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T-bill rates drop across all tenors amid bets on further BSP easing

BW FILE PHOTO

THE GOVERNMENT made a full award of the Treasury bills (T-bills) it offered on Tuesday as yields went down across all tenors on expectations of more rate cuts from the Bangko Sentral ng Pilipinas (BSP) as economic growth hit an over four-year low in the third quarter.

The Bureau of the Treasury (BTr) raised P22 billion as planned from the T-bills it auctioned off as the offer was over four times oversubscribed, with total bids reaching P98.311 billion. However, this was slightly lower than the P99.095 billion in tenders recorded at last week’s auction.

The Auction Committee made a full award of the T-bills as all tenors fetched average rates that were lower than those quoted during the previous week’s offering and at the secondary market, the BTr said in a statement.

Broken down, the Treasury borrowed P7 billion as planned via the 91-day T-bills as total tenders for the tenor reached P32.93 billion. The three-month paper was quoted at an average rate of 4.821%, down by 5.3 basis points (bps) from 4.874% in the previous auction. Yields accepted were from 4.813% to 4.843%.

The government also sold the programmed P7.5 billion in 182-day securities as tenders for the tenor were at P33.06 billion. The average rate of the six-month T-bill declined by 4.5 bps to 4.981% from 5.026% previously. Bids awarded carried yields from 4.963% to 5.022%.

Lastly, the government raised P7.5 billion as planned via the 364-day debt as the tenor drew demand amounting to P32.321 billion. The average rate of the one-year T-bill was at 5.054%, decreased by 4.5 bps from the 5.099% fetched last week. Accepted rates ranged from 5.043% to 5.063%.

At the secondary market before Monday’s auction, the 91-, 182-, and 364-day T-bills were quoted at 4.9493%, 5.0727%, and 5.1782%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data provided by the Treasury.

“Results were as expected. Rates were 4-5 bps lower from last auction amid bullish sentiment on an expected 25-bp cut by the BSP in December,” a trader said in a phone interview.

“Treasury bill average auction yields were slightly lower… after worse-than-expected third-quarter GDP (gross domestic product) growth [and] amid still relatively benign inflation [that] could still support possible future BSP rate cuts and other monetary easing measures that prioritize policies that help spur greater economic growth and development that is more inclusive,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Philippine GDP growth slowed to a more than four-year low of 4% in the third quarter from 5.5% in the second quarter and the 5.2% clip in the same period in 2024, the government reported on Friday. This was well below the 5.3% median estimate in a BusinessWorld poll of 18 analysts and economists.

Officials attributed the weakness to more cautious public spending amid a corruption scandal involving state infrastructure projects, which they said also affected consumer and investor confidence.

In the first nine months, economic growth averaged 5%, lower than the government’s 5.5%-6.5% full-year target.

Meanwhile, headline inflation was at 1.7% in October, unchanged from September’s print but easing from 2.3% a year ago. In the first 10 months, the consumer price index averaged 1.7%, matching the central bank’s full-year forecast and still below its 2-4% annual target.

Analysts said weak economic prospects and manageable inflation could give the BSP a reason to extend its rate cut cycle, with a 25-bp reduction at the Monetary Board’s Dec. 11 meeting almost certain.

Last month, the BSP lowered benchmark interest rates by 25 bps for fourth straight meeting to bring the policy rate to 4.75%. It has now trimmed borrowing costs by 175 bps since its rate cut cycle began in August 2024.

BSP Governor Eli M. Remolona, Jr. has left the door open to further reductions, possibly until next year, as they want to help provide stimulus amid softer economic prospects due to the graft scandal.

Mr. Ricafort added that the ongoing stock market rout has also benefited safer assets like government securities. The Philippine Stock Exchange index closed at a new over five-year low of 5,629.07 on Tuesday and has finished below the 6,000 mark for more than two weeks amid weak market sentiment.

The BTr is looking to raise P158 billion from the domestic market this month, or P88 billion via T-bills and P70 billion through Treasury bonds.

The government borrows from local and foreign sources to finance its budget deficit, capped at P1.56 trillion or 5.5% of GDP this year. — A.M.C. Sy with Reuters

Shell Pilipinas returns to profit with P343-M Q3 earnings

PILIPINAS.SHELL.COM.PH

SHELL PILIPINAS CORP. posted a third-quarter (Q3) net income of P343 million, reversing a P762.04 million loss in the same period last year, as higher sales volumes and lower non-operating costs offset a slight decline in net sales.

Net sales for the quarter fell 3.7% to P57.58 billion from P59.80 billion, while cost of sales decreased 6.3% to P51.75 billion.

“We continue to maintain growth across key segments through September,” Shell Pilipinas President and Chief Executive Officer Lorelie Quiambao Osial said.

“Our stronger cash generation, higher earnings, and sustained improvement in gearing versus the prior year reflect a business that continues to deliver quality results even in a hypercompetitive environment.”

For the nine months ending September, net income rose 33% to P1.31 billion from P983.70 million, while core earnings increased 9.6% to P2.45 billion from P2.24 billion.

“This was due to high premium product penetration across sectors, volume growth in commercial fuels, aviation and lubricants, and lower non-operating costs offset with the decline in marketing margins,” the company said.

For the nine-month period, net sales declined 7.3% to P171.72 billion from P185.16 billion, mainly due to lower pump prices from the general drop in global oil prices, while cost of sales fell 8% to P154.98 billion from P168.50 billion.

“Our priorities remain unchanged: cash discipline, stronger returns on capital, and profitable growth. We enter the fourth quarter on the front foot and intend to finish the year stronger, setting a solid base for 2026,” Ms. Osial said.

Shell has earmarked a capital expenditure budget of up to P4 billion from 2027 to 2030 to expand its asset portfolio in line with its medium-term growth strategy.

At the local bourse on Tuesday, shares in the company closed unchanged at P6.10 each. — Sheldeen Joy Talavera

Industrial policy for the Philippines: Rich countries adopting industrial strategies

STOCK PHOTO | Image by Usertrmk from Freepik

(Part 4)

The Philippines is no longer the “Sick Man of Asia.”

Since 2011, its GDP has been one of the fastest growing in the Indo-Pacific region, together with India and Vietnam. Over the last 40 years, after the end of Martial Law in 1986, slowly and painfully, a series of competent economic managers, appointed even by some rather undesirable political leaders, have been addressing the major economic policy errors described in previous articles.

To refresh our memory, the Philippines failed to become a tiger economy because it followed the wrong economic strategy (prolonged import substitution industrialization combined with an utter neglect of agricultural development) combined with weak institutions, crony capitalism, debt dependence and political instability. Unlike the East Asian Tigers, it was unable to fully implement export-led industrialization, long-term infrastructure investment, technical skills development and good governance.

Although — as the flood control scandal has demonstrated this year — corruption continues unabated, significant economic policy reforms and institution building have occurred. The Central Bank of the Philippines is ranked as one of the best in the ASEAN. Some of the best and the brightest economic and financial managers have been appointed to head key positions in the Cabinet under successive Administrations. Import substitution has given way to export orientation through lower tariff rates, market-determined interest and foreign exchange rates, and the promotion of many more export processing zones. The limit to 100% foreign equity imposed on FDIs has been removed, except in public utility distribution, education, and media. There is greater political will to limit the debt to GDP ratio to the 60% level. There are serious efforts to keep the spending on infrastructures at 5% to 6% of GDP. Major educational reforms are geared towards giving greater importance to technical and vocational education and enterprise-based training programs. Most important of all, the Marcos Jr. Administration has given the highest priority to food security and agricultural development. This year has seen agriculture grow at hefty rates of 7% in the second quarter and 2.3% during the third quarter compared to negative rates in the past.

These policy reforms and institution building accomplishments, despite the continuing challenges to good governance, have enabled the economy to grow at close to 6% annually for more than a decade now, under three Administrations (2011 to 2025). This rate of growth, however, is not sufficient to generate enough resources to bring down the poverty incidence from the very high 16% today to a single-digit level, comparable to such ASEAN peers as Singapore, Thailand, Vietnam, and Malaysia. There should be serious efforts to accelerate the GDP growth rate to 8% or more. This can be made possible if specific measures can be implemented to enable certain leading sectors to grow at above-average rates. This would require some form of industrial policy or another. We shall examine in this article what form of industrial strategy is needed in the Philippines today given the opportunities and threats that both the domestic and global economies present. We shall, of course, take into account some of the continuing weaknesses of the country as well the strengths that have been accumulated over the last 30 or so years as a result of economic policy reforms and institution building.

INDUSTRIAL STRATEGY
As a former chief economist of the Bank of England, Andy Haldane, wrote in the Financial Times, industrial strategies are no longer limited today to the Asian tigers. In the highly industrialized economies, such as in the US and the UK, there is a renewed passion for industrial strategies.

The very destabilizing tariff moves under the Trump Administration in the US are based on certain assumptions about what industries should be revived or strengthened in the US, especially in competition with those of China and some of the other largest exporters to the US.

Last June, the UK government announced an industrial strategy whose centerpiece was a set of targeted strategies for the eight industrial sectors which, on various metrics, offered the greatest growth potential. Among them were advanced manufacturing, life sciences, the creative industries, and financial services.

China is even more detailed. In its Made in China 2025 announcement, there are 10 sectors targeted: Advanced Information Technology; Automated machine tools and robotics; Aerospace and aviation equipment; Maritime engineering equipment and high-tech ships; Modern rail transport equipment; New-energy vehicles and associated equipment (e.g., electric vehicles, hybrids); Power equipment (including renewable energy technologies); Agricultural machinery; New materials (advanced materials, specialty materials); and Biopharma and advanced medical devices (as well as medical/healthcare technologies).

Mr. Haldane, however, cautions that a sector-based blueprint is too narrow and partial to lift the UK’s growth prospects in a significant and inclusive way. He points out that the vast majority of British jobs are in the “everyday” not the “superstar” economy, e.g., public services and health, retail and hospitality, distribution and construction. Choosing “superstar sectors” alone would be insufficient to generate strong inclusive growth. There will be no rising tide to lift all boats. There is no evidence that focusing on high-growth industries will have sufficient trickle-down effects to address mass poverty, especially in a country like the Philippines where the majority of the poor are in the neglected rural areas.

The limitations of industrial strategy alone are especially acute in the Philippines where mass poverty is rampant and the majority of workers are in the “everyday” economy in which they are living hand-to-mouth, especially in the countryside.

The first economic sectors that need special attention and funding from the Government are those that are pre-requisites to the development of any industry. As we learned from our failed efforts in the past to become a “tiger economy,” these are infrastructures (e.g., roads, railroads, airports, etc.); public utilities (energy, telecoms, water); education (especially technical skills training); and an efficient and honest government.

In his column for the Financial Times, Mr. Haldane cites the works of one of the leading proponents of industrial strategy, Dani Rodrik of Harvard University. Rodrik’s “industrial policy for good jobs” puts high skills and good jobs at the center of strategy, both as a means of enabling strong, inclusive growth (economically) and an end in itself (socially). This approach to industrial strategy provides workers with practical job and skill progression pathways; businesses with details on the talent pipeline they need nurture to thrive; learning providers with data on the programs needed to meet local needs; and governments to supporting investments in housing, transport, and healthcare.

We should celebrate the recent emphasis being given by both our government and the business sector to Rodrik’s “industrial policy for good jobs.” Ever since President Ferdinand Marcos, Jr. suggested in his second State of the Nation Address that our K to 12 curriculum be geared towards technical education and away from the traditional focus on college diplomas, there have been real efforts to establish more “Enterprise-Based” skills training programs that are providing our youth with practical job and skills progression pathways. It is also providential that this trend is being bolstered by the increasing importance given to the Technical Education and Skills Development Authority or TESDA that fortunately is now led by a most competent educator very familiar with the work-study or dual education system originated by the Germans.

Secretary Francisco “Kiko” Bantug Benitez, Secretary General of TESDA, is the right person at the right time. Under his leadership, there will be greater and more effective efforts to address the mismatch between what our educational system is producing and what the industrial world is demanding. For example, as we continue to focus on the completely indispensable infrastructure building program, despite the temporary reverses caused by the flood control scandals that revealed rampant corruption among government officials in both the legislative and executive branches, the “dualvoc” system will help address the ironic shortage of plumbers, electricians, carpenters, masons, mechanics, and electro-mechanic workers in general. This clearly highlights that any effective industrial strategy must be preceded by an “industrial policy for good jobs.”

(To be continued.)

 

Bernardo M. Villegas has a Ph.D. in Economics from Harvard, is professor emeritus at the University of Asia and the Pacific, and a visiting professor at the IESE Business School in Barcelona, Spain. He was a member of the 1986 Constitutional Commission.

bernardo.villegas@uap.asia

PHL banks’ net profit up 3.57% at end-Sept.

MARI GIMENEZ-UNSPLASH

THE COMBINED income of Philippine banks climbed by 3.57% in the first nine months of the year as lenders booked higher interest and non-interest earnings during the period.

Preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed that banks’ net profit rose to P300.418 billion in the period from P290.056 billion a year ago.

Universal and commercial banks made up bulk of the total as they booked a P283.155-billion net income in the nine-month period, while thrift lenders posted net earnings of P15.897 billion.

Meanwhile, digital banks posted a combined net loss of P3.971 billion.

There was no available data on rural and cooperative banks’ income for the period.

The banking sector’s net interest income jumped by 11.01% to P851.472 billion at end-September from P767.039 billion a year earlier.

This came as interest income grew 8.46% year on year to P1.205 trillion from P1.111 trillion, outpacing the 2.51% uptick in interest expense to P351.599 billion from P342.975 billion.

Meanwhile, banks’ non-interest earnings went up 7.64% to P185.081 billion in the nine-month period from P171.943 billion last year.

This was mainly driven by the 12.41% increase in earnings from fees and commissions to P133.285 billion from P118.567 billion. Other income also surged 52.27% to P30.247 billion  from the P19.864 billion seen in the third quarter of 2024. This helped offset the 70.37% plunge in trading income to P5.589 billion from P18.86 billion, which was primarily due to a combined net loss from foreign exchange transactions.

On the other hand, banks’ non-interest expenses climbed by 9.91% to P573.234 billion in the first nine months from P521.539 billion in the same period last year.

This was driven by higher spending on compensation, taxes and licenses, fees and commissions, and other administrative expenses. Banks also saw higher amortization, impairment losses and provisioning during the period.

Philippine banks booked higher earnings in the period “largely due to sustained interest income and net interest margins amid continued low double-digit bank loans growth in recent months, and lower funding costs amid BSP and Federal Reserve rate cuts… that partly led to lower bond yields that added to trading gains,” Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.

“Banks have been among the most profitable industries in the country in recent years, defying economic cycles,” he said.

However, he noted that the profit growth was slightly slower versus the Philippine economy’s 5% expansion during the same period.

Manageable asset quality and provisioning also supported bank’s profits, Mr. Ricafort added.

“Sustained growth in bank loans, especially consumer loans that have higher margins, would continue to support interest income, provided that asset quality is well managed to minimize credit-related losses,” he said. “Further BSP and Fed rate cuts amid benign inflation would lead to lower funding costs and higher trading gains going forward.”

The BSP has lowered benchmark borrowing costs by a total of 175 basis points (bps) since it began its rate cut cycle in August 2024, with the policy rate now at 4.75%. It is expected to continue easing its stance until next year to support a slowing economy, in line with the latest signals from BSP Governor Eli M. Remolona, Jr.

Meanwhile, the Fed has delivered 150 bps in reductions since September 2024, with its target rate currently at the 3.75-4% range. Fed Chair Jerome H. Powell has signaled a cautious stance moving forward as the US economic picture remains mixed.

BANKS’ ASSETS GROW
Meanwhile, separate BSP data showed that the Philippine banking sector’s combined assets expanded by 7.55% year on year to P28.755 trillion as of end-September from P26.737 trillion.

Month on month, this grew by 3.7% from the P27.729 trillion recorded at end-August.

Banks’ assets are mainly supported by deposits, loans, and investments. These include cash and due from banks as well as interbank loans receivable (IBL) and reverse repurchase (RRP) net of allowances for credit losses.

At end-September, universal and commercial banks continued to account for bulk of the industry’s assets with P26.903 trillion. This was followed by thrift banks with P1.324 trillion, and digital banks with P142.545 billion.

The central bank has not released data on rural and cooperative banks’ assets.

The data showed that the banking sector’s total net loan portfolio, inclusive of IBL and RRP, grew by 9.27% to P15.758 trillion at end-September from P14.421 trillion the previous year.

Banks’ total net investments, or financial assets and equity investments in subsidiaries, went up by 9.91% to P8.505 trillion from P7.738 trillion a year earlier.

Meanwhile, net real and other properties acquired amounted to P134.397 billion in the nine months to September, rising by 19.96% from the P112.037 billion in the same period in 2024.

Banks’ other assets likewise increased by 9.65% to P2.227 trillion at end-September from P2.031 trillion a year prior.

On the other hand, cash and due from banks stood at P2.131 trillion, down by 12.52% from the P2.436 trillion a year prior.

Central bank data also showed that the total liabilities of the banking system increased by 7.51% to P25.176 trillion in the nine-month period from P23.418 trillion the previous year.

Bulk of the sector’s liabilities were deposits, which grew by 7.49% year on year to P21.047 trillion at end-September from P19.581 trillion.

Broken down, peso-denominated deposits amounted to P17.389 trillion, while foreign currency deposits stood at P3.657 trillion. — Katherine K. Chan

Arts & Culture (11/12/25)

Intramuros Evenings stages La Voix Humaine

THE Cultural Center of the Philippines and the Intramuros Administration have teamed up for the third installation of Intramuros Evenings, featuring Francis Poulenc’s Aubade Concerto and La Voix Humaine (The Human Voice). It is taking place on Nov. 12, 7 p.m., at Centro de Turismo in Intramuros, Manila. This blend of 18th century neoclassicism and 20th century French style will be headlined by pianist Raul Sunico, with the University of Santo Tomas Symphony Orchestra providing music accompaniment. Then, under the baton of Herminigildo Ranera, Filipina soprano Armela Fortuna will breathe life into the protagonist of La Voix Humaine. The event is free and open to the public, and seating is on a first-come, first-served basis.

Choirs perform at Bridgetowne

UNDER “Project Shine,” Bridgetowne will be welcoming two school choirs to the podium area of The Victor statue. The concert will happen on Nov. 13 at 7 p.m., featuring the SPCP GS Chorale Varsity of St. Paul College Pasig and Coro Javier of Xavier School. Bridgetowne is found along E. Rodriguez Ave., Pasig and Quezon City.

PPO concert welcomes pianist Mark Bebbington

THE Philippine Philharmonic Orchestra (PPO) is continuing its 41st season with the concert Triumph and Thanksgiving, set for Nov. 14, 7:30 p.m., at the Samsung Performing Arts Theater in Circuit, Makati City. With Grzegorz Nowak at the helm, the concert will feature works by Wolfgang Amadeus Mozart, Ludwig van Beethoven, and Modest Mussorgsky. Internationally recognized pianist Mark Bebbington will be the guest, performing Beethoven’s Piano Concerto No. 5 in E flat Major, Op. 73. Tickets, priced from P1,500 to P3,000, are available at TicketWorld.

Filipinas Heritage Library provides double library access

FOR Library and Information Services Month, the Filipinas Heritage Library will open 2-for-1 library access. Two visitors can visit after paying admission for one person, or one visitor can save the free access for a second visit on another day. Free reproduction services are available for all visitors this month. This runs from Nov. 11 to 29. The library is in the Ayala Museum building in Greenbelt, Makati Ave., Makati.

UNICEF, Ang INK release Christmas cards

LIMITED-EDITION Christmas cards have been released by UNICEF, the proceeds of which will provide essential items like water kits, medicines, and ready-to-use therapeutic food, delivered to malnourished children and victims of calamities. The 2025 edition of Christmas Cards marks another partnership with Ang Ilustrador ng Kabataan (Ang INK), a collective of children’s illustrators, with new designs that capture the unique joy of a Filipino Christmas based on Ang INK artists’ personal childhood memories. For P1,000, one can get a set of limited-edition UNICEF Christmas Cards. They are available exclusively at the UNICEF Giving Shop, UNICEF Philippines’ official e-commerce store.

Globe Telecom switches 171 sites to renewable energy in net-zero push

GLOBE.COM.PH

GLOBE TELECOM, INC. said it has transitioned 171 of its sites to renewable energy (RE), up from 29 last year, as part of its net-zero strategy.

“I am proud to announce that through these sustained initiatives, we have successfully transitioned 171 of our sites to renewable energy through power purchase agreements as of the end of October this year, a dramatic increase from the 29 sites in 2024,” Globe Telecom Chief Finance Officer, Treasurer and Chief Risk Officer Juan Carlo C. Puno said during the opening of Globe Energize 2025 on Tuesday.

“Out of these 171, 134 of these are cell sites that have been switched to renewables,” he added.

The initiative forms part of Globe’s strategy to accelerate its net-zero ambition and makes it the first telecommunications and digital service provider in the Philippines to adopt the government’s retail aggregation program (RAP), which allows multiple electricity end-users to combine power demand to meet the 500-kilowatt threshold for direct negotiation with licensed retail electricity suppliers.

“We expect this to have a substantial impact on reducing our greenhouse gas emissions as the majority of our scope 1 and 2 emissions come from electricity and fuel consumption,” Mr. Puno said.

He noted the shift to RE is a strategic choice with measurable value, reducing reliance on imported fossil fuels, stabilizing financial planning, and cutting electricity expenses by at least 10%.

“Also driven by a combination of energy management programs and two AI solutions deployed to almost 20,000 network elements across the country, Globe saved over 11.3 million kilowatt-hours of electricity in 2025, translating to approximately P125 million in electricity cost savings,” he said.

The company noted that the clean energy transition is ongoing, with generator sets still used for backup power, while it continues to deploy cleaner alternatives, such as battery energy storage systems paired with solar PV, and explore other options, including green hydrogen.

In its earlier statements, Globe said the gradual shift of its sites to renewable energy is expected to reduce greenhouse gas emissions by 5.5 million kilograms per year and supply 80 million kilowatt-hours of electricity annually from renewable sources.

In July, Globe Telecom said it had started transitioning over 3,000 cell sites in Metro Manila, Region IV-A, and other low-energy facilities to RE, with the goal of completing the move by 2028.

At the local bourse, Globe shares rose 0.55% or P8 to close at P1,461 apiece. — Alexandria Grace C. Magno

Below the surface: From vulnerability to resilience in the underwater domain

STOCK PHOTO | Image by Bernd 📷 Dittrich from Unsplash

Some underwater drones with Chinese markings were recently discovered in various parts of the Philippines. Last year, a Russian attack submarine passing through Philippine waters was detected. No less than President Ferdinand Marcos, Jr. described this discovery as “very concerning.” And then, in other parts of the world, there have been reports of subsea cable-cutting incidents.

These developments are cause for concern, primarily because they are not immediately visible. Not only do they occur within the maritime domain, far from major centers of communication, but they also happen beneath the ocean’s surface, to evade detection of clandestine operations.

Secondly, this is an area in which the Philippines has yet to develop expertise and mastery.

As an archipelago, the Philippines is a maritime nation, blessed with boundless maritime assets that can be harnessed to improve the quality of life of our people. We deeply rely on the sea for various aspects of our nation’s life: food, trade, energy, and communication. And given the recent persistent and deliberate incursions into our exclusive economic zone, not only our economic security but also our territorial integrity is being attacked.

All these expose a critical vulnerability for the Philippines: our limited underwater domain awareness, as well as our capability to defend and protect our underwater assets and territory, are still in the nascent stage.

Consider this: our seas serve as home to submarine cables. They connect major economic players such as the United States, the European Union, and Japan. If there happen to be disruptions or instability, the seamless flow of information and trade through our underwater territories would be seriously compromised.

The need is clear: The Philippines needs to develop the capability to monitor, secure, and protect its underwater infrastructure at the soonest possible time. The underwater dimension represents the next strategic frontier — a realm where sovereignty, technology, and cooperation converge.

But given our competing priorities — for example, our disaster coping and climate risk management issues, as illustrated by our experience of Super Typhoon Uwan just a few days ago, and our continuing probe into government corruption with regard to flood control and other infrastructure, as well the limitations posed by our lack of equipment and technical expertise, we cannot do it on our own.

The underwater domain is vast, complex, and technologically demanding. Effective monitoring and protection require partnerships with nations that have the technological expertise, operational experience, and commitment to safeguarding shared maritime spaces.

One such partner is Italy, another maritime nation but one that has proven its expertise and capability in the underwater domain.

Today, Nov. 12, we at Stratbase are privileged to organize — in partnership with the Italian Embassy in the Philippines and Fincantieri — a forum that explores the underwater dimension as a new frontier for security and cooperation. The conference will convene key stakeholders from the diplomatic community, government, private sector, academia, civil society, and the international community to examine how safeguarding subsea infrastructure is essential to maintaining peace and stability — from the Mediterranean Sea to the Indo-Pacific.

We will learn much from our partner, Italy, because despite the intercontinental distance, our two countries share a commitment toward equity and justice, as well as recognition of the need for collective security. Italy has the necessary technical know-how to help us advance our underwater capabilities. But more than that, it is a staunch defender of the principles of international stability and resilience, in the context of national and international economics and security.

Whether we are talking about the Indo-Pacific or the Mediterranean, several non-negotiable fundamentals remain. For example, Italy and the Philippines share an interest in ensuring the safeguarding of the underwater domain and its critical infrastructure. This demands integrated policies, a coherent regulatory framework, multilateral approaches, and cooperative instruments that reduce vulnerabilities and strengthen resilience, including through closer collaboration and the sharing of best practices.

Advances have been made by the Philippines in upholding its maritime economic interests. The proposed Blue Economy Act, for instance, has been identified as a priority legislative measure for the 20th Congress. The proposal aims to establish a framework for the sustainable and secure development of marine resources, making the blue economy a key pillar of national development.

The bill covers the following activities: fisheries and aquaculture; exploration, exploitation, and extraction of oil and natural gas; submarine mining of minerals and aggregates; and the installation of submarine cables and pipelines. These activities reflect opportunity.

Then again, they are also areas of vulnerability, specifically since our ability to detect, deter, and respond to threats that could undermine risks and threats greatly determine the success of our blue economy. All the more should we turn to partnerships with like-minded partners like Italy, with whom we share the priority of protecting the marine resources and critical infrastructure in our underwater domain.

And just as the seas connect and flow into one another, so should our strategies and approaches link with and build upon each other’s.

 

Victor Andres “Dindo” C. Manhit is the president of the Stratbase ADR Institute.

GoTyme Bank partners with Wise for remittances, cross-border transfers

GOTYME.COM.PH

GOTYME BANK has partnered with global cross-border payments platform Wise to improve its remittance services.

This makes the digital bank the first partner bank of Wise Platform in the Philippines and its first International Receive partner in the Asia-Pacific (APAC) region, it said in a statement on Tuesday.

Under the collaboration, GoTyme Bank integrated with the Wise Platform to enable international transfers over SWIFT. The digital bank’s over 7.8 million customers can now receive money from over 11,000 banks worldwide in 23 major currencies, including the US dollar and euro.

“The partnership tackles long-standing pain points experienced by overseas Filipino workers and their families — such as expensive transfer fees, hidden charges, slow processing times, and lack of transparency,” it said.

According to a Wise study, Filipino consumers lost some $170 million or P9.74 billion in 2024 due to hidden fees in international money transfers.

GoTyme Bank customers can also view their account details and share them with their sending bank to receive international payments.

They can withdraw their remittances for free at over 1,400 Robinsons Retail Holdings, INc. partner stores nationwide.

“Our collaboration with Wise is about creating a trusted remittance experience that feels effortless. By pairing Wise’s world-class technology and global network with GoTyme Bank’s simple, beautiful banking, we’re redefining how Filipinos support their families, grow their ambitions, and stay connected to what matters most,” GoTyme Bank President and Chief Executive Officer Nathaniel D. Clarke said.

“This partnership exemplifies Wise’s mission to build the infrastructure for the world’s money. As the first Wise Platform partnership in the Philippines, it demonstrates how we’re extending beyond our own products to power better financial services through partners. Payments coming over SWIFT have faced hidden charges and slow speeds. With this partnership, GoTyme Bank becomes the first bank in the Philippines to change this trend,” Wise Platform APAC General Manager Samarth Bansal said.

Cash remittances coursed through banks increased by 3.2% to $2.977 billion in August from $2.885 billion in the same month last year, data from the Bangko Sentral ng Pilipinas (BSP) showed.

For the first eight months of 2025, money sent home by migrant Filipinos climbed by 3.1% to $22.909 billion from the $22.217 billion in the comparable year-ago period.

The BSP expects cash remittances to grow by 3% to $35.5 billion this year.

GoTyme Bank booked a net loss of P3.44 billion in 2024, widening from the P2.47-billion loss in 2023 amid higher operating expenses, its latest annual report showed.

It is a partnership between the Gokongwei group and Singapore-based Tyme Group, and began commercial operations in October 2022 as one of the six digital banks licensed by the BSP. — A.M.C. Sy

Hungarian-British author David Szalay wins Booker Prize for Flesh

LONDON — David Szalay won the 2025 Booker Prize for his novel Flesh on Monday, becoming the first Hungarian-British author to win one of top awards in the English-speaking world.

Written in spare prose — characterized by brevity and a lack of unnecessary detail — the book follows a man caught in a series of events beyond his control over decades. It charts his rise from a housing estate in Hungary to the mansions of London’s super-rich.

“A meditation on class, power, intimacy, migration and masculinity, Flesh is a compelling portrait of one man, and the formative experiences that can reverberate across a lifetime,” organizers of the award ceremony in London said in a statement.

In addition to the £50,000 ($67,000) prize for the winner, as well as a £2,500 awards to each of the shortlisted authors and translators, the writers also gain a boost in popularity and benefit from increased book sales.

“Even though my father is Hungarian, I never felt entirely at home in Hungary. I suppose, I’m always a bit of an outsider there and living away from the UK and London for so many years I also had a similar feeling about London,” Mr. Szalay told BBC Radio.

“I really wanted to write a book that stretched between Hungary and London and involved a character who was not quite at home in either place.”

The novel was the Canadian-born author’s sixth work of fiction. He was shortlisted in 2016 for his book All That Man Is which told the story of nine men at various life stages.

“We had never read anything quite like it. It is, in many ways, a dark book but it is a joy to read,” Roddy Doyle, chair of judges this year, said in the statement shared by the organizers.

“I don’t think I’ve read a novel that uses the white space on the page so well. It’s as if the author… is inviting the reader to fill the space, to observe — almost to create — the character with him.” — Reuters

AWS Philippines says cloud technology levels the playing field for SMEs

STOCK PHOTO | Image by Creativeart from Freepik

AMAZON Web Services (AWS) Philippines, a cloud computing unit of Amazon, said cloud technology is helping small and medium enterprises (SMEs) compete with larger companies by giving them access to the same digital infrastructure and tools without requiring heavy capital investment.

“It’s the greatest equalizer when it comes to technology. Even if you’re small, you get access to the latest and greatest technology that is also available to big companies,” AWS Philippines Country Manager Precious Lim told BusinessWorld on the sidelines of the company’s partnership event with Globe Telecom, Inc. last week.

“They can access everything from computing to databases to machine learning and AI (artificial intelligence), and all of this is possible because the cloud allows for pay-as-you-go,” she added.

Ms. Lim said most micro, small, and medium enterprises (MSMEs) in the Philippines using AWS services come from industries such as business process outsourcing, retail, education, pawnshops, and e-commerce.

To expand access to technology, AWS offers various training and enablement programs for businesses and individuals.

One of these is AWS Skill Builder, an online learning platform that provides a wide range of courses and training modules to help MSMEs build cloud expertise and earn certifications.

The platform offers both free and paid digital courses, according to its website.

Another initiative is AWS Educate, which targets students and educators seeking to develop cloud computing skills.

Learners as young as 13 years old may register for self-paced training and labs for free, based on information from the platform’s website.

“Our objective is always to help companies of different sizes. Whether you’re a startup, an SME, or from the education institutions… Our goal is to help them innovate and transform by making use of the services on AWS,” Ms. Lim said.

According to AWS, it has trained more than five million people in cloud skills across the Asia-Pacific region since 2017. — Edg Adrian A. Eva

PHINMA Education boosts capacity in Indonesia with 10-story Horizon University building

PHOTO COURTESY OF PHINMA EDUCATION

PHINMA Education Holdings, Inc. expanded its footprint in Indonesia with the completion of a 10-story building at Horizon University Indonesia in Karawang, West Java, boosting student capacity by 7,000 to bring the total to nearly 10,000 and making it the tallest university structure in the city.

“Across the PHINMA Group, our mission has always been to unlock opportunities for underserved families: by providing homes, building better infrastructure, creating jobs through hospitality, and opening doors through education,” PHINMA Chief Executive Officer Ramon R. del Rosario, Jr. said in a statement on Tuesday.

The Horizon East building, inaugurated on Nov. 12, will allow the university to add new programs in Education and Social Sciences to its current Health, IT, and Business courses.

PHINMA Education began operations in Indonesia in 2019 through partnerships with the Triputra Persada Horizon Education Foundation to manage Horizon University Indonesia in Karawang and Kalbis University in Jakarta.

Horizon University Indonesia’s Nursing, Accounting, and Management programs hold top accreditation from the Indonesian Ministry of Education, and the university recently won the Best Passing Rate Award for the Indonesian Professional Nursing Competency Exam in West Java, with a 100% pass rate in nursing and midwifery and an overall employment rate of 86%.

“Our next step is East Java. By establishing a campus in Surabaya, we will open our doors to serve a market of 100,000 graduating SHS students. With campuses in both West and East Java… Horizon Education will be well-positioned to broaden its reach and make quality education even more accessible,” PHINMA Education Country Head for Indonesia Dr. Raymundo Reyes said.

PHINMA Education is also eyeing expansion into Vietnam by 2027 to widen its international presence.

For the January to September period, PHINMA Education recorded a revenue of P5.27 billion and consolidated net income of P1.42 billion, following a record-high enrollment of 177,851 students in the first semester of the 2025-2026 school year.

PHINMA Corp., the listed parent company, posted consolidated revenues of P16.31 billion and net income of P376.04 million for the first nine months of 2025, as strong results from PHINMA Education offset weaker results from its other business units.

PHINMA Corp. shares were last traded on Nov. 4, unchanged at P16.40 apiece. — Alexandria Grace C. Magno

Why AI-fueled layoffs will backfire

STOCK PHOTO | Image from Freepik

By Gautam Mukunda

RIGHT NOW there seem to be only two types of business headlines: Those dedicated to the eye-popping investments and valuations of the ever-expanding AI boom, and those chronicling a stream of layoff announcements. Strikingly, you’ll often see the same company names appearing in both.

It makes sense, I suppose. Employers in thrall to the possibilities of this powerful new technology are betting it will drive productivity — meaning fewer humans are needed. (And the post-layoff stock bump doesn’t hurt.) But ultimately, many of these cuts will likely prove unwise. In fact, they may undermine the very thing companies are so focused on: the ability to use AI to its fullest potential.

If the current downsizing is indeed a mistake, it’s one a lot of employers are making: Last month, US companies made more job cuts than they have in any October for the last two decades. Meanwhile, many of the companies involved look healthier than ever. Amazon.com, Inc., which has announced plans to shed as many as 30,000 corporate jobs, is enjoying record-high share prices, while Microsoft, which is undertaking its biggest layoffs in two years, recently reported a 12% increase in profit.

So if not hardship, what is driving these layoffs? In at least some cases, AI is certainly a factor. Accenture PLC, for example, announced a cut of 11,000 workers in September, declaring that these employees “could not be retrained for an AI-driven workforce.” And with AI fever sweeping corporate America, expect the technology to inspire more cuts soon. They may actually be an economic necessity: Geoffrey Hinton, the Nobel Prize-winning godfather of AI, claims the scale of capital investments made in AI is so large that the only way they can pay off is via massive job destruction.

One problem: However promising AI tools appear, they don’t always pay off for the businesses that use them. This isn’t an argument that, as some prominent AI critics allege, that the technology is useless — I’m a ChatGPT convert myself. But a Massachusetts Institute of Technology survey of 300 publicly announced corporate AI initiatives found that the executives overseeing them reported that 95% had “zero” return on investment.

When you think about it, that’s not so surprising. These tools aren’t just drop-ins that seamlessly replace workers. Most companies don’t know how to exploit their full potential — it’s not clear anyone really does. Utilizing them properly is going to require significant changes in how work is done. This is a technology that’s only a few years old and is changing by the day. With no clear roadmap to follow, companies are going to need to become more creative and innovative if they hope to adapt to an AI world and get the most out of the technology.

The current wave of job cuts is likely to make that harder. That’s because layoffs don’t just harm the people who leave — they also traumatize those who survive, hurting their morale and commitment and increasing stress. No wonder management research has also found that companies that conduct layoffs during a period of prosperity have worse financial performance than competitors who don’t reduce headcount.

What’s more, these negative effects are strongest in the most innovative and rapidly-growing industries. A study of more than 2,000 Spanish companies, for example, found that when downsizing is combined with significant changes in equipment, techniques, or processes (e.g., the type of transformation required to take advantage of AI), innovation declines because employees feel threatened and become less willing to take risks. A similar study of British firms found that although small- and medium-sized layoffs don’t significantly hinder innovation, large downsizing does. (Such unexpected effects may be one reason rehiring rates are going up.)

This isn’t to say that layoffs are all bad for the companies that do them; when organizations have too much slack, cuts may actually push them to become more innovative. But even there the path is fraught. If organizations are resource constrained (and given the scale of investment the AI arms race demands, even the wealthiest company could be), the effects of layoffs quickly turn negative once again.

The paradox of innovations that are as transformative as AI is supposed to be is that they are never just plug-and-play. Inventing the technology is only the first step; learning how to use it is just as hard, and just as important. It requires employees who are ready to learn, take risks, and embrace change — not ones left traumatized and fearful after their colleagues have been brushed aside. Laying off people now in anticipation of AI’s effects might seem very tempting to today’s CEOs, but most of those who do will end up regretting it.

BLOOMBERG OPINION

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