PHL executives weigh in on impacts of emerging challenges for 2025

By Bjorn Biel M. Beltran, Special Features and Content Assistant Editor

The story remains promising for the Philippines’ economic narrative. But there is yet a long road ahead before the country transition into the next chapter of reaching “upper middle-income status”, and 2025 is simply the first step.

National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan is confident that the Philippines would reach the official status this year. Upper middle-income countries are those economies recognized by the World Bank with gross national income per capita — in other words, the average income generated by residents inside the country as well as by Filipinos abroad — ranging between $4,516 and $14,005 for the fiscal year 2025.

Many leaders share his optimism. Frederic C. DyBuncio, SM Investments Corp. (SMIC) president and CEO, said in an interview that there are several encouraging trends that bolster the business community’s hope in the Philippines’ unimpeded growth.

“Business confidence has remained stable despite economic challenges, suggesting strong adaptability in the business sector. Companies have learned to manage foreign exchange and interest rate volatility effectively,” he said.

Jeffrey C. Lim, president of SM Prime Holdings, echoed his sentiments. “We expect the Philippine economy to continue its growth trajectory into 2025. The economic team’s GDP target of over 6.0% is attainable because of moderating inflation, strong domestic demand and robust government spending,” he said.

Building resilience amidst volatility

Inflation remains a sticking point. Organizations like the Asian Development Bank maintained their projections on the Philippine economy at 6.2% for 2025, with the expansion expected to be driven by broad-based domestic demand and supported by lower inflation and interest rates. The Bangko Sentral ng Pilipinas predicts inflation this year to be at an average 3.3%.

“If inflation continues to moderate, we expect an improvement in the interest rate environment, which could benefit both businesses and consumers. Any further moderation in inflation is likely to restore consumer confidence, creating more growth opportunities in consumer-focused sectors,” Mr. DyBuncio added.

“For me, there are two things I look forward to this 2025. The first is a more stabilized inflation rate. Prices of goods have drastically increased since 2022 and continued to rise until 2024. But, hopefully, prices are now stable and spending power has slightly adjusted as well. I look forward to this so that there will be less shocks to the market and the economy can move as predicted,” Pammy Olivares-Vital, president and CEO of Ovialand, said in an interview.

“Next would definitely be political — globally the return of President Trump and locally our own local elections. This activity always triggers a boost in spending, so hopefully this will spur economic activity.”

Many global organizations like the International Monetary Fund have expressed concerns regarding the potential impact of President Donald J. Trump’s return to office on the global economy, as his proposed economic policies — which include significant tax cuts, import tariffs, deregulation, and mass deportations — could aggravate United States’ (US) inflation, disrupt global trade, and lead to labor shortages in certain sectors.

The import tariffs, in particular, could reduce global economic growth of 2.7% in 2025 by 0.3 percentage point, according to the World Bank, if America’s trading partners retaliate with tariffs of their own. This potential slowdown could have a ripple effect on emerging markets like the Philippines, influencing key factors such as foreign exchange stability and trade dynamics.

“Businesses are particularly sensitive to foreign exchange movements, and recent volatility in the peso has impacted import costs significantly. We must also monitor global monetary policy, especially decisions from the Federal Reserve, which could affect peso stability,” SMIC’s Mr. DyBuncio said.

He added that Mr. Trump’s return could bring a mix of opportunities and challenges for the country, with its strategic location and strong economic ties with the US, especially in areas such as trade.

“In terms of risks, protectionist policies could lead to trade tensions, particularly in sectors where the Philippines is dependent on US markets. The Philippines will need to adapt to this evolving political landscape while ensuring it maximizes potential bilateral advantages,” he said.

Ms. Olivares-Vital remains positive. “Regardless of some of his surprising statements, President Trump is a Republican, and his right leaning tendencies are aimed at strengthening their economy. And when the US is strong, I believe, somehow we positively benefit from it as well,” she said.

“The return of Donald Trump to the White House introduces a significant new dimension to global trade and Philippine-US relations,” Mr. Lim of SM Prime said, adding that changes in US policies could present opportunities for the Philippines to diversify its partnerships and strengthen its domestic industries and competitiveness.

“The Philippines has consistently shown resilience and adaptability in navigating changing global dynamics. I think the government will be proactive and strategic in pursuing opportunities for collaboration that enhance relationships while safeguarding our national priorities,” he said.

Bringing the Philippines onto the global stage

At this crucial juncture in the Philippines’ development, the country has the potential to become a key player in global supply chains, especially in the context of escalating trade tensions between the US and China.

The country’s natural geographic advantage places it at the crossroads of major trading routes, providing access to key markets in Asia, the Americas, and Europe, thus making it a natural hub for logistics, manufacturing, and regional trade. That is, if the country plays its cards right.

“The Philippines faces the complex task of maintaining robust trade relationships with both the US and China, its two largest trading partners,” Mr. DyBuncio pointed out. “Key sectors like electronics and manufacturing are particularly vulnerable to disruptions in US-China trade relations due to their dependence on raw materials and components from both countries.”

“Balancing trade relations with the US and China also requires strategic diplomacy and economic foresight from the government. While tensions between these global powers present risks, they also underscore the importance of diversifying markets, fostering domestic capabilities, and ensuring resilience across key sectors.”

He also noted that the Philippine government can ideally take a multifaceted approach to strengthen economic ties with the US, including enhancing bilateral trade agreements to secure favorable terms for Filipino exports and attract US investments, as well as fostering goodwill through people-to-people diplomacy by promoting cultural, educational, and tourism exchanges.

Additionally, he said that the government could address immigration and remittance-related issues by proactively safeguarding the welfare of Filipino workers abroad and ensuring the steady flow of remittances.

Mr. Lim added that strengthening economic ties with the US calls for proactive and constructive diplomacy, focusing on shared priorities such as technology, education, and infrastructure development.

“Regarding immigration and remittances, monitoring potential policy changes that could affect Filipino workers and their families is essential. The government can continue to advocate for the welfare of our overseas workforce while exploring opportunities to diversify markets and enhance economic resilience,” Mr. Lim said.

As the Philippines is a primarily consumer-driven economy, keeping the country’s supply chains away from disruption is crucial for maintaining steady growth — a fact that Ms. Olivares-Vital of Ovialand can attest to.

“For me personally, the global political tensions have affected our supply chain,” she admitted.

“Global supply chains have been significantly disrupted by geopolitical tensions and the lasting effects of the pandemic, creating challenges for local businesses such as supply disruptions and rising costs,” Mr. Lim said.

“To mitigate the impact of these geopolitical risks on the Philippine economy, the government can focus on key strategies such as investing in infrastructure to improve logistics efficiency, promoting local manufacturing to reduce reliance on imports, and implementing policies that attract foreign direct investment to bolster local employment, competitiveness and economic resilience.”

Amid such a backdrop, regional cooperation becomes even more critical.

“In an era of rising global trade tensions and geopolitical uncertainties, regional cooperation through organizations like ASEAN and trade frameworks such as the Regional Comprehensive Economic Partnership (RCEP) has become increasingly vital for the Philippines,” Mr. DyBuncio said.

These agreements, he noted, can help the Philippines diversify its trade partners, stabilize exports, and promote economic integration within the region, providing a buffer against external shocks.

“Global supply chain disruptions, driven by geopolitical tensions, trade disputes, and natural disasters, are increasingly affecting local businesses in the Philippines,” he said.

Mr. Lim underscored how crucial regional cooperation was for sustained growth. Engagement through ASEAN and participation in agreements like RCEP provide the Philippines with access to broader markets, diversified trade opportunities, and collective bargaining power. Such collaboration strengthens economic stability and creates avenues for growth amid global uncertainties.

“The government can take the following measures to protect the Philippine economy: encourage localization of supply chains by supporting local industries to produce key components and reduce reliance on imports; invest in technology by enhancing digital infrastructure to improve supply chain tracking and flexibility; and foster trade agreements by building strong trade relationships with regional and international partners to buffer against global disruptions,” Mr. DyBuncio suggested.

The ultimate test of sufficiency

Mr. DyBuncio further highlighted how global trade realignments could be a boon for the Philippines, while also posing significant risks.

“To position itself as an attractive investment destination, our country must focus on creating a conducive environment for businesses, leveraging its strategic location, and addressing key areas of improvements that include: improving the business environment by streamlining regulations, reducing red tape, and enhancing the ease of doing business; promoting sustainability by fostering renewable energy investments to attract foreign capital in green industries; and enhancing infrastructure through investments to improve connectivity and logistics, which can enhance overall business efficiency and support growth in both domestic and foreign investments,” he said.

In renewable energy, specifically, the Philippines has the potential to become a global powerhouse. In the 2024 Climatescope Report by BloombergNEF, the country came second behind India as the most attractive emerging market for renewable energy investments — remarkably coming ahead of mainland China. This was a climb from fourth place in 2023 and an impressive leap from 20th place in 2021.

However, growth should not be sought for growth’s sake. The country should not lose sight of what such a potential future really means. Manny V. Pangilinan, who serves as chairman and president of Metro Pacific Investments Corp. alongside his leadership roles in companies like PLDT, Smart, and Meralco, had a more nuanced view of such promising prospects.

“We view [ourselves] in the traditional perspective of delivering goods and services for a profit,” he shared. “That’s what our owners want. That’s what they demand of the stores, managers, and the business. So that’s our starting premise.”

“But beyond that, there is a larger social component dimension to our business — and that is the improvement of lives and the welfare of everybody. The ultimate test of our sufficiency as a business is really how well we have done better for our people, for our customers, and generally the people in the Philippines in terms of the job and the business that we conduct.”

“And we believe in that is what defines us. That defines our group. We have a very heavy responsibility to our people in the way we do our business.”

Mr. Pangilinan commented that Mr. Trump’s policies on reinvesting in fossil fuels like gas and coal reflected the same idea: that leaders should focus on what they believe their people need. He cited the example of what he had seen doing social work, of children being forced to forego their education sell scrap metal because of poverty.

“Sometimes I wonder whether they worry about whether the air is pure and the water is clean. They must worry more about the food on the table and shirts on their back. And whatever else are essential to human existence,” he said.

Whether or not the Philippines seeks to become a global leader in renewables, or simply achieve its goal of achieving upper middle-income status this year, growth must serve the purpose of benefitting lives, first and foremost.

Speaking for SMIC, Mr. DyBuncio said, “As we look ahead to 2025, building resilience and managing risks in our sector remains a top priority. Recognizing the potential challenges posed by global economic slowdowns or recessions, we have implemented strategic measures to strengthen our position and ensure sustainability during periods of uncertainty.”

“While uncertainties remain in the global economic landscape, the SM Group’s proactive approach to risk management and resilience building positions us to navigate potential challenges. By focusing on adaptability, operational efficiency, and financial stability, we are confident in our ability to weather downturns while maintaining long-term growth.”

SM Prime’s Mr. Lim agreed, sharing their own visions of the future. “Our diversified portfolio, encompassing malls, residences, hotels and offices, allows us to manage risks associated with sector-specific downturns. We have also invested significantly in climate-adaptive and disaster-resilient infrastructure to reduce our operating costs and mitigate operational risks, while ensuring business continuity.”

“Whether it be the financial institutions managing exposure to the industry or affecting our supply chain, we need to be extra diligent in all our moves,” Ovialand’s Ms. Olivares-Vital concluded.

“When I reflect on all these extreme scenarios, I go back to one thing which is: How do we add value to the market we serve? This is a constant reminder for us to ensure that every peso we spend and every endeavor we take must have the Filipino middle-class homebuyer in mind. When the homebuyers are happy, profitability follows!”

Transportation is an essential part of Filipinos’ daily lives, from going to work and school to transporting goods that fuel the economy. For 126 years, the Department of Transportation (DoTr) has driven the development of the country’s infrastructure toward greater connectivity and mobility.

The department’s origins date back to January 1899 when it was established as the Department of Public Welfare. At that time, transportation and communications were part of a broader portfolio aimed at addressing the country’s immediate public service needs.

In 2016, Republic Act 10844 formed the Department of Transportation that will focus solely on transportation policy, infrastructure development, and traffic law enforcement.

Throughout major changes, the DoTr has remained committed to improving the lives of Filipinos through better transportation systems.

Modernizing public transportation

In response to congested roads and declining air quality, the DoTr launched the Active Transport Program in 2024, promoting walking, cycling, and other non-motorized transport as key urban mobility strategies.

To date, nearly 900 kilometers of bike lanes have been developed across 40 cities, including Metro Manila, Cebu, and Davao. The DoTr has also installed 228 racks as part of end-of-trip facilities, providing secure parking for cyclists.

By 2028, the department aims to expand the bike lane network to 2,400 kilometers. Through safe and accessible routes, the DoTr hopes to integrate bike-friendly infrastructure into urban cities.

Meanwhile, the government is addressing mass transportation challenges through the Public Transport Modernization Program (PTMP). This initiative seeks to overhaul the country’s public transport by tackling issues such as aging vehicles, inefficient routing, and fragmented franchises.

The PTMP also consolidates transport franchises to streamline operations. The current fragmented system often causes confusion among commuters and inefficiencies in service. With this strategy, the DoTr aims to create a more organized transportation network, reducing redundancy and ensuring a smoother experience for commuters.

As of December 2024, 86% of public transport franchises have been consolidated, setting the stage for streamlined operations. The program’s success depends on Local Public Transport Route Plans (LPTRPs), which identify sustainable routes within local government units (LGUs).

So far, 1,170 LGUs have submitted their LPTRPs, with 222 plans approved. Additionally, 80 LGUs have issued circulars opening routes for franchise applications.

Davao City is leading the way with its ambitious Public Transport Modernization Program (DPTMP). Funded by the Asian Development Bank (ADB), the initiative will establish a 672-kilometer route network with 29 interconnected routes, five depots, and a fleet of nearly 1,000 buses, including 300 electric units. Expected to serve 700,000 to 1 million riders daily, the program will transform commutes into more efficient, eco-friendly experiences. Operations will begin by the end of 2026.

In Cebu, the Bus Rapid Transit (BRT) system will connect key areas of Cebu City with swift, reliable, and comfortable transportation. The system will feature 22 stations, spanning 35 kilometers. A landmark public-private partnership deal awarded to Megawide last December brings a P28-billion investment into the project. Once operational in 2027, the Cebu BRT is expected to serve 100,000 to 300,000 passengers daily, significantly improving mobility in one of the nation’s busiest hubs.

The Light Rail Transit (LRT) Line 1 extension, on the other hand, has increased the line’s capacity by 80,000 passengers daily. Commuters traveling from Baclaran to Sucat can now complete their trip in under 20 minutes through the extended rail system. For shorter trips, including the five new stations added to the network, time savings are even greater, with some trips taking less than 10 minutes. This development marks a major milestone for Metro Manila, where daily traffic congestion costs the economy an estimated P3.5 billion, according to the DoTr.

Rebuilding gateways in the country

The long-awaited modernization of Ninoy Aquino International Airport (NAIA) is underway, with a 15-year concession agreement awarded to New NAIA Infra Corp. (NNIC), led by San Miguel Corp. The project involves a complete overhaul aimed at addressing the growing demand for air travel.

“Manila International Airport has the capacity to handle only 35 million passengers, but we have almost 50 million passengers. Because of its capacity, we are facing a congestion problem. We know that this has happened for many years. That’s why the Department of Transportation has decided to privatize this,” said DoTr Secretary Jaime J. Bautista.

Meanwhile, the modernization of regional airports supports the department’s broader vision of improving mobility and spurring economic development across the provinces.

For example, Laguindingan International Airport, the main gateway to Northern Mindanao since 2013, is set to undergo significant transformation. Aboitiz InfraCapital will lead the upgrade, which includes expanding facilities and constructing a new passenger terminal building.

Similarly, the Bohol-Panglao International Airport, known as the “Green Gateway to the World,” is set for modernization under a 30-year concession agreement with Aboitiz InfraCapital. Upon completion, the airport will handle up to 3.9 million passengers annually, along with 35,000 air traffic movements.

In addition, the department, together with the Philippine Ports Authority (PPA), led the new and improved Passenger Terminal Building (PTB) at the Port of Batangas in April 2024.

Sailing towards modern infrastructure

The DoTr, together with its partners such as the Maritime Industry Authority (MARINA), Philippine Coast Guard (PCG), Philippine Ports Authority (PPA), and Cebu Port Authority (CPA), is spearheading a range of maritime initiatives aimed at transforming the country’s transportation landscape.

The Passenger Terminal Building (PTB) of Batangas Port is the most modern facility among the ports managed by the PPA, serving between mainland Luzon and the MIMAROPA region (Mindoro, Marinduque, Romblon, and Palawan), as well as to Iloilo, Negros, Cebu, and Mindanao. The newly updated terminal now accommodates travel via fast crafts, ferries, and roll-on/roll-off ships, handling over $8,000 worth of cargo and passenger movements.

Another project under the DoTr’s maritime modernization agenda is the construction of the P16.9-billion New Cebu International Container Port (NCICP). Set to rise in Consolacion, Cebu, this project is designed to decongest the existing Cebu Base Port, which has long struggled with overcapacity. The NCICP will not only expand the country’s logistics capacity but also streamline cargo handling processes, thereby reducing logistics costs.

With a 1,365-meter access road and a 300-meter offshore bridge to be constructed as part of the project, the new port will provide easier access and enhance connectivity to the rest of the region. The port’s completion is slated for November 2027.

Strengthening the rights and skills of seafarers

This year, the DoTr has finalized the implementing rules and regulations (IRR) of the Magna Carta of Filipino Seafarers. With this new legislation, the rights and welfare of Filipino seafarers, both domestic and overseas, are now better guaranteed.

The IRR establishes a comprehensive framework that includes four key provisions: strengthening seafarers’ rights, promoting equality and inclusion, advancing maritime education and training, and ensuring accountability. This legislation promises to enhance the quality of life for Filipino seafarers, providing them with greater job security and ensuring that their voices are heard in both the domestic and international maritime industries.

The Philippines also solidified its position on the International Maritime Organization’s (IMO) White List, recognizing the country’s compliance with international standards for training, certification, and watchkeeping (STCW) for seafarers.

After years of efforts to address past deficiencies in full compliance with seafarer standards, the European Maritime Safety Agency (EMSA) acknowledged significant improvements following an audit in December 2023.

“Before, the European Maritime Safety Agency (EMSA) saw that the country’s STCW (Standards of Training, Certification, and Watchkeeping for Seafarers) is lacking,” Mr. Bautista explained. “We met with EMSA and we gave them our proposed solution. They were happy because they saw the improvements that our government implemented. In March, they said that they will continue to include [the Philippines in the white list.”

Railways in steady progress

Despite facing substantial budget cut as mentioned in this year’s first full Cabinet meeting, Mr. Bautista said the budget reduction primarily affects foreign-assisted project loan proceeds, rather than directly impacting ongoing projects.

For instance, major initiatives like the North-South Commuter Railway and the Metro Manila Subway, which are integral to easing congestion and boosting economic productivity, will continue as planned.

“We should be able to fund these from the loan proceeds,” he explained. “We’re happy that the government’s share of most of our infrastructure projects was not reduced so we will continue to implement these programs.”

Mr. Bautista said the DoTr is currently handling 69 flagship infrastructure projects out of the 186 that were approved by the National Economic and Development Authority (NEDA) Board.

As the Department of Transportation marks its another year in public service, it remains committed to ensuring transparency, building public trust, and developing a world-class transportation network that connects communities and enhances the quality of life for millions of Filipinos. — Mhicole A. Moral

As the brand new year creates a fresh start and new opportunities, the Philippine government’s goal remains steadfast: sustaining economic momentum and enriching the lives of millions of Filipinos.

Bringing this resolution to life, the Marcos administration is laying the groundwork for the country’s growth through the national budget for 2025, which amounts to P6.326 trillion. This budget is designed to support programs, projects, and various sectors that align with the nation’s journey towards achieving its development goals.

President Ferdinand “Bongbong” R. Marcos, Jr. announced that the national budget for 2025 is to ensure that all government programs effectively support its citizens. He subsequently signed the national budget into law, emphasizing its crucial role in maintaining government operations and addressing the nation’s most pressing needs.

With strong vision and determination to achieve a stable economy, the administration set forth its journey in building the Bagong Pilipinas (New Philippines) agenda. This initiative requires a multifaceted approach, with the implementation of the national budget plan serving as a critical tool to sustain the economic momentum.

One key focus of this agenda is to ramp up efforts of social services, such as the Department of Social Welfare and Development’s (DSWD) Ayuda sa Kapos ang Kita (AKAP) program, which provides support to low-income families in the Philippines. This initiative aims to help families cope with rising prices and basic necessities. Currently, the program has been implemented in several provinces across the Central Luzon region. It is a collaborative effort involving the DSWD, the Department of Labor and Employment (DoLE), the National Economic Development Authority (NEDA), and the local government units (LGUs).

“This way we ensure that its implementation will be strategic leading to the long-term improvement of the lives of qualified beneficiaries, while guarding against misuse, and duplication, and fragmented benefits,” Mr. Marcos said.

Infrastructure projects

Recognizing infrastructure as a strong foundation for a thriving economy, the administration also expressed its commitment this year to maximizing opportunities by funding more transformative projects and development.

One key aspect discussed during a meeting on the 2025 agenda was the strong support of the administration for the Department of Public Works and Highways (DPWH) and its projects this year. This agency is expected to build more and better key infrastructure that will drive economic growth and improve connectivity. According to Mr. Marcos, prioritizing such projects is essential, given the country’s growing need for projects that can improve people’s lives.

Echoing the same sentiment, DPWH has pledged to work diligently on building infrastructure projects that support the country’s socioeconomic agenda. These efforts will be especially vital in driving significant transformations in the country and fostering national progress.

“It is therefore our responsibility to ensure that these funds are used wisely and efficiently as well as professionally in the most transparent manner, proving ourselves, deserving of the trust placed on us. We are committed to making every cent of their contributions worth by delivering quality infrastructure that drives the national progress,” DPWH Secretary Manuel E. Bonoan was quoted as saying during a press briefing.

“Rest-assured that the Department of Public Works and Highways will continue to work diligently in support of the Bagong Pilipinas agenda advancing infrastructure that uplifts the lives of our fellow Filipinos,” he added.

Following this, the administration is prioritizing significant infrastructure projects this year, starting with the rehabilitation of the Epifanio de los Santos Avenue (EDSA), one of the longest and busiest roads in the country. For years, EDSA has been central to the country’s transportation network, connecting key cities and serving as a hub for economic activities in Metro Manila. However, it has faced persistent issues, including overpopulation, severed traffic congestion, and poor infrastructure. The rehabilitation project, as Mr. Bonoan emphasized, aims to address these challenges and improve transportation for millions of Filipinos.

“The President wants to improve the riding quality of EDSA. We will rehabilitate the entire EDSA starting 2025,” he said in a recent media interview. “Right now, when driving through EDSA, sometimes it’s difficult to text because of its bumpy roads. (Kasi sa ngayon dumaan ka sa EDSA kung minsan nahihirapan kang mag-text sa kakakalbog ng sasakyan.) So, I think it’s about time that we need to rehabilitate EDSA once and for all.”

The Bataan-Cavite Interlink Bridge is another massive infrastructure to keep an eye out this year. This 32-kilometer bridge will connect the Southern Luzon to Central Luzon, stretching from Manila Bay to Bataan and Cavite. Upon completion, it is expected to ease traffic congestion by rerouting vehicles and reducing travel time from Manila from four hours to 40 minutes.

Considered as a game-changing infrastructure project, the bridge poised to become the second longest bay road in the world. Beyond improving transportation, it is anticipated to bring more economic growth to the area. This project is expected to be completed within Mr. Marcos’s term.

Reliable, Climate-Resilient Housing

The government has kickstarted its Pambansang Pabahay para sa Pilipino (4PH) Program, which seeks to address the Philippines’ housing backlog through vertical housing in partnership with government financial institutions and the private sector. Back in April, the government spearheaded the groundbreaking ceremony for the 4PH Housing Project in San Rafael and Pulilan in Bulacan. More recently, in December, the administration’s awarded notices of approval to five overseas Filipino workers (OFWs) for housing units in Palayan City.

There are reportedly 56 ongoing projects under 4PH in various phases of construction and development across the country. According to Department of Human Settlements and Urban Development (DHSUD) Secretary Jose Rizalino Acuzar, the 4PH projects are beginning to bring initial results as turnover of 4PH units to beneficiaries are expected in the coming weeks.

On top of this, the Yolanda Permanent Housing Program (YPHP), which awards developed lots with housing units at no cost to qualified Yolanda survivor-family beneficiaries, has also sustained its progress as eight completed permanent housing projects were turned over earlier in January. A total of 3,517 housing units were provided for the typhoon affected areas, including Leyte, Samar, and Biliran.

“It has been more than a decade since the world witnessed the strength and unity displayed by the Filipino people. Despite the challenges brought by natural disasters, we have shown courage, faith, and dedication to overcome such challenges. We now present the more than 3,500 houses built, which are part of the projects that will be completed in Leyte, Samar, and Biliran,” Mr. Marcos said in Filipino during the ceremony.

“We wish to see you succeed not only for yourselves but for the future of our next generations,” he continued. “Together, let’s appreciate these homes that will serve as the foundation of a stronger community and a brighter future. With our continued cooperation and fellowship, I believe we can achieve a stable, progressive, and prosperous new Philippines.” — Angela Kiara S. Brillantes

With the mission to be a world-class transportation organization by 2030, the Department of Transportation (DoTr) is providing Filipinos with an ecologically friendly transportation system that has connected individuals, islands, families, and communities together for over a century.

The DoTr is known for the successful construction and operation of some of the Philippines’ most renowned projects that have not only better mobilized Filipinos but also boosted the country’s economy and helped advance society.

Recently completed programs and infrastructure, such as the five new stations of the Light Rail Transit Line 1 (LRT-1) Cavite Extension, the addition of more e-jeeps for the PUV modernization program, and the Epifanio Delos Santos Avenue (EDSA) Busway, have greatly improved the mass transport experience.

This year, the Transportation department is once again working to make mass transit more efficient, accessible, and sustainable with projects focusing on all facets of travel including land movement, maritime transportation, and aviation.

One of the department’s biggest undertakings in the past few years has been the construction of the Metro Manila Subway Project (MMSP). The first underground railway system in the Philippines will traverse across eight cities from Valenzuela City to FTI-Bicutan in Parañaque City, with a spur line to Ninoy Aquino International Airport (NAIA) Terminal 3 in Pasay City.

The 33-kilometer 17-station subway is expected to reduce travel time from Quezon City to NAIA to just 35 minutes. The latest news on the project indicates that the rail line is on track for partial opening from Valenzuela City to North Avenue in Quezon City by 2028. Additionally, the remaining civil works contract packages for the MMSP are set to be awarded by mid-2025.

Other railway projects that the transportation department is currently working on include the Metro Rail Transit Line-4, which will run from Taytay, Rizal to the EDSA-Ortigas junction, and the Metro Rail Transit Line 7, which will connect Bulacan and Quezon City and reportedly has a nearly 70% progress rate.

Another anticipated initiative of the DoTr, together with the Department of Public Works and Highways (DPWH), is the Bataan-Cavite Interlink Bridge (BCIB) project, which is slated to begin construction this year. Financed by the Asian Development Bank, the 32.15-kilometer “climate-resilient” bridge will cut travel time in the said provinces from five hours to one hour, and aims to help decongest Metro Manila.

In addition to the BCIB, the DoTr and DPWH are advancing several other ambitious bridge projects such as the Panay-Guimaras-Negros (PGN) Island Bridges project, the Samal Island-Davao City (SIDC) Connector Bridge, and the Panguil Bay Bridge in Northern Mindanao. These bridge projects are envisioned to streamline the transportation of goods and people, reduce travel time significantly, and bolster economic activities in the region.

Several expressway projects are also expected to continue construction this year as part of the department’s initiative to boost not only the accessibility toward other parts of Luzon but also eventually connect to the other expressways. These highways include the Tarlac-Pangasinan-La Union Expressway extension project, the Manila-Cavite Expressway and Cavite-Laguna Expressway Link, the North Luzon Expressway-South Luzon Expressway Connector Road, and the Southeast Metro Manila Expressway along the C-6 road.

Alongside its efforts to enhance land connectivity, the DoTr is also prioritizing the development of the country’s sea infrastructure to support maritime trade and travel. Among the department’s priority projects is the New Cebu International Container Port (NCICP), which aims to improve the Cebu Base Port’s cargo handling capacity and reduce logistics costs.

Awarded to Korean firm HJ Shipbuilding and Construction Corp., the P16.9-billion port will be able to accommodate two 2,000 TEU (Twenty-foot Equivalent Unit) vessels served by four quay cranes and will be supported by a 1,365-meter access road that will connect the new port through a 300-meter offshore bridge. The project is expected to be completed by 2028.

Similarly, the DoTr is working towards building 200 more ports under the Marcos administration’s initiative of improving inter-island travel and trimming logistics costs. These facilities will be situated in some of the farthest islands of the Philippines and would each require between P20 million to P80 million to build.

In addition, the state-run Philippine Ports Authority (PPA) has its “Green Port program” that integrates clean and renewable energy sources into multiple ports across the country. Currently, the program is being implemented at ports including Sasa in Davao City, Currimao in Ilocos Norte, Capinpin in Bataan, Catagbacan in Bohol, Siargao in Surigao del Norte, Lavonia in Cagayan, Plaridel in Misamis Occidental, and Balogo in Camarines Norte.

Beyond land and sea transportation, the DoTr is also heavily investing in building additional and modernizing the country’s airports. Last year, the country’s main airport, NAIA, finally kicked off its long-overdue rehabilitation project under its new operator San Miguel’s New NAIA Infrastructure Corp. The modernization program hopes to increase the airport’s capacity from 35 million passengers to 62 million passengers and an uptick in air traffic movement from 40 movements per hour to 48, as well as improve service quality.

Aside from the rehabilitation of NAIA, the Transportation department is also working on expanding the Bohol-Panglao International Airport (BPIA) through a P4.53-billion Public-Private Partnership project which will see the BPIA increase its capacity to almost four million passengers per year by 2030.

Additionally, the development of new airports in Dumaguete and Siargao are also in the works and is expected to create more opportunities for students, for workers, and businesses while helping support tourism and trade.

However, slight reductions in the 2025 budget have raised concerns among some Filipinos, as they could potentially delay the completion of certain key projects. DoTr Secretary Jaime J. Bautista denied these claims in a press briefing in Malacañang on Jan. 7.

“It has a very minor effect,” he said. “The ones that were reduced basically are the loan proceeds but these are foreign-assisted projects. But in spite of that not being included in the budget, we can still avail of the loans, so that we can fund these major projects like the Metro Manila Subway and the North-South Commuter Railway.”

The DoTr’s ongoing projects show off its dedication in building a modern, inclusive, and sustainable transportation network for the Philippines spanning land, sea, and air travel. Through these groundbreaking initiatives, the department connects Filipinos for better mobility, transports goods and produce to boost the economy, and transforms the Philippines to improve quality of life. — Jomarc Angelo M. Corpuz

While signs of gradual recovery appear in certain regions, both developed and emerging economies face challenges that could hinder gross domestic product (GDP) growth, innovation, and investments.

According to the International Monetary Fund, economies such as the United States, the European Union, and Japan are projected to grow at less than 3% annually. This rate, below the threshold required to double per capita income within a generation, signals long-term economic stagnation that could harm living standards.

Large emerging economies, including Brazil, Argentina, and South Africa, face similar issues due to structural inefficiencies, policy inconsistencies, and external pressures.

As global GDP reaches $110 trillion, its uneven distribution highlights disparities that could deepen economic and social divides.

Challenges at a global scale

The latest Chief Economists Outlook from the World Economic Forum stated that countries face heightened uncertainty, uneven growth prospects, and increasing fragmentation of trade and labor markets.

The report revealed that more than half (56%) of chief economists surveyed expect global economic conditions to weaken in 2025, with only 17% predicting improvement.

Aengus Collins, the Forum’s head of economic growth and transformation, described the growth outlook as the weakest in decades, emphasizing the contested nature of economic policy both domestically and internationally.

International nonprofit media organization Project Syndicate also noted that escalating geopolitical conflicts remain a significant threat. For instance, relations among the U.S., China, and Russia are increasingly strained, compounded by risks from nations like Iran and North Korea.

Economic fragmentation is reflected in the rise of economic alliances and the “splinternet,” where digital economies divide along geopolitical lines. This fragmentation limits collective efforts to address global issues like climate change and energy transitions, further intensifying divides.

Similarly, the World Economic Forum reported that 94% of surveyed chief economists expect further fragmentation of goods trade over the next three years, with 59% anticipating similar trends in services trade. This shift is likely to increase costs for businesses and consumers.

The financial sector stands out as a partial exception, with less than half (48%) of participants anticipating increased fragmentation. This trend highlights the role of cross-border financial flows in modern economies, even as supply chain realignments and security concerns continue to reshape the global landscape.

Meanwhile, demographic shifts are reshaping the global workforce and consumer markets. Populations in high-performing economies are aging, while rapidly growing populations in poorer regions face slower economic growth. For instance, China’s population is projected to decline sharply by 2,100, even as its economic growth stagnates.

The dependency ratio, or the dependents relative to the working-age population, is rising globally, placing additional stress on social security and pension systems. Without significant policy reforms or demographic changes, global per capita income growth could decline further.

In addition, the scarcity of critical resources such as arable land, water, energy, and rare-earth elements is another looming challenge, compounded by rapid urbanization and artificial intelligence (AI)-driven energy consumption. Fossil fuels, despite global climate commitments, remain in high demand, with oil consumption exceeding 100 million barrels per day.

Resource scarcity and rising costs are likely to fuel inflation and disrupt supply chains. Geopolitical vulnerabilities, such as China’s dominance in rare-earth production, further complicate resource security.

Furthermore, loose fiscal policies and mounting government debt are creating unsustainable economic conditions. Both advanced and emerging economies struggle with budgetary constraints, limiting their ability to invest in infrastructure, healthcare, and education.

Economic uncertainty in Asia

Although Asian economies show resilience, several external factors will shape the region’s landscape in 2025, according to Oxford Economics.

One of the biggest uncertainties facing Asia is the unpredictable trade policies of the United States (US). With expectations of higher tariffs on goods, particularly targeting China, the effects could ripple across the entire region.

Countries like Vietnam and India, often seen as alternatives to China in global supply chains, may gain limited benefits as the global economic outlook softens. Tariffs on Chinese goods could rise to 30%, while tariffs on other Asian countries might target specific products, reaching up to 10%.

The yield on the US 10-year bond rose before the end of 2024, leading to a stronger US dollar and a decline in Asian currencies. This situation is likely to limit monetary policy flexibility, meaning expected interest rate cuts across Asia may be slower and less effective than initially projected.

China’s ongoing economic struggles present another significant challenge in Asia. The country is experiencing a “balance sheet downturn,” where its economy is burdened by structural and cyclical issues.

Although there are some signs of recovery, fiscal policies have yet to yield results. A slowdown in foreign investments and a shrinking manufacturing sector could exacerbate the economic strain.

Meanwhile, AI remains a significant focus of innovation. Many believe that the AI revolution could be even more transformative than the advent of mobile phones or the internet itself. The production of AI chips in Taiwan, South Korea, and Malaysia places Asia at the forefront of this technology.

The excitement surrounding the potential of AI comes with a word of caution. History shows that technological bubbles can burst. Asia has experienced significant economic crises, including the Asian Financial Crisis, the dotcom bubble burst, and the Global Financial Crisis, all of which have left lasting impacts on its economies.

While AI-related industries are expected to create significant economic opportunities in Asia, particularly in chip manufacturing, there are risks if growth slows. Today, the region’s economies are more resilient than during past crises, but the balance between opportunity and risk remains fragile.

Risks for Philippine businesses

Cyber incidents remain a dominant threat in businesses, tied with business interruption as the top risk in the Philippines with 44%, according to the Allianz Risk Barometer for 2025. This category encompasses cybercrime, information technology (IT) network disruptions, malware, ransomware, and data breaches. The surge in digital transformation and reliance on technology exposes companies to vulnerabilities, with data breaches being the most feared exposure.

To mitigate these risks, businesses are advised to invest in robust cybersecurity frameworks, enhance IT resilience, and comply with stricter data protection regulations.

Cyber incidents also rank as the number one risk globally, reflecting their widespread impact across industries, particularly in financial services, technology, and telecommunications.

On the other hand, business interruption, like supply chain disruptions and operational halts, pose a significant challenge with the country’s susceptibility to natural catastrophes and growing dependence on global trade.

Key strategies to address this risk include diversifying supplier networks, enhancing business continuity plans, and adopting digital supply chain management tools. Industries like manufacturing, transportation, and logistics are prioritizing these measures to ensure resilience.

Meanwhile, the evolving regulatory landscape; encompassing environmental, social, and governance (ESG) requirements; and sustainability mandates present complex challenges, according to 38% of respondents.

Ranked fourth globally but climbing steadily in priority, climate change poses both immediate and long-term risks, especially in the Philippines. The increasing frequency of extreme weather events amplifies threats to infrastructure, supply chains, and ecosystems.

The Philippines’ geographic location also makes it highly susceptible to typhoons, earthquakes, and floods. The rising costs of insured losses, which have surpassed $100 billion globally for five consecutive years, emphasize the importance of preparedness.

Such challenges are expected to shape the global economy; so governments, businesses, and investors alike are suggested to stay agile to ensure resilience and sustainability in the years ahead. — Mhicole A. Moral

Rail transit is one of the best ways to skip the grueling traffic on the road as it gives more convenience to commuters and can reduce their travel time within minutes. It serves as an efficient way to transport millions of passengers in the metro, helping them reach their destinations smoothly.

Travel by train, however, can often be challenged by crowded train cars, normalized long lines, and even glitches in the train, tracks, and systems. Acknowledging these apparent inconveniences, the Department of Transportation (DoTr) has been endeavoring to make the train commuting experience better for Filipino commuters.

As it celebrates its 126th anniversary this year, the DoTr shows its steadfast commitment to making railway transportation more efficient, effective, and secure, as shown by the progress of numerous projects.

Metro Manila Subway

The country’s first underground railway system, the Metro Manila Subway (MMS) Project seeks to revolutionize travel and help commuters avoid those pesky traffic jams.

The Metro Manila Subway spans 34 kilometers (km) and is considered the deepest subway in Southeast Asia with an average depth of 30 meters. Touted as the country’s “Crown Jewel” of mass transit system, the rail line is expected to reduce travel time between Valenzuela City to Ninoy Aquino International Airport (NAIA) in Parañaque City from 1 hour and 30 minutes to 35 minutes, as well as to carry 500,000 passengers a day. It will travel across eight cities, serving the eastern side of Metro Manila.

The DoTr, along with the Armed Forces of the Philippines (AFP), has launched the operations of the Tunnel Boring Machines (TBM), which are used to building tunnels underground. A total of 19 TBMs will be used to accelerate the construction of the underground rail system.

Currently, the Metro Manila Subway is at 18.24% progress and plans to push ahead this year. Given its significant progress, the subway is aiming for full operation in 2029.

North-South Commuter Railway

The 147-kilometer North-South Commuter Railway (NSCR) is set to offer a long-distance transport and connectivity across three regions in Luzon. With the capacity to serve 800,000 passengers, the project seeks to bring more access to high-quality passenger rail service, reducing lengthy travel time between North and South Luzon from four hours to two hours.

The NSCR will include 36 stations that will connect Manila to the North and South Luzon regions. The northern line will run 266 km from Manila to San Fernando, La Union. Its extension line goes from San Jose, Nueva Ecija to Cagayan, and a branch line is set to connect Tarlac and San Jose.

The southern line, meanwhile, is divided into the South Commuter Railway (Tutuban to Calamba) and the South Long-Haul (SLH) Project (Muntinlupa, Metro Manila to Matnog, Sorsogon). The SLH Project will cover 561 kilometers that will connect various cities, economic zones, and international ports.

The construction of the railway project is divided into three phases: Phase 1 (Tutuban, Manila, to Malolos, Bulacan), Phase 2 (Malolos, Bulacan to Clark, Pampanga), and PNR Calamba (Solis, Manila to Calamba, Laguna).

The Malolos-Manila and Clark Extensions are expected to finish this year. Additionally, the department is looking forward to having partial operations by the end of 2028, aiming for full completion in 2029.

Metro Rail Transit Lines 4 and 7

The Metro Rail Transit (MRT) Lines 4 and 7 are also building up the railway network in Mega Manila.

Connecting the bustling cities of the northeast Metro Manila, the 24-km MRT-7 consists of 14 stations and spans from North Avenue, Quezon City to San Jose Del Monte, Bulacan. This line aims to reduce travel time from around two to three hours to 35 minutes, and it is expected to serve 300,000 passengers per day and 800,000 passengers at most.

On the other hand, the 12.7-kilometer MRT-4 will feature 10 stations, connecting Ortigas Avenue alongside Epifanio de los Santos Avenue to Taytay, Rizal. This railway is projected to ease traffic congestion in the Eastern Metro Manila and will accommodate at least 400,000 passengers daily.

At present, MRT-7 is expected to open partial operations in late 2025, with full operations targeted between 2027 and 2028. MRT-4, meanwhile, is still at pre-construction stage and is yet to finalize project details, including engineering design and acquisition of land. The DoTr plans to start its construction by 2026.

Light Rail Transit Line 1 Extension

The Light Rail Transit (LRT)-1 Cavite Extension is another railway project that is set to offer high-quality transportation to commuters in the metro. The extension will add another 11.7-kilometer railway line, featuring eight new stations connecting Pasay City to Bacoor, Cavite. This upgrade is Light Rail Manila Corp.’s (LRMC) commitment to providing world-class public transportation, making every commute experience more efficient and convenient. The LRT-1 extension is on track as it achieved 74% completion last year. It also started partial operations last November, opening up the Redemptorist, MIA, Asia World (PITX), Ninoy Aquino, and Dr. Santos (Sucat) stations. The new stations are expected to increase the estimated number of daily passengers from 320,000 to 400,000.

The entire extension, nonetheless, is anticipated to welcome additional 300,000 passengers in the LRT-1 line, expanding its total capacity of 800,000 passengers once fully operational in 2031.

“The LRT-1 extension is a significant Public-Private Partnership (PPP) project, which is expected to significantly improve connectivity to the south area of Metro Manila, easing traffic congestion and providing commuters with a faster and more convenient travel option,” LRMC said in a previous statement.

Unified Grand Central Station

The Unified Grand Central Station in Quezon City, serving as a significant transportation hub in Metro Manila, will connect all major railway lines in Metro Manila: LRT-1 (located in west and south of Metro Manila), to MRT-3 (central part of Metro Manila), MRT-7 (north of Metro Manila), and the Metro Manila Subway (eastern part of Metro Manila).

With the construction of the Unified Grand Central Station, commuters can expect a big boost in connectivity, shorter travel times, reduced reliance on road transport, and an alleviation of traffic congestion in the metro.

As of 2024, the construction for the station has achieved 81%. — Angela Kiara S. Brillantes

After another year of experiencing the effects of climate change first-hand in the Philippines, advancing the climate agenda is not just a necessity — it’s a survival imperative. Rising global temperatures, intensifying natural disasters, and widespread environmental degradation have all been the topic of headlines in the past year. These natural phenomena caused by human activities highlight the urgent need to combat global warming in an increasingly less climate-resilient world.

Rising global temperature

The World Meteorological Organization (WMO) recently confirmed that 2024 was the warmest year on record at about 1.55°C above pre-industrial level, based on six international datasets. Similarly, data from the National Aeronautics and Space Administration shows that global temperatures in 2024 were 1.28°C above the agency’s 20^th-century baseline, which tops the record set in 2023.

Both organizations attribute this rise in global temperatures to ocean warming. The WMO explained that around 90% of the excess heat generated by global warming is absorbed by the seas, making ocean heat content a vital measure of climate change. Climate fluctuations such as El Niño and La Niña, volcanic eruptions, added pollutants, and how solar energy is reflected into space were also cited as contributing factors to the rise in temperature last year.

While the warmth recorded in 2024 is still below the global average temperature target of 2°C based on the 2015 Paris Agreement, it is concerningly slightly above the 1.5°C threshold which would “significantly reduce the risks and impacts of climate change.”

Natural disasters

The United Nations Office for Disaster Risk Reduction reported in 2021 that natural hazards accounted for 50% of all disasters, 45% of all reported deaths and 74% of all reported economic losses from 1970 to 2019.

In under a month last year, the Philippines, as one of the most vulnerable countries to natural disasters, was hammered by an unprecedented six consecutive storm systems that left around 200,000 Filipinos displaced across six regions. Damage to livestock, agriculture, and infrastructure was estimated to be nearly P3 billion at the end of November with Marcos Administration spending another P1 billion on food and other aid for the hundreds of thousands of storm victims.

UK-based media company Carbon Brief reported that the likelihood of the observed potential intensity of typhoons in the Philippines has increased approximately sevenfold while the maximum possible intensity of a typhoon has risen by around 4 meters per second compared to data from 1940.

Environmental degradation

Deforestation, land conversion, overfishing, and many other human activities have compromised nature in some way, reducing biological diversity and the general health of the environment. Non-profit development organization IBON Foundation detailed the critical state of the Philippine environment.

Latest data from IBON show that just 7 million hectares as of 2015, or just 23.3% of the country’s land area are covered by forests, a far cry from the 54% environmental scientists recommend. Similarly, soil erosion is reportedly severe in 70.5% of the country’s land area due to land conversion for corporate agriculture, cash crops, real estate according to the organization.

The Climate Change Commission (CCC) notes that these degradations pose immediate and long-term risks not only to the environment but to human lives. The CCC emphasized that environmental protection goes beyond conservation; it also involves safeguarding the health and well-being of both present and future generations.

“The rise in environment-related diseases, such as asthma and waterborne illnesses, leads to higher healthcare costs and loss of productivity. Therefore, prioritizing environmental health translates into significant public health and economic benefits,” the CCC said.

Urgency of climate resilience

Every citizen on earth will be impacted in some way by climate change. Phenomena such as rising global temperatures, natural disasters, and environmental degradation require an urgent plea for climate resilience, imploring governments and corporations to actionable solutions, collaborative frameworks, and innovative technologies that can help communities adapt and thrive in a changing world.

Listed as second and first, in the 2-year and 10-year outlooks, respectively, in the World Economic Forum’s Global Risk Report 2025 are extreme weather events which categorize it as the most critical current risk of the immediate future. Pollution is regarded as a more urgent short-term risk, while biodiversity loss and ecosystem collapse are considered more significant long-term threats by the report.

Other environmentally related risks in the WEF’s report include the concentration of strategic resources, critical changes to the earth’s systems, non-weather related natural disasters, and natural resource shortages.

One of the United Nations’ sustainable development goals is to take urgent action to combat climate change and its impacts. The goal is to increase ambitions, make decisions that cover entire economies, and create policies that transition toward climate-resilient development — all while establishing a clear roadmap to attain net-zero emissions.

The UN’s target for climate action involves strengthening resilience and adaptive capacity to climate-related hazards and natural disasters, integrating climate change measures into national policies, strategies, and planning, and improving education, awareness-raising, and human and institutional capacity on climate change.

Additionally, the organization hopes for developed countries to mobilize jointly $100 billion annually from all sources to address the needs of developing countries in the context of meaningful mitigation actions as well as to promote mechanisms for raising capacity for effective climate change-related planning and management in less developed countries and small island developing states.

Specific goals of the United Nations Development Program to mitigate climate change include shifting away from fossil fuels, improving energy efficiency, changing agricultural practices, restoring and conserving critical ecosystems, and creating a supportive environment.

In the Philippines, the National Climate Change Action Plan (NCCAP) by the CCC serves as the blueprint to systematically address the growing threats of climate change to community life and its impact on the environment. The plan envisions a climate-risk-resilient Philippines with healthy, safe, prosperous and self-reliant communities, and thriving and productive ecosystems.

The NCCAP’s goal is to build the adaptive capacity of Filipino communities and increase the resilience of natural ecosystems to climate change. It has put an emphasis on ensuring food security, water sufficiency, environmental stability, human security, climate-friendly services, sustainable energy, and capacity development.

The effects of climate change felt firsthand in the Philippines, make it clear that tackling such challenges calls for genuine effort and collaboration from the government, businesses, and individuals alike.

The Philippines stands as a testament to the urgent realities of climate change. By embracing sustainable practices, taking urgent action on combating climate change, and building up climate resilience, realities such as rising global temperatures, natural disasters, and environmental degradation can be addressed, ensuring a safer and more sustainable future for the nation and the Filipino people. — Jomarc Angelo M. Corpuz