When seeking top management approval, don’t even mention that you’re interested in expanding your professional network. Why? And who cares? Certainly not the CEOs who might think you’re telling a white lie. Besides, networking is a given. Many HR managers volunteer for PMAP or other similar organizations to cultivate professional relations.

But, let’s admit it. The elephant in the room is that PMAP is also an informal job market. This is known to many CEOs.

Personally, I know of many HR executives who secured high-paying jobs after years of doing volunteer work for PMAP, providing a platform to showcase their leadership skills in membership meetings, seminars, and conferences.

Many of them receive job offers even if they’re not looking.

That’s one reason why membership in PMAP is often met with suspicion by some CEOs. Their most common argument is that volunteering will take precious time away from work. They also wonder — “What’s in it for the company?”

Here’s the truth. Allowing HR executives to take leadership roles in PMAP is a strategic investment for organizations because it pays back in influence, intelligence, innovation, and reputation.

EIGHT REASONS

Now, let’s explore the key reasons why CEOs should not only allow — but actively support — their HR managers who would want to serve as PMAP volunteer-leaders, which requires a modest investment, starting with the payment of membership fees. Therefore, weigh the investment with what your organization can get in return:

One, it puts the company in the spotlight. Industry associations are where standards, best practices, and strategic directions are shaped long before they reach government agencies or mainstream discussion.

A company that allows its executives to be in the PMAP leadership circle is not just observing change — it is influencing it, especially when it comes to industry best practices.

Two, it promotes the company’s brand. In business, trust and reputation are currency. When your executive is visible in association meetings, forums, conferences, and working groups, your organization gains recognition.

This positions the company as a major contributor to industry development rather than a passive player merely riding the wave and reacting when the time comes.

Three, it creates networks that money can’t buy. An association leadership role opens doors to people who would otherwise be several layers beyond reach, like other CEOs, policymakers, global experts, and innovators.

These connections are not just names on business cards; they are potential partners, advisors, collaborators, and sources of crucial information.

Four, it’s a front row seat to industry trends. When your executive belongs to the PMAP inner circle, the company gains intelligence on regulatory shifts, emerging threats, breakthrough technologies, and competitor moves.

This is strategic insight at no extra cost. Think of it as having a radar system that spots storms before they appear in the forecast.

Five, it enhances capability. Serving in a volunteer leadership role enhances a person’s strategic thinking, communication, negotiation and consensus-building skills, and people management.

In effect, they become sharper, stronger, more agile leaders. And who benefits from that? The employer.

Six, it aligns with ESG and CSR expectations. In the era of environmental, social, governance and socially responsible leadership, companies are increasingly evaluated on their contributions to society — not just profits.

Supporting employees who volunteer for industry organizations demonstrates a commitment to the broader ecosystem of business.

Seven, it encourages lifelong learning. When HR managers know that management supports external leadership roles, it tells them the organization values initiative, openness, and continuous learning. This boosts morale, loyalty, and long-term engagement.

It creates a positive ripple effect: other employees start participating in professional communities, attending learning events, and broadening their horizons.

Eight, it’s a low-cost, high-return investment. Some CEOs hesitate because they fear such roles may consume employee hours. Yet in practice, association duties often complement work responsibilities rather than compete with them.

Meetings are scheduled, time can be managed, and the exposure often accelerates — not slows down professional growth.

The bottom line? Supporting executives who want to serve as volunteers in industry associations should not be seen as a favor for the CEO to grant. It’s a strategic decision that amplifies influence, strengthens reputation, builds networks, and positions the company at the forefront of industry development.

In other words, when CEOs allow their HR executives to lead beyond their walls, the company grows beyond its limits.

 

Consult REY ELBO for free. E-mail elbonomics@gmail.com or DM him on Facebook, LinkedIn, X or via https://reyelbo.com. Anonymity is guaranteed, if requested.

Former Shell PHL chief Cesar Buenaventura passes away at 96

Cesar A. Buenaventura — www.semiraramining.com

THE MAKATI BUSINESS CLUB (MBC) announced on Wednesday the passing of Cesar “CAB” L. Buenaventura, the first Filipino chief executive officer and chairman of the Shell Group in the Philippines. He was 96.

MBC, where he served as a board member for 27 years, described Mr. Buenaventura as a respected business leader whose contributions helped shape the country’s corporate landscape.

Mr. Buenaventura led Shell’s Philippine operations and later served on the Monetary Board. He also sat on the boards of Concepcion Industrial Corp., DMCI Holdings, Inc., International Container Terminal Services, Inc., PetroEnergy Resources Corp., and Manila Water Company, Inc.

Semirara Mining and Power Corp., where he was one of the longest-serving directors, cited his “steady leadership and expertise” grounded in decades of work in engineering, energy, and national development.

“CAB was known for his clarity of thought, principled leadership, and deep patriotism,” Semirara Mining said in a statement.

MBC extended its condolences to his family and friends, noting that its chairman, Edgar O. Chua, counted Mr. Buenaventura as a mentor. — Sheldeen Joy Talavera

Lapses gave Louvre thieves crucial 30-second advantage against police, inquiry finds

FLICKR/DENNIS JARVIS

PARIS — The burglars who robbed Paris’ Louvre museum benefited from 30 seconds of security lapses that helped ensure their getaway with France’s still-missing crown jewels, an inquiry from France’s culture ministry into the spectacular heist showed on Wednesday.

Four burglars made off with jewels worth $102 million on Oct. 19, exposing glaring security gaps at the world’s most visited museum and revealing its deteriorating state.

A combination of factors, including delayed footage from security cameras as well as an easily breakable glass window at the Apollo gallery, where the French crown jewels were taken, delayed the police response by roughly 30 seconds.

“For those precious 30 seconds, all it would have taken was a slightly faster alert from the control room agents if they had been able to see the camera sooner, and a longer window break-in resistance time than was observed,” Noel Corbin, chief of general inspection of cultural affairs, said.

“With a margin of just 30 seconds, the Securitas guards or the police officers in the patrol car could have prevented the thieves’ escape.”

Roughly 2,200 staff work at the Louvre, which houses around 500,000 artworks, of which 38,000 are exhibited. Nearly 9 million people visited the museum in 2023, corresponding to roughly 30,000 visitors per day.

“It’s a sort of town. And not a small town,” Mr. Corbin said. “The coordination of interventions and the multiplicity of actors is extremely important.”

He said camera images were transmitted to a central control room and a zone control room, but the images were not viewed live, due to a lack of exterior cameras as well as a lack of screens to watch all cameras simultaneously. — Reuters

Why some countries stay happier

y wife and I arrived in Copenhagen, Denmark on a gray afternoon after a business trip in Paris, expecting the usual European chill, yet what struck us first was not the weather but the calmness of life unfolding around us, in contrast to the hum of Paris and the chaos in Manila. Bicycles slid past quietly. People in cafés chatted without hurry. At dinner, we spoke with a store owner who said, almost casually, that he never worried about losing his wallet because someone would surely return it. A young engineer we met later echoed the same thing. “Why would someone keep what’s not theirs?” she asked with a hint of surprise at the idea. There was no boast in her tone. It was simply how things worked for them.

Reading the World Happiness Report 2025 later that night, I understood why these small details matter. Denmark is among the happiest nations in the world. Nordic countries consistently lead global happiness rank-ings, with Finland first, followed closely by Denmark, Iceland, and Sweden . The report points to several factors, but one stood out to me: low corruption. The research shows that the absence of corruption correlates strongly with higher life satisfaction, lower negative emotions, and stronger trust between people and public institutions . It made sense. When people believe in the system, they walk through life with lighter shoulders.

The idea of trust is woven deeply into how a society feels. When you think someone will return your lost wallet, as many in Nordic countries do, it reflects an environment where fairness is normal. The report describes wal-let-return expectations as a powerful predictor of happiness, even stronger than the number of charitable acts one performs . Trust builds connection. Corruption destroys it.

As a Filipino, it’s hard not to compare. We are known worldwide for warmth, resilience, humor even in difficulty. But despite that, the Philippines sits far from the top tier of the happiness list. The report notes gains in our aver-age life evaluation over the past years, but we still face barriers that weigh down collective wellbeing, and corruption remains one of them. Poverty, inequality, and political scandals drain optimism. It’s difficult to feel secure when public money doesn’t always end up where it should, when ordinary people face bureaucratic walls while some cut through them easily, and when basic services depend on who you know instead of what you need.

Happiness is not just a mood. It grows out of conditions: income, health, social support, freedom, generosity, and clean governance. The report confirms that corruption strongly lowers national life satisfaction, while trust in in-stitutions improves it. In countries where corruption is low, the state becomes a partner, not an obstacle. Public funds go to schools and hospitals rather than disappearing in pockets. Businesses compete fairly. People don’t need to bribe to get things done. You feel less stress because the rules apply to everyone.

I imagine how life could change for Filipinos if corruption were not a daily burden. Picture jeepney drivers who trust that fuel subsidies reach them without leakage. Entrepreneurs who don’t lose months to permits unless they “grease” the system. Students in rural towns with proper classrooms because the construction budget wasn’t shaved off. Think of communities after a typhoon receiving relief quickly and fully, no missing sacks of rice.

We sometimes say happiness is personal, but national happiness is built together. Government must lead with transparency, simpler processes, and consistent enforcement. Technology can help track spending, automate trans-actions, and reduce discretionary loopholes that breed rent-seeking. Procurement data should be open by default. Whistleblowers must be safe.

Public hiring should be merit-based. None of these are new ideas, but commitment turns them from slogans into habits.

The private sector plays an equal role. Companies should build compliance systems that reward honesty instead of connections. Paying taxes properly, declining under-the-table shortcuts, and valuing fair labor practices can feel like a slow path, but it builds foundations for long-term growth. Business leaders we met in Denmark told us they succeed not by cutting corners but by trusting customers and employees, and being trusted back. That kind of cycle is what lifts quality of life in the long run.

Citizens, too, shape the culture. We can teach children that following rules is not being naive. We can stop glorifying “diskarte” when it means bending laws. We can vote for competence over charisma and hold leaders ac-countable after elections. Every honest act, no matter how small, feeds into a larger norm. The report says benevolence surged during the pandemic, proving that people respond when others need them . We have that generosity. What we lack is a system that supports and multiplies it.

We walked back to our hotel that night thinking about how normal happiness felt in Denmark. Not excitement, not euphoria, just ease. People trusted one another. Public offices worked. Streets were clean. You didn’t feel like everything was a fight. That calmness is a privilege made possible by years of building transparent institutions and nurturing a culture where cheating is rare, not expected.

The Philippines has the heart for happiness; it shows in fiestas, in laughter during storms, in how we help a stranger even when we have little. But if we want to rise higher in the world happiness ranks, we need more than resilience. We need systems people can rely on, leaders we can believe in, and a clear stand that corruption is not part of who we are. Happiness grows where trust lives. The sooner we plant it, the sooner we can breathe as easily as those I met in Copen-hagen.

The views expressed herein are his own and do not necessarily reflect the opinion of his office as well as FINEX.

 

Reynaldo C Lugtu, Jr. is the founder and CEO of Hungry Workhorse, a digital, culture, and customer experience transformation consulting firm. He is a fellow at the US-based Institute for Digital Transformation. He teaches strategic management and digital transformation in the MBA Program of De La Salle University. The author may be e-mailed at rey.lugtu@hungryworkhorse.com

AI and Philippines’ economic strategic directions

STOCK PHOTO | Image by FREEPIK

(First of two parts)

THE economist Joseph Schumpeter observed that especially capitalist economies climbed to the next stage of development by adopting new technologies. The process is necessarily disruptive as in the process of creating the new, the old is destroyed and thus, the term “Creative Destruction.” Historically, this incessant process of development encompasses diverse products, from railroads to smartphones to electric cars etc. The latest, and potentially the most trans-formative in decades, is Artificial Intelligence or AI.

AI is reconfiguring global economic structures with the speed and force of a truly revolutionary technology that transforms production, trade, services, governance, and the nature of work itself. Its impact is now comparable to historical technological shifts that altered national trajectories. In Asia, AI is accelerating competitive realignments that echo, though on a far more rapid scale, the economic divergences I previously explored in my analysis on Vi-etnam and the Philippines.* As a young Central Bank economist, I also published with the Central Bank Review on the Thai economy catching up with the Philippines.

This broader regional transformation provides a useful context for assessing how the Philippines can position itself strategically, and thus, a closer examination of the country’s AI readiness becomes vital. While I draw on the broad priorities outlined in the National Artificial Intelligence Strategy Roadmap (NAISR) 2.0, it goes beyond the roadmap by offering a critical evaluation of implementation gaps, assessing sectoral vulnerabilities, and grounding the discus-sion in current economic data. Thus, the analysis complements but does not duplicate NAISR 2.0 by situating AI within the Philippines’ broader development, labor-market, and competitiveness challenges.

THE GLOBAL AI SHIFT
Globally, AI has become embedded in manufacturing, logistics, healthcare, agriculture, public finance, defense, and education. Nations that recognized the catalytic role of AI early -— such as Singapore, South Korea, China, Japan, India, and increasingly Vietnam — have aligned national policy, industrial strategy, talent pipelines, and digital infrastructure to position themselves for long-term competitiveness. AI is now central to shaping global productivity trends and the distribution of economic opportunities.

This shift is particularly consequential for emerging economies like the Philippines, where the challenge is not whether AI will arrive, as it already has, but whether national institutions, industries, and governance systems can respond ef-fectively. The cost of inadequate response is high: countries that fail to adopt AI risk loss of competitiveness in services, manufacturing, and even agriculture. In this environment, the Philippines must address the widening gap between aspiration and execution.

WHERE THE PHILIPPINES STANDS
The Philippines enters the AI era with both strengths and vulnerabilities. Its demographics is one of the most favorable in Asia, with a young, English-proficient population and a long-established global services industry. The IT-BPM sector alone employs over 1.6 million Filipinos and remains a vital anchor of forex earnings. Digital adoption has accelerated across enterprises and households, and private-sector interest in AI is growing, particularly in financial services, retail, logistics, and telecommunications.

There are, however, structural challenges. A 2025 Philippine Institute for Development Studies (PIDS) survey revealed that only 14.9% of Philippine firms use any form of AI. This is striking since over 90% of these firms have access to computers and nearly 80% have internet connectivity. The disconnect suggests that the necessary infrastructure is not sufficient. Firms face organizational, financial, and skills-related barriers. Regional disparities also remain pronounced, with the locus of AI adoption still highly concentrated in Metro Manila and Cebu.

The country is at a critical juncture as while the digital foundations exist, the capacity for high-level AI adoption including research, modeling, advanced computing, and algorithmic governance remains limited. The country’s long-term competitiveness hinges on whether it can bridge this capability gap.

CRITIQUE OF THE NATIONAL AI STRATEGY
The Philippines has articulated a framework for action through the Department of Trade and Industry’s National AI Roadmap (2021) and the more ambitious National AI Strategy Roadmap 2.0 unveiled in 2024. These documents ap-propriately identify key sectors for transformation, emphasize data governance, outline plans for regional AI research hubs, and envision a national high-performance computing (HPC) backbone. They reflect the recognition that AI requires cross-sector alignment and institutional coordination.

However, the gap between strategic ambition and implementation remains wide. The Roadmap is strong in vision but short in operational detail. Perhaps, as it is a Roadmap it recognizes the need for talent develop-ment but does not specify a scale of investment commensurate with national needs. It outlines a plan for HPC capacity but faces a reality where electricity costs remain among Asia’s highest, and public R&D expenditure remains below 0.4% of GDP which is far below regional peers. Moreover, the Roadmap is limited by the fragmented institutional landscape of Philippine governance. AI-relevant responsibilities are dispersed across the departments of Trade and Industry (DTI), Science and Technology (DoST), Information and Communications Technology (DICT), Economy, Planning, and Development (DEPDev), the Commission on Higher Education (CHED), and individual agencies, without a centralized authority empowered to coordinate budgets, standards, and accountability. While there are nascent coordination efforts (the National Innovation Council, DICT, DoST), there is a need to fast track and involve other stakeholders.

Most importantly, the Roadmap addresses AI largely from a technological standpoint, with insufficient economic framing. It does not fully integrate AI into industrial policy, export strategy, agricultural modernization, or sector-specific productivity programs. Without such integration, government efforts risk being siloed, producing isolated programs rather than systemic transformation.

The Roadmap is not misguided; it is incomplete. It provides the scaffolding but not yet the structural supports necessary for national-scale AI deployment. n

(To be continued.)

*https://tinyurl.com/26ppbzyd and https://tinyurl.com/26ucp4e8

 

Cesar Polvorosa, Jr. is professor of Economics and International Business at a Canadian University. He is an occasional contributor to current affairs publications including the Philippine Star and Interaksyon. His literary publications in North America and Asia have been anthologized.

Misery index worsens in October

The Philippines’ adjusted misery index hit a three-month high of 18% in October from 16.2% in September. This was the highest recorded since the 20.2% in July. Despite steady inflation in October, the jobless rate and underemployment rate climbed to a three-month high, which contributed to the worsening of the misery index. 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.