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NG gross borrowings fall to P166 billion in July

BW FILE PHOTO

By Aubrey Rose A. Inosante, Reporter

THE NATIONAL GOVERNMENT’S (NG) gross borrowings slipped by 12% in July as the decline in domestic issuances were partly offset by a sharp rise in foreign borrowings, the Bureau of the Treasury (BTr) reported.

Data from the BTr showed that total gross borrowings fell by 11.96% to P166.11 billion in July from P188.67 billion in the same month a year ago.

Month on month, gross borrowings declined by 37.08% from P263.99 billion in June.

Gross domestic borrowings went down by 15.54% to P152.54 billion in July from P180.6 billion in the same month last year. This accounted for 91.83% of the total gross borrowings in July.

Broken down, domestic borrowings included P125 billion in fixed-rate Treasury bonds and P27.54 billion in Treasury bills.

On the other hand, gross external borrowings surged by 68.26% to P13.57 billion in July from P8.06 billion in the previous year. This consisted of project loans.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the total gross borrowings in July was due to a narrowing budget deficit, which reduced the need for additional borrowings.

Data from the BTr showed that the budget gap shrank by 34.42% to P18.9 billion in July. For the seven-month period, the budget deficit widened to P784.4 billion.

“(This) may reflect a combination of frontloaded issuances in earlier months, the election-related spending pause, and a deliberate pacing to manage debt servicing costs amid high interest rates,” John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said in a Viber message.

END-JULY BORROWING
Meanwhile, NG’s gross borrowings dipped by 0.09% to P1.758 trillion in the January-to-July period from P1.759 trillion a year ago.

Domestic debt accounted for the bulk or 76.34% of total gross borrowings in the first seven months.

Gross domestic debt slid by 9.57% to P1.34 trillion as of end-July from P1.48 trillion in the same period last year.

This was composed of P881.84 billion in fixed-rate Treasury bonds, P300 billion in fixed-rate Treasury notes and P159.85 billion in Treasury bills.

As of end-July, gross external debt stood at P415.92 billion, up 50.98% from P275.48 billion a year ago.

These consisted of P191.97 billion in global bonds, P171.31 billion in program loans and P52.65 billion in project loans.

Analysts expect higher government borrowings in the second half amid ramped up spending and maturing government securities.

“We can still expect higher borrowings in the latter part of the year, especially as NG ramps up spending to hit growth targets and if revenue collections fall short,” Mr. Rivera said.

In the following months, Mr. Ricafort said the NG borrowings would likely increase to reflect the retail Treasury Bond (RTB) issuance in August.

The BTr earlier announced that the government sold P507.16 billion worth RTBs, exceeding the P30-billion target. The public offer period ran from Aug. 5 to 15, while settlement is on Aug. 20.

Mr. Ricafort said the government is also scheduled to settle the P288.66-billion Treasury maturity on Sept. 9.

This year’s financing program is set at P2.6 trillion, of which P2.11 trillion will be from local lenders and P488.17 billion from foreign sources.

Twin stars

BAIC North EDSA is the fifth dealership for the brand to officially open this year, bringing the total number to 13. — PHOTO FROM UNITED ASIA AUTOMOTIVE GROUP, INC.

UAAGI inaugurates flagship showrooms for BAIC and Lynk & Co

MULTI-BRAND AUTO DISTRIBUTOR United Asia Automotive Group, Inc. (UAAGI) recently inaugurated its new flagship dealerships for its two upscale brands, BAIC and Lynk & Co. Owned and operated by Beatitude Auto Group, the state-of-the-art showrooms and service centers are located at 931 to 933 EDSA southbound, Brgy. Philam, right across TriNoma in Quezon City.

Present at the inauguration ceremony were local government officials led by Quezon City Mayor Joy Belmonte, UAAGI Chairman Rommel Sytin, UAAGI Vice-Chairman Kenneth Sytin, dealer principal Vincent Licup, UAAGI Director for Sales and Marketing Timothy Sytin, and Lynk & Co Philippines Managing Director Franz Decloedt.

Premium SUV, crossover, and 4×4 enthusiasts, as well as hybrid, plug-in hybrid, and EV buyers may now visit the expansive twin six-car showrooms, which are open Mondays to Saturdays from 8:30 a.m. to 5:30 p.m., and Sundays and holidays from 10 a.m. to 5 p.m. — for both sales and after-sales services.

Both North EDSA dealerships are designed as “one-stop shops” for BAIC and Lynk & Co owners and future customers, where sales, after-sales, and fully equipped service centers with highly trained specialists (separate for each brand) are all under one roof.

The spacious facilities are built to global showroom standards and feature a coffee bar where customers can relax in comfortable lounges, and a merchandise display where visitors can browse and shop a wide range of lifestyle products. The showrooms offer a premium atmosphere that allows visitors to experience both brand’s range of vehicles while enjoying a pleasant and relaxing customer experience.

Test drives for select BAIC and Lynk & Co models are available, giving customers the opportunity to experience the upmarket brands’ performance and comfort firsthand. Complementing the world-class lineup are the brands’ confidence-inspiring after-sales programs, which offer a 150,000-km or five-year warranty and 200,000-km or eight-year warranty (whichever comes first) for hybrids and EVs.

During the launch event, guests were treated to the exclusive premiere of BAIC’s latest brand campaign featuring BAIC’s brand ambassador Ian Veneracion, promoting its latest and most exciting vehicle lineup.

Lynk & Co also had its brand-specific program, which saw the unveiling of the new 08 EM-P plug-in hybrid premium SUV. Members of Lynk & Co’s global team including East Asia Regional Director Jeff Cao, Country Manager Victor Shu, Marketing Manager Lyn Ruan, and Assistant Manager Luca Shi were present at the inauguration as well.

“The opening of Lynk & Co North EDSA is more than a milestone — it’s a bold step toward redefining mobility in the Philippines,” said Mr. Cao. “The Lynk & Co 08 EM-P reflects our vision for the next generation, blending power, refinement, and advanced electrification for an unparalleled driving experience. In partnership with UAAGI, we’ve created a destination where innovation meets aspiration, and where every journey moves us toward a future without boundaries,” he added.

Timothy Sytin emphasized the significance of the launch, saying, “Today marks a significant milestone as we open the doors to our flagship dealership in North EDSA. Lynk & Co is a global premium brand that has been making waves internationally for its sophisticated design, advanced technology, and attainable prices. And now, we’re bringing that same standard to the Philippines. The unveiling of the Lynk & Co 08 EM-P represents a new benchmark for premium hybrid mobility in the country, offering up to 1,400 kilometers of range and exceptional efficiency without compromising on comfort, quality, or style.”

Meanwhile, BAIC North EDSA is the fifth dealership for the brand to officially open this year, bringing the total number to 13.

From rugged, true 4×4 SUVs built for real off-road adventures to stylish and versatile crossovers designed for the urban jungle, BAIC offers models that appeal to executives, entrepreneurs, and next-generation explorers alike. The impressive range includes the B80 Wagon, B60 Beaumont, B40 Ragnar, B30e Dune and X55 Verve Sport, along with newly launched additions such as the B40 Pro TrailMaster and B60e Beaumont rEV, all reflecting the brand’s dedication to cutting-edge technology, robust capability, and sustainability.

With bold design, spacious comfort, and powerful yet efficient petrol, diesel, hybrid, and electrified performance, BAIC continues to redefine the SUV experience in the Philippines.

Lynk & Co North EDSA, meanwhile, brings the number of Lynk & Co dealerships to six nationwide. Beatitude Auto Group is a multi-brand car dealership and service center that carries a variety of auto brands. With flagship showrooms for BAIC and Lynk & Co. in North EDSA, the group currently operates 11 dealerships across Metro Manila and Northern Luzon — with plans to expand to 20 by 2027 as part of its growth strategy.

All-new Mini JCW family now available

Mini’s more potent John Cooper Works versions have arrived in five models of the brand. — PHOTO FROM MINI

MINI ASIA and British United Automobiles recently announced the availability of the all-new Mini John Cooper Works (JCW) family comprised of five models epitomizing “pure driving fun in its most powerful form and a unique driving experience.”

Significantly, the first-ever Mini John Cooper Works Electric and first-ever Mini John Cooper Works Aceman — two fully electric John Cooper Works models — join the product portfolio. “The powerful electric drives open a new chapter in the brand’s long history and demonstrate its ongoing commitment to performance and innovation,” said Mini in a release. Meanwhile, the all-new Mini John Cooper Works and all-new Mini John Cooper Works Convertible “provide driving fun with a powerful TwinPower Turbo engine.” Finally, the all-new Mini John Cooper Works Countryman All4 presents enthusiasts with off-road capability thanks to all-wheel drive.

“Mini John Cooper Works boasts a cult following around the world that few others can match,” said Mini Asia Head Daren Ching. “Steeped in heritage and oozing pure racing DNA, these striking machines are a sight to behold on the road. Now with the addition of two fully electric models to the lineup, a new dimension of the iconic Mini go-kart feeling is born.”

The first-ever Mini John Cooper Works Electric and first-ever Mini John Cooper Works Aceman boast up to 190kW/258hp and 350Nm. Both models provide an additional 20kW of motor power via an electric boost function, allowing for dynamic acceleration. The JCW-specific suspension tuning maximizes the typical Mini go-kart feeling while guaranteeing agile handling. High-performance tires are said to be part of the standard equipment of both models.

Exclusive equipment details include the red-white-black John Cooper Works logo in the style of a checkered flag from motorsports, as well as a JCW-specific red roof. Black side skirts, model-specific aero-blades at the C-pillar, and the accentuated rear spoiler optimize the aerodynamics for increased range. The three-door Mini John Cooper Works Electric achieves 371km, while the five-door Mini John Cooper Works Aceman can drive up to 355km on a single battery charge.

On the other hand, the all-new Mini John Cooper Works and all-new Mini John Cooper Works Convertible get a four-cylinder 2.0-liter TwinPower Turbo serving up 231hp and 380Nm. A sportily tuned dual-clutch automatic transmission translates the engine power into “particularly dynamic gear changes.” The standstill-to-100kph time for the Mini John Cooper Works is 6.1 seconds (onto a top speed of 250kph), while the all-new Mini John Cooper Works Convertible takes 6.4 seconds (with a maximum rate of 245kph). The soft top of the Convertible can be fully retracted in just 18 seconds at speeds of up to 30kph.

The large octagonal high-gloss black front grille with wide air vents for efficient engine cooling and the modern JCW logo mark the front fascia of both models. Red-colored inserts in the side air inlets on the front apron underscore the motorsport-oriented design for maximum performance.

As the largest model, the all-new Mini John Cooper Works Countryman with All4 all-wheel drive allows enthusiasts to drive off-road. It offers “a unique combination of style, power, and adventurous spirit.” A top speed of 250kph is made possible by a mill that delivers 300hp and 400Nm.

Aerodynamic elements with red reflectors emphasize a wide stance, while at the rear of the vehicle, vertical taillights with the John Cooper Works Signature Mode frame the upright body. Advanced assistance systems support the driver through progressive technologies.

The clear design ethos of the interior in the all-new Mini John Cooper Works models is characterized by JCW-specific equipment details in red and black. The black JCW sports steering wheel with red decorative stitching and a six o’clock spoke made of black and red fabric provides “excellent grip.”

Additionally, JCW sports seats offer secure support during dynamic driving. The combination of black leatherette with multi-colored knitted material in the shoulder area and red accent stitching picks up the color pattern of the knitted surface of the dashboard. All Mini John Cooper Works models are given an exclusive Harman Kardon sound system.

The all-new Mini John Cooper Works family will officially debut at the Autohub Trackday on Sept. 7 at the Clark International Speedway in Pampanga.

SEC says GOCC listing push in initial phase

FRANCISCO ED. LIM — THE SECURITIES AND EXCHANGE COMMISSION/BW FILE PHOTO

By Ashley Erika O. Jose, Reporter

THE Securities and Exchange Commission (SEC) has started work on a plan to bring government-owned and -controlled corporations (GOCCs) to the stock market after securing approval from the Department of Finance, with the goal of deepening investor participation and boosting the capital market, its chairman said.

“We are still in the initial stages. Of course, we have to do the rounds of inventory of GOCCs. We already (secured) the go signal from Secretary of Finance [Ralph G.] Recto to look at the GOCCs that are listable,” SEC Chairman Francisco Ed. Lim told BusinessWorld on the sidelines of the Philippine Investment Conference 2025 last week.

For China Bank Capital Corp. Managing Director Juan Paolo E. Colet, the absence of GOCCs in the Philippine Stock Exchange (PSE) is why the stock market capitalization-to-gross domestic product (GDP) ratio remains low compared with most of the country’s Southeast Asian peers.

“Listing our country’s most eligible GOCCs can definitely beef up our stock market. Among key Southeast Asian economies, the Philippines is the only one without a publicly listed GOCC,” Mr. Colet said in a Viber message.

Mr. Colet said bringing GOCCs to the equity market is a good way for the government to raise funds as well as make these companies more efficient and competitive.

“The goal should not be to do an IPO (initial public offering) just for the sake of it, but to get a valuation that makes sense for both the state and investors,” he said.

Unicapital Securities Equity Research Analyst Peter Louise D.C. Garnace said the public listing of GOCCs will be a significant catalyst for the development of the local bourse.

“It would increase market depth and liquidity, widen the country’s investor base, and prove that the equity market is a viable source of financing,” Mr. Garnace said.

Although GOCCs are often deemed less efficient and profitable given weaker incentives for better performance and limited accountability for results, listing GOCCs can help mitigate these challenges by subjecting them to greater market discipline and stricter disclosure requirements, Mr. Garnace said.

“From a fiscal standpoint, IPOs of GOCCs can generate revenues for the government that can be used for critical public investments such as education, health, and infrastructure. If we take a look at other countries, the listing of GOCCs has driven the growth of investments in their capital markets,” he said.

In June, the SEC said it hoped to encourage GOCCs to list on the stock exchange to spur investor activity, citing similar initiatives in neighboring countries like Vietnam.

In its Capital Market Review of the Philippines last year, the Organisation for Economic Co-operation and Development (OECD) said many Philippine state-owned enterprises (SOEs) are candidates for public listing, such as Land Bank of the Philippines and Development Bank of the Philippines.

The OECD also said the Philippines could grow its capital markets by listing minority stakes in financially significant SOEs.

SOEs occupy a significant share of market capitalization in other ASEAN countries such as Singapore, Indonesia, Malaysia, and Vietnam.

“SEC is working to future-proof the Philippine capital market. We are also working on listing for grantees of legislative franchises and exploring the listing of commercially viable state-owned enterprises, which will bring new scale and diversity into our market,” Mr. Lim said.

Further, stock market analysts said the success of GOCC listings will require a broad investor base and adequate market infrastructure, while also depending on timing and business fundamentals.

“The key challenges are readiness and timing. The focus should be on GOCCs with strong business fundamentals and prospects. Apart from the usual listing requirements, a GOCC should be considered IPO-ready if it has high-quality corporate governance structures, independent private auditors, a commitment to delivering shareholder value, and robust protections for minority investors,” Mr. Colet said, noting that if all these elements fell into place and market conditions are conducive, GOCC IPOs could be doable as soon as next year.

“We note, however, that successful GOCC listings require a broad investor base, solid market infrastructure, and a stable macroeconomic backdrop,” Mr. Garnace said.

Treasury bill, bond rates may drop after BSP cut

BW FILE PHOTO

RATES of the Treasury bills (T-bills) and Treasury bonds (T-bonds) to be auctioned off this week could decline further after the Bangko Sentral ng Pilipinas (BSP) cut borrowing costs and signaled that they are nearing the end of their current easing cycle.

The Bureau of the Treasury (BTr) will auction off P25 billion in T-bills on Monday, or P8.5 billion each in 91-day and 182-day securities, and P8 billion in 364-day papers.

On Tuesday, the government will offer P30 billion in reissued 10-year T-bonds with a remaining life of seven years and 13 days.

T-bill and T-bond auction yields could go down in line with the broad week-on-week drop in secondary market rates after BSP Governor Eli M. Remolona, Jr. said they could opt to keep benchmark borrowing costs steady after their latest cut, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“BSP Governor Remolona gave less dovish signals on a possible one 25-basis-point (bp) rate cut for the rest of 2025 if economic data remained weak, or even no more rate cut for the rest of 2025 if the economic data remained the same,” he said.

Mr. Ricafort added that the market will monitor the August inflation data to be released on Friday as this could justify further reductions from the BSP.

A trader said in an e-mail that the reissued 10-year bond could fetch rates ranging from 5.875% to 5.925%.

At the secondary market on Friday, the 91-, 182-, and 364- day T-bills went down by 2.57 bps, 9.09 bps, and 6.28 bps week on week to end at 5.2321%, 5.3921%, and 5.5357%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data as of Aug. 29 published on the Philippine Dealing System’s website.

For its part, the 10-year bond rose by 1.6 bps week on week to yield 6.016%, while the seven-year tenor, the closest to the remaining life of the reissued papers on offer this week, went down by 2.1 bps to close at 5.9011%.

The BSP on Thursday lowered benchmark interest rates by 25 bps for the third consecutive meeting to bring the policy rate to 5%, as expected by all 20 analysts in a BusinessWorld poll.

It has now slashed borrowing costs by a cumulative 150 bps since it began its rate-cut cycle in August 2024.

Mr. Remolona said the key rate is now at the “sweet spot” in terms of inflation and output, but he left the door open for one more cut this year, which would likely mark the end of the central bank’s current easing cycle.

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

Last week, the government raised P25 billion as planned from the T-bills it auctioned off as the offer was more than four times oversubscribed, with total bids reaching P113.02 billion.

Broken down, the Treasury borrowed P8 billion as planned via the 91-day T-bills as total tenders for the tenor reached P31.89 billion. The three-month paper was quoted at an average rate of 5.195%, down by 3.9 bps from the previous auction. Accepted yields ranged from 5.188% to 5.2%.

The government likewise raised the programmed P8 billion from the 182-day securities as tenders amounted to P39.27 billion. The average rate of the six-month T-bill was at 5.398%, dropping by 3.7 bps, with accepted rates ranging from 5.388% to 5.413%.

Lastly, the Treasury sold the planned P9 billion in 364-day debt as demand for the tenor totaled P41.86 billion. The average rate of the one-year T-bill went down by 4.2 bps to 5.522%. Tenders accepted carried yields of 5.518% to 5.53%.

Meanwhile, the reissued 10-year T-bonds to be offered on Tuesday were last auctioned off on July 8, where the government raised P30 billion as planned at an average rate of 6.128%, below the 6.75% coupon rate.

The Treasury 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

Ayala Land shares rise on MSCI rebalancing, foreign inflows

Nuvali in Laguna is Ayala Land’s largest eco-city development in the country unlocking the potential for future eco-communities in Southern Luzon.

AYALA LAND, INC.’S (ALI) share price rose last week after the Morgan Stanley Capital International (MSCI) rebalancing, a huge volume of net foreign inflows, and anticipation of interest rate cuts.

The property developer was the third most actively traded issue last week, with a total of 96.98 million shares worth P2.76 billion changing hands from Aug. 26 to 29, data from the Philippine Stock Exchange (PSE) showed.

At the end of the trading week, Ayala Land closed at P28 per share, up 3.3% from the previous Friday’s close of P27.10. The uptick was a reversal compared with the property sector, which slipped by 0.04%, and the benchmark PSE index (PSEi), which contracted by 2% week on week.

Year to date, the stock rose by 6.9%, reflecting the property sector’s 2.8% growth but contrasting with the PSEi’s 5.7% decline.

“The strong move on Ayala Land’s stock price this week was primarily driven by the anticipation of Bangko Sentral ng Pilipinas’ interest rate cuts, which could boost the property sector. Also, the recent MSCI rebalancing supported the strong price action on Ayala Land as it has a huge volume of net foreign inflows,” said Jash Matthew M. Baylon, an equity analyst at The First Resources Management and Securities Corp., in a Viber message.

Ayala Land was among those included in the top ten constituents in the MSCI rebalancing. As of Aug. 31, the company had an index weight of 7.27%, with a market capitalization of P409.53 billion.

The index is designed to measure the performance of the large- and mid-cap segments of the Philippine market. Some fund managers track the MSCI index composition to realign their portfolios.

Ayala Land saw net foreign buying in three out of four trading sessions last week, with inflows amounting to P797.94 million from Aug. 26 to 29, according to PSE market data.

Trading days were cut to four due to the National Heroes Day holiday on Aug. 25.

Mr. Baylon also said that Ayala Land’s acquisition agreement for ABS-CBN’s property in Quezon City affected Ayala Land’s stock, as the formalization of the deal was seen as positive sentiment for the market.

“The move was also considered to be a strategic acquisition, as the firm could use it for future developments,” said Mr. Baylon.

Last week, ABS-CBN Corp. said it signed the deeds of absolute sale covering part of its Quezon City property with Ayala Land, formalizing a P6.24-billion deal. The sale covers up to 30,000 square meters, or 68.14% of ABS-CBN’s 44,027.30-square-meter property.

Meanwhile, the Monetary Board reduced the target reverse repurchase rate by 25 basis points (bps) to 5% from 5.25%, as expected by 20 analysts in a BusinessWorld poll last week. This was also the lowest level in nearly three years, or since November 2022.

Latest audited financial statements showed ALI’s consolidated attributable net income reached P14.17 billion in the first half of 2025, 7.9% higher than the P13.13 billion recorded in the same period last year, driven by the company’s diversified portfolio. Meanwhile, consolidated revenue fell by 1.4% to P83.07 billion from P84.27 billion.

“We forecast ALI’s net income to grow to P31.43 billion for the full year 2025 mainly driven by its robust mall segments and improved leasing revenues,” Mr. Baylon said.

For this week, Mr. Baylon placed Ayala Land’s support levels at P28 per share, while its resistance levels are at P30 per share. — Lourdes O. Pilar

Good coffee, vinyl, and a Lexus

PHOTO FROM LEXUS PHILIPPINES

UNTIL Sept. 23, Lexus Philippines blends “good coffee and good records” at Flat Six Café in Quezon City. Located at 131 Katipunan Avenue, Barangay St. Ignatius, the “cozy café” will host the Lexus LBX for an up-close-and-personal experience. During their stay at the coffee shop, Lexus owners will also get a special treat. Guests only need to show their Lexus car key to get an exclusive complimentary drink.

The Lexus LBX is a premium compact crossover powered by a 1.5-liter, three-cylinder hybrid engine, and is said to deliver responsive performance with outstanding fuel efficiency. Its lightweight build and finely tuned suspension ensure dynamic handling. The cabin features a seven-inch digital instrument cluster, ambient lighting, and meticulous omotenashi (the Japanese concept of deep, wholehearted hospitality, rooted in selfless service without expectation of reward) details that “create a luxurious, driver-centric experience.”

Central bank sets indefinite moratorium on grant of new licenses to virtual asset service providers

Representations of cryptocurrency Bitcoin are seen in this illustration picture taken in Paris, France, March 9, 2024. — REUTERS/BENOIT TESSIER/ILLUSTRATION/FILE PHOTO

THE BANGKO SENTRAL ng Pilipinas (BSP) has extended indefinitely its moratorium on the grant of new virtual asset service provider (VASP) licenses as it noted “heightened risks” in the sector.

“The extension of the moratorium considers the heightened risks associated with virtual assets (VAs) and underscores the BSP’s commitment to protect consumers and uphold the stability and integrity of the financial system,” the central bank said in a statement on Friday.

“The BSP will periodically review the moratorium on VASP licensing in line with industry developments, as it strengthens its monitoring, surveillance, and enforcement capabilities. This approach ensures that the BSP can effectively address emerging risks and respond to evolving trends in the domestic and global VA landscape.”

The central bank added that enhanced monitoring of VASPs is also part of its efforts to strengthen its anti-money laundering, counter-terrorism financing (AML/CFT), and counter-proliferation financing of weapons of mass destruction framework following the Philippines’ removal from the Financial Action Task Force’s (FATF) “gray list” of jurisdictions under increased monitoring in February this year.

This close monitoring is meant to ensure that these entities operate “in full compliance with regulations and international standards, and implement secure, transparent, and accountable practices.”

The Anti-Money Laundering Council (AMLC) earlier said it is pushing amendments to the Anti-Money Laundering Act that could include the authority to temporarily suspend transactions and the designation of VASP as covered persons under the revised international standards and FATF recommendations.

The FATF has said that countries must ensure VASPs are regulated for AML/CFT as “virtual assets also risk becoming a safe haven for the financial transactions of criminals and terrorists.” These providers must also be licensed or registered, and subject to effective systems for monitoring.

The BSP initially imposed a three-year moratorium on new VASP licenses in September 2022.

Virtual assets refer to any digital representation of value that can be traded online, transferred, or used for payment, including cryptocurrencies.

VASPs offer services or engage in activities that provide facilities for the safekeeping, administration, transfer or exchange of virtual assets, such as cryptocurrency exchanges. The products and services of VASPs include cryptocurrencies and electronic wallets for holding and storing these virtual assets.

BSP data showed that 13 entities held VASP licenses as of May 15, with three of them being inactive or nonoperational.

In an advisory also issued on Friday, the central bank warned the public against dealing with unlicensed or unauthorized VASPs, adding that the official list of registered VASPs is available on its website.

It also encouraged the reporting of any illegal or suspicious activities related to VAs or VASPs to the BSP. — K.K. Chan

Lockheed Martin projects P50-billion impact, 2,000 jobs from PHL package

LOCKHEED MARTIN is partnering with Southern Methodist University to support digital innovation, intellectual property creation, and workforce development in the Philippines. — SOUTHERN METHODIST UNIVERSITY

By Beatriz Marie D. Cruz, Reporter

LOCKHEED MARTIN CORP., an American manufacturer of defense and aerospace equipment, said it expects to generate P50 billion in economic value from its investments in the Philippines, which include the establishment of repair facilities and knowledge transfer to support the country’s defense industry and workforce development.

“In support of the Self Reliance Defense Posture initiative, we have developed a package that covers a wide range of economic and defense initiatives… One that we believe creates at least 2,000 jobs for the Philippine economy along with nearly P50 billion of value in terms of economic impact,” Jess Koloini, director of business development at Lockheed Martin’s Integrated Fighter Group, told BusinessWorld last week.

This covers Lockheed Martin’s direct investments such as a repair and maintenance facility for the F-16 fighter jet and the C-130 cargo plane, and the establishment of an Innovation Center that would support the Philippines’ military capacity and create more jobs for the local workforce.

Ms. Koloini added that the projected P50-billion value generated for the Philippines covers Lockheed Martin’s partnership with Southern Methodist University (SMU) in Texas, which will provide technology and knowledge transfer to Philippine universities, focusing on digital innovation, intellectual property creation, and workforce development.

“They (SMU) also have a very robust research and development presence in Dallas,” Ms. Koloini said. “They’ve got top-tier academics and professors that we would expect to engage in the Philippines and likewise bring students to America to further broaden technical research and development across the academic and defense sectors.”

Through the partnership, Philippine universities would gain access to SMU’s state-of-the-art innovation tools and equipment. Other benefits include funding for business incubation, government initiatives, and academic programs, as well as the establishment of a world-class research laboratory and training space.

Local stakeholders will also receive training and development under SMU’s Center for Digital and Human-Augmented Manufacturing (CDHAM) and Deason Innovation Gym (DIG). This would help the country strengthen its defense-related capabilities in digital modeling, simulations, virtual and augmented reality, robotics, automation, and artificial intelligence, Ms. Koloini said.

The company has been working with educational institutions such as De La Salle University, Ateneo de Manila University, University of the Philippines, Philippine State College of Aeronautics, and World City Colleges, among others.

Ms. Koloini said the entire partnership aligns with Republic Act 12024 or the Self-Reliant Defense Posture Revitalization Act, the Philippine law that seeks to enhance the country’s defense capabilities through local resources and innovation.

“These industrial development programs are meant to run alongside and bolster a [decades] long relationship that we expect to have through the F-16 program,” Ms. Koloini said.

The Philippines is under pressure to ramp up its defense modernization initiatives and strengthen ties with other countries amid escalating tensions with China.

Last month, the company announced the delivery of five new Black Hawk helicopters to the Philippine Air Force.

It is also waiting for the US government’s formal offer on the sale of Lockheed Martin’s 20 F-16 fighter jets to the Philippines, which has a total value of $5.58 billion.

Jetour holds 2nd Media Pet Day

Creamy and Chewie aboard a Jetour T2 — PHOTO FROM JETOUR AUTO PHILIPPINES

IN LINE with the International Dog Day last Aug. 26, Jetour Auto Philippines, Inc. (JAPI) held its second annual Media Pet Day recently. “The event reaffirmed a heartwarming tradition, bringing together media partners, their beloved furry friends, and the Jetour family for a memorable day dedicated to celebrating bonds and championing responsible pet ownership,” said JAPI in a release. The company maintained that this gathering has become a “cornerstone of JAPI’s community engagement, reflecting a deep understanding of the Filipino lifestyle where pets are cherished members of the family.”

Guests and their pets engaged in a series of activities, including exciting games, friendly contests, and interactive sessions designed to strengthen the bond between owners and their companions. The pet-friendly atmosphere of Barkhaus Eastwood provided “the perfect playground for pets to socialize and for their owners to unwind and connect with fellow animal lovers.”

JAPI Marketing Director Cherry May Moreno-De Los Santos said, “We’re so happy to see you all back and to see familiar human and furry faces, and also some new additions to the family,” she said. “We at JAPI are proud and joyful that this event has the makings of a beloved annual tradition. It speaks volumes about the community we are building together. Much like the lifelong relationship we humans have with our beloved animal companions, we aim for Jetour’s relationship with our customers to also be a lifelong, loving affair built on trust and loyalty.”

All Jetour dealerships are pet-friendly, “a welcoming space where families can shop for their next vehicle without leaving their beloved furry companions behind,” the company maintained.

Israel’s killing of journalists follows a pattern of silencing Palestinian media that stretches back to 1967

ISRAELI and international journalists demonstrate in solidarity with journalists from Gaza and against their targeted attacks by the Israeli army outside the “Journalist House” in Tel Aviv, Israel, on Aug. 13. — REUTERS/YAHEL GAZIT/NURPHOTO

Five journalists were among the 22 people killed on Aug. 25, 2025, in Israeli strikes on the Nasser Hospital in the Gaza Strip. Following global condemnation, the office of Israeli Prime Minister Benjamin Netanyahu issued a statement saying Israel “values the work of journalists.” But the numbers tell a different story.

Those deaths bring the total number of journalists killed in Gaza in almost two years of war to 197. The Committee to Protect Journalists, which collates that data, accuses Israel of “engaging in the deadliest and most deliberate effort to kill and silence journalists” that the US-based nonprofit has ever seen. “Palestinian journalists are being threatened, directly targeted and murdered by Israeli forces, and are arbitrarily detained and tortured in retaliation for their work,” the committee added.

As a scholar of modern Palestinian history, I see the current killing of reporters, photographers, and other media professionals in Gaza as part of a longer history of Israeli attempts to silence Palestinian journalists. This history stretches back to at least 1967, when Israel militarily occupied the Palestinian territories of the West Bank, East Jerusalem, and the Gaza Strip following the Six-Day War.

Beyond the humanitarian toll, what makes matters even more drastic now is that, with Israeli restrictions on foreign media entering Gaza, local Palestinian journalists are the only people who can bear witness to the death and destruction taking place – and report it to a wider world. Indeed, nearly all of the nearly 200 journalists killed since Oct. 7, 2023, have been Palestinian.

A DECADES-LONG PROCESS IN THE MAKING
From the first days of the occupation in 1967, Israel has tried to keep a tight grip on media reporting, building a legal and military architecture that aimed to control and censor Palestinian journalism.

In August 1967, the army issued Military Order 101, effectively criminalizing “political” assembly and “propagandistic” publications in the occupied territories.

Yet despite such restrictions, local journalism persisted and grew. By the early 1980s, Palestinians in the occupied territories were publishing three dailies, five weeklies, and four magazines. The most popular publications circulated up to 15,000 copies.

But all Palestinian publications were subject to Israeli military censorship. Every night, editors were forced to submit two copies of everything they planned to print to Israeli censors. That included articles, photos, ads, weather reports, and even crossword puzzles.

Anything the Israeli censor deemed to be “of political significance” had to be removed prior to publication. Editors who violated these terms, or who were accused of belonging to Palestinian political groups, could be detained or deported. These practices have echoes today with Israel often accusing the journalists it kills of being Hamas operatives.

CENSORSHIP REGIMES
Objecting to these and many other restrictions, Palestinians launched the first intifada, or uprising, against the Israeli occupation in December 1987. During the uprising’s first year, Israeli forces reportedly jailed 47 Palestinian reporters, temporarily banned eight local and regional newspapers, permanently revoked the licenses of two magazines, and closed four press service offices.

While intended to be a show of force, most Palestinians saw the restrictions as evidence that Israel was afraid of Palestinians reporting on their own conditions.

Many people hoped that the Oslo Accords — a series of negotiations between Israel and the Palestinian Liberation Organization that formally launched in 1993 — would lead to greater press freedoms. But it was not to be the case.

Israeli authorities continued to enforce military censorship on what they deemed to be “security topics.” They also revoked the press cards of reporters who did not stay in line and assaulted and harassed journalists reporting from the ground.

Meanwhile, the newly established Palestinian Authority, set up as part of the Oslo process to partially govern Palestinian territories on what was meant to be a temporary basis, built a censorship regime of its own. It, too, arrested, suspended and closed news outlets it deemed too critical of its actions.

SHOOTINGS AND IMPUNITY
By the 2000s, Israel’s attacks on journalists in the West Bank and Gaza Strip grew deadlier. Israeli forces fatally shot Palestinian photographer Imad Abu Zahra in Jenin in the West Bank in 2002, British filmmaker James Miller in Rafah in 2003, and Reuters cameraman Fadel Shana in Gaza in 2008.

Since 2008, as battles between Israeli forces and Palestinian militant groups have grown fiercer, journalists have worked under even deadlier conditions. Yet even during unarmed demonstrations, journalists have faced deadly Israeli force. In 2018, during the mass unarmed protests in Gaza known as the Great March of Return, Israeli forces shot and killed Palestinian journalists Yaser Murtaja and Ahmed Abu Hussein. Both were wearing “PRESS” vests when they were shot. In addition, at least 115 journalists were wounded while covering the protests, which lasted six months.

The deadly force has not been limited to Palestinians in Gaza. In May 2022, Palestinian American journalist Shireen Abu Akleh was killed in the Jenin refugee camp. One of the most famous Palestinian reporters at the time, Abu Akleh’s death drew hundreds of thousands of mourners, while Israeli police beat pallbearers at her funeral service.

LEGITIMATE MILITARY TARGETS?
International humanitarian law makes clear that journalists are civilians and therefore cannot be targeted during combat. That includes war correspondents who are covering war while under the protection of an armed group.

For their part, Israeli officials argue that they do not target journalists. They say that their strikes are aimed at legitimate military objectives, often asserting that Hamas embeds itself in civilian buildings or that some of the journalists killed were militants.

But such allegations are often made without independently verifiable evidence. Israel alleged that Murtaja, the journalist killed in Gaza in 2018, was a militant, but provided no proof.

In the case of Abu Akleh, Israeli officials initially claimed that she may have been killed by Palestinian militants. They eventually admitted there was a “high possibility” that Israeli forces killed Abu Akleh, but claimed that the killing was accidental and therefore the government would not press charges. A recent documentary refutes that claim and identifies the Israeli soldier alleged to have killed Abu Akleh intentionally.

CULTURE OF IMPUNITY
Even prior to the deadly Hamas-led attacks on Israel on Oct. 7, 2023, the picture emerging was that of impunity for Israeli forces who killed journalists — by accident or by design. A May 2023 report from the Committee to Protect Journalists concluded that Israel engaged in a “deadly pattern” of lethal force against journalists and failed to hold perpetrators accountable.

Since October 2023, journalists in Gaza have faced even deadlier conditions. Israel continues to ban international news agencies from reporting inside the Gaza Strip. As a result, local Palestinian journalists are often the only ones on the ground.

Aside from the deadly conditions, they contend with Israeli smears against their work and threats against their families.

Palestinian journalists there often run toward bombardments when others run away. As a result, they are sometimes killed in “double-tap” strikes, where Israeli air and drone strikes return to an area that has just been struck, killing rescue workers and the journalists covering them.

All this has led to an unbearable personal toll for those continuing to report from within Gaza. On Oct. 25, 2023, Al Jazeera’s Gaza bureau chief, Wael al-Dahdouh, was reporting live on air when he learned that an Israeli airstrike had killed his wife, two children, and grandson. He returned on air the next day.

And the killing has not eased up. On Aug. 10, 2025, Israeli forces killed Anas al-Sharif in Gaza City, another prominent Al Jazeera correspondent who had stayed on the streets through months of bombardment. Five of his fellow journalists were also killed in the same airstrike.

The Aug. 25 strike on Nasser Hospital is just the latest in this deadly pattern.

Among the five journalists killed in that attack were freelancers working for Reuters and The Associated Press — two international media outlets frustrated by Israel’s refusal to allow its journalists into Gaza to document the war.

Despite the danger, global newsrooms have repeatedly urged Israel to open Gaza to independent media, and a coalition of 27 countries recently pressed for access in Gaza.

Israel continues to refuse these requests. As such, Palestinian journalists remain the primary witnesses of Israel’s relentless assault on Gaza. And they are increasingly killed as they do so. The question remains whether the international community will hold Israel to account.

 

Maha Nassar is an associate professor in the School of Middle Eastern and North African Studies in the University of Arizona.

Peso may strengthen vs dollar as US data bolster Fed cut bets

BW FILE PHOTO

THE PESO could strengthen against the dollar this week as US data released on Friday bolstered expectations for a US Federal Reserve cut this month.

On Friday, the local unit closed at P57.13 per dollar, inching down by a centavo from its P57.12 finish on Thursday, data from the Bankers Association of the Philippines showed.

Week on week, the peso weakened by 18 centavos from its P56.95 close on Aug. 22.

“The market initially dropped amid a weaker dollar overnight due to increased dovish Fed bets. But caution ahead of the US personal consumption expenditures (PCE) data drove the pair up to close at P57.13,” a trader said in a phone interview on Friday.

The dollar weakened against the euro and Swiss franc on Friday, on course for a 2% decline in August against a basket of currencies, as traders prepared for a US interest rate cut by the Federal Reserve next month, Reuters reported.

The dollar, which initially firmed after US inflation data came in as expected, later gave up gains, failing to break a three-day losing streak.

The US Commerce department reported on Friday that its PCE price index rose 0.2% last month after an unrevised 0.3% rise in June.

In the 12 months through July, the PCE price index advanced 2.6%, matching the rise in June.

Stripping out food and energy components, the PCE price index increased 0.3% after a similar rise in June. In the 12 months through July, core PCE inflation advanced 2.9%. That was the largest rise since February and followed a 2.8% gain in June. The Fed tracks the PCE price measures for its 2% inflation target.

The data keeps the Fed on track for a widely expected rate cut at its upcoming meeting on Sept. 16-17. Money markets are pricing in an 87% chance of an easing, up from 63% a month earlier, CME’s FedWatch tool showed.

The dollar index, which measures the greenback against a basket of currencies, was down 0.09% at 97.803 in afternoon trading.

US President Donald J. Trump’s campaign to exert more influence over monetary policy, including last week’s attempt to fire Fed Governor Lisa Cook, has weighed on the dollar.

A federal judge said on Friday she would set an expedited briefing schedule in Ms. Cook’s bid to temporarily block Mr. Trump from firing her while she pursues a lawsuit that says he has no valid reason to remove her.

Mr. Trump is trying to reshape the Fed after repeatedly criticizing the central bank and its chair, Jerome H. Powell, for not cutting interest rates.

The peso was also supported by signals from the Bangko Sentral ng Pilipinas (BSP) chief that they are close to ending their current rate-cut cycle, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

On Thursday, the BSP cut its target reverse repurchase rate by 25 basis points (bps) to 5% for a third straight meeting, as expected by all 20 economists in a BusinessWorld poll.

It has now slashed borrowing costs by a cumulative 150 bps since it kicked of its rate-cut cycle in August 2024.

BSP Governor Eli M. Remolona, Jr. said the policy rate is now at the “sweet spot” in terms of inflation and output.

He added that they could consider further policy loosening if the economy weakens “considerably,” with one more cut still possible this year that could mark the end of its current easing cycle.

The trader said the peso will likely react to the US PCE data released on Friday to start this week’s trading, adding that the local unit could rise as the Fed’s key inflation gauge was within market expectations.

Both the trader and Mr. Ricafort see the peso moving between P56.90 and P56.40 per dollar this week. — A.M.C. Sy with Reuters

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