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Yields on BSP’s term deposits continue to drop

BW FILE PHOTO

YIELDS on the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) fell on Tuesday, even as the offer went undersubscribed, as the market continued to price in expectations of further monetary easing,

The 10-day term deposits fetched just P76.657 billion in tenders on Tuesday, below the P80 billion on offer. This was also well below the P171.256 billion in bids for the P80 billion in six-day papers auctioned off on Dec. 17.

The central bank only accepted P72.657 billion in bids. The TDF tenor offered this week was adjusted from the usual seven-day term and the auction was held on a Tuesday instead of Wednesday due to upcoming holidays.

Accepted yields for the 10-day deposits ranged from 4.44% to 4.55%, wider than the 4.4515% to 4.55% band seen in the previous auction. With this, the average rate of the papers went down by 2.14 basis points (bps) to 4.5076% from 4.529% last week.

“The 10-day term deposit facility rate declined further,” the central bank said in a statement. “The BSP maintained the offer volume at P80 billion, while total tenders reached P76.7 billion, resulting in a bid-to-cover ratio of 0.96x.”

This was lower than the bid-to-cover ratio of 2.14x logged a week ago.

The central bank has not offered the 14-day term deposit tenor for two months. It last offered both the one- and two-week papers on Oct. 29.

Also, it has not auctioned off 28-day term deposits for over five years to give way to its weekly offerings of securities with the same tenor.

Both the TDF and BSP bills are used by the central bank to mop up excess liquidity in the financial system and better guide market yields towards the policy rate.

“The BSP TDF auction yield was again slightly lower after recent dovish signals on possibly one more 25-bp BSP rate cut in 2026, especially if economic recovery takes longer,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The market also priced in bets on further easing by the US Federal Reserve, he said, adding that demand was weaker amid a decline in market activity before the holidays.

On Dec. 11, the Monetary Board delivered a fifth straight 25-bp cut to bring the policy rate to an over three-year low of 4.5%. It has now slashed benchmark interest rates by 200 bps since August 2024.

BSP Governor Eli M. Remolona, Jr. said benign inflation gives them room to help support weak domestic demand amid lingering governance concerns that have affected investments, but stressed that they are nearing the end of their easing cycle.

He left the door open to one final 25-bp cut next year as economic prospects have darkened further, with the slowdown in third-quarter growth likely to extend to this quarter and with recovery seen to start only by the second half of 2026.

The Monetary Board will hold its first meeting for 2026 in February.

Meanwhile, the Fed’s rate cut this month brought the target range for US benchmark short-term borrowing costs to 3.5%-3.75%, in the upper range of policymakers’ estimates for a neutral level that neither boosts nor brakes the economy, Reuters reported.

About a third of the central bank’s 19 policymakers felt the rate cut was unnecessary, based on projections published by the Fed at the time.

Mr. Ricafort added that signals of a potential cut in big banks’ reserve requirement ratio (RRR) also helped bring down TDF yields as this would infuse more liquidity into the financial system.

Mr. Remolona earlier said they could bring down universal and commercial banks’ RRR by 300 bps next year, which would bring the ratio to 2% from the current 5%. — Katherine K. Chan

San Miguel lists P5.7-B fixed-rate notes on PDEx

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ANG-LED conglomerate San Miguel Corp. (SMC) listed its P5.7-billion fixed-rate notes issuance on the Philippine Dealing & Exchange Corp. (PDEx) as part of its funding initiatives.

“The 3-year fixed-rate notes will have a fixed interest rate equivalent to 6.3000% per annum, and have been enrolled with the Philippine Dealing & Exchange Corp. on the issue date, December 23, 2025,” the company said in a disclosure on Tuesday.

Proceeds from the issuance will be used for refinancing and redenominating the company’s US dollar obligations, for general corporate purposes, and for paying fees and expenses related to the issuance.

In its Nov. 13 disclosure, SMC said the notes are exempt from Securities and Exchange Commission registration requirements, as they are offered exclusively to qualified institutional buyers.

“The notes will be issued within December 2025 in scripless form, in minimum denominations of P5 million each, and in integral multiples of P1 million thereafter, with a tenor of 3 years,” the company added.

SMC shares were unchanged at P84 apiece on Tuesday. — Alexandria Grace C. Magno

A Simbang Gabi-inspired cocktail

SIMBANG GABI Cocktail by Quezon Club Head Bartender Martin Protacio.

SIMBANG GABI, the devotional nine-day novena of dawn Holy Masses attended by Catholics in anticipation of Christmas, has become a distinct Filipino tradition of faith.

This holiday season, beverage specialist Martin Ben Protacio was inspired by this profound religious-cultural experience and sense of community to come up with a festive, deep-purple highball dubbed as Noche Buena Star.

For this original after-dinner drink, the Hospitality Management graduate from the De La Salle-College of Saint Benilde (DLS-CSB) School of Hotel, Restaurant, and Institution Management blends the warm, comforting spirit of dark rum with a custom ube horchata — a fusion of Filipino purple yam and a milky rice drink. This is then garnished with grated Quezo de Bola, which adds a necessary salty-tangy counterpoint. The result is a creamy, earthy, spiced, and subtly sweet mix finished with a delightful savory-salty kick.

Mr. Protacio is currently the head bartender of Quezon Club at Solaire Resort North.

NOCHE BUENA STAR COCKTAIL
INGREDIENTS

45 ml Dark Rum

Ube Horchata

Grated Quezo de Bola

• For Ube Horchata:

1 cup Uncooked white rice

3 to 4 cups Water (for soaking the rice)

1 cup Evaporated milk

½ cup Condensed milk (adjust to taste)

2 to 3 drops Ube extract (start small)

½ teaspoon Vanilla extract (optional)

¼ teaspoon Ground cinnamon or cinnamon syrup (optional)

Ice (for serving)

PROCEDURE FOR UBE HORCHATA:
1. Rinse the rice thoroughly. Combine with water and soak for several hours or overnight to soften.

2. Transfer the soaked rice with the water into a blender. Blend until the mixture is fine.

3. Strain the mixture using a fine mesh strainer or cheesecloth to remove solids. Discard the rice pulp.

4. Add evaporated milk, condensed milk, ube extract, and the optional vanilla extract. Stir or blend again until well combined.

5. Taste and adjust sweetness or ube flavor as needed.

6. Chill in the refrigerator.

PROCEDURE FOR NOCHE BUENA STAR:
1. Add ice to a chilled highball glass.

2. Grate some Quezo de Bola.

3. Apply the cheese on the rim of the glass.

4. Add 45 ml of dark rum.

5. Top it with the Ube Horchata.

6. Serve.

Transfers via InstaPay, PESONet hit P22 trillion

ANASTASIA NELEN–UNSPLASH

TRANSACTIONS made via InstaPay and PESONet breached P22 trillion at end-November as more Filipinos used digital finance platforms.

The combined value of InstaPay and PESONet transactions surged by 41.15% to P22.054 trillion as of November from P15.624 trillion a year ago, the latest Bangko Sentral ng Pilipinas (BSP) data showed.

The volume of transactions made via the two clearing houses more than tripled (203.6%) year on year to 4.065 billion in the January-to-November period from 1.339 billion.

Broken down, the value of InstaPay transactions jumped by 56.18% to P10.209 trillion in the first 11 months of 2025 from P6.537 trillion in the previous year.

The volume of transactions coursed through the payment gateway was at 3.958 billion at end-November, more than triple (217.39%) the 1.247 billion a year earlier.

Meanwhile, the value of transactions done on PESONet also rose by 30.35% to P11.845 trillion in the 11-month period from P9.087 trillion in the previous year.

In terms of volume, transfers made via the clearing house climbed by 16.19% year on year to 106.626 million from 91.772 million.

InstaPay and PESONet are automated clearing houses under the central bank’s National Retail Payment System framework.

InstaPay is a real-time, low-value electronic fund transfer facility for transactions up to P50,000 and is mostly used for remittances and e-commerce.

Meanwhile, PESONet is mainly used for high-value transactions and may be considered as an electronic alternative to paper-based checks.

The BSP wants digital payments to account for 60%-70% of the total volume of retail payments by 2028, in line with the Philippine Development Plan.

The share of online payments in monthly retail transactions stood at 57.4% in terms of volume and 59% in value terms in 2024, according to the BSP’s 2024 Status of Digital Payments in the Philippines report.

These are up from 52.8% and 55.3%, respectively, in 2023. — Katherine K. Chan

Balai Ni Fruitas redirects IPO proceeds to immediate expansion needs

PHILSTAR FILE PHOTO

LISTED counter-service bakery operator Balai Ni Fruitas, Inc. has reallocated proceeds from its July 2022 initial public offering (IPO) to fund its near-term expansion plans.

In a regulatory filing on Tuesday, the company said its board of directors approved the reallocation of IPO proceeds totaling P203.8 million.

The funds were previously earmarked for expanding its store network, setting up a commissary, and pursuing potential acquisition opportunities.

Under the revised allocation, the commissary setup fund was increased to P112 million from P110 million, while the allocations for store network expansion and store improvement were raised to P76.8 million from P73.8 million, sourced from the “Introduction of new concepts” and potential acquisitions.

“The management determines that such reallocation is necessary to fulfill its near-term requirements for expansion,” the company said.

Balai Ni Fruitas operates food and beverage brands including Buko Ni Fruitas, Fruitas House of Desserts, and Balai Pandesal. It is a wholly owned subsidiary of Fruitas Holdings.

Shares of Balai Ni Fruitas fell 2.99% to 0.325 centavos apiece on Tuesday. — Alexandria Grace C. Magno

Christmas the whole year through

PHILIPPINE STAR/MIGUEL DE GUZMAN

It can be Christmas the whole year through for those who are real followers of Christ and believe in his teachings. This can be discerned from my favorite Christmas carol which is “Joy to the World.” The words do not only convey the truth that a Christian can thoroughly enjoy his stay on earth if he is really a faithful follower of Christ, the very melody is so uplifting that one can really feel the joy of living. Other Christmas carols — also very inspiring (like “Silent Night” or “O Little Town of Bethlehem”) — are too somber and don’t make you jump for joy.

“Joy to the World” reminds us that since Jesus came to the world to save us from the only evil — which is sin — God has restored His original plan when He created our first parents to be happy in Paradise. That means that we should find our happiness first on Earth. No one can expect to go to Heaven if he or she does not have a joyful existence on Earth. It is a doctrinal error for some Christians to believe that we must go through hell (spending our time on Earth always in suffering and pain in a so-called valley of tears) in order to be able to win the eternal bliss in Heaven. In fact, someone who is not happy on Earth cannot expect to go to Heaven.

The key here is to equate joy with love. God is Love itself. The way to God is Love in all its forms.

First, there is what the Greeks called Storge or affection. This is the most natural and common love. It is instinctive: one does not have to make an effort to love with affection. It is found, for example, in families, such as the love of parents for children and vice versa. Affectionate love is warm, familiar, and humble, often growing quietly from daily life and shared experiences. It can also apply analogously to affection to other worldly creatures since everything God created is good and lovable. One can say, “I love adobo,” “I love Boracay,” “I love Kitty, my pet cat,” “I love the moon and the stars,” etc., etc. All these forms of love for God’s creatures, both human and non-human give us joy, although quite fleeting.

A more enduring joy can be found in what the Greeks called Philia or friendship. In his book The Four Loves, the writer C. S. Lewis considers it one of the least emphasized but most rewarding forms of love. It is the love between friends who share common interests, values, or pursuits. It is based on mutual respect and companionship. It is not driven by necessity or biology but by freely chosen connection. This connection is normally based on shared experiences. For example, some of our lifelong friends were our classmates in grade school, high school, or college. We nurture friendship with those who share with us the same interests in sports (like golf, tennis, running, mountain climbing); or some common hobbies like gardening or stamp collecting; or common professions or occupations. Spending time with friends is one of our most enjoyable moments.

In fact, the reverse is true: having no friends or being lonely is today, especially in highly economically developed countries like the US, considered the leading human sickness or disease. It is alarming to see loneliness as a leading reason for people committing suicide. This is especially true in societies where the family as the foundation of society has broken down because of widespread divorce, single parenthood, or voluntary childlessness.

The third form of love is called Eros in Greek or Romantic Love. This form of love is more than sexual desire. This is “being in love with the entire person.” The focus is on the entire person. If the focus is only on the sexual pleasure one can derive with the partner of the opposite sex, it is not romantic love but lust, the so-called concupiscence of the flesh according to St. John the Evangelist. The culmination of romantic love is marital love between a man and a woman joined in an indissoluble union (as Pope Leo XIV recently reminded Catholics) whose primary purpose the procreation of children. Married people in a stable marriage can attest to the fact that marital love produces one of the highest forms of human joy, including, of course, the love for the ensuing children. The negation of this truth about marriage and procreation in many modern societies has led to the tragedy of rapid population decline and the subsequent ageing of the population which is wreaking havoc on countries like Japan, Spain, and South Korea, not excepting even modern China. We often hear the billionaire Elon Musk lament that the greatest obstacle to economic progress today is the rapid depopulation and subsequent ageing in practically all the developed economies.

The fourth and highest form of human love is called Agape in Greek, which is to make an effort to love as God loves. Agape is seeking the good of others without expecting anything in return. When God created us, He did so out of the purest form of love, seeking our happiness without expecting anything in return. His love for us was unconditional and selfless. When we try to imitate God in loving our fellow human beings, we seek the good of others without expecting anything in return, even at personal costs. When we perform corporal or spiritual works of mercy, for example, we are loving with Agape because we are not expecting anything in return from the beneficiaries of our good works. Patriotism is a form of Agape because we are working for the common good of Philippine society made up of people most of whom we do not know personally.

This form of love — patriotism or civic mindedness — is what is sorely wanting in our society. Unless we have a critical mass of Filipinos who are determined to promote the common good of our country in their personal behaviors, we will not be able to bring down corruption to tolerable levels. In our ongoing efforts to combat the very high level of corruption that were unearthed by the flood control scandals, it is necessary to do what some segments of business, civil society, the academe, and the Church have admirably pursued, i.e., to publicly protest and demonstrate against the corrupt practices and the corrupt people themselves.

It is necessary also to demand that those proven to have stolen trillions of pesos be jailed, and that public institutions, like the departments of Public Works and Highways and Health, the Legislative bodies and others, be reformed to minimize corruption. It is also right that measures be taken to minimize the nefarious influences of family dynasties on national and local governments. All these are necessary, and for the minority of Filipinos who are engaged in all these efforts for reform, I am sure they are already being rewarded with the joy of living Agape as shown in their patriotism.

All these, though necessary, are not sufficient to bring corruption down to tolerable levels.

Obviously, corruption cannot be completely eradicated because, as the guru of good governance, former Secretary of Finance and Founder of the Institute of Corporate Directors (ICD) and Institute for the Solidarity of Asia (ISA), Dr. Jesus Estanislao, told a young idealistic professional, “Corruption cannot be completely eradicated because we human beings are all sinners.” The occasion was in a talk given by Dr. Estanislao at the Sangandaan Cultural Center at the Legaspi Village in Makati. He was just trying to be realistic.

In the context of our beliefs as Christians, trying to completely eradicate corruption is to attempt to eradicate Original Sin. No matter how much we try to perfect our institutions in order to make sure they are led by people of integrity and have the necessary preventive measures against corrupt practices, there will always be those “sinful humans” who will be creative and ingenious enough to beat the system. We can only try our best to minimize corrupt practices.

 

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

The economic upside of the 2026 budget

STOCK PHOTO | Image by Vectorjuice from Freepik

After a near stalemate and despite challenges encountered, the 2026 budget was finally approved by the bicameral conference committee. Next year’s P6.793-trillion budget is higher than the P6.326 trillion in effect this year.

The budget tells us many things, especially in terms of what this administration holds important, the competing issues it must weigh for the country’s growth and development, as well as the direction it wishes to take in being an investment-driven economy.

In its current form, the 2026 budget transmits positive signals to the Filipino public and to the business community. They are indications of stability, genuine intention to introduce reforms, a desire to strengthen local economies, a high awareness of risks, and a prioritization of human capital.

Foremost, the budget clearly reflects the economic agenda of the Marcos administration. The priority is clear, and that is to have steady fundamentals to lessen uncertainty and make planning easier for current and potential investors alike. International organizations like the World Bank and International Monetary Fund have downgraded their projections on the Philippines’ economic growth. The Philippines is resolute to achieve its growth targets nonetheless.

The 2026 budget is the first to be approved through a transparent process, with deliberations live-streamed and archived. This is a move that should inspire confidence among investors and the public alike, especially given the public works scandal that the nation is now facing. Transparent deliberations show that the government is serious about drastically minimizing the opportunities for corruption and other sinister moves on the part of public servants. While the livestream was not without challenges, it was clearly a move to improve investor trust in governance and public finance integrity.

Funds were also realigned toward health and disaster risk management. There was a conscious effort to divert funds away from the corruption-plagued Department of Public Works and Highways, whose budget was slashed by P351.4 billion to P520.6 billion, 40% lower than the P881 billion originally proposed by the Palace.

While the administration is cognizant of the need for infrastructure development and its multiplier effects, the 2026 budget showed caution in enabling a graft-ridden agency while reforms are still being implemented. The difference in funds was diverted to agencies like PhilHealth and the National Disaster Risk Reduction and Management Fund. These are intended to provide essential health services and ensure disaster resilience among Filipinos.

The 2026 budget also recognizes the supremacy of human capital and the need to invest in our nation’s future. The education sector is receiving a record allocation of P1.38 trillion, targeting workforce skills and human capital development. This will contribute to productivity and competitiveness in a tight labor market.

Finally, the budget intends to boost economic activity, not only on the national level but also on the local and regional level. The big increase in Local Government Support Fund (LGU financial assistance) — from the National Expenditure Program’s proposed P5 billion to about P37 billion — could drive regional infrastructure and services, pushing localized economic activities.

To be sure, despite the relative transparency of the process, several concerns have been raised. For instance, the restoration of P243 billion in unprogrammed appropriations raises concerns about transparency and accountability, given past controversies surrounding its use. While these funds provide flexibility to address unforeseen expenses and foreign-assisted projects, their reliance on excess revenues or foreign loans poses risks to fiscal stability. In fact, the Senate initially sought to eliminate unprogrammed appropriations entirely, citing concerns over its potential for misuse and lack of immediate funding.

However, the bicameral committee ultimately retained the funds, with assurances that they would not be used for controversial projects like flood control. Unprogrammed appropriations remains a critical tool for funding foreign-assisted projects and social programs, which are essential for development. All this simply exerts greater pressure on the government to ensure that such funds are allocated effectively, spent for the pure benefit of the people, and are handled free from corruption.

The budget does provide opportunities for economic growth through strategic investments. For instance, despite constraints, the inclusion of funding for foreign-assisted infrastructure projects. Approximately 55% of the P243 billion in unprogrammed appropriations is allocated to infrastructure projects co-financed by international development partners, such as the Japan International Cooperation Agency, the World Bank, and the Asian Development Bank.

Projects such as the Metro Manila Subway and the North-South Commuter Railway present an opportunity to boost economic activity, improve transportation, and attract foreign investments. Policymakers must focus on maximizing the impact of these projects while ensuring that they align with long-term economic goals.

In the end, the 2026 budget and the process that attended its finalization show the administration’s awareness of the issues that have prevented the budget from truly belonging to the people, and its intention to address these issues once and for all. Often, there are no clear-cut answers, and the decisions are about weighing the advantages and disadvantages of one course of action over another.

May the 2026 budget truly achieve its objective of helping Filipinos achieve a better quality of life and propel the Philippines to greater economic heights.

 

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

Megaworld sells additional 11% stake in Suntrust Resort Holdings

NEGATIVE SPACE/PEXELS.COM

LISTED property developer Megaworld Corp. has sold more of its stake in integrated resort developer Suntrust Resort Holdings, Inc.

In a stock exchange disclosure on Tuesday, Megaworld said it disposed of 814.67 million common shares in Suntrust through the open market at 60 centavos per share.

The shares represented an 11.24% interest in the resort developer, it added.

This follows an earlier sale of 900 million common shares at the same price, which accounted for a 12.41% stake in Suntrust.

Megaworld’s sister firm, Travellers International Hotel Group, Inc., recently gained majority control of the Westside Integrated Resort Project in Parañaque City.

Suntrust’s stake in the project has been reduced to 20% amid construction delays and financial setbacks. — Beatriz Marie D. Cruz

Why there’s always room for dessert — an anatomist explains

PHILSTARLIFE.COM

YOU PUSH BACK from the table after Christmas lunch, full from an excellent feast. You really couldn’t manage another bite — except, perhaps, a little bit of pudding. Somehow, no matter how much you’ve eaten, there always seems to be room for dessert. Why? What is it about something sweet that tempts us into “oh, go on then?”

The Japanese capture this perfectly with the word betsubara, meaning “separate stomach.” Anatomically speaking, there is no extra compartment, yet the sensation of still having space for pudding is widespread enough to deserve a scientific explanation.

Far from being imaginary, the feeling reflects a series of physiological and psychological processes that together make dessert uniquely appealing, even when the main course has felt like the limit.

A good place to start is with the stomach itself. Many people picture it as a fixed-size bag that fills steadily until it can take no more, as though another mouthful would cause it to overflow.

In reality, the stomach is designed to stretch and adapt. As we begin to eat, it undergoes “gastric accommodation”: the smooth muscle relaxes, creating extra capacity without a major increase in pressure.

Crucially, soft and sweet foods require very little mechanical digestion. A heavy main course may make the stomach feel distended, but a light dessert, such as ice cream or mousse, barely challenges its workload, so the stomach can relax further to make space.

HEDONIC HUNGER
Much of the drive to eat dessert comes from the brain, specifically the neural pathways involved in reward and pleasure. Appetite is not governed solely by physical hunger. There is also “hedonic hunger,” the desire to eat because something is enjoyable or comforting.

Sweet foods are particularly potent in this respect. They activate the brain’s mesolimbic dopamine system, heightening motivation to eat and temporarily weakening fullness signals.

After a satisfying main course, physiological hunger may be gone, but the anticipation of a sugary treat creates a separate, reward-driven desire to continue eating.

Another mechanism is sensory-specific satiety. As we eat, our brain’s response to the flavors and textures on the plate gradually diminishes, making the food less interesting. Introducing a different flavor profile — something sweet, tart, or creamy — refreshes the reward response.

Many people who genuinely feel they cannot finish their main course suddenly discover that they “could manage a little pudding” because the novelty of dessert re-engages their motivation to eat.

Desserts also behave differently once they reach the gut. Compared with foods rich in protein or fat, sugary and carbohydrate-based foods empty from the stomach quickly and require relatively little early breakdown, contributing to the perception that they are easier to accommodate even when you are full.

Timing plays a role, too. The gut-brain signaling that creates the sensation of fullness does not respond instantly.

Hormones such as cholecystokinin, GLP-1 and peptide YY rise gradually and typically take between 20 and 40 minutes to produce a sustained sense of satiety. Many people make decisions about dessert before this hormonal shift has fully taken effect, giving the reward system space to influence behavior.

Restaurants, consciously or otherwise, often time dessert offerings within this window.

Layered onto these biological processes is the influence of social conditioning. For many people, dessert is associated with celebration, generosity or comfort. From childhood onwards, we learn to regard desserts as treats or as natural components of festive meals.

Cultural and emotional cues can trigger anticipatory pleasure before the food even arrives. Studies consistently show that people eat more in social settings, when food is freely offered, or during special occasions — all situations where dessert typically features.

So the next time someone insists they are too full for another mouthful of dinner but somehow finds space for a slice of cake, rest assured: they are not being inconsistent. They are simply experiencing a perfectly normal and rather elegant feature of the human body. — The Conversation via Reuters Connect

 

Michelle Spear is a Professor of Anatomy at the University of Bristol.

Peso weakens further on dollar demand

BW FILE PHOTO

THE PESO dropped on Tuesday on increased demand for the dollar before the holidays.

The local unit closed at P58.85 per dollar, declining by 12 centavos from its P58.73 finish on Monday, Bankers Association of the Philippines data showed.

The peso opened Monday’s session slightly stronger at P58.70 against the dollar. Its intraday best stood at P58.655, while it dropped to as low as P58.88 versus the greenback.

Dollars exchanged climbed to $1.14 billion on Tuesday from $869.5 million on Monday.

“The peso closed higher. It was usually trading in a tight range,” a trader said in a phone interview. “Maybe because ahead of the holidays, there was some dollar demand ahead of the holiday.”

Bargain hunting by those with dollar requirements offset the support provided by holiday remittances, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The trader added that the November fiscal performance data released on Tuesday may have also affected market sentiment.

The government’s budget deficit narrowed by 55.4% year on year to P157.6 billion in November from P213 billion, the Bureau of the Treasury said. This was a reversal from the P11.2-billion surplus posted in October.

Philippine financial markets are closed on Dec. 24-25 for the Christmas holidays.

Meanwhile, the dollar index, which measures the US currency against six rivals, slid 0.2% to 98.061 on Tuesday, extending losses into a second day after dropping 0.5% on Monday, Reuters reported.

Investor focus was on US gross domestic product data due later on Tuesday. The data will likely confirm what economists call a K-shaped economy in which higher-income households are doing well, while middle- and lower-income are barely staying afloat. — Katherine K. Chan

The Philippines at a digital crossroads: Why trust will define 2026

STOCK PHOTO | Image by Stockgiu from Freepik

Every December, before the holidays fully take over, I try to find a quiet corner somewhere to reflect on the year that has passed. This time, I ended up in a small coffee shop in BGC, watching people go about their routines. One customer tapped her phone to pay. Someone beside her renewed a subscription online. Another checked a news update. A group of students scrolled through videos, debating whether what they watched was real. It occurred to me in that moment that almost everything we do today requires trust in a digital system. It also occurred to me how fragile that trust has become.

When people are asked what they trust, whether government services, financial platforms, digital identities, or even the information they consume online, their answers no longer come easily. Some are optimistic, many are doubtful, and quite a few admit they are simply moving through digital life because they have no choice. That quiet scene reminded me of a tension we have been struggling with all year: How can we build a strong digital nation when trust is the very thing that seems to be slipping through our fingers?

The trust deficit is not imagined. The country has been facing a steady wave of allegations, controversies, and corruption-related issues. Whether these accusations are substantiated or not, the public perception they create is powerful. Digital platforms have amplified this problem because information — or misinformation — spreads long before the truth can catch up. The tools meant to democratize access to information are also being used to distort it. As someone who works deeply in AI, blockchain, and cybersecurity, I have seen this erosion of trust firsthand across sectors. I have also seen how crucial trust is to progress. Without it, even the best innovations stall.

This is why I believe 2026 must be the year we commit to building a digital trust architecture for the Philippines. Not just to modernize systems and improve efficiency, but to restore confidence in how decisions are made, how money is spent, how identities are verified, and how truth is determined.

One of the most encouraging developments this year was the approval of funding in the national budget for the CADENA (Citizen Access and Disclosure of Expenditures for National Accountability) bill. I have always supported this measure because it represents a major step toward more transparent government processes. CADENA lays the groundwork for using blockchain and similar technologies to create tamper-resistant records across critical government transactions. In a country consistently challenged by corruption, adopting systems that cannot be quietly altered is one of the most powerful reforms we can make. CADENA will not eliminate corruption overnight, but it will make manipulation far more difficult and accountability far more traceable. As more agencies adopt its mechanisms, the bill has the potential to change not only government systems but public expectations of integrity.

Blockchain’s role in governance goes beyond theory. It can ensure that procurement records are permanent, that project timelines and disbursements remain visible throughout their lifecycle, and that important documents cannot simply go missing. Many countries have already operationalized similar models with measurable success. The Philippines is finally taking the first meaningful step toward this direction, and I strongly support its full implementation in 2026.

AI also has a vital role to play in restoring trust. It can detect anomalies in government spending, highlight unusual contractor patterns, and surface irregularities long before an issue becomes a scandal. AI transforms oversight from reactive to preventive. Instead of waiting for someone to blow the whistle, systems themselves can alert auditors and leaders to questionable activity. Used responsibly, this creates a more transparent and accountable governance environment.

At the same time, none of these reforms will hold if cybersecurity remains weak. A nation cannot rebuild trust if its systems can be breached, its records altered, or its data stolen. Strengthening cybersecurity is not an IT upgrade. It is a national integrity upgrade. When databases are protected and access is strictly controlled, confidence naturally grows. Citizens begin to believe that their institutions are not only digital but also dependable.

Reflecting on these themes, I realized something important. Nations that thrive in the digital age do not succeed because they have the most apps or the most platforms. They succeed because people believe in the systems that run their society. Trust is the real competitive advantage. Countries with secure digital identities, transparent data trails, and resilient architectures will attract more investment, deliver better public services, and strengthen their democracies. Those without them will struggle, no matter how advanced their technology appears.

For the Philippines, this means facing our reality honestly. We need trusted identity systems so that every citizen can transact confidently. We need trusted records so that public spending can be monitored without ambiguity. We need trusted systems that are secured, audited, and built to withstand manipulation. These are not merely technical goals. They are nation-building goals.

Leadership plays a central role in this. Over the past year, I have spoken to business leaders, government officials, educators, and young people, and the message has been consistent. Trust is no longer something we can hope for. It must be designed into our systems. Leaders must be ready to embrace transparency, even when it is uncomfortable. They must be willing to reduce discretion and rely more on processes that are verifiable and permanent. They must commit to adopting technologies that safeguard integrity.

If we choose this path, the benefits are enormous. Investors will enter a market where data is dependable. Citizens will support institutions that demonstrate accountability. Businesses will innovate more vigorously in an environment that is secure. And communities will gain confidence that the country is moving in a direction where fairness is systemic, not selective.

The Philippines is truly standing at a digital crossroads. We can continue relying on old structures and hope public trust will somehow return, or we can make 2026 the year we rebuild trust through deliberate, structural, technology-enabled reform. As I watched people in that coffee shop rely on invisible systems to live their daily lives, I felt a sense of responsibility. If technology touches everything now, then the systems behind it must be worthy of the trust they ask of us.

We have a rare opportunity. With blockchain slowly being adopted, with AI and cybersecurity more mature, and with strong private sector momentum, we can redesign our digital ecosystem in a way that strengthens the very foundation of our society. 2026 can be the year the Philippines rebuilds trust at scale. But only if we choose to make it so.

 

Dr. Donald Patrick Lim is the founding president of the Global AI Council Philippines and the Blockchain Council of the Philippines, and the founding chair of the Cybersecurity Council, whose mission is to advocate the right use of emerging technologies to propel business organizations forward. He is currently the president and COO of DITO CME Holdings Corp.

Agritech startup plans yield insurance to shield farmers from climate risks

PHILSTAR FILE PHOTO

By Beatriz Marie D. Cruz, Reporter

AGRILEVER, a local agritech startup, plans to launch a yield guarantee insurance product next year to protect farmers from income losses caused by natural disasters.

“This means we aren’t just giving farmers capital; we are guaranteeing profits for those who follow our agronomy advice. We are effectively removing the risk from the equation,” Agrilever Co-founder Yoav Schwalb said in an e-mail to BusinessWorld.

The startup is aiming to expand partnerships with insurance companies to support up to one million farmers through its upcoming new products.

“We are taking a phased, scalable approach. We are targeting an initial proof of concept (POC) with 150,000 farmers,” Mr. Schwalb said.

Agrilever seeks to improve Filipino rice farmers’ access to financing and technology to help raise productivity. Its services include smartphone and mobile data packages, as well as on-the-ground support for farmers.

The company is also looking to onboard four additional partner banks to extend more loans to farmers, Mr. Schwalb said.

At present, its partner institutions include the Land Bank of the Philippines, Guagua Rural Bank, Inc., SNR Bank, and Bank of the Philippine Islands (BPI) subsidiary BPI Direct BanKo, Inc.

Latest data from the Philippine Statistics Authority showed that farmers posted a poverty incidence rate of 27% in 2023, making them among the country’s poorest sectors.

Farmers continue to face challenges such as rising input costs, limited access to capital, competition from imports, and land disputes.

Mr. Schwalb also said unstable farmgate prices remain a major issue due to extreme weather conditions and unfair trading practices.

“To address this, we are currently developing Asia’s first downside protection mechanism for farmgate prices — similar to the safety nets farmers enjoy in the United States,” he said.

Agrilever said about 98% of the country’s rice farmers remain unbanked.

Mr. Schwalb noted that farmers’ non-performing loan ratio remains close to the Bangko Sentral ng Pilipinas’ latest reported industry average of 3.31% as of September.

“This validates our credit scoring model — farmers want to pay, and when given the right tools, they do,” he said.

Earlier this year, Agrilever launched a digital application that provides data-driven tools for farmers, including crop management, loan monitoring, and digital credit scoring.

The company recently partnered with US-based weather intelligence firm Tomorrow.io to integrate artificial intelligence-powered weather insights into its platform.

Agrilever is also looking to integrate a smart contract marketplace into its app to ensure transactions between farmers and buyers are properly executed, Mr. Schwalb said.

“When you combine guaranteed yields with transparent contracts, you create an environment where banks are eager to lend and farmers are confident to borrow,” he noted.

The startup is targeting two million downloads of its digital app next year.

For 2026, Agrilever plans to partner with more insurance technology firms and logistics providers to further support its financing initiatives and smart contract offerings, Mr. Schwalb said.

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