Home Blog Page 197

Labor, consumer groups call for tax relief

PHILSTAR FILE PHOTO

LABOR AND CONSUMER groups are urging the government to relieve their tax burdens and raise wages, citing the high cost of living made worse by the attacks on Iran.

“Prices remain high. The government claims that inflation has only slightly increased, but in the public markets the reality is different,” Renna Joy F. Lasmarias, representative of the Promotion of Church People’s Response (PCPR) within the SUKI Consumer Network, said in a statement on Sunday.

Ms. Lasmarias noted that retail prices for staples remain elevated, with onions at about P165 per kilo, chicken P196, and galunggong (round scad) P326.

The Federation of Free Workers (FFW) Women’s Network said gasoline prices have hit P80 per liter in Tacloban.

Vilma Garcia, a board member of FFW, said that women bear the brunt of the crisis as they manage dwindling family budgets against uncontrolled price increases.

The statements were issued as part of the observance of Women’s Month.

“While a living wage is being denied to families and public funds intended for social protection are being lost to corruption, the suffering endured by women workers only intensifies,” Ms. Garcia added.

President Ferdinand R. Marcos, Jr. said last week that the March 10-16 forecast for fuel includes gasoline price increase of P7.48 per liter. Diesel was to rise P17.28 per liter, and kerosene P32.25 per liter.

Ronald B. Gustilo, national campaigner for the Digital Pinoys organization, told BusinessWorld via Messenger chat that the government should also consider suspending or reducing the excise tax or value-added tax (VAT) on fuel if prices continue to climb.

“This could help lower pump prices more quickly and mitigate the domino effect on transport fares, the cost of basic goods, and the operational expenses of businesses,” Mr. Gustilo said.

The FFW Women’s Network (FWN) added that the influx of women into the labor force has not been met with adequate protection, citing low wages, the lack of a pathway to permanent employment, and unsafe working conditions. Ma. Victoria Bellosillo, president of FWN, said: “the increasing number of women in the world of work is not matched by additional protections for them.”

Beyond tax relief, the FWN is calling for a legislated wage hike and the abolition of regional wage boards to provide more stable economic support for families. The group also raised concerns regarding the safety of overseas Filipino workers (OFWs) in the Middle East, noting that many women are forced to work overseas due to poverty and are now caught in the crossfire of Middle Eastern conflicts.

The SUKI Consumer Network said that current economic hardships are compounded by the privatization of essential utilities such as water and electricity. They are demanding the removal of the 12% VAT and excise taxes on basic necessities and an end to the Oil Deregulation Law. — Erika Mae P. Sinaking

PFRS 18 in focus: Confidently navigating changes in financial reporting

(Second of two parts)

IN BRIEF:

•PFRS 18 emphasizes Management-Defined Performance Measures (MPMs), which are specific subtotals reflecting management’s view of financial performance, and requires detailed disclosures to enhance transparency and accountability.

•The standard enhances the guidance on aggregating and disaggregating financial information, which is expected to reinforce more disciplined financial reporting.

•Companies must prepare for the implementation of PFRS 18 by aligning their financial reporting processes, assessing data management systems, and engaging with stakeholders to ensure a smooth transition and capitalize on the opportunity for modernization in financial reporting.

Entities often provide certain information about their financial performance beyond typical PFRS totals, such as certain additional performance metrics to guide decision-making and communicate results. These data and metrics are generally communicated outside the financial statements and included in management’s press releases, strategic reports, management discussion and analysis. Users of financial statements find these to be useful; however, there are concerns about the lack of transparency on how these measures or metrics are calculated.

In the first part of this article, we discussed the upcoming IFRS 18 standard, its significant changes to financial statement presentations, and the implications for clarity, comparability, and compliance in financial reporting starting from January 2027.

In this second part, we discuss how under PFRS 18, certain performance measures, known as Management-Defined Performance Measures (MPMs), will move to the financial statements, along with the enhanced guidance on disclosures of financial information and implications for companies as they prepare for its implementation.

SPOTLIGHT ON MPMS
PFRS 18 places a significant emphasis on MPMs, which are specific subtotals of income and expenses that reflect management’s view of the entity’s financial performance as a whole and are used in public communications outside of financial statements.

The introduction of MPMs is a strategically significant change that directly impacts how an entity communicates its performance. However, the narrow definition of MPMs means that not all performance measures used in an entity’s communications will qualify as MPMs. An adjusted profit figure, which modifies a total or subtotal required by PFRS Accounting Standards, can qualify as an MPM.

However, non-financial performance measures such as market share, store surface and customer satisfaction score will not meet the definition of an MPM. In addition, certain financial performance measures, such as free cash flows, net debt and adjusted revenues will also not qualify as MPMs since they do not represent subtotals of income and expenses.

PFRS 18 also provides that certain subtotals of income and expense, such as those already required or specified by a PFRS Accounting Standard (like operating profit) or are specifically excluded (like gross profit or loss), are not MPMs. Lastly, while financial ratios such as return on equity are not MPMs, a subtotal that is a numerator or a denominator in a financial ratio could qualify as an MPM.

DISCLOSURE REQUIREMENTS FOR MPMS
PFRS 18 requires entities to include all necessary information about MPMs in a single note to the financial statements, which includes how the measure is calculated, why it is useful, and a reconciliation to the most comparable PFRS subtotal.

This requirement ensures that users have access to relevant information about MPMs, enhancing transparency and accountability.

IMPLICATIONS FOR FINANCIAL REPORTING PROCESSES
Many entities currently use alternative performance measures (APMs) when explaining financial performance, but information about these measures is generally communicated outside the financial statements, which has led to some concerns about the quality of such information. As a result of PFRS 18’s guidance on MPMs, companies must ensure that their current financial reporting process can capture all the required information about MPMs.

Entities that use APMs will also need to assess whether any of such APMs meets the definition of an MPM, which will then require additional disclosures that they may not be preparing  currently, such as the reconciliation to the most comparable PFRS subtotal. The financial reporting process should also be able to monitor any changes to public communications, as these can affect which measures qualify, or cease to qualify, as MPMs.

Additionally, since MPMs are required to be disclosed in a single note to the financial statements, they will face increased scrutiny from regulators and investors.

AGGREGATION AND DISAGGREGATION GUIDANCE
PFRS 18 improves the general requirements for aggregating and disaggregating information in financial statements. It provides guidance on how entities should aggregate items based on shared characteristics and disaggregate them based on dissimilar characteristics.

IMPORTANCE OF CLEARER LINE ITEM PRESENTATION
In financial reporting, clarity is paramount. Users should not be left guessing about the nature of line items. PFRS 18 emphasizes that entities must avoid using vague labels like “other” unless absolutely necessary. If an entity cannot find a more informative label, it may use “other,” but this should be the exception rather than the rule.

PLANNING FOR PFRS 18 IMPLEMENTATION
PFRS 18 will be effective for periods beginning on or after Jan. 1, 2027. Entities are required to apply the standard retrospectively for comparative periods in both interim and annual financial statements. PFRS 18 also introduces consequential amendments to other PFRS Accounting Standards that entities must apply when adopting PFRS 18.

Given the requirement to retrospectively restate comparative periods and disclose certain reconciliations, companies need to plan ahead and start determining the impact of PFRS 18 as early as possible. For example, the annual financial statements in the year of adoption for an entity that adopts PFRS 18 beginning Jan. 1, 2027 will require information from 2025 onwards if the entity presents more than one comparative period in its statement of profit or loss.

For companies that prepare quarterly financial statements in accordance with PAS 34 Interim Financial Reporting, the impact of adopting PFRS 18 will already be reflected in their first quarterly report during the year of adoption by presenting the headings and subtotals and disclosing the reconciliations required by PFRS 18.

KEY CONSIDERATIONS FOR COMPANIES
Companies preparing for the implementation of PFRS 18 should consider the following key areas:

Compliance: Ensure that financial reporting processes align with the new requirements and that the impacts on contracts and debt covenants which currently use subtotals from the statement of profit or loss as inputs have been considered.

Processes: Evaluate existing processes and identify areas that may require modification.

Data and Systems: Assess whether current data management systems can accommodate the changes introduced by PFRS 18.

Internal reporting: Assess any potential changes to the current structure and contents of internal management reports and explore any opportunities for alignment with the new categories and subtotals required by PFRS 18.

Performance measurement: Revisit how management incentive structures are currently designed and how key performance indicators are measured, particularly those that are tied to certain subtotals in the statement of profit or loss.

Investor Relations: Communicate with investors, analysts, regulators and creditors about the changes and how they will impact financial reporting.

Strategy and People: Engage relevant stakeholders across the organization to ensure a smooth transition.

DRIVING MODERNIZATION IN FINANCIAL REPORTING PROCESSES
The countdown to PFRS 18 has begun, and as companies inch closer to the initial application of the new standard, it is essential that management understands the potential impact on their reporting. While the changes may seem daunting, they also present an opportunity for organizations to modernize their financial reporting processes.

PFRS 18 can serve as a catalyst for improving transparency and encouraging stronger cross-department collaboration in financial reporting. By redefining conversations about financial performance and performance measures, companies can rethink how they tell their story and shape how they are understood by stakeholders.

PFRS 18 represents a significant shift in financial reporting standards that will enhance the clarity, comparability, and transparency of financial statements. As companies prepare for the implementation of this new standard, they must embrace the opportunity to improve their reporting processes and engage with stakeholders effectively. By doing so, they can navigate the changes with confidence and position themselves for success in a rapidly evolving financial landscape.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the authors and do not necessarily represent the views of SGV & Co.

 

Aris C. Malantic is the assurance growth areas leader and financial accounting advisory services (FAAS) leader of SGV & Co., and Dwayne JUSTIN G. Ignacio is a FAAS senior manager from SGV & Co.

Trump rejects settling Iran war, raises prospect of killing all its potential leaders

AN EXPLOSION caused by a projectile impact after Iran launched missiles into Israel following Israel and the US launched strikes on Iran, in Tel Aviv, Israel, Feb. 28, 2026. — REUTERS/GIDEON MARKOWICZ

BEIRUT/MIAMI/TEL AVIV/DUBAI — US President Donald J. Trump said he is not interested in negotiating with Iran and raised the possibility that the Iran war would only end once Tehran no longer has a functioning military or any remaining leadership in power.

Speaking to reporters aboard Air Force One on Saturday, Mr. Trump said the air campaign could make negotiations a moot point if all potential leaders of Iran are killed and the Iranian military is destroyed.

“At some point, I don’t think there will be anybody left maybe to say ‘We surrender,’” Mr. Trump said.

IRAN PRESIDENT’S APOLOGY CAUSES STIR
Israel said it had initiated fresh strikes across Iran on Sunday, and a huge fire engulfed a government office block in Kuwait hit by drones, as a war that has brought chaos to the Middle East and roiled global oil markets entered its second week.

Mr. Trump has justified the attack by saying Iran posed an imminent threat to the United States, without providing evidence, and was getting too close to being able to build a nuclear weapon.

The US and Israel have discussed sending special forces into Iran to secure its stockpile of highly enriched uranium at a later stage of the war, Axios reported, citing four people with knowledge of the discussions. The White House did not immediately comment on the report.

Iran’s president apologized to neighboring states for its attacks on US facilities in those countries, in an attempt to cool anger across the Gulf, but stirred criticism from hardliners at home.

“I personally apologize to neighboring countries that were affected by Iran’s actions,” Iranian President Masoud Pezeshkian said, urging them not to join US-Israeli attacks on Iran.

He dismissed Mr. Trump’s demand for the Islamic Republic’s unconditional surrender as “a dream,” but said its temporary leadership council had agreed to suspend attacks on nearby states unless strikes on Iran originated from their territory.

Mr. Pezeshkian’s comments caused a political stir in Iran, prompting his office to reiterate Iran’s military would respond firmly to attacks from US bases.

Ali Larijani, Iran’s secretary of the Supreme National Security Council, said on state television there was no rift among Iranian officials over its handling of the war.

Saudi Arabia has told Tehran that continued Iranian attacks on the kingdom, and its energy sector, could push Riyadh to respond in kind, four people familiar with the matter told Reuters.

The governments of Saudi Arabia, Kuwait and the United Arab Emirates reported Iranian drone attacks in their countries on Saturday and early Sunday with varying degrees of damage. Iran’s Revolutionary Guards also targeted US forces at a base in Bahrain, Iranian state media said.

In Norway’s capital Oslo, the US embassy was hit by an explosion early on Sunday, causing minor damage but no injuries, Norwegian police said. It was not immediately clear what caused the blast or who was involved.

Washington has halted for now a federal security bulletin that would have warned of a heightened threat to the US in light of the Iran conflict, a Trump administration official told Reuters. But a recent US intelligence assessment had warned that Iran and its proxies “probably” pose a threat of targeted attacks on the United States.

ISRAEL WARNS LEBANON TO REIN IN HEZBOLLAH
Huge explosions were heard in parts of Tehran, state media reported, while Israel said it had struck Iranian missile sites and command centers.

The US-Israeli attacks have killed at least 1,332 Iranian civilians and wounded thousands, according to Iran’s United Nations ambassador, Amir Saeid Iravani.

US forces were likely responsible for an apparent strike on an Iranian girls school that killed scores of children, US officials have told Reuters. But Mr. Trump, without citing evidence, told reporters on Saturday that Iran was responsible.

“We think it was done by Iran because they are very inaccurate as you know with their munitions. They have no accuracy whatsoever. It was done by Iran,” said Mr. Trump. Defense Secretary Pete Hegseth, standing behind Mr. Trump aboard Air Force One, said the matter was still under investigation.

Iranian attacks have killed 10 people in Israel. At least six US service members have been killed. Their remains arrived on Saturday at an Air Force base in Delaware.

In Iran, local news agencies, citing an Iranian oil ministry source, said its fuel depots were hit by strikes in three areas, including Karaj, west of Tehran.

Tehran has responded to the US-Israeli war on Iran by hitting Israel and Gulf Arab states hosting US military installations. Israel has launched fresh attacks in Lebanon after the Iran-aligned militia Hezbollah fired across the border.

With the conflict spreading, Israel warned Lebanon of a “very heavy price” if it did not rein in Iran-allied Hezbollah militants, as it pounded the group’s strongholds with airstrikes and mounted a deadly airborne raid in the east.

On Saturday morning, more buildings in Beirut’s Hezbollah-controlled southern suburbs had been reduced to rubble, dust and tangled wires, Reuters video showed. The death toll from Israel’s attacks on Lebanon since Monday rose to around 300.

Iran’s apparent strategy of maximum chaos has driven up the costs of the conflict by raising energy prices and hurting global business and logistics links.

Kuwait’s national oil company began cutting output on Saturday, adding to earlier oil and gas cuts from Iraq and Qatar. Oil prices have hit multi-year highs with the conflict effectively shutting the Strait of Hormuz. — Reuters

China says US talks vital as Trump targets Beijing’s key partners

US PRESIDENT Donald J. Trump shakes hands with Chinese President Xi Jinping as they hold a bilateral meeting at Gimhae International Airport on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Busan, South Korea, Oct. 30, 2025. — REUTERS/EVELYN HOCKSTEIN

BEIJING — US-China dialogue is vital to preventing globally damaging miscalculations, China’s top diplomat said on Sunday, ahead of a highly anticipated summit this month between leaders Xi Jinping and Donald J. Trump.

“Failure to engage between the two nations would only lead to misunderstandings and misjudgments, escalating toward confrontation and harming the world,” Foreign Minister Wang Yi told a press conference on the sidelines of an annual parliament meeting in Beijing.

With the US president focused on the war he and Israel launched against Iran, analysts are watching for signs that his visit to meet Mr. Xi will go ahead. China has not previously announced the summit between the leaders of the world’s biggest economies, expected for the end of the month.

‘DONROE DOCTRINE’ VS BELT AND ROAD INITIATIVE
“The agenda for high-level exchanges (with the US) is on the table,” Mr. Wang said. “What is required is for both sides to make thorough preparations to create a conducive environment to manage existing differences,” he added, without giving further details.

In addition to the week-old Iran war, which has killed Supreme Leader Ayatollah Ali Khamenei and more than 1,300 others in the country, according to Tehran, Mr. Trump authorized the capture of Venezuelan President Nicolas Maduro in January, testing Beijing’s commitment to its strategic partners.

On Iran, Mr. Wang urged an immediate halt to military operations, saying the war that should not have happened and that the use of force was not a way to resolve issues. He did not go beyond Beijing’s previous condemnations and expressions of concern, despite reports Tehran had neared a deal to buy supersonic anti-ship missiles from Beijing.

Mr. Trump’s pursuit of a “Donroe Doctrine” — his rebranding of a 19th century policy asserting Washington’s zone of influence in the Americas — is crashing into Mr. Xi’s flagship Belt and Road and Global Security initiatives, which have been decades in the making and carry significant personal political investment for the Chinese leader.

Mr. Trump has also threatened military action against Colombia and Mexico and said Cuba’s communist regime “looks like it’s ready to fall” on its own, raising questions for Latin American countries over how their China ties might protect them if put to the test.

China’s foreign policy has not faced this much scrutiny since the Cold War, said Yasser Nasser, a historian at the University of Tennessee, Knoxville.

“In some senses it is existential in that it reveals that Chinese economic commitments or commitments to arms deals, for example, do not translate to directly confronting the US or preventing interventions as, for example, it did during the Vietnam War.”

‘CANNOT RETURN TO LAW OF THE JUNGLE’
Mr. Wang appeared to take a swipe at Mr. Trump’s foreign policy ambitions.

“If China, like some traditional major powers, was keen on carving out spheres of influence in its neighborhood, stoking bloc confrontation, or even shifting problems onto its neighbors, would Asia still be as stable as it is today?” Mr. Wang said. He did not name the US.

Beijing has grown more belligerent in its backyard over the past year, analysts say.

It has held massive war games around Taiwan, escalated a diplomatic spat with Japan over remarks by Prime Minister Sanae Takaichi that a Chinese attack on the democratically governed island could trigger a military response from Tokyo, and repeatedly confronted Philippine ships in disputed areas of the South China Sea.

Still, Mr. Wang sought to project China’s economy as a stabilizing force, in contrast to Mr. Trump’s military assertiveness.

“A hard fist is not the same as a hard reason,” he said. “The world cannot return to the law of the jungle. Resorting to force at every turn does not prove one’s might.” — Reuters

Families of flight MH370 passengers urge Malaysia to extend search

REUTERS

KUALA LUMPUR — Families of those aboard Malaysia Airlines flight MH370 on Sunday urged the Malaysian government to extend a contract it signed with deep-sea exploration firm Ocean Infinity to continue a search for the aircraft that disappeared 12 years ago.

The Boeing 777 was carrying 227 passengers and 12 crew when it vanished en route from Kuala Lumpur to Beijing on March 8, 2014, becoming one of the world’s enduring aviation mysteries.

Multiple search operations for the plane have been conducted in the southern Indian Ocean since then, but all have proved fruitless.

Malaysia in March last year agreed to allow Ocean Infinity to resume the hunt under a “no find, no fee” principle, with the firm to be paid $70 million only if the wreckage was successfully located.

Malaysia’s Air Accident Investigation Bureau (AAIB) said on Sunday, however, that operations had not yielded any findings so far, after two search phases covering 28 days and around 7,571 square kilometers (2,923 square miles) of seabed.

Operations were periodically disrupted by weather and sea conditions, with the second phase ending on Jan. 23, the AAIB said.

“The government remains committed to keeping the families informed and will continue to provide updates as appropriate,” it said.

Voice370, a group representing families of those onboard, said it was unlikely for Ocean Infinity to resume the search before its contract ends in June, due to the coming winter months in the southern hemisphere and deteriorating sea conditions.

It urged the government to grant any request for Ocean Infinity to extend its agreement, as well as expand the same terms to other interested exploration firms.

“A simple addendum extending the contract period without altering the core terms of the agreement would allow the search to continue without delay,” it said.

Ocean Infinity had conducted prior searches for the plane but failed to find substantive wreckage.

Malaysian investigators in a 2018 report drew no conclusion about what happened aboard the flight but did not rule out the possibility that the aircraft had been deliberately taken off course. — Reuters

ADB sees modest growth impact on Asia if Middle East conflict lasts about a month

BW FILE PHOTO

MANILA — The Asian Development Bank’s (ADB) chief economist said on Friday that if the Middle East conflict and closure of the Strait of Hormuz last only about a month, as some US projections suggest, the impact on growth in developing Asia would be modest, with only a slight and temporary “downward blip” in annual GDP.

“Most of the scenarios … suggest that the impacts will be, of course, negative, ⁠but relatively modest,” ADB Chief Economist Albert Park told Reuters in an interview, adding that even under pessimistic assumptions, the shock would not reduce regional growth by a full percentage point.

Developing Asia consists of 46 economies ranging from China and India to Georgia and Samoa, but excluding Japan, Australia and New Zealand.

Park said the risks would rise sharply if the conflict drags on, warning that it could drive up energy prices, cause greater disruptions to shipping and trade, weaken global demand, and bring more volatility to the financial markets.

Park noted that 80% of the oil and gas passing through Hormuz are bound for Asia, underscoring the region’s vulnerability to extended supply disruptions.

A prolonged ‌crisis could ⁠also spill into air travel and cargo routes, on top of existing restrictions over Russian airspace, adding strain to tourism‑reliant and trade‑dependent economies, Park said.

Before the conflict, the ADB had projected the region to slow to 4.6% this year from the 5.1% growth expected in 2025. It also forecast a slight acceleration in inflation to 2.1% this year, from last year’s 1.6% ⁠estimate.

But Park said the outlook remains uncertain, particularly if financial conditions deteriorate.

Heightened uncertainty has already triggered a “flight to safety” into US dollar assets, pushing the greenback higher and putting downward pressure on Asian currencies, which could further raise the cost of ⁠imported oil.

If flows become disruptive, policymakers may have to step in, he said.

“If financial disruption becomes disorderly, then our advice is for central banks to think about stabilizing markets,” Park said.

“Not trying to target prices ⁠on exchange rates or anything like that, but certainly to try to stabilize both exchange rate markets and also possibly inject some liquidity if the financial conditions change quickly and create certain credit pressures,” he added. — Reuters

Philippine central bank warns oil at $100 may trigger rate hike

BANGKO SENTRAL ng Pilipinas Governor Eli M. Remolona, Jr. — LAM YIK/BLOOMBERG

BANGKO SENTRAL ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. said oil reaching $100 per barrel could force monetary policy tightening as inflation could breach the central bank’s target range.

The Philippine central bank, which just cut its policy rate in February, now faces new risks from rising oil prices and a strengthening dollar. Mr. Remolona said that while the 10% increase in oil prices since the start of the Middle East conflict remains “manageable,” a 50% surge would require stronger intervention.

“It’s possible that at $100 a barrel, we will begin to breach what we call our tolerance range” of 4% inflation as it could also push up the costs of other commodities, Mr. Remolona said in an interview with Bloomberg Television’s Haslinda Amin in Bangkok.

“If oil prices rise sharply, persistently, then we have work to do,” he said on Friday.

Inflation in the Philippines accelerated to 2.4% in February, the fastest pace in over a year and puts the economy in a delicate position ahead of the expected surge in prices of goods amid the war in Iran.

The governor indicated the central bank has limited room to support economic growth, which he described as “lackluster” at 3% in the fourth quarter, falling short of the Philippines’ 5.5%-6% potential.

The economy is in what he called a “vicious circle” where “a lack of confidence affects growth and low growth affects confidence.”

“We’re hoping we don’t have to tighten in the face of higher inflation,” Mr. Remolona said. He added that if current risks don’t materialize, the central bank would likely maintain its current policy stance.

The BSP, which aims to keep inflation within the 2%-4% range, has reduced its key rate by 225 basis points so far and signaled it could be nearing the end of the easing cycle that began in August 2024.

Price increases are expected to quicken in coming months as the heightened conflict in the Middle East risks a sustained disruption in global oil supply. The concerns have already driven lower the Philippine peso, which has fallen by over 2% against the dollar since the US-Israel attacks began.

Even so, Mr. Remolona said the central bank’s appetite to intervene in the local currency market is “not a lot,” adding that it usually steps in if it’s worried about the pass-through effects of the peso’s fall on inflation.

The Philippines relies heavily on fuel and food imports and is widely seen by economists as one of the most vulnerable in the region to inflation and growth risks triggered by the conflict.

Despite these challenges, Mr. Remolona expressed confidence in the Philippine banking system, describing it as “very strong” with ample liquidity and capital buffers. — Bloomberg

GCash empowers MSMEs, drives financial literacy and digital inclusion through Wais Tindera Caravan

Sari-sari stores, local carinderias, and other micro, small, and medium enterprises (MSMEs) are the driving force behind the Philippines’ nearly P30-trillion economy.  Often referred to as its backbone, MSMEs represent 99.6% of all business establishments and generate 67% of total employment.

However, these establishments face persistent challenges that limit growth and resilience. Most sari-sari stores and carinderias still rely heavily on cash-only transactions, manual record-keeping, and informal credit systems (colloquially known as lista). While these traditional practices have sustained them for decades, they also expose MSMEs to inefficiencies, cash-handling risks, and even missed opportunities.

Recognizing this demand for digitalization, finance super app GCash recently conducted its latest financial literacy program, the Wais Tindera Caravan, which kicked off at Tunasan, Muntinlupa, on Dec. 5. The initiative aims to empower MSMEs with practical knowledge on finance and business while seeking to drive digital adoption through GCash’s Pera Outlet rollout and use of its Visa cards.

“MSMEs are the backbone of our economy, yet many close within five years because running a business in the Philippines remains challenging. Through our Wais Tindera financial literacy programs, we equip nano- and micro-entrepreneurs with practical skills to start, manage, and grow their businesses; and we introduce digital tools like GCash to help them run operations more efficiently and safely. This strengthens financial inclusion and supports a more resilient digital economy,”  GCash Assistant Vice-President for Sustainability CJ Alegre said in an interview.

As part of the initiative, the program featured a series of talks by the Muntinlupa Entrepreneurship Financing Division (MEFD), headed by Kate Ax’l T. Estojero, discussing the basics of managing a store, handling inventory, building a network of loyal customers, and utilizing digital tools for operations.

The event was also graced by Muntinlupa City Vice-Mayor Stephanie “Phanie” G. Teves, who highlighted the importance of supporting local entrepreneurs on the ground and the challenges their “muntipreneurs” face.

“The usual challenges that our micro-entrepreneurs or “muntipreneurs”, as we call them here in Muntinlupa, are the literacy on investment and capital direction. So, it’s challenging for them if their business is right in their capital direction and if the locations where they are building their business are correct,” she said.

“These gaps can be addressed through different digital platforms where, even in their houses, they can start their own business, and even their transactions are much more accessible and easier through digital platforms like GCash. So, the transactions are easier,” the vice-mayor added.

She further emphasized that as digital adoption accelerates among small businesses, strengthening their awareness of online risks has become just as important as providing them with new tools.

“Because our world is becoming digital, all transactions are becoming digital and online. It also comes with challenges where fraud or scamming becomes rampant. So, it’s very important for micro-entrepreneurs that we support them so that they can identify fraudulent or scam transactions,” Ms. Teves concluded.

Aside from the discussions, several booths kept participants entertained as they learned about various concepts in financial literacy. The interactive stations included areas focused on budgeting basics, responsible borrowing, smart saving habits, and digital security. Each booth featured engaging activities and simple explanations designed to help MSMEs understand essential money concepts, such as managing daily expenses and protecting themselves from scams.

Building on these learning activities, Mr. Alegre noted that GCash is also expanding and rolling out practical solutions that can help nano- and micro-entrepreneurs boost their income and strengthen their businesses.

“Most nano- and micro-entrepreneurs want to thrive, but many are still in survival mode. With GCash Pera Outlet Plus, sari-sari stores, salons, and small cafés can earn additional income by serving as cash-in and cash-out hubs, while gaining access to digital services like business loans. This transforms a regular tindera into a tech-enabled community partner, strengthening both their livelihood and the local economy,” he said.

Mr. Alegre explained that, other than providing new income streams, GCash is also focused on simplifying the digital shift for informal enterprises to make sure that even the smallest community businesses can participate in the modern economy.

“We make it easy for informal small businesses to go digital through simple online onboarding and fast approval, allowing sari-sari stores and micro-enterprises to offer cash-in, cash-out, and bills payment services. With GCash Pera Outlet and GCash for Business, they gain digital tools that track sales, manage transactions, and organize daily operations. This helps them transition into the formal digital economy and contributes to a more cash-lite and inclusive marketplace,” he said.

The caravan is aligned with the Bangko Sentral ng Pilipinas’ (BSP) commitment to broadening and enhancing financial participation following a report showing a slight decline in financial account ownership among Filipino adults between 2021 and 2024.

The World Bank’s The Global Findex Database 2025 report showed that only 50.2% of approximately 82 million Filipinos aged 15 years old and above had financial accounts in 2024, a decrease from the 51.4% recorded in 2021.

By providing MSMEs with practical financial knowledge and accessible digital tools, GCash helps businesses grow while promoting a safer and more efficient way to manage money. In this way, the finance super app gives back to the community it serves, down to even the smallest enterprises, empowering them to participate fully in the country’s digital economy.

 


Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.

DOST-PAGASA upgrades key weather facilities in Iloilo

The Iloilo S-Band Radar Facility will enhance weather monitoring capabilities in Western Visayas.—DOST-PAGASA
The Department of Science and Technology–Philippine Atmospheric, Geophysical and Astronomical Services Administration (DOST-PAGASA) on Friday marked a major step in the country’s weather modernization program with the launch of two key infrastructure projects in Iloilo.

The agency inaugurated the Iloilo S-Band Radar Facility and held the groundbreaking of a new synoptic station.

The radar facility, which is equipped with a state-of-the-art dual-polarimetric Doppler system, will improve weather monitoring across Western Visayas, PAGASA said.

It will provide high-resolution, real-time data essential for tracking heavy rainfall, severe storms, and tropical cyclones.

Operating at lower frequencies and longer wavelengths, the radar can detect atmospheric conditions to support reliable large-scale weather observations.

DOST Secretary Renato U. Solidum, Jr. said during his keynote address that the radar is a vital safeguard for the country against meteorological hazards.

“It is the combination of technology, skilled scientists, proactive leaders, and a well-informed public that truly builds resilience. This is why we continue to invest in modernizing PAGASA’s equipment, enhancing forecasting capabilities, and bringing science closer to communities,” Mr. Solidum said.

Meanwhile, the new synoptic station will serve as a vital weather observation facility in the province once completed.

Dr. Nathaniel T. Servando, administrator of DOST-PAGASA, highlighted the role of the synoptic station in the broader monitoring network, noting that accurate measurements are the foundation of every forecast.

He said the facility will deliver continuous and reliable observations of key atmospheric parameters.

“Without reliable observations, there can be no accurate forecasts, and without accurate forecasts, preparedness becomes a challenge,” he said.

DOST-PAGASA said the completion of these facilities underscores the agency’s commitment to modernizing its nationwide monitoring network and improving the delivery of reliable public weather services.

Through upgraded infrastructure and coordination with local governments and partner agencies, the agency aims to strengthen disaster preparedness and community resilience in the region. — Edg Adrian A. Eva

DepEd eyes new performance rating framework for teachers

DEPED.GOV.PH

The Department of Education (DepEd) said on Thursday that it is currently developing an improved framework to assess the performance of public school teachers, following concerns about the current classroom observation policy.

“The Department is currently working on a policy that focuses on teachers’ growth and performance,” it said in a statement.

The agency noted that the meeting between Education Secretary Juan Edgardo “Sonny” M. Angara and DepEd’s National Management Committee members discussed ways to eliminate “unnecessary stress” among educators during classroom teaching observations.

DepEd said classroom observation is a “uniform measure to assess teacher performance, identify needs, and provide support for professional development.” It is also one of the significant factors considered for teachers’ promotion.

In January, the death of a public school teacher during the scheduled classroom observation caused groups to raise their concerns about the pressure teachers face during the evaluation process.

The Alliance of Concerned Teachers (ACT) said that the Results-based Performance Management System (RPMS) is a “burdensome” process for teachers, causing additional stress.

Meanwhile, for the Teachers’ Dignity Coalition (TDC), reinstating the Performance Appraisal System for Teachers (PAST) is a “simpler and more developmental alternative” to the evaluation process.

To enhance the assessment procedure, the key components of the proposed policy are Learner Evidence, Professional Artifacts, Collaboration and Professional Engagement, and a Single Classroom Observation.

Each category has a 25% weight in the overall evaluation to ensure a proportionate rating system for teachers’ performance.

The framework of the policy also aims to promote professional growth, effective workload management, and improved learning outcomes.

“Muli, patuloy tayong magsusulong ng mga polisiya at programa para sa ikabubuti ng ating mga kaguruan [Again, we will continue to push for policies and programs that will benefit our teachers],” Mr. Angara said in a news release.

“President Bongbong Marcos has emphasized time and again the need to protect the welfare of our teachers—and we remain steadfast in carrying out this directive,” he added. — Almira Louise S. Martinez

PHL wholesale price growth slows down in January

psa.gov.ph

Price growth of wholesale goods eased to an over six-year low of 1.6% in January dragged by slower annual increase in chemicals including animal and vegetable oils and fats, the Philippine Statistics Authority (PSA) reported on Friday.

Preliminary data from the PSA showed the general wholesale price index (GWPI) at the national level slowed down to 1.6% year on year in January from 2.9% a year earlier and 1.9% in December 2025.

This was the slowest growth in over six-years or since the 1.5% growth posted in July 2019.

The PSA attributed the slowdown in bulk price to the index of chemicals including animal and vegetable oils and fats at 2.5% in January from 5.1% in December 2025. The index accounts for 10.1% of the wholesale basket of goods.

The PSA also noted slower growths in beverages and tobacco (2.1% in January from 3.2% in December), crude materials, inedible except fuels (3.1% from 13.3%), and machinery and transport equipment (0.3% from 0.8%).

The mineral fuels, lubricants and related materials index saw a year-on-year decline of 0.4% from a 2.8% growth in December 2025.

Faster annual growths were recorded in food (2.7% in January from 2.2% in December), manufactured goods classified chiefly by materials (0.3% from 0.2%), and miscellaneous manufactured articles (0.6% from 0.4%).

GWPI by major island group were mixed in January.

The GWPI of Luzon eased to 1.5% in January from 3.2% a year earlier and 1.8% last December. This was also the slowest in over six years or since the 1.4% in July 2019.

In the Visayas, GWPI grew by 3.2% year on year from 1.6% in January 2025. However, it was slower than the 3.3% in December 2025.

Meanwhile, GWPI in Mindanao grew 2.3%, accelerating from 0.6% in January 2025 but easing from 2.7% in December last year. This was the slowest in five months or since the 2% in August 2025.– Isa Jane D. Acabal

Australia complains to China after encounter between military helicopters

STOCK PHOTO | Image by Rebecca Lintz from Pixabay

SYDNEY – Australia has raised concerns with China following an “unsafe and unprofessional” encounter between two military helicopters, the defense department said on Friday.

An Australian military helicopter was flying over international waters in the Yellow Sea when it was intercepted by a Chinese helicopter on Wednesday, a statement said.

The Chinese helicopter matched the Australian aircraft’s altitude before “closing in to an unsafe distance”, increasing speed and then rolling towards it, requiring the Australian crew to take “evasive action”.

“This was an unsafe and unprofessional maneuver that posed a risk to our aircraft and its personnel,” the statement said.

Australia was undertaking a routine patrol in the Yellow Sea as part of the international effort to enforce United Nations Security Council sanctions against North Korea, it said.

No injuries were reported in the encounter between the People’s Liberation Army-Navy helicopter and the aircraft of the Australian Defense Force.

The incident is the latest in a series of military encounters involving China that Australia has called out publicly in similar terms.

In October, it also criticized as “unsafe and unprofessional” the actions of a Chinese fighter jet that dropped flares near one of its maritime patrol planes.

The Chinese embassy did not immediately respond to a request for comment. — Reuters