The Philippines ranked 32nd among 44 countries in the 2025 edition of the Global Retirement Report by investment migration consultancy firm Global Citizen Solutions. With a score of 78.89 out of 100, the country holds the third-highest ranking in Asia.
Nine years after the Arbitral Tribunal’s ruling in its favor, the Philippines continues to face Chinese harassment in the West Philippine Sea (WPS) and, without an international enforcement mechanism, must act to protect its maritime boundaries.
Under President Ferdinand Marcos, Jr., the Philippine government has continued to strengthen maritime security institutions to protect waters within our maritime zone. The Maritime Zones Act defines our entitlements and sovereign rights or jurisdiction over our maritime zone, including the territorial seas, contiguous zone, 200-mile Exclusive Economic Zone (EEZ), and the waters surrounding, within, and adjacent to the Kalayaan Island Group and Bajo de Masinloc (Scarborough Shoal). This institution plays a crucial role in operationalizing the arbitral ruling in the South China Sea, providing a concrete mechanism to safeguard our EEZ.
The EEZ, a vast body of water with significant economic value, must be safeguarded from threats, including China’s continued reclamation within the Philippine EEZ over the years. China’s provocative actions — such as ramming a Philippine naval vessel on a resupply mission to the grounded BRP Sierra Madre at Ayungin Shoal in the WPS, 124 miles from Palawan, and a symbol of the nation’s sovereign claims — highlight the serious challenges confronting Philippine maritime law enforcement and security. This year, the Philippine Coast Guard (PCG) also reported the presence of two Chinese research vessels operating within the EEZ without the consent of the Philippine government.
China’s gray zone actions have been concentrated in the western flank of the Philippines. However, with its long-standing interests in the Pacific seaboard, Chinese vessels have recently been sighted in the waters of the Philippine Rise — a 13-mile underwater plateau in the eastern flank that forms part of the Philippine continental shelf — prompting renewed calls to secure these waters. BBM described this as “a bit of an escalation” and a “clear intrusion,” which led to the deployment of a PCG vessel to carry out law enforcement operations. The Philippine Navy has also mounted a response.
This shift in Chinese activity toward the eastern flank underscores that the threat to the Philippine Rise is not limited to illegal incursions — a clear violation of territorial rights — but extends to the potential harm these encroachments pose to biodiversity and the marine environment. The Philippines holds sovereign rights over the Benham Rise, particularly in the exploration and exploitation of its rich and diverse resources, which include potential oil, gas, and minerals in the seabed, as well as abundant fisheries and tuna fishing grounds — critical for both food and energy security. As Justice Antonio Carpio has emphasized, this means the Philippines alone has priority and exclusive rights to its utilization.
Recognizing these stakes, calls to protect the Benham Rise intensified about eight years ago. In 2017, fisheries expert Dr. Jose Ingles described its conservation as “critical” to the nation and the long-term sustainability of oceanic tuna stocks. The Philippine Rise provides vital ecosystem services — regulating climate change, serving as a tuna habitat, and supporting livelihoods, food security, and recreation. In 2018, Silliman University President Ben Malayang urged science-based decision-making for its development, while Justice Carpio stressed that China should not be allowed to conduct marine scientific research unless it recognizes the 2016 arbitral ruling. That year also saw the creation of the Philippine Rise Marine Resource Reserve, a protected food supply exclusive zone. For fishers from Isabela, Aurora, Catanduanes, and parts of Bicol, it is their “food basket.”
It is noteworthy that the Philippine Rise is not part of the disputed WPS. The WPS accounts for only about a third of the country’s maritime domain, underscoring the vast extent and breadth of the Philippines’ maritime security and law enforcement responsibilities. This perspective highlights a broader imperative: to address — and, where necessary, prioritize — the connection between protecting and defending non-disputed waters and upholding the country’s WPS claims, while effectively integrating environmental stewardship with archipelagic defense.
As this clarifies the evolving threat picture for the Philippines, it becomes essential to reassess the defense and protection of the Pacific seaboard. At present, we are witnessing two-pronged efforts from various actors. On one front, the PCG in 2021 installed state-of-the-art buoys — tangible evidence of the government’s commitment to advance the Philippine Rise as a protected zone against mining and oil exploration. In 2022, Senator Risa Hontiveros filed Senate Bill No. 146, seeking to declare a portion of the Philippine Rise a protected area and to establish a Philippine Rise Marine Resource Reserve Management Board tasked with enforcing measures against illegal fishing, resource depletion, and unlawful intrusion. On the other front, in the area of archipelagic defense, a naval port in Aurora province and the enhancement of Aurora’s port capabilities now serve as a springboard for sustaining maritime presence in the Philippine Rise.
Together, these initiatives demonstrate a coordinated approach that reinforces both environmental stewardship and strategic defense across the Philippines’ maritime domain.
Alma Maria O. Salvador, PhD, is an associate professor of Political Science at Ateneo de Manila University.
ACCOR GROUP is set to open Sofitel Cebu City by late 2026 or early 2027, marking the return of the Sofitel brand to the Philippines following the closure of Sofitel Philippine Plaza Manila last year.
“In Cebu, we’re about to open the Sofitel property. So, Sofitel Cebu should be opening by the end of 2026 or early 2027,” Tom Meyer, senior vice-president for operations in South-East Asia, Japan, Korea, and The Pacific at Accor, told BusinessWorld last week.
The 195-room Sofitel Cebu City will be located in Masters Tower Cebu, a 31-story hotel and office tower within Cebu Business Park. The tower was built by listed property developer Cebu Landmasters, Inc. and was designed by Chicago-based architectural firm Skidmore, Owings & Merrill.
When it opens, it will be the only Sofitel property in the country, following the closure of Sofitel Philippine Plaza Manila in Pasay City last year.
Sofitel is one of Accor’s well-known luxury brands, having a portfolio of 32,528 rooms across 124 hotels worldwide. Launched in 1964, it is the first French brand to venture into the global luxury hospitality scene.
“We talk with Sofitel about the Cultural Link, where we want to have the best of France and the best of the local destination,” Mr. Meyer said.
Mr. Meyer said the Visayas has become an increasingly appealing market for Accor’s hotel expansion, citing its diverse cuisine, culture, and produce.
“So, we’re extremely excited about utilizing all of this produce and creating some really incredible experiences for our guests,” he said.
Accor manages around 45 hotel brands worldwide across the luxury, premium, midscale, and economy segments, with notable names including Fairmont, Raffles, Pullman, Mercure, and ibis Styles.
In the Philippines, Accor’s hotels are located in Makati, Mandaluyong, Manila, Clark, Boracay, Panglao, and Cebu City.
Next year, Accor is set to open two hotels in Subic under its ibis Styles and Mercure brands. — Beatriz Marie D. Cruz
FWD Life Insurance Corp. (FWD Philippines) has launched a single-pay investment-linked life insurance plan targeted towards the affluent segment.
FWD Wealth+ is a one-time pay plan that provides life protection while enabling high-net-worth clients grow, preserve and protect their wealth, the insurer said in a statement, adding that it caters to the sector’s “long-term and sustainable aspirations.”
“As the insurer of the next generation, we believe in empowering our customers to manage their wealth their way — be it for building wealth or safeguarding their legacy,” FWD Philippines President and CEO Soon Liang Lau said.
“With FWD Wealth+, we address the affluent segment’s unique financial goals as we offer a flexible, long-term protection plan that enables them to celebrate living, in line with our commitment to nation-building by protecting more Filipino lives.”
The product includes guaranteed life coverage up to age 100, with the minimum single premium starting at P1 million or $20,000.
“Coverage priority is customizable — whether it’s more life protection, more investment, or equal parts for both. Investments can be in either Philippine peso or US dollar, and depending on their risk appetite, policyholders can invest in local or global funds, including the FWD Nitro or FWD Velocity Payout funds, which aims to provide quarterly payouts that generate income for future investments or passive retirement income,” FWD Philippines added.
The product has three policy options, namely, FWD Wealth+ Creator for individuals aiming to grow their capital; FWD Wealth+ Harmonizer for those who want to balance wealth growth with asset protection; and FWD Wealth+ Legacy Builder for those seeking to protect their legacy for their future generations.
It also offers a Booster Bonus of up to 2.5% of the premium spread over the first five years, adding extra fund units for investment growth, a 2% Loyalty Bonus for keeping the policy active, and an Investment Protector Bonus that doubles the Loyalty Bonus if the Philippine Stock Exchange index drops lower than its value five years ago. — Katherine K. Chan
A REBOOT of The Naked Gun, starring Liam Neeson and produced by Seth MacFarlane, is opening in Philippine cinemas on Aug. 13. Mr. Neeson plays Lt. Frank Drebin, Jr., son of Lt. Frank Drebin (played by Leslie Nielsen in the original films) and the only man who has the particular set of skills to lead Police Squad and save the world. The movie also stars Pamela Anderson, Paul Walter Hauser, CCH Pounder, Kevin Durand, Cody Rhodes, Liza Koshy, Eddie Yu, and Danny Huston.
WITH the release of Lola Amour’s new album, Love on Loop, set for Aug. 15, the Filipino band will be celebrating the new chapter with a concert on Sept. 15. Titled Love on Loop, it will take place at SPACE at One Ayala, Makati City. The concert will also spotlight performances from The Ridleys, Itchyworms, and KAIA, with appearances by Barb (of Leanne & Naara) and Sofia Abrogar (of Any Name’s Okay). Regular tickets, priced from P1,990 to P3,990, are now available via lolaamour.helixpay.ph.
A NEW wave of OPM artists will be coming together for a one-night only concert for a cause. For the first time, Cup of Joe, Amiel Sol, Earl Agustin, and Maris Racal will unite on stage in YUGTO: Buhay at Pag-Ibig, slated for Aug. 15 at 8:30 p.m. at the Newport Performing Arts Theater, Pasay City. Tickets are now available at the Helixpay website, http://yugto.helixpay.ph, priced from P2,000 to P7,000.
P-POP band SB19 and Sony Music Entertainment Asia are giving fans worldwide the chance to go on the Simula at Wakas World Tour, particularly the Singapore leg. The concert, which will be held on Aug. 24 at Singapore’s Arena @ EXPO, is part of the P-pop group’s biggest international tour to date. A winner will be randomly selected to receive an all-expense-paid trip for two in Singapore, inclusive of round-trip flights from any major airport in the world, a two-night hotel stay for two at V Lavender Hotel with breakfast, two Gold tickets + Hi-bye passes, official concert merchandise, 30% off food vouchers at Tono Izakaya, and an allowance for meals and transfers. Interested participants can fill out this form and submit it on or before Aug. 17 (available only to fans 18 years old and above).
THE Eastwave Asian Festival 2025 is ongoing at Lucky Chinatown Mall in Binondo, Manila, until Aug. 17. This is a showcase of local entrepreneurs that sell regional crafts, snacks, and specialty goods. Meanwhile, from Aug. 13 to 30, the Asia Fandom Fest will assemble K-pop fans selling photocards and other merchandise dedicated to Asian stars, all in one marketplace. On Aug. 30, P-pop artists and rising local acts will have a meet-and-greet experience called “StanZone,” with the lineup set to be announced soon. Finally, on Aug. 31, the Asia Pulse Festival concludes the month-long celebration with a high-energy dance cover showdown featuring some of the best Asian pop dance crews in the city.
FILIPINO singer-songwriter Clara Benin will be releasing her sophomore album, befriending my tears (and then some), on vinyl. In partnership with independent vinyl retailer Backspacer Records, this edition features expanded versions of the original tracks, including remixes, early demos, and live recordings. The album was first released in 2023 under Sony Music Entertainment’s pan-regional label OFFMUTE. It includes contributions from Gabba Santiago, Sam and Tim Marquez of One Click Straight, and Francis Lorenzo. It will be available exclusively at Backspacer Records starting Aug. 17.
TO CELEBRATE 25 years of music, the band Westlife is giving fans in the Philippines the chance to join them in London for their 25th Anniversary Concert at the Royal Albert Hall this October. As part of this exclusive fan campaign, two fans will be selected to receive an all-expenses-paid trip to London, including round-trip flights, hotel accommodation, exclusive Westlife merchandise, and tickets to see the band live. The campaign runs until Sept. 30 and is open to fans in Asia. Fans can sign up via westlife.lnk.to/wlfph, with winners to be announced on Oct. 3.
THE film Flower Girl, produced by The IdeaFirst Company, OctoberTrain Films, and CreaZion Studios, is now available on demand for a limited time on three streaming platforms: iWantTickets, VivaOnePlus, and VMXPlus. It stars Sue Ramirez as Ena, a sanitary napkin endorser and modern Filipina navigating life, love, and ambitions. Her life takes a sudden turn when her vagina mysteriously disappears after she offends a transwoman (played by KaladKaren), who curses her using babaylan powers.
FILIPINO singer-songwriter and producer Ena Mori has dropped her new EP, rOe. Both introspective and sophisticated, the six-track coming-of-age project aims to “navigate the emotional whiplash of entering your twenties with one foot still planted in childhood.” It is co-produced by Ms. Mori with her creative partner Tim Marquez of One Click Straight. The EP is out now on all digital music streaming platforms.
THE Museum of Contemporary Art and Design (MCAD) presents Simulacra for the month of August. As part of MCADxMovingImage, Beall Center for Art + Technology associate director Fatima Manalili curated the three-part screening. It aims to “challenge the ability of a person to distinguish truth from illusion as constructed environments and media blur the line between fact and fiction.” The films are: Ways of Seeing (1972), scheduled for Aug. 27; The Truman Show (1998), scheduled for Aug. 28; and F for Fake (1973), scheduled for Aug. 29. Free and open to the public, the films run from noon to 2 p.m. at the MCAD Multimedia Room, De La Salle-College of Saint Benilde Design + Arts Campus, Dominga Street, Malate, Manila. Interested participants may e-mail mcad@benilde.edu.ph.
THE CEBU Aurora Music Festival is back, slated for Nov. 22 this year. There will be performances by SB19, Rico Blanco, Ben&Ben, Cup of Joe, Maki, and Earl Agustin. Tickets, priced from P1,000 to P5,000, are available via SM Tickets outlets and website and https://ticket.epiceventsph.com/.
PLDT INC. and its wireless unit Smart Communications, Inc. will continue investing in cybersecurity infrastructure to ensure a secure digital space amid a growing number of frauds and scams, the Pangilinan-led telecommunications company said on Monday.
PLDT has blocked access to 10 unregistered crypto exchanges after the Securities and Exchange Commission (SEC) flagged the platforms for operating without the necessary licenses, it said in a statement.
“Upon receipt of the order from the National Telecommunications Commission (NTC), we restricted access to the identified websites. These web addresses are no longer accessible on our network,” PLDT said.
In an advisory last week, the SEC alerted the public against 10 cryptocurrency platforms — OKX, Bybit, Mexc, Kucoin, Bitget, Phemex, Coinex, Bitmart, Poloniex, and Kraken.
The commission said the platforms offer crypto-asset services to Philippine residents without the required registration or authorization mandated under SEC Memorandum Circular (MC) No. 4 and MC No. 5, which took effect on July 5.
PLDT said it will continue investing in cybersecurity infrastructure after the Cyber Security Operations Group reported blocking more than a hundred billion attempts to access malicious domains.
At the stock exchange on Monday, shares in the company fell by P16, or 1.22%, to close at P1,299 apiece.
Hastings Holdings, Inc., a subsidiary of the PLDT Beneficial Trust Fund and part of MediaQuest Holdings, Inc., holds a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose
NET INFLOWS of foreign direct investments (FDI) into the Philippines rose by 21.3% year on year in May but declined by 26.9% in the first five months of the year, preliminary data from the central bank showed. Read the full story.
Here’s a quick glance at how PSEi stocks fared on Monday, August 11, 2025.
FINANCE Secretary Ralph G. Recto said the government is studying a new general tax amnesty (GTA) measure, with the possibility of an estate-tax extension.
“We are also studying the possibility of enacting a General Tax Amnesty and online gambling tax laws,” Mr. Recto said in his speech at the Economic Journalists Association of the Philippines Economic Forum on Monday.
The proposed tax amnesty will involve an amnesty charge set at a yet-to-be-determined percentage of the outstanding unpaid tax, in exchange for immunity from civil, criminal, and administrative penalties.
Mr. Recto said the GTA will be submitted to Congress this year, subject to the approval of President Ferdinand R. Marcos, Jr. and the cabinet.
“There’s a call to extend the Estate Tax amnesty. We’ll include it here,” Mr. Recto said.
Two months ago, the Bureau of Internal Revenue moved the deadline for the filing, approval and payment of estate tax amnesty application to June 16 as June 14 landed on a weekend.
Republic Act No. 11956 extended the period for availing of the estate tax amnesty for another two years or until June 14, 2025, from the previous deadline of June 15, 2023.
This grants beneficiaries, transferees, or legal heirs sufficient time to settle taxes on inherited assets, particularly for estates of individuals who died on or before May 31, 2022.
“It’s not going to be the same bill passed by Congress then that was vetoed. This is just a General Tax Amnesty. This will be a simple amnesty bill,” he said.
In 2019, President Rodrigo R. Duterte vetoed the GTA provisions of Republic Act No. 11213 but retained the estate tax amnesty provisions.
Asked for further details of the bill and possible proposed deviations from the previous bill, Mr. Recto said: “No details yet. (The drafting is) being started right now.”
Mr. Recto told reporters the government is open to the idea of barring state-run firms from investing in businesses related to online gambling, after the Government Service Insurance System (GSIS) purchased DigiPlus Interactive Corp. shares.
“We’ll look into it. I agree. The Maharlika (Investment Corp.) will not invest in this,” he said, referring to the sovereign wealth fund. Mr. Recto also serves as Maharlika chairman.
GSIS President and General Manager Jose Arnulfo Veloso is currently under preventive suspension over the pension fund’s investment decisions. The GSIS had also purchased Alternergy Holdings Corp. shares, allegedly without adhering to the pension fund’s prescribed internal approval procedures.
Mr. Recto is proposing to deter gambling addiction by taxing the online gambling industry, while other parts of the government crack down on electronic wallet use in online gambling.
“This is a whole-of-government approach. Even the President has said he will call for a semi-summit to discuss the issue,” Mr. Recto said. — Aubrey Rose A. Inosante
By Justine Irish D. Tabile, Reporter
SECRETARY Frederick D. Go, the special assistant to the President for investment and economic affairs, said restrictions on online gambling could take the form of more comprehensive know-your-customer (KYC) rules.
“There are a few things that are possible there. Number one is to be stricter on the KYC, meaning all the platforms can be stricter to ensure that nobody below 21, for example, is allowed to gamble,” Mr. Go said on Monday at the Economic Journalists Association of the Philippines Economic Forum.
He sees KYC as an effective means of determining whether an individual should be barred from gambling.
“A regulation that I believe should be seriously considered is raising the minimum bet and raising the minimum entry point,” he added.
He said raising the minimum bet is likely to reduce betting frequency.
He noted that Singapore casinos also require an entry fee, a practice that could be adopted by online gambling operators.
“For example, there’s a minimum entry level, let’s say P1,000, and a minimum bet of P100. That way you don’t have somebody coming in with P100 and betting everything he has on one bet,” he said.
INDIAN MARKET
Separately, Mr. Go said India has become a major trading, investment, and tourism partner of the Philippines.
However, he said the Philippines, with only 70,000 or so Indian visitors last year, is far behind its Southeast Asian neighbors.
“The number of Indian visitors to our Southeast Asian neighbors is in the hundreds of thousands, if not in the millions of visitors a year,” he said.
“I kept pushing for this within the sectoral groups to ensure that we allow easy entry for Indian tourists,” he added.
He said a recent positive development is that Indians with US, Japanese, Australian, Canadian, Schengen, Singaporean, or UK visas can now enter the Philippines visa-free for 14 days.
Regarding the launch of Air India direct service connecting New Delhi and Manila in October, he said: “I’m not even sure when the last time we had a direct flight to India was. But with access now to 1.5 billion people, I think we can be looking at major tourism numbers, major trade numbers, and major investment numbers coming from India,” he said.
He said the Philippine delegation led by President Ferdinand R. Marcos, Jr. to India last week obtained $446 million in firm investment commitments, with the potential to grow to about $4.5 billion if other letters of interest come through.
STOCKS dropped for the third straight session on Monday, sending the bellwether index back to the 6,200 level, amid the lack of fresh leads and concerns regarding the Philippine economy’s growth outlook.
The Philippine Stock Exchange index (PSEi) sank by 1.34% or 85.02 points to close at 6,254.36, while the broader all shares index went down by 0.85% or 32.16 points to 3,735.25.
“The local market opened the week on a negative tone as the lack of fresh positive leads allowed worries over the local economy’s outlook to take over sentiment,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.
“Investors are concerned on how the local economy could accelerate its growth amid lingering global economic uncertainties caused primarily by the United States’ protectionist policies,” Mr. Tantiangco added.
Philippine gross domestic product (GDP) expanded by 5.5% in the April-to-June period, slightly faster than the 5.4% growth in the first quarter but slower than the 6.5% expansion in the second quarter last year. This matched the lower end of the government’s 5.5%-6.5% growth target for this year.
For the first half, GDP growth averaged 5.4%, slightly below the government’s goal. Economic Secretary Arsenio M. Balisacan last week said the economy must grow by 5.6% this semester to hit the low end of the full-year target and by 7.5% to reach the upper end.
“The market was largely driven by selling pressure today, with prices seemingly stalled as investors wait for a new catalyst to emerge after the PSEi rebalancing last Friday,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
“With most companies having already released their second quarter earnings, attention may now shift to the upcoming US inflation data, which could shape the Federal Reserve’s next policy direction,” he added.
July US consumer inflation data will be released on Aug. 12 (Tuesday).
On Friday, the PSE announced the inclusion of Tanco-led digital entertainment provider DigiPlus Interactive Corp. into the PSEi starting Aug. 18, replacing Razon-led integrated resorts operator Bloomberry Resorts Corp.
Almost all sectoral indices closed lower on Monday. Financials sank by 2.3% or 50.39 points to 2,132.21; property dropped by 1.97% or 48.41 points to 2,408.30; industrials declined by 0.91% or 82.61 points to 8,911.90; holding firms retreated by 0.85% or 44.62 points to 5,199.57; and mining and oil decreased by 0.2% or 18.82 points to 9,263.62.
Meanwhile, services went up by 0.19% or 4.59 points to 2,319.54.
Value turnover went down to P7.1 billion on Monday with 908.82 million shares traded from P7.25 billion with 1.42 billion shares exchanged on Friday.
Decliners outnumbered advancers, 141 versus 70, while 41 names were unchanged.
Net foreign buying increased to P421.37 million on Monday from P37.65 million on Friday. — Revin Mikhael D. Ochave
THE National Government’s (NG) budget deficit is expected to widen to 6% of economic output this year as escalating trade tensions weigh on fiscal consolidation, Fitch Solutions unit BMI said.
“We maintain our Philippine fiscal deficit forecast at 6% in 2025 as a more challenging external environment will challenge fiscal consolidation efforts,” it said in a report.
“The economy will need fiscal support to offset global headwinds, but policymakers will have very limited room to maneuver given already high public debt levels.”
BMI’s forecast is higher than the 5.5% deficit ceiling set by the Development Budget Coordination Committee for this year.
“This signals a clear slowdown in fiscal consolidation efforts and reinforces our view that the government faces growing constraints in reducing its budget shortfall over the medium term,” BMI said.
In the first six months, the NG budget deficit widened 24.69% to P765.5 billion.
The budget gap remained relatively within target as it was 0.63% above the projected P760.7 billion for the first half.
The government is hoping to bring the deficit down to 4.3% of GDP by 2028.
However, BMI said “escalating US trade protectionism” remains a key risk to this outlook.
In late July, US President Donald J. Trump imposed a 19% duty on many goods from five members of the Association of Southeast Asian Nations (ASEAN) — the Philippines, Cambodia, Malaysia, Thailand and Indonesia, which took effect Aug. 7.
“If fully implemented, this would further dampen external demand and add to existing structural weaknesses. In turn, this increases pressure on the government to provide economic support.”
BMI estimates indicate that government spending would need to increase by around 1 percentage point to meet the 6% medium-term growth target.
However, this would be “fiscally unfeasible.”
“The Philippines’ public finances remain fragile, with the debt-to-GDP ratio having risen to around 60% from the pre-pandemic level of 40%. This places the country among the regional laggards in fiscal recovery,” it said.
The NG’s outstanding debt as a share of GDP rose to 63.1% at the end of June, the highest since 2005.
This was also higher than the first quarter’s 62% and the year-earlier 60.9%. It is also above the 60% debt-to-GDP threshold considered by multilateral lenders to be manageable for developing economies.
“Elevated borrowing costs and a narrow revenue base further limit Manila’s ability to deliver large-scale fiscal support without compromising debt sustainability,” it added.
On the other hand, BMI noted that the impact of the tariffs may be “less severe than feared.”
“The full impact of rising trade fragmentation — driven by geopolitical tensions and supply chain realignment — remains difficult to quantify.”
“Furthermore, policymakers are unlikely to rely solely on fiscal spending. Instead, we expect a more balanced policy response that includes monetary easing, targeted subsidies and efforts to diversify trade partners, particularly within ASEAN and the Indo-Pacific region.”
BMI said that the Philippines must either “accept structurally slower GDP growth or prolong the fiscal adjustment timeline.”
“With limited fiscal headroom and rising external risks, the government’s ability to strike a sustainable balance will be tested in the years ahead.” — Luisa Maria Jacinta C. Jocson
