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DoF warns VAT rate cut could slash P1 trillion in revenue and risk credit rating downgrade

SHOPPERS look for canned goods at a supermarket in Mandaluyong City. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Kenneth Christiane L. Basilio, Reporter

THE Department of Finance (DoF) expressed “strong reservations” regarding a proposal to lower the value-added tax (VAT) rate, warning it could cost the government more than P1 trillion in foregone revenues through 2030 and undermine its fiscal consolidation efforts.

In a position paper submitted to the House of Representatives dated Oct. 22, the DoF said House Bill (HB) No. 4302, which proposes to cut the VAT rate to 10% from the current 12%, would lead to substantial revenue losses over the next five years.

A copy of the position paper, which was signed by then-Finance Secretary Ralph G. Recto, was obtained by BusinessWorld on Thursday.

“The estimated impact of the proposed VAT rate reduction is at an annual average of P339 billion from 2026 to 2030… This proposal will translate to a higher fiscal deficit and derail the administration’s fiscal consolidation efforts and plan,” the DoF said.

“Introducing this proposal at this time would risk fiscal stability, equity and growth.”

Based on DoF estimates, the revenue impact of the proposed VAT rate reduction would reach a total of P1.694 trillion from 2026 to 2030. This includes P1.11 trillion in foregone revenues for the Bureau of Internal Revenue and P583.6 billion for the Bureau of Customs.

The DoF said reducing the VAT rate to 10% will increase the deficit by one percentage point of gross domestic product annually.

“The proposal will result in credit rating downgrades, which in turn increase our borrowing costs due to higher interest rates,” it said.

The proposed measure will also compromise debt sustainability, the DoF said.

“Lowering the VAT rate and losing a steady stream of government revenues of around P339 billion yearly would significantly slow down the pace of reduction in the debt ratio planned by the government, leaving the country more vulnerable to fiscal shocks,” it said.

The Philippines has imposed VAT on most goods and services since 1988, including essentials such as food and fuel. Raised to 12% from 10% in 2005, it has become a key revenue source, though critics have argued it disproportionately burdens working-class Filipinos.

The DoF said VAT is an important revenue source for the government, accounting for around 26.5% of total tax take and 29.9% of government revenues.

“VAT, as a consumption tax, grows in tandem with the economy, making it one of the most predictable sources of government revenue and, at the same time, one of the most difficult to evade,” the DoF said.

Batangas Rep. Leandro Antonio L. Leviste filed HB No. 4302 in September seeking to lower the VAT rate, arguing the current tax system is “regressive” and should be reduced to make taxation more progressive.

The DoF said the current VAT system is “relatively neutral and slightly progressive” as most of the goods and services purchased and consumed by poorer households are already not subject to VAT.

“The proposed reduction of VAT will benefit higher-income households who have a larger share in formal consumption,” it said, explaining that lower‑income families tend to have only “small shares” of spending subject to the tax. “The richer households will substantially benefit more than the poorer households.”

While the Philippines has the highest VAT rate in Southeast Asia, the DoF said that a reduction in the rate will not automatically make the VAT system more competitive. It noted the Philippines has the lowest VAT efficiency in the region as it provides a significant number of VAT zero-ratings or exemptions to some sectors.

The DoF said the bill is not an “anti-inflation tool” and won’t automatically lower consumer prices.

It also noted that the bill’s provision giving the President the authority to temporarily return the VAT rate to 12% will disrupt the National Government’s fiscal program.

“The proposal will erode revenue stability and predictability… Making (the VAT) rate dependent on the yearly deficit projection of the Development Budget Coordination Committee would mean uncertainty for revenue and cash programming, budget planning and investors’ decisions,” it said.

“The proposed VAT rate increase based on the deficit target breach would also mean business and consumers facing unpredictable tax burdens, higher compliance costs and deterring long-term investments,” it added.

Digital VAT collection nears P7 billion — BIR

REUTERS

By Aubrey Rose A. Inosante, Reporter

THE PHILIPPINE government has collected almost P7 billion from a 12% value-added tax (VAT) on digital services, the Department of Finance said, providing a lift to revenue intake at a time when slower growth and a corruption probe are weighing on collections.

The Bureau of Internal Revenue (BIR) has raised P6.57 billion since the digital VAT took effect in June, based on a document obtained by BusinessWorld.

Of the total, the BIR collected P2.78 billion from nonresident digital service providers as of Oct. 23. 

Meanwhile, final withholding VAT from business-to-business transactions reached P3.79 billion as of Sept. 25 — almost entirely from foreign platforms — with P3.77 billion remitted by private withholding agents and P5.85 million by government agencies,

Under the law, a 12% VAT is now imposed on nonresident digital platforms such as Netflix, Spotify, Amazon and Lazada.

“It likely reflects higher digital consumption in e-commerce, streaming, and online services, improved compliance from platforms now formally registered with the BIR, and tighter monitoring of cross-border service providers,” John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said in a Viber message.

Mr. Rivera noted the tax haul shows the digital economy is becoming a meaningful source of government revenue and is now being treated on par with traditional industries.

“The shift toward cashless payments and online transactions also made digital activity more traceable,” he said.

Former BIR Commissioner Romeo D. Lumagui, Jr. earlier projected the agency will collect P10 billion in VAT from digital services this year, well above the initial P3.62‑billion target.

For 2026, the Marcos administration seeks to collect a P21.37-billion revenue from digital VAT. It is targeting P22.81 billion in digital VAT collection in 2027 and P23.41 billion in 2028.

Analysts said the BIR is on track to reach P10‑billion digital VAT target this year, buoyed by rising technology spending and increasing compliance by nonresident platforms.

Eleanor L. Roque, a tax principal of P&A Grant Thornton, said the BIR has already collected P6.57 billion in the early stages, making the P10-billion target “easily achievable.”

“I think there are still nonresident digital service providers who are still going through the compliance process. There are companies that are still waiting for some clarification on whether they are covered,” she said in a Viber message to BusinessWorld on Thursday.   

Ms. Roque noted that initial “birth pains” such as VAT portal delays were quickly addressed by the agency.

“The digital economy may post slower income growth as a result of taxes they paid for the government. However, the industry is still poised for large growth due to higher activity and spending on technology,” Reinielle Matt M. Erece of Oikonomia Advisory and Research, Inc. said in a Viber message.

Mr. Rivera also added that hitting the P10‑billion goal is “still possible.”

“Strong holiday e-commerce activity could lift collections, but hitting the target will depend on sustained platform compliance and continued digital spending despite recent economic headwinds,” he said.

DICT chief targets to raise digital economy’s share to GDP to 12.5%

A TEACHER checks computers at a school in Manila. _ PHILIPPINE STAR/EDD GUMBAN

THE DEPARTMENT of Information and Communications Technology (DICT) is aiming to increase the share of the digital economy to gross domestic product (GDP) to 12.5% by 2028, by fast-tracking digital infrastructure projects and attracting more hyperscalers to operate in the country.

“We are not settling for linear growth. We are aiming, as the President says, for hyperexponential growth. We are targeting a rocket ship trajectory to 12.5% (of GDP) by 2028,” DICT Secretary Henry Rhoel R. Aguda said during the Pilipinas Conference 2025, a forum hosted by Stratbase ADR Institute, on Thursday.

The digital economy’s contribution to the Philippine economy was little changed at 8.5% in 2024 from 8.6% in 2023. However, its share to GDP has steadily declined from the peak of 9.2% in 2021.

“The Philippines is in a state of digital decline. We are falling behind,” he said.

“Every point we lose is a missed chance for better jobs, higher income, and a future where every Filipino can take part in the digital age.”

According to the Philippine Statistics Authority’s definition, the digital economy is composed of digital transactions covering digital-enabling infrastructure, e-commerce, digital media and content, and government digital services.

Mr. Aguda noted that the Philippines had already missed its opportunity to fully digitalize, and was overtaken by Southeast Asian neighbors like Vietnam, where the digital economy accounts for 18.3% of its GDP, and Malaysia, where the digital economy makes up 23% of GDP.

“While we were comfortable, our neighbors were hungry… While the rest of the ASEAN (Association of Southeast Asian Nations) took advantage of the pandemic to digitize, we did not,” Mr. Aguda said.

The DICT chief said many hyperscalers, or major tech firms that build massive data centers to support cloud computing, artificial intelligence (AI), and high-volume digital workloads, are bypassing the Philippines in its expansion plans.

China and Indonesia are hosting six of the largest hyperscalers, while five are operating in Singapore and Malaysia, he added.

“We are lagging and this has to change,” Mr. Aguda said. “We need to make the Philippines the logical landing point of data in Asia.”

The government has set an ambitious target to increase its data center capacity to at least one gigawatt from the current 200 megawatts, the DICT said earlier.

While the Philippines’ talent pool and location can attract hyperscalers, Mr. Aguda said there is a need to improve connectivity infrastructure and digital adoption. 

“Many of our companies have not adopted digital economy practices. We are still running analog businesses in a very digital world,” he noted. “That is a recipe for obsolescence.”

To achieve this, the DICT said it is cutting red tape to roll out its National Fiber Backbone to ensure free internet access nationwide. It is also looking to drive digital adoption across industries, and is institutionalizing cybersecurity and governance to protect the country’s critical infrastructure.

The DICT is also aiming to boost digital adoption through integrated government services in its eGovPH Super App. It is also looking to support more startups and further push for AI adoption in government, Mr. Aguda said.

“To attract the hyperscalers who have passed us by, we must give them more than just bandwidth. We must give them security and resilience,” Mr. Aguda said.

On the sidelines of the event, Stratbase ADR President Victor Andres “Dindo” C. Manhit emphasized the need to safeguard the country’s cybersecurity.

“As we move into a more digital economy, we need to secure the digital space. If not, the general population, private companies, and government agencies might be vulnerable,” he said.

In 2024 alone, the Philippines recorded 1.8 million cases of on-device cyberattacks against businesses, making it the third-most attacked county in Southeast Asia, according to global cybersecurity firm Kaspersky.

Mr. Manhit said that the country’s young, tech-savvy population could help the Philippines catch up with its neighbors in growing its digital economy.

Meanwhile, Mr. Aguda said he is in talks with the Philippine Stock Exchange (PSE) to ease listing requirements for technology startups.

“We have a lot of tech startups in the Philippines that have been waiting, for the longest time, to be able to raise money in our capital markets,” he told reporters on the sidelines of the forum.

He said that many Philippine tech startups, especially in industries like blockchain and digital wallets, are ripe for public listing.

“If we are able to fix the listing rules — and PSE said it is definitely open — and then we get underwriters to fund the initial public offering… I’m confident that next year, that there’s startups who will list,” Mr. Aguda added. — Beatriz Marie D. Cruz

Major music labels strike deals with new AI streaming service

STOCK PHOTO | Image from Freepik

THE WORLD’S LARGEST music companies have licensed their works to a music startup called Klay, which is building a streaming service that will allow users to remake songs using artificial intelligence (AI) tools.

Klay is the first music AI service to reach a deal with all three major record labels, Universal Music Group NV, Sony Music, and Warner Music Group Corp., according to people familiar with the deals. Klay plans to announce its agreements in the coming days, said the people, who asked not to be identified discussing confidential plans.

Klay is building a product that will offer the features of a streaming service like Spotify, amplified by AI technology that will let users remake songs in different styles. Klay has licensed the rights to thousands of hit songs so that it can train its large language model.

The company has positioned itself as a friend of the industry, offering assurances that the artists and labels will have some control over how their work is used. Klay is led by music producer Ary Attie and also employs former executives from Sony Music and Google’s DeepMind, an AI laboratory.

The music industry has been battling AI companies, alleging illegal use of their songs. The labels sued Suno, Inc. and Udio for copyright infringement, claiming they illegally used their music to train their systems to spit out work that sounds similar.

Music companies know that artists are already using AI tools in producing new songs and are trying to embrace the technology while policing copyrights, which are their most valuable assets. The biggest services in music, including Spotify and YouTube, are also working on AI tools.

The record industry is now in the midst of a dealmaking spree when it comes to AI. Universal Music and Warner Music have both settled their suits against Udio and have licensed their work to the company for a forthcoming product. They have also done deals with Stability AI. None of the major labels has done a deal with Suno, the biggest player in the emerging area of AI music. The company was valued at $2.4 billion in its most recent fundraising. — Bloomberg

Confronting gaps in the Philippine education system

Photo from deped.gov.ph

The country’s education system shows strain across many stages of learning, starting from early childhood and stretching through college. Yet, it remains one of the least supported areas in public policy.

According to the Philippine Statistics Authority, 24 million Filipinos ages 10 to 64 are functionally illiterate. About 5.8 million cannot read or write at a basic level. In 2024, one in five high school graduates reached adulthood without basic reading, writing, arithmetic and comprehension skills.

The World Bank found that 91% of 10-year-old Filipino children struggle to read simple text. The government point to the coronavirus pandemic as part of the reason the problem grew worse.

Despite this, many parents still believe that children under age 5 are “too young” for school. Long distances to child development centers limit access, while many families rely on relatives or older siblings for childcare because at least 40% of parents work away from home.

According to the Second Congressional Commission on Education (EDCOM 2), teachers feel the weight of these early gaps once children reach Grade 3. Many students perform one to two grade levels below what is expected.

Learning camps engaged only 10% of students who needed extra help. Only a little more than half of those targeted completed assessment requirements. Several policies meant to support reading, math and science improvement have been pending since 2023.

Lost learning days also add to the problem, as class suspensions due to weather, local holidays and other disruptions wipe out a large portion of the school year. In some regions, students already missed more than 40 school days. EDCOM 2 link these absences to steep drops in Grade 4 Math and Science performance.

Selective schools like the Philippine Science High School System face capacity limits. Between 2022 and 2025, more than 5,800 students who passed the entrance exam were unable to secure a slot. Private school students passed at higher rates than those from public schools, highlighting concerns about foundational learning differences.

The Department of Education (DepEd) rolled out reforms under the MATATAG curriculum, but schools report delays. As of January 2025, only 35 of 90 needed textbook titles for Grades 4 and 7 reached classrooms.

Program oversight also affects students in arts, journalism, languages, sports, science and technical-vocational tracks. EDCOM 2 reports show that many schools run these programs with unclear guidelines or inconsistent resources.

On the other hand, the Alternative Learning System (ALS), created to help out-of-school youth and adults, has low reach. Out of an estimated 4.9 million out-of-school youth, only around 600,000 enter the program, and only half of those finish. Funding remains at P7 million per region regardless of population size. Many community learning centers operate in makeshift spaces, and several policy guidelines under the ALS Act of 2020 remain pending.

College participation hovers at nearly 35%, which remains below the regional average. The Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) records the lowest participation.

Dropout numbers in higher education remain high, with BARMM recording a 93% attrition rate. Several other regions show dropouts above 50%.

Free tuition under Republic Act No. 10931 helped more families enter college, but the rise in enrollment placed state universities near full capacity. Local universities accept more students, though many offer fewer academic programs.

The Tertiary Education Subsidy adjusted its rules to focus aid on the poorest students. However, reductions in subsidy amounts may limit the courses these students can take, especially those that already have limited slots.

The Commission on Higher Education updates program requirements at long intervals. Reviews often happen once every 11 years. Current policies lean toward a single model focused on research output, even though many schools operate on much smaller scales. Only a small portion of the population enters graduate studies, keeping the country’s research activity below global and regional averages.

Meanwhile, Filipino students ranked among the lowest performers in the Programme for International Student Assessment’s 2022 creative thinking test, scoring an average of 14 points. This figure placed the Philippines in the bottom tier out of 64 participating nations.

Facing resource shortage

Education spending remains at 3.6% of gross domestic product, which falls below the range advised by United Nations Educational, Scientific and Cultural Organization. About 5,000 campuses function without electricity, and around 10,000 have no clean water supply.

In terms of teacher’s competency, 66% of teachers use low to medium-low levels of effective classroom practices, and no teacher reached the high level of effective pedagogy. A World Bank review reported that a high school Math teacher answered only 31% of subject-related questions fully, and about 62% of high school teachers handle classes outside their field of study.

School space issues remain widespread, as the country lacks more than 165,000 classrooms. Urban centers deal with overcrowded rooms, while many rural schools rely on aging buildings that struggle to withstand harsh weather. Only about 30% of public school structures are considered in good condition. To manage space shortages, many campuses use shifting schedules that split students into morning and afternoon groups.

Decades of education reforms

Since 1946, administrations have tried to widen learning opportunities. The 1987 Constitution affirms every learner’s right to quality education, but shortages in funding, teacher development and school facilities continue to slow improvement in classrooms nationwide.

One major measure to close the education gap is the Academic Recovery and Accessible Learning Program Act, or ARAL, which aims to help students who struggle with reading and basic math.

The Education department aims to align its recovery programs with the ARAL Act. A draft policy unifying the National Reading Program and the National Mathematics Program into the P3 framework is under final review to reinforce literacy and numeracy in higher grade levels.

For early childhood education, the Early Childhood Care and Development Systems Act directs local governments to establish their own offices, hire permanent child development staff and upgrade facilities. A joint circular between DepEd and the Department of Budget and Management instructs low-income local governments to set up child development centers.

However, national standards for early learning are still under discussion, and participation is low. Only about 1% of children aged 0 to 2 are enrolled in early learning programs, along with 21% of those aged 3 to 4.

The National Learning Recovery Program stands as the widest effort so far, reaching more than 2.7 million learners across more than 35,000 schools. A separate tutoring initiative, Tara Basa, supported more than 62,000 students across different regions.

With these initiatives, early assessments reported improvements. English reading proficiency grew by 15% among participating learners, while the number needing full intervention fell by 32%. Filipino assessments showed a 25% rise in grade readiness and a 36% drop in those who required a full refresher.

Investments in learning materials also increased. As of October 2024, more than 7 million pieces of science and math equipment, and more than 200,000 technical-vocational tools had been purchased. More than 49 million textbooks for subjects such as Science, Social Studies and Math were also acquired.

Procurement in 2023 and 2024 included more than 22 million pieces of science and math equipment and more than 779,000 units of technical-vocational tools. Textbook and learning material deliveries reached more than 58 million pieces. Packages included assistive laptops for learners with disabilities, along with more than 55,978 information and communication technology packages for schools nationwide.

“Education is not solely the responsibility of one sector,” said Education Secretary Juan Edgardo “Sonny” M. Angara in Filipino. “DepEd acts collectively — together with government agencies, local governments, and the entire community — for the future of the youth.” — Mhicole A. Moral

When cries of resistance seep through the cracks

A look at the 2025 QCShorts International Program 2

By Brontë H. Lacsamana, Reporter

THE QCINEMA International Film Festival’s shorts program this year has expanded to a whopping 26 films, spread out across five sections. In QCShorts International 2, five filmmakers turn their attention to the realities that ignite pockets of resistance — within communities, families, and entire societies.

This specific program, titled “The Center Cannot Hold,” takes its name from Elyn Saks’ 2007 memoir on a tumultuous psychological journey, which in turn is named after a line from William Butler Yeats’ apocalyptic poem “The Second Coming.” Such is the lineage of losing grip on a centered reality, tuning into the voices of people that seek to fight back in the most unlikely of ways.

Besides offering glimpses into unexplored countrysides in Southeast Asia, these five films make up a fragmented yet interconnected — but admittedly overwhelming — experience.

VOX HUMANA
The experience begins with an invitation to listen. The setting is a landscape so dreamlike, with the wind ruffling the leaves in the trees, blowing through stalks of grass on the mountainous terrain. Forceful human voices, a storm of horses galloping in, a man’s nails tracing the rough grit on an old wall — images and sounds interrogate the ties that bind humans with the earth.

Don Eblahan’s poetic narrative, coming home from the Toronto International Film Festival, presents scenes of a futuristic ethnographic endeavor. A sound recordist listens, the authorities watch, the biologist is witness to the power of the indigenous. We can only look and listen to the reckoning amid the disconnect.

WHEN THE BLUES GOES MARCHING IN
This time, there is a straightforward conversation. The voice of a young man relays a harrowing dream to his father, whose experiences are unknown to us, but may possibly be a connecting thread in Indonesia’s history of restless energy, protest, rage, and hope. We see photographs of these events, rendered in blue cyanotype. We hear a student activist’s impassioned protest poem.

Beny Kristia’s personal documentary is intimate but also large in scope, as it traverses one person’s thoughts and feelings inside the larger story of a nation’s attempt to reorient itself. While simple and straightforward, it is a monument to memories of struggle that is full of heart.

A METAMORPHOSIS
A confusing yet intriguing watch is Lin Htet Aung’s lo-fi broadcast that mimics the aesthetics of Myanmar’s state television propaganda. It combines entrancing visuals, like distorted digital images and short fuzzy videos, with an old man’s voice singing a Burmese lullaby.

Coming across as almost eerie, it pulls back a (seemingly unmoving) curtain to unveil the strange liminal spaces that have emerged from a country under dictatorship. Using what has been a nationalist medium, this film fights back creatively, valiantly, though it also has potential as a video installation played on an old box television.

HOY, HOY, INGAT!
A recipient of the QCShorts 2025 grant, Norvin de los Santos’ ode to two siblings clawing their way out of urban poor miseries is the most entertaining and heartwarming short of the bunch. A precocious young girl and her hardworking older brother take a battered family jeepney to go on an adventure, an escape from the hell that is Manila.

Tales about the underprivileged don’t always get to be treated with such pure playfulness and empathy. In a world where the metropolis is forever under construction, the slums and jeepneys under threat of being swept away in favor of large commercial developments, Bhing and Baby’s story is a little dream that is worth seeing.

SI KARA: ANG BABAYE NGA NAG DABA-DABA
Set in Bacolod, Dale’s absurd comedy is another recipient of the QCShorts 2025 grant. It’s a showcase of what cinema out of Negros Occidental can offer, as the character of Kara undergoes a series of trials where the heat built up in her body becomes so unbearable the changes in her lifestyle and environment ramp up. It’s a riot to watch, as toxic pink human gases poison the rivers and rumble in the mountains.

Many of it is lowbrow humor, for sure, with endless poop and fart jokes. But a lot is expressed — the neon painted people in a club dancing to budots and the motionless body of Kara in a boiling-hot room — all reflecting a fever dream that has gripped Filipinos. Contending with a climate that grows hotter and a social landscape that grows more chaotic day by day, this short concludes a strong set that truly presents how people can resist larger forces with images imagined.

QCShorts International 2 is screening on Nov. 21, 3:45 p.m., at Fisher Mall, and 9:20 p.m., at Gateway 2.

Stuff to Do (11/21/25)

Listen to carols at The Peninsula

THE Peninsula Manila celebrates Christmas in November with some of Manila’s finest choirs performing in The Lobby. Performing on Nov. 21 is the Servus Dei Vocal Ensemble. The carol-filled month will end with the Mapúa Cardinal Singers on Nov. 28. The performances will take place from 7 to 7:45 p.m. on those dates, with P1,500 as the minimum consumption amount for each guest who dines at The Lobby.

Go to the Modified Signals concert at The M

AS PART of the experimental sound scene, Jigger Cruz, Seething Mass (Arvin Nogueras + Maia Reyes), and Pow Martinez are converging for a night of original compositions and improvised collisions on Nov. 22 at The Metropolitan Museum of the Philippines (also known as The M), at 30th St., BGC, Taguig. Through a hybrid mix of synthesizers, drum machines, and analog tools, the artists will “sculpt an atmosphere that slips between clarity and distortion, with interplay between machine-driven precision and human expression.” The night begins at 6 p.m. Ticket details can be found at The Metropolitan Museum of Manila’s site and pages. The concert coincides with Jigger Cruz’s ongoing mid-career exhibit, Hail Holy Eyes, at The M.

See Teatro Meron stage Ang Medea

TEATRO MERON is presenting Ang Medea, a restaging of Euripides’ classic, translated into Filipino by the late National Artist for Theater Rolando S. Tinio. Fresh from last year’s sold-out run, this production returns with a cast of theater veterans led by Miren Alvarez-Fabregas as Medea, with Teroy Guzman, Yan Yuzon, Bryan Sy, Joseph dela Cruz, Katski Flores, Gold Soon, Pickles Leonidas, and Joel Macaventa. The director is Ron Capinding, founder and artistic director of Teatro Meron. Performances run until Nov. 28 at the Special Exhibition Hall of The Mind Museum, Bonifacio Global City. Tickets and schedules are available via Ticket2Me.

Enjoy Dulaang UP’s twin bill

A TWIN BILL, titled Para Kay Tony: Tungo sa Ginintuang Alaala, featuring classic plays will pay homage to Dulaang UP founder and National Artist for Theater Antonio “Tony” Mabesa. The first half is a staging of Kalahating Oras sa Isang Kumbento by Filipino playwright Wilfrido Ma. Guerrero as translated by Lilia F. Antonio. The story follows Yolanda, a student at a convent school, who seeks comfort and companionship after being expelled. University of the Philippines (UP) Diliman Theatre Arts student Lloyd Sarmiento Uy serves as director. The second play features National Artist Rolando Tinio’s May Katwiran ang Katwiran, about Senyor, a wealthy haciendero who persuades his servant to join him on a journey across the mountains. The staging is directed by Theatre Arts student MJ Briones. The production runs until Nov. 30 at the IBG-KAL Theater, UP Diliman.

Have a family-friendly evening at the theater

MANY YEARS AFTER Chitty Chitty Bang Bang in 2017, Newport World Resorts’ production company, Full House Theater Company, has returned to family-oriented productions with Shrek The Musical at the Newport Performing Arts Theater. Younger audiences will delight in the slapstick antics and fairytale creatures, while older viewers catch the clever writing, sly wordplay, and lessons embedded in the story. This allows the show to resonate as a true family experience. The musical stars Jaime Wilson as Shrek and Topper Fabregas as Donkey. Shrek The Musical is based on the DreamWorks Animation Motion Picture and the book by William Steig. It features book and lyrics by David Lindsay-Abaire and music by Jeanine Tesori. Tickets are available at Ticketworld, Newport World Resorts Box Office, and Helixpay. They range in price from P1,500 to P4,500. For inquiries, contact Customer Care at 7908-8888 or info@fhtcentertainment.com.

Rock on with Janno Gibbs

CITY OF DREAMS MANILA’S CenterPlay turns the spotlight on multi-hyphenate artist Janno Gibbs who is set to perform on Nov. 26 at 9 p.m. The singer, songwriter, actor, and comedian is performing for the second time at the CenterPlay Concert Series, which features some of the best of the local OPM (Original Pilipino Music) scene. Mr. Gibbs is behind notable hit songs including “Fallin,” “Binibini,” “Pinakamagandang Lalaki,” “Ipagpatawad Mo,” and “Sana Dalawa Ang Puso Ko,” among many other hit songs. The concert also highlights performances from bands Highschool Playlist and Le Chic as well as from a DJ who are set to perform alternately from 7 p.m. to 2 a.m. Janno Gibbs Live at CenterPlay will be followed by Ariel Rivera on Dec. 3 and Jaya on Dec. 17. Guests can reserve a seat or a table with consumables starting at P3,000. VIP couch seats for a party of eight, and smaller seatings are also available. For reservations and information, call 8800-8080 or e-mail guestservices@cod-manila.com, or visit https://www.cityofdreamsmanila.com/en/whats-on/concert-series.

Watch TP’s musical on Gregoria de Jesus

TANGHALANG PILIPINO’S (TP) newest production for its 39th season is a groundbreaking original musical that reimagines the life of revolutionary Gregoria de Jesus through the sound of Pinoy pop music. With music by Nica del Rosario and Matthew Chang, and a book by Nicanor Tiongson and Eljay Deldoc, the show stars Marynor Madamesila and is directed by Delphine Buencamino. It is ongoing until Dec. 14, with performances at 3 and 8 p.m., at the Tanghalang Ignacio Gimenez (CCP Black Box Theater), CCP Complex, Pasay City. VIP tickets cost P2,000 while regular tickets are P1,800.

Watch a French film or two

THE 28th edition of the French Film Festival, Manila’s annual rendezvous for lovers of global cinema, will take place from Nov. 24 to 30 at SM Aura and SM City Manila Cinemas. The festival is a presentation of the Embassy of France in the Philippines and Micronesia in partnership with SM Supermalls and SM Cinema. This year’s selection spans newly released features, beloved classics, animated titles, and cross-cultural collaborations. Films include: Partir un jour by Amélie Bonnin (2025), 13 jours 13 nuits by Martin Bourboulon (2025), La Petite Dernière by Hafsia Herzi (2025), Coutures by Alice Winocour (2026), Elsewhere at Night by Marianne Métivier (2025), Dracula by Luc Besson (2025), La Plus Précieuse des Marchandises by Michel Hazanavicius (2024), Le Roi et l’Oiseau by Paul Grimault (1980), Le Pharaon by Michel Ocelot (2022), Call My Agent (Erik Matti), and Dix pour cent (Cédric Klapisch). In partnership with the Animation Council of the Philippines, audiences can look forward to Animahenasyon (Nov. 25-26) at the Samsung Hall, SM Aura, featuring screenings, talks, and an awards night celebrating the vibrancy of animated filmmaking. The Festival is also hosting a two-day Co-Production Conference on Nov. 27-28 at the SMX Convention Center, SM Aura, in partnership with the Film Development Council of the Philippines and France’s National Center for Cinema and Animation. The conference will gather French and Filipino producers, directors, and industry experts, fostering new creative relationships and future film projects. Screenings continue from Dec. 1-6 at the Alliance Française de Manille, with special programs also held at UPFI (Nov. 25-26) and Benilde School of Design and Arts (Nov. 28). For the 28th French Film Festival screenings, at SM Aura and SM City Manila, admission is free. For schedules and information on the festival events, visit the French Embassy’s Facebook page: https://www.facebook.com/FrenchEmbassyPH.

Solving the woes of Philippine education through PPPs

Photo from deped.gov.ph

A Filipino adage dubs education as the greatest inheritance a parent can give to their child. Such is the importance of learning in the Philippines, where it is a right and where the government is mandated to ensure its accessibility and quality for all its citizens.

However, recent controversies have left much to be desired in the sector. Data from the Philippine Statistics Authority in April showed that while over 90% of Filipinos can read and write, just 70% can comprehend what they read. Furthermore, the Department of Education’s (DepEd) classroom backlog currently stands at an estimated 148,000, based on the latest data shared by the department. Further inflating the issue is the masses’ current public distrust of government institutions.

Given these challenges, exploring the role of public-private partnerships (PPPs) becomes all the more crucial in seeking ways to improve the current Philippine education system. DepEd Secretary Juan Edgardo “Sonny” M. Angara hinted at such solutions as the key to addressing the perennial problem of classroom backlogs.

“Ang tinutulak natin ngayon is mag-PPP tayo, public-private partnerships. Ibig sabihin, malakihan, bulto-bulto, 1,000 classrooms. Magpapa-bid tayo ng isang libong school buildings at i-o-offer natin sa private sector na magko-construct. (What we are pushing for now is to do public-private partnerships. This means large-scale, in bulk — 1,000 classrooms. We will [also] put 1,000 school buildings up for bidding and offer them to the private sector to construct),” Mr. Angara said in a statement.

With limited resources and a protracted classroom shortage, the Education Secretary likewise called for increased awareness on the Adopt-A-School Program, underscoring the law’s tax benefits to the adopting company or enterprise.

“Baka hindi alam noong ibang negosyante o ibang nagdo-donate, ibang charitable organizations, ipaalam niyo sa kanila na kapag nagdo-donate sila ng school building, maide-deduct nila doon sa kanilang taxable income. (Some businessmen or other donors, other charitable organizations, might not know this — inform them that when they donate a school building, they can deduct it from their taxable income),” Mr. Angara also noted.

“Marami lang hindi nakakaalam na may batas na ganoon. So, with the help of the community, sana maipaalam natin sa kanila. (Many just don’t know that such a law exists. So with the help of the community, hopefully we can make them aware of it),” he added.

Aside from the Adopt-A-School Program, another PPP program being eyed by the agency is the leasing of idle private school buildings abandoned during the pandemic. Mr. Angara recently mentioned his work with property developers and other government agencies in identifying campuses that can be leased and converted into temporary classrooms.

“We need to think creatively if we want to move fast,” he said. “Kung may mga paaralan at gusaling nakatengga at maaari namang magamit, buksan natin ito para sa mga kabataang nangangailangan ngayon.” (If there are schools and buildings that are idle and could be used, let’s open them for the young people who are in need right now.)

Beyond current projects, the DepEd recently released its Quality Education Development Plan 2025-2035, where it defined PPPs as a lever the department can use to “enhance innovation and access to resources and expertise.” The education agency added that combining the government’s extensive reach with the private sector’s agility and innovation enables the delivery of more effective and efficient educational solutions.

Additionally, the document revealed several areas ripe for potential PPP collaborations with the DepEd, including expanding voucher programs, leasing private properties, improving school digitization, and constructing classrooms in schools with overcrowded populations and inadequate facilities. Similarly, the agency’s reform team is also mulling the feasibility of using PPPs for other basic education elements like digitalization for modern schools and classrooms.

In the past, PPPs have resulted in significant improvements in the education sector that have benefited thousands of students over the years. One such endeavor is the successful implementation of the PPP School Infrastructure Project (PSIP) in 2012 and 2013, which built nearly 12,000 classrooms, benefitted 400,000 learners, and generated 11,000 local jobs.

PSIP provides a framework and key insights that can guide stronger implementation of future PPP initiatives. The upcoming phase of PPPs for classroom construction is expected to introduce additional features, including the provision of digital learning devices for teachers and students, enhanced internet connectivity, and the adoption of solar power in schools to ensure classrooms are equipped for the future.

PPPs have worked wonders in various sectors in the Philippines, improving transportation, infrastructure, and other areas of the country. As the education sector seeks long-term, sustainable growth and reforms, leveraging these collaborations could be the catalyst that finally bridges gaps in access, quality, and equity for Filipino learners. ­— Jomarc Angelo M. Corpuz

Megawide raises P3 billion in oversubscribed follow-on offering

MEGAWIDE.COM.PH

MEGAWIDE Construction Corp. raised P3 billion from its Series 7 preferred shares follow-on offering, which was oversubscribed 2.3 times, signaling investor confidence in the company’s expansion plans, its president said.

“The listing of our oversubscribed Series 7 preferred shares is a powerful vote of confidence and empowers us to pursue high-impact projects — projects that are real, deliverable, high quality, and capable of uplifting communities and our Philippine economy,” Megawide President and Chief Executive Officer Edgar B. Saavedra said in a statement on Thursday.

The public offer period ran from Oct. 30 to Nov. 10. Completed bids consisted of P1.16 billion for Series 7A and P1.84 billion for Series 7B, with final rates of 7.3131% and 7.7007%, respectively.

RCBC Capital Corp., SB Capital Investment Corp., and PNB Capital and Investment Corp. served as joint issue managers, joint lead underwriters, and joint bookrunners for the exercise.

Proceeds from the offering will be used to refinance maturing Series 2B preferred shares, while the oversubscribed portion will fund other corporate requirements and growth initiatives, including participation in the government’s Pambansang Pabahay Para sa Pilipino (4PH) program, the company said.

Megawide cited its precast technology and construction expertise as key to addressing the demand for socialized housing.

“Megawide is entering an exciting new chapter as we are building a more resilient, stable, and sustainable value story for our shareholders,” Mr. Saavedra said. “Our order book is nearing P50 billion and our financial position continues to strengthen — with our consolidated debt-to-equity ratio improving to 1.86x and 1.42x at the parent level after recent deleveraging. These gains put us in a strong position for long-term growth.”

The company has also been actively retiring short-term debt, with approximately P10 billion already settled to enhance leverage, liquidity, and profitability, the company noted.

Sought for comment, Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said Megawide’s follow-on offering reflects strong investor confidence in the company’s long-term strategy.

“Overall, the follow-on offering supports Megawide’s transformation into a more resilient, growth-oriented infrastructure player: it is retiring legacy debt, investing in scalable projects, and putting in place a financing structure that balances risk and return,” he said in a phone message.

Over the years, Megawide has been a key government partner in public infrastructure, including projects such as public-school classrooms, Mactan-Cebu International Airport, Parañaque Integrated Terminal Exchange, and Clark International Airport. The company is also involved in ongoing packages for the Malolos-Clark Railway and Metro Manila Subway.

Megawide earlier said it is on track to exceed the previous year’s performance, with nine-month 2025 net income already reaching 92% of full-year 2024.

At the local bourse, shares in the company closed 11 centavos, or 3.99% higher, at P2.87 apiece. — Ashley Erika O. Jose

PHINMA Hospitality to add 350 rooms across Pasay, Bacolod and Davao hotels

PHINMA.COM.PH

PHINMA HOSPITALITY, Inc., the hospitality arm of Del Rosario-led PHINMA Corp., plans to add 350 rooms across its hotel properties in Pasay, Bacolod, and Davao starting next year.

“With regards to the number of rooms, in (Microtel) Mall of Asia, we’re adding 100. In terms of the franchises that we have, I think (Tryp) Samal will be about another 100 rooms, while Tryp Bacolod will have about 150,” PHINMA Corp. Investor Relations Officer Kara A. Albert told a media briefing on Tuesday.

The 150-room TRYP by Wyndham Hotel will be located within Saludad, PHINMA’s 21-hectare mixed-use development in Bacolod City. The company is set to break ground for the hotel in the coming months.

TRYP by Wyndham Samal, a joint project by PHINMA Microtel Hotels and Damosa Land, Inc. (DLI), is a six-storey hotel along the coast of Samal Island, Davao del Norte.

Construction of the 100-room hotel is slated for completion by 2028, DLI said earlier.

Meanwhile, Microtel by Wyndham Mall of Asia, which opened in 2010, serves business and leisure visitors in the Bay Area.

PHINMA’s hospitality arm, which comprises Coral Way City Hotel Corp., PHINMA Hospitality, Inc., and PHINMA Microtel Hotels, Inc., posted combined revenues of P374.51 million and a net loss of P21.06 million in the first nine months.

The company recorded lower occupancy due to ongoing expansion at Microtel Mall of Asia, while fewer tourist arrivals affected other hotel properties.

The dip was partly offset by sustained bookings from leisure, corporate, and meetings, incentives, conferences, and exhibitions (MICE) markets, PHINMA said.

EDUCATION
Following the completion of its 10-storey Horizon University building in West Java, PHINMA Education Holdings, Inc. said its expansion efforts in East Java are progressing.

“I think the negotiation is underway. In fact, it’s already in the advanced stage. So we are looking to close — finalize this expansion, if not at the end of this year, perhaps early next year,” PHINMA Corp. Vice-President and Treasurer Nanette P. Villalobos said during a briefing on Tuesday.

The company recently increased student capacity at Horizon University Indonesia in West Java by 7,000 to nearly 10,000.

“We’re very excited with these new investments in Indonesia. So we’re going to be with the same partner, Triputra, and still under the Horizon University of Indonesia,” Ms. Villalobos added.

PHINMA 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.

PHINMA Senior Portfolio Manager Andre F. Ramirez said while the company recognizes Vietnam and East Java as important markets, it is waiting to secure the right local partners before pursuing opportunities there.

“I think we’re being very strategic with how we look at things. When we look at the Philippines, we’re not anywhere near a saturation level, so that will continue to be the primary focus, especially for the education unit. When we look at Vietnam and East Java, we see these as crucial markets that we continue to monitor, but we have to make sure we have the right partners in place for this,” he said.

In August, PHINMA Education said it aims to expand into Vietnam by 2027 to widen its international presence.

“In terms of [other] expansion plans, I think we’ll continue to see a lot of organic growth out of our schools, but also taking a look at maybe some inorganic opportunities as they come,” Mr. Ramirez added.

PHINMA Corp. reported a net loss of P216.45 million in the first nine months, driven by weaker results in its property, construction materials, and hospitality businesses.

PHINMA shares were last traded on Nov. 19, unchanged at P16.38 per share. — Beatriz Marie D. Cruz and Alexandria Grace C. Magno

Stranger Things creators elevate creative elements for final season

LOS ANGELES — Matt and Ross Duffer, the twin directors known as The Duffer Brothers, have pushed to raise the stakes with each season of Stranger Things, a strategy they say is crucial as the series heads into its fifth and final chapter.

The last season of the science fiction series premieres on Nov. 26, and will be released in three parts on Netflix.

“We sort of modeled it (Stranger Things) after Game of Thrones. We like the idea of scaling out or scaling up in sort of the way that movie sequels would,” Matt told Reuters.

One of the things that the brothers wanted to take to the next level in the acclaimed series is having bigger visual effects each season.

However, more importantly for them, it is the story and characters that continue to entice audiences.

“People have a real connection to these characters; they’ve been with us on this journey for 10 years now,” Ross said.

“People are going to want to see it (Stranger Things) come to its conclusion,” he added.

Season 5 of the series stars Millie Bobby Brown as Eleven along with Winona Ryder as Joyce Byers, David Harbour as Jim Hopper and other cast members that reprise their roles from previous seasons.

To cap off the series, the Duffer Brothers will debut the Stranger Things finale in theaters on Dec. 31, with screenings in more than 350 locations across the US and Canada.

The co-creators are excited for fans to connect in a new way as they say goodbye to the series in front of the big screen.

For British actor Millie Bobby Brown, who played the main character since she was 12 years old, finishing the final season was “emotional” and “nostalgic” for her and her co-stars.

“The last day we were very present though. It was a very sweet day,” the Damsel actor said.

While it may be a farewell to the original Stranger Things series, Ms. Brown is fully up for more science fiction roles in the future.

“It (Stranger Things) has only excited me to step more into that world,” she said. “I never say no until I read a script,” she added.

Matt and Ross Duffer announced the launch of Upside Down Pictures in 2022, marking an overall deal with Netflix that will also include a live-action Stranger Things spin-off series.

The franchise has also spawned the Tony-winning Broadway play, Stranger Things: First Shadow, as well as video games, cosplay, in-person immersive experiences and merchandise licensing deals.

The final season of Stranger Things was delayed by dual Hollywood strikes in 2023. — Reuters

DigiPlus: Internal funds sufficient for IEC deal

International Entertainment Corp. (IEC) owns and operates the New Coast Hotel Manila, previously known as the New World Hotel Manila, with 96 gaming tables, 495 slot machines, and other gaming amenities.

DIGIPLUS Interactive Corp., the listed digital entertainment firm behind BingoPlus, ArenaPlus, and GameZone, said it intends to use internal funds for its potential controlling stake acquisition of Hong Kong-listed International Entertainment Corp. (IEC), while remaining open to short-term financing if necessary.

“We do expect that we have sufficient internal funds, but if we need it, we can also explore some short-term financing,” DigiPlus President Tsui Kin Ming told reporters on Wednesday.

Earlier this week, DigiPlus Chairman Eusebio H. Tanco said the company signed a convertible notes agreement granting it the rights to acquire a controlling stake in IEC, the owner and operator of New Coast Hotel Manila, an integrated hotel and casino complex.

The subscription for convertible notes totals HK$1.6 billion (around P12 billion) and will be issued in two tranches. The first tranche, worth HK$800 million, will be completed upon satisfaction of customary conditions, while the second tranche will follow within three months, subject to mutually agreed terms.

DigiPlus expects to complete the arrangement with IEC within eight to nine weeks, Mr. Tsui said, adding that IEC shareholders must approve the agreement and obtain clearance from the Securities and Futures Commission of Hong Kong and the Hong Kong Stock Exchange.

The first payment is projected by January, while the second will be in April, he said.

“At the same time we also have to obtain approval from PCC (Philippine Competition Commission) for the acquisitions. That might take maybe six to nine months, we still don’t know what the time is on that one. So, until we finish the payment and the approval process then we can consider converting,” Mr. Tsui added.

IEC owns and operates the New Coast Hotel Manila, previously known as the New World Hotel Manila, with 96 gaming tables, 495 slot machines, and other gaming amenities.

For Mr. Tsui, acquiring IEC would further expand DigiPlus’ presence in the mass gaming market in the Philippines.

“We see the competition in the entertainment city is getting very intense and the growth rate is kind of declining as well. We think that if we position ourselves in the Malate area, we could achieve much stronger growth because there’s only one casino or integrated resort in that area,” he said.

“Of course, the cost of investment is much lower to enter into a land-based casino in the Malate area versus anyone else in the entertainment city. It will cost at least $1 billion or more for the entire complex in the entertainment city. So, I think that’s why we decided to go with IEC because we will have a chance to own the majority ownership.”

DigiPlus said it is not actively pursuing a dual listing on the Hong Kong Stock Exchange but remains open to courting international investors and weighing the strategic advantages of an overseas listing.

For the third quarter, DigiPlus reported net income attributable to the parent company of P1.71 billion, down 51% from P3.52 billion in the same period last year.

At the local bourse on Thursday, shares in the company closed 30 centavos, or 1.11% lower, at P26.70 apiece. — Ashley Erika O. Jose

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