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Pag-IBIG Fund on track to hit 2025 net income target after record 1st half

THE HOME Development Mutual Fund or the Pag-IBIG Fund is on track to post another record-high net income this year.

“We are on track for the target net income for this year. In fact, it was announced around three weeks ago that we are also on target to achieve the dividend rates or to equate the dividend and return rates for 2024,” Pag-IBIG Fund Vice-President for Public and Member Relations Domingo C. Jacinto, Jr. said at a press conference on Thursday.

“We’re doing all we can to exceed that so we can at least match or exceed our dividend rates of 6.6% for regular savings and 7.1% for MP2 (Modified Pag-IBIG 2) Savings,” Mr. Jacinto said, referring to its voluntary savings program.

Pag-IBIG Fund is targeting a net profit of P58.50 billion this year, based on a document on its website, which would be higher than the P56.58 billion it recorded in 2024.

It posted net earnings of P28.045 billion in the first half, below the P29.505-billion goal for the period but up 15.25% year on year. This was also a record first-semester profit for the agency, it earlier said.

Mr. Jacinto said Pag-IBIG Fund will continue to expand its lending programs.

“What we would certainly like to push are our housing loan programs and our multipurpose loan programs because these are the loans that will benefit our members directly,” he told reporters.

In the first semester, it released P58.13 billion in housing loans to 37,927 beneficiaries and P42.86 billion in short-term loans to 1.64 million recipients.

Pag-IBIG Fund also expects most of its investment income to come from government securities, even as benchmark borrowing costs continue to go down, Mr. Jacinto said.

“It’s part of our support to the government, and that’s why… we’ll always prioritize government securities.”

The agency’s income from investments jumped by 51.79% year on year to P4.27 billion in the first semester, “driven by strategic placements in bonds and other debt securities, money market instruments, equities, and investment properties,” it earlier said.

Investment income made up 5.56% of its gross income in the period.

Pag-IBIG Fund’s total assets stood at P1.14 trillion at end-June, up 7.02% from P1.07 trillion at end-2024. — A.M.C. Sy

To heal the system, flush out the big fish

ANTI-CORRUPTION advocates launch their ARTIKULO XI: Citizens’ War Against Corruption, a collective effort against corruption from various nongovernmental organizations (NGOs), civil society groups, church and youth sectors among others, during a press conference in Quezon City on Aug. 25. — PHILIPPINE STAR/MIGUEL DE GUZMAN

Corruption in public spending is no longer just a governance failure; it has become a crisis of legitimacy. In the Philippines, after weeks of anguished revelations in both the Senate and the House of Representatives, public outrage over anomalous flood-control projects is powerful, and rightly so. But exposure alone does not repair what has been broken. Unless citizens see justice applied evenhandedly with powerful actors in the Senate, House, Executive, and their private-sector collaborators identified, charged, and, where warranted, convicted, the same cycle of theft, impunity, and cynicism will hollow out government capacity and public trust.

SOBRA NA! TAMA NA!*
Research on corruption prevention is clear: real accountability demands more than rules and audits. A comprehensive 2023 review for Public Safety Canada distils four mutually reinforcing approaches: 1.) value-based integrity and ethical leadership; 2.) compliance mechanisms (rules, monitoring, sanctions); 3.) risk-management (corruption risk assessments, targeted safeguards); and 4.) transparency and civic participation visible and auditable. No single technical fix suffices; meaningful change depends on a calibrated mix of culture, control, diagnostics, and public engagement.

The World Bank’s anti-corruption agenda of March 2023 strengthens this framework. It points to open contracting and e-procurement namely, beneficial-owner disclosure, stronger public financial management, sanctions and debarment regimes, and technology and standardized data for oversight. It also insists on diagnostics — mapping corruption risk by project and sector — and combining prevention, detection, and enforcement. Corruption is not merely moral decay; it undermines growth by eroding efficiency, productivity, and blocking the very goals of poverty reduction and shared prosperity.

GLOBAL PRECEDENTS AND RECENT ALARMS
These frameworks are not theoretical. Around the region, citizens are reacting when elites profit while ordinary people suffer. In Nepal, for example, in early September, Gen-Z protesters, students and young people, flooded Kathmandu and many towns after the government banned 26 social media platforms, including Facebook, WhatsApp, X, and YouTube. While the immediate trigger was censorship, the deeper grievances were corruption, nepotism, economic stagnation, and visible elite excesses. Their viral messages sound familiar: “Shut down corruption, not social media,” “Youths against corruption,” “Where has taxpayer money gone?” With very aggressive response from security forces, at least 19 people were reportedly killed, hundreds injured. The government lifted the ban, the Prime Minister resigned, and an investigation panel was promised.

In Indonesia, public discontent has mounted over economic hardship, perceived corruption, and the impunity of public officials. Early this month, the Indonesian Parliament moved to fast-track a long-delayed asset forfeiture bill, a tool to seize wealth from officials whose assets are vastly disproportionate to their declared income, after protests and pressure over politicians’ lavish perks amid economic strain. President Prabowo Subianto, in public dialogues, has acknowledged corruption as “worrisome” and pledged action. It is quite obvious that when dissatisfaction becomes visible, as when public policies are tweaked to award inordinate benefits to the powerful, governments can be pushed toward reform.

These Public Safety Canada and World Bank frameworks, validated by the Nepalese and Indonesian experiences, yield a demanding but necessary conclusion: technical measures — e-procurement, geotagging, digital payments — are essential but far from sufficient. When accountability stops at mid-level functionaries like district engineers and ordinary staff, while those who enable system-wide capture — legislators, cabinet secretaries, political patrons — remain untouched, the deterrent value of rules is nullified.

Filipinos, fortified by years of struggle and emboldened by EDSA victories, will not accept prosecutions of expendable scapegoats while sponsors walk free. The result is likely a powder keg of public anger that will eventually explode.

This is the core political-economy challenge: prevention requires both sound systems and credible enforcement. Exposure without consequences simply breeds weary resignation. But Filipinos need not despair or surrender.

What must the Philippines do differently — and urgently?

1. Make enforcement at the top non-negotiable. President Ferdinand Marcos, Jr.’s proposed independent investigative commission must have subpoena and contempt powers and be truly free to investigate anyone — including those removable only via impeachment. Its findings should feed directly into the Department of Justice and the Office of the Ombudsman, which must resist political pressure. Technical instruments will only gain credibility if used visibly in high-stakes cases.

2. Institutionalize asset recovery, forfeiture, and unexplained wealth laws. Existing laws that allow forfeiture of wealth manifestly disproportionate to lawful income must be used aggressively and transparently. Public, high-profile asset recovery cases against top-level beneficiaries of corrupt contracts do more than punish — they restore stolen resources and shift public expectations of what is possible.

3. Bind technical safeguards to real enforcement. Open contracting, beneficial-owner disclosure, geotagged and time-stamped project validation, e-procurement, and automatic debarment for firms implicated in serious fraud must be standard. But these tools only bite when violations trigger sanctions. Justice begins when hearings and investigations conclude with consequences — not just press statements.

4. Reform conflict-of-interest and campaign finance. Legislators with financial stakes in firms bidding on government contracts, otherwise hidden interests, or entanglements in campaign donations must face mandatory recusal rules, disclosure, and prohibitions. Ending the revolving door between political support and contracting rents is essential. The structural incentives — what benefits elites — must be changed, not just the monitoring layers.

5. Strengthen civic participation and whistleblower protection. Civil society can extend oversight far beyond what government alone can do — but only if it has access to reliable data and secure channels to report wrongdoing. Whistleblowers must be protected from retaliation. When young people can expose wrongdoing through social platforms as in Nepal, it shows how transparency plus citizen voice can rapidly amplify pressure.

6. Demands for judicial reform and timely adjudication. Long investigations without trials, plea bargains that spare major actors, and procedural delays all feed cynicism. Courts must be resourced, insulated, and held to ensure high-profile corruption cases are tried efficiently, fairly, and with transparency. Once again, the public must see that justice is not only done, but seen to be done.

WHY THIS IS URGENT — AND WHAT IS AT STAKE
When accountability reaches top levels, returns are not merely moral. Public resources are deployed more productively; disaster resilience improves; fiscal space is protected for social protection rather than leakages; investor confidence grows; inflation and supply disruptions are eased. On the other hand, continued impunity magnifies damage: waste, weakened capacity, higher risk premiums, and persistent inflation when disasters meet inadequate public goods.

Recent indicators in the Philippines confirm this danger. The 2025 CEO Survey by the Management Association of the Philippines and PwC indicates CEOs remain highly dissatisfied with the government’s anti-corruption performance. In turn, domestic investment’s weak contribution to GDP seen in Q2 of 2025 may reflect further erosion of trust in future readings of national output.

These proposals are not calls for vindictive vengeance; they are a roadmap to restore institutional credibility so that preventive tools, notably those articulated by Public Safety Canada and the World Bank, can actually work. Singapore’s CPIB, Indonesia’s KPK, and Hong Kong’s ICAC show that when enforcement reaches the top, systemic and cultural change becomes possible.

For the Philippines, the task is to unite powerful technical controls with enforcement that is visible, impartial, and unapologetically reaches to the top. Until citizens can see that the “big fish” are held to account, transparency reforms and procedural audits will remain at best partial remedies.

To rebuild the social contract, the government must prove that public office is a public trust, not an entitlement. That proof requires more than exposés and hearings: it requires the identification, prosecution, and conviction of those at the heart of networks that hollow out public investment. Only then will citizens believe the system works — and only then will preventive instruments translate into lasting reform.

The research consensus is clear: prevention, transparency, participation matter — but they are only effective when backed by consistent, impartial enforcement at the highest levels. When even “big fish” are flushed out, then the system begins to heal. n

*That’s too much! That’s enough!

 

Diwa C. Guinigundo is the former deputy governor for the Monetary and Economics Sector, the Bangko Sentral ng Pilipinas (BSP). He served the BSP for 41 years. In 2001-2003, he was alternate executive director at the International Monetary Fund in Washington, DC. He is the senior pastor of the Fullness of Christ International Ministries in Mandaluyong.

Vivant expands Luzon footprint with 40% stake in solar firm

VIVANT ENERGY CORP.

VIVANT ENERGY CORP., the energy subsidiary of Cebu-based conglomerate Vivant Corp., acquired a 40% stake in Samal Solar Renewable Energy Corp. (SSREC), operator of a solar farm in Bataan, as part of its efforts to expand its renewable energy presence in Luzon.

Vivant Energy disclosed the P395-million stake in a regulatory filing on Thursday.

“The investment reinforces Vivant Energy’s commitment to the Department of Energy’s call for stronger public-private partnerships that ensure the benefits of the energy transition are realized through local development and capacity building,” the company said.

Vivant Energy, a wholly owned subsidiary of Vivant Corp., serves as the holding company for the group’s energy investments, which include power generation, distribution, and retail electricity supply.

The conglomerate also has a presence in the water sector, covering bulk water supply, wastewater treatment, and distribution.

The 53.14-megawatt-peak (MWp) solar farm in Bataan was developed by Tigon Power Corp. and is operated under SSREC, supplying 52 MW of clean power to Corenergy, Vivant Energy’s retail electricity arm. — Sheldeen Joy Talavera

Mind-bending Severance tackles alienation on way to Sunday’s Emmys

Adam Scott in Severance (2022)
Adam Scott in Severance (2022)

SEVERANCE for Apple TV+, he and fellow cast members were unsure how viewers would respond to a streaming series built around brain chips, a room full of goats, and waffle parties.

The psychological thriller, the most-nominated show at Sunday’s Emmy Awards, tells the story of office workers who undergo surgery that makes them forget their home life at work, and vice versa.

“We all felt it was weird, and maybe too weird,” said Adam Scott, the Parks and Recreation actor who plays a history professor turned manager inside the sterile offices of the fictional Lumon Industries.

Voters for the Emmys, the highest honors in television, have embraced the mind-bending tale. Severance racked up 27 Emmy nominations and won six trophies at an Emmys ceremony last week for technical awards.

The sci-fi series is in the running for more Emmys on Sunday including the top prize of best drama. Competitors include Star Wars series Andor, emergency room tale The Pitt, and murder mystery The White Lotus. Winners will be announced at a red-carpet ceremony televised live on CBS.

Mr. Scott was nominated for best drama actor and Severance co-star Britt Lower for best drama actress. Seven other Severance stars received supporting or guest actor nods.

Many of the Severance actors play two characters — an “innie” version who works at Lumon performing tedious tasks and an “outie” variation who lives in the outside world.

Among the show’s unusual touchpoints, the Lumon building includes a room where caretakers raise herds of goats. One employee is rewarded for good work with a waffle party that provides an opportunity for sexual experiences.

What does all of this add up to?

Severance offers a philosophical take on the work-life balance and the power of corporations, while “poking a stick at it with an absurdist light,” said Chris Rice, co-chief executive officer of Fifth Season, the production company behind the show.

Supporting actor nominee John Turturro, who plays loyal Lumon employee Irving, said the show “poses questions without giving all the answers.”

“I think people find that really participatory,” he added.

Plus, “people have to navigate work life and personal life, and that is an eternal conundrum that people go through.”

BIG QUESTIONS
Severance debuted in 2022 to critical acclaim and gained traction with viewers when season two was released in January 2025. The show landed in Nielsen’s top 10 list of the most-streamed shows.

Stars of the series said they thought it was more than job dissatisfaction that drew people to Severance. They cited loneliness in today’s society as people are glued to technology rather than seeking human connection.

“There’s a certain alienation that we’re all feeling from one another these days,” Mr. Scott said.

Zach Cherry, a supporting actor nominee who plays dependable office worker Dylan, said Severance makes people turn inward.

“Beyond the characters connecting to each other,” Mr. Cherry said, “it’s also about the characters learning to connect to all the different parts of themselves, which I think is also something that everyone has to deal with.”

Ms. Lower, who plays the stubborn Helly, said the show has earned fans among high school and college students who have not yet entered the workforce. She believes the series is prompting people to ask deep questions, such as “what makes us human?”

“To me, that is kind of the most exciting part,” Ms. Lower said. “Are the innies human? Are they full humans? And what makes them that?” — Reuters

PDIC partners with World Bank unit to develop risk-based premium assessment system

THE PHILIPPINE Deposit Insurance Corp. (PDIC) has partnered with the World Bank Group’s International Bank for Reconstruction and Development (IBRD) to study and develop a risk-based assessment system for deposit insurance in the country.

The state deposit insurer and the IBRD signed the advisory agreement on June 26, PDIC said in a statement.

“Having a sound risk-based assessment framework is not only essential but critical. This risk-based assessment system will help the PDIC better foresee and address potential problems as new challenges emerge from a more complex banking environment. With the global expertise of World Bank-IBRD and our commitment to see this project through, we are paving the way for an enhanced deposit insurance system in the country,” PDIC President and Chief Executive Officer Roberto B. Tan said.

The risk-based assessment system is a framework that will determine the premiums that banks need to pay for deposit insurance based on their risk profile.

The state deposit insurer earlier said that having a risk-based assessment system will help prevent banks from taking on too much leverage following the increase in the maximum deposit insurance coverage to P1 million per depositor per bank from P500,000.

At present, the PDIC employs a flat rate premium assessment system that applies to all banks, which is one-fifth of 1% of the total deposit liabilities of each institution.

The assessments are collected from member-banks semi-annually and form part of the Deposit Insurance Fund, which stood at P236.95 billion as of end-2024.

“Its goal is to align the cost of insurance with the level of risk each bank poses to the PDIC Deposit Insurance Fund, thereby promoting financial stability, reducing moral hazard, and incentivizing prudent risk management among banks… This approach will improve PDIC’s surveillance of banks through the implementation of an enhanced assessment system that is customized based on a member bank’s individual risk profile,” PDIC said.

Under the partnership, the IBRD will conduct a study on a risk-based premium system that is appropriate for the Philippine context. It will also provide technical assistance as it will come up with the framework, methodology, and implementing guidelines for the system.

“Drawing on international best practices, the initiative is aimed at enhancing the PDIC’s capability to more effectively incorporate institutional risk in its assessment of member banks and ensure a more equitable and sustainable funding mechanism for its Deposit Insurance Fund,” PDIC said. — A.M.C. Sy

It’s business as usual in Asia after ICE raids

LG ENERGY SOLUTION’S IAA Transportation exhibition booth. — LG ENERGY SOLUTION

By Juliana Liu

TO SOOTHE the ruffled feathers of a long-time ally, the Trump administration should waste no time working with Seoul to create a new visa category for skilled workers. That would get the $7.6-billion South Korean-owned manufacturing plant in Georgia that was raided by ICE up and running again, restoring a modicum of trust between the two countries.

Asian companies have committed, at least on paper, to hundreds of billions of dollars in MAGA projects. Despite concerns about a potential backlash, they’ve so far remained calm and focused, no matter what Washington has thrown at them — even humiliating images of their countrymen paraded in chains. From Seoul to Taipei to Tokyo, pragmatism by CEOs and political leaders has been the order of the day. The US remains an irreplaceable market.

For Hyundai Motor Co. and LG Energy Solution Ltd. — 50-50 joint venture partners in the EV battery plant — expanding in the US is a no brainer. In July, Hyundai posted a solid quarter of earnings, buoyed by strong sales of EVs and hybrid cars in North America. Last year, the Korean carmaker and its affiliate Kia were together the fourth-biggest-selling group in the US, with 1.7 million deliveries, according to Motor Intelligence.

In March, Hyundai announced an investment of $21 billion in the US over the next three years to expand production capacity. The factories would help it avoid President Donald Trump’s tariffs on vehicles and steel. Indirectly, they also give Hyundai an edge over rivals like Ford Motor Co. that import some of their cars from Mexico.

For LG Energy, the rationale for staying is no less compelling. The battery maker, which powers EVs and storage systems like Tesla’s Megapacks, is building or running seven plants in the US and one in Canada. Each costs $4 billion to $5 billion. Despite some ups and downs in the clean-power industry, its North America President Bob Lee says he’s still very bullish in the long run.

But it’s clear something has to change. South Korean firms have fessed up to sending skilled workers to the US on improper temporary visas to help build complex manufacturing plants. Now that the workaround is no longer tolerated, a more permanent solution in the form of short-term permits needs to be found, similar to what the US offers citizens of Singapore and Australia.

It’s worth noting that, for both Hyundai and LG Energy, part of the reason for their success in America is the absence of meaningful competition from Chinese rivals. Contemporary Amperex Technology Co., the world’s largest battery maker, dwarfs LG Energy globally, but regulatory hurdles in the US effectively preclude it doing much business there. As for Hyundai, once a contender in the world’s largest auto market, its sales languished in 33rd place last year, a victim of intense competition. Chinese cars, too, face barriers to entry in the US.

China used to be a bread-and-butter market for Seoul’s top companies. But as its own homegrown champions, from batteries to cellphones, have risen, South Korean firms have sought refuge elsewhere. Against this background, it’s no surprise that President Lee Jae Myung’s government has been so measured.

Instead of blasting the US about the ICE raid, which caused a loss of face for the young Seoul administration, the foreign ministry called the situation “regrettable” and requested the quick return of the detainees. Foreign Minister Cho Hyun is expected to meet Secretary of State Marco Rubio on Wednesday in Washington.

It’s not the first time an Asian leader has had to tap dance after a White House surprise.

In March, Taiwanese President Lai Ching-te was also forced to do damage control after an unexpected announcement by the Trump administration that chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) — the world’s largest — was investing $100 billion in the US. Lai appeared next to the firm’s Chief Executive Officer C.C. Wei in Taipei trying to reassure the public.

Their concern? That TSMC’s outlay would undermine its commitment to Taiwan. Opposition politician and former President Ma Ying-jeou wasted no time calling the landmark venture a “protection fee,” an idea that seemed to be broadly accepted by the public.

However, Lai’s government hasn’t faced any lasting criticism. Compared to South Korea, a larger market with a more sizeable group of corporates, Taiwan confers a great deal of importance on TSMC: Its success is perceived to offer protection from a possible invasion by China.

Like Seoul, there’s a feeling in Taipei and other global capitals that there are good reasons for behaving like it’s business as usual, no matter what the Trump administration does — their version of “Keep Calm and Carry On.”

BLOOMBERG OPINION

Ayala Land says Laurean Residences posts P8 billion in prelaunch sales

Laurean Residences

AYALA LAND PREMIER (ALP), the flagship luxury brand of Ayala Land, Inc. (ALI), said it recorded P8 billion in sales from the Laurean Residences ahead of its August launch, citing strong demand for premium residences in Metro Manila.

“The market response to Laurean Residences has been exceptional, and it validates the strength of Makati as the country’s premier address,” ALP President and Chief Executive Officer Michael Z. Jugo said.

The 65-storey tower, set to be the flagship residential development of Dela Rosa Gardens, is located in the heart of the Makati Central Business District, with completion targeted by 2033.

It is near key commercial hubs such as the Ayala Triangle Gardens, Greenbelt, and One Ayala, and is connected to Makati’s network of elevated walkways and green corridors.

Laurean Residences will have 388 units, ranging from 72-square-meter suites to 402-square-meter four-bedroom homes.

More than half of the property will be dedicated to club-like amenities, including multiple pools, private dining rooms, a wine lounge, wellness and spa facilities, a cinema room, and a sky garden. The development will also offer hotel-grade services from Ayala Land Hospitality.

“More than a collection of homes, it is an urban sanctuary where timeless architecture, purposeful amenities, and meticulous craftsmanship come together to elevate everyday life,” Mr. Jugo said.

The project has received EDGE (Excellence in Design for Greater Efficiencies) certification and will feature facilities for electric vehicles, including charging stations and parking slots.

International design firms HB Design, Joyce Wang Studio, and Landscape Tectonix are collaborating with local designers on the project.

For the first half of 2025, ALI posted an 8% rise in net income to P14.2 billion, with residential revenues reaching P41.3 billion, driven by higher recognized sales from its ALP and Alveo projects.

On Thursday, ALI shares fell 1.34% or 40 centavos to close at P29.50 apiece. — Beatriz Marie D. Cruz

Toronto Film Festival: Film on Oct. 7 rescue in Israel premieres amid protests

EN.WIKIPEDIA.ORG
EN.WIKIPEDIA.ORG

TORONTO — The Road Between Us: The Ultimate Rescue, a documentary about one man’s response to the Oct. 7, 2023, Hamas attack in Israel, faced protests during its Wednesday premiere at the Toronto International Film Festival (TIFF), where it was almost not shown.

Canadian filmmaker Barry Avrich chronicles the story of retired Israeli Defence Forces Major-General Noam Tibon as he races from Tel Aviv to a kibbutz near the Gaza Strip to save his son and his family.

In Toronto, a few dozen protesters carrying Palestinian flags and a handful of people supporting Israel demonstrated outside the screening. One person was arrested, according to Toronto Police.

Mr. Avrich said he did not object to peaceful protests.

“I ultimately wish anybody that’s protesting this film watches it first. Then let’s have a conversation,” he said on the red carpet. “In the world right now we need to hear stories of family and unity and that’s what this movie is about.”

Hamas killed about 1,200 people on Oct. 7 and took about 250 hostage, according to Israeli authorities. The invasion sparked Israel’s bombardment and blockade of Gaza, now almost two years old. More than 64,000 people have been killed, according to local health authorities, and international observers say parts of Gaza are in a state of famine.

Israel’s actions in Gaza have been called a genocide by scholars and rights groups, including some from Israel. Israel has denied accusations of genocide.

The film makes extensive use of violent Hamas bodycam footage from Oct. 7, interspersed with interviews with the Tibon family and other Israeli survivors.

The film is critical of Israeli leadership — “We failed tremendously on that day,” says Mr. Tibon’s wife Gali, who refers to the feeling that “your country abandoned you.” But it is Israelis with guns — security guards, current and former members of the military — who are depicted coming to the rescue.

Mr. Avrich’s film was almost not shown at the festival as TIFF briefly excluded it in mid-August. A joint statement from TIFF Chief Executive Officer Cameron Bailey and Mr. Avrich later said they had worked together to satisfy safety, legal, and programming concerns and would include the film.

“I want to apologize, especially to the Jewish community,” Mr. Bailey said ahead of the screening, to applause. — Reuters

Safety nets touted as infra job-creation engine stalls

PHILIPPINE STAR/KRIZ JOHN ROSALES/PPA POOL

By Chloe Mari A. Hufana, Reporter

THE government should address the negative trend in employment by expanding social safety nets and redeploying workers to “green” jobs, labor advocates said.

They said the job creation being counted on from infrastructure could be stalling with the Department of Public Works and Highways (DPWH) paralyzed by internal investigations and staff upheaval in the wake of the flood-control corruption scandal.

Benjamin B. Velasco, an assistant professor with the University of the Philippines School of Labor and Industrial Relations, said the flood-control investigations will result in job losses for construction workers.

“On the other hand, tolerating massive graft also has negative labor market impacts,” he said via Facebook Messenger.

The Philippine Statistics Authority reported  on Wednesday that the jobless rate hit a three-year high in July at 5.3%, with agriculture jobs taking the biggest hit in the wake of the heavy July rains. Flooded fields led farmers to switch to construction jobs to make ends meet, though that industry could soon be facing its own slowdown due to the corruption probes.

“Ghost projects mean no actual work is done and no jobs are created,” Mr. Velasco added.

President Ferdinand R. Marcos, Jr., during an inspection of flood control projects worth billions of pesos in August, discovered that many of the promised structures were either defective or nonexistent.

Mr. Velasco urged the government to cushion displaced workers through social protection measures, including unemployment insurance via the Social Security System, while accelerating a shift toward sustainable employment.

“(The government should) ensure a just transition and alternative jobs in building public transport facilities and leading the shift to renewable energy through solarization and windmills,” he said.

The 5.3% jobless rate in July was equivalent to 2.59 million jobless workers, up from 2.38 million a year earlier and 1.95 million in June.

The July reading matched the jobless rate from August 2022. In June 2022, unemployment hit 6%.

Skilled agricultural, forestry, and fishery workers declined by 974,000 jobs year on year in July.

The Philippines is hit by about 20 tropical storms each year. Nearly 70% of these weather disturbances occur between July and October, the peak of the typhoon season, according to the government weather service.

In the face of these calamities, the government is losing to corruption billions of pesos allocated for flood mitigation projects.

In response, the government on Thursday issued Executive Order No. 94, creating an independent body to investigate anomalies across all infrastructure projects.

Federation of Free Workers President Jose Sonny G. Matula warned that corruption in flood control and other infrastructure projects has worsened the jobs crisis by diverting public funds away from investment that could have supported rural livelihoods, housing and green industries.

He said the spike in unemployment reflects systemic governance failures. Flood-control projects, in particular, have been turned into conduits for corruption rather than tools to mitigate disasters or create decent work.

Billions of pesos lost to ghost or overpriced projects have robbed farmers, fisherfolk and workers of opportunities for stable employment, he noted.

Even workers within the Department of Public Works and Highways face insecurity, with thousands under contract-of-service or job-order status, he said.

“When funds for flood control are stolen, communities lose jobs and remain vulnerable to flooding. Corruption is the real enemy of workers,” Mr. Matula said via Viber.

He called for greater worker and civil society participation in oversight.

“This kind of corruption is also a major deterrent to investors. who could otherwise bring in capital, build industries, and create thousands of jobs,” he said.

The Philippines has formally adopted International Labour Organization guidelines on the just energy transition, and the Department of Labor and Employment (DoLE) recently unveiled a human resource development plan for green jobs.

The framework, Mr. Velasco said, is already in place.

“The legal and policy framework exists. Political will is all that is needed to create sustainable and green jobs for affected construction workers,” he said.

In a statement on Thursday, Finance Secretary Ralph G. Recto said the government is strengthening rural infrastructure, digital connectivity, and agricultural training.

It also ramped up job facilitation through PhilJobNet, job fairs, and a new data-sharing deal with the central bank. Training programs from the Technical Education and Skills Development Authority (TESDA) and the Department of Social Welfare and Development (DSWD), and a TESDA-TCL refrigeration center are being rolled out.

Meanwhile, the underemployment rate rose to 14.8% in July, up from 12.1% a year earlier and 11.4% in June.

This meant 6.8 million workers were seeking either longer working hours or additional jobs — compared with 5.77 million a year earlier.

Former Agriculture Undersecretary Fermin D. Adriano said weak flood defenses magnified the losses for farmers, who are already dependent on nonagricultural work to survive.

He noted that farmers earn about half their income from nonagriculture-related activities.

“They are mostly working as construction workers during off-peak planting season, as income from farming is not enough to sustain their family,” he said via Viber.

With repeated crop destruction, farmers also have little incentive to invest in improving productivity, leaving agriculture less able to meet growing food demand.

“(The) long-term consequence is lower or stagnant productivity and higher food prices because agriculture cannot efficiently produce [the] food requirements of the population,” Mr. Adriano noted.

“Since they cannot work and lose income due to the destruction of produce by flood, then they will be consigned to poverty.”

Peso depreciates before key US inflation report

BW FILE PHOTO

THE PESO dropped against the dollar on Thursday as the market awaited the release of August US consumer price index (CPI) data overnight that could cement a US Federal Reserve rate cut at its meeting next week.

The local unit closed at P57.191 versus the greenback, weakening by 6.6 centavos from its P57.125 finish on Wednesday, Bankers Association of the Philippines data showed.

The peso opened Thursday’s session stronger at P57.05 versus the dollar. Its intraday high was at P57.04, while its worst showing was at P57.28 against the greenback.

Dollars traded went up to $1.57 billion on Thursday from $1.44 billion on Wednesday.

“The dollar-peso consolidated today as the market awaited US inflation data to be released tonight,” a trader said in a phone interview.

The dollar was mostly stronger on Thursday on safe-haven demand due to renewed geopolitical tensions, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

For Friday, the trader expects the peso to move between P57 and P57.40 per dollar, while Mr. Ricafort sees it ranging from P57.05 to P57.30.

The dollar held steady on Thursday as traders await key US consumer price data for a steer on the Federal Reserve’s rate cutting path, while the euro was unchanged ahead of a European Central Bank (ECB) meeting, Reuters reported.

“The main event is the US CPI… The market is looking for reasons to reprice the Fed lower and push the USD down,” said Michalis Rousakis, G10 FX strategist at Bank of America.

“The question is whether the Fed can be re-priced lower, given that a cut or a little more is priced for September, and almost three cuts are priced by yearend,” he said. Bank of America’s house view is for two more Fed rate cuts this year.

The dollar index nudged up 0.1% to 97.91, with the dollar largely steady against major currencies.

Elsewhere, an unexpected drop in US factory-gate prices on Wednesday has bolstered expectations that the Federal Reserve will cut rates next week.

The data followed Tuesday’s revision to US employment growth figures, with the US having created 911,000 fewer jobs in the 12 months through March than previously estimated.

Meanwhile, the ECB is expected to hold rates steady when it meets later in the day.

The euro was unchanged at $1.169225 ahead of the meeting. Analysts said policymakers may strike a more dovish tone to counter a fraught trade and political outlook across the continent.

The common currency is stabilizing after a two-day streak of declines as geopolitical tensions continue on the bloc’s eastern flank. Poland said it shot down suspected Russian drones in its airspace on Wednesday with the backing of aircraft from its NATO allies, the first time a member of the Western military alliance is known to have fired shots during Russia’s war in Ukraine.

Commerzbank analysts said in a note that hopes of the ECB meeting being a catalyst for greater movement in EUR/USD are likely to be disappointed, given no new information is likely to be forthcoming.

“If anything, hopes may lie with ECB President Christine Lagarde. After all, she sounded surprisingly hawkish at the last two press conferences,” they wrote.

Given that a rate cut is not expected until next June, they added, Ms. Lagarde is unlikely to reveal her hand so far in advance.

Attention remains on the Fed’s likely rate cut trajectory.

Markets are trading on expectations that the prospect of the Fed easing is a certainty and the only remaining question is by how much. Traders are pricing in an 8.9% chance of a jumbo 50 basis points (bps) rate cut at the central bank’s Sept. 16-17 meeting, while a cut of at least 25 bps is viewed as a done deal, according to the CME Group’s FedWatch tool.

Appointments to the Fed’s rate-setting panel remained in focus, as President Donald J. Trump’s administration on Wednesday moved to appeal a federal judge’s ruling temporarily blocking Mr. Trump from taking the unprecedented step of firing Federal Reserve Governor Lisa Cook. The White House is seeking to remove her before next week’s Fed meeting.

Stephen Miran also moved closer to becoming a Federal Reserve governor, furthering Mr. Trump’s effort to exert more direct control over interest rate policy. The Senate Banking Committee voted to advance Mr. Miran’s nomination, though lawmakers involved said it is far from certain if the process can be completed in time for him to participate in the coming meeting.

Against the yen, the dollar was trading 0.2% higher at 147.80 yen after data showing Japanese wholesale prices rose 2.7% in the year to August, accelerating from the previous month in a sign of sticky inflationary pressure in the world’s fourth-largest economy.

The Australian dollar slipped 0.1% to $0.66095, retreating after hitting the highest levels since November on Wednesday, as commodities including crude oil and gold gave up recent gains.

The offshore yuan traded at 7.1216 yuan per dollar, strengthening 0.04%. The kiwi slipped 0.2% to $0.59290.

Sterling traded down 0.1% to $1.35195. — A.M.C. Sy with Reuters

Closing the $1.5-trillion gap: How FDI can help achieve the SDGs in Asia and the Pacific

STOCK PHOTO | Image by Studiogstock from Freepik

By Heather Lynne Taylor-Strauss and Eiichiro Takinami

OVER THE PAST two decades, foreign direct investment (FDI) has been the single largest and most stable source of external development capital in Asia and the Pacific (see the figure). In 2022 alone, FDI flows into the region exceeded $300 billion, outpacing official development aid (ODA), remittances and portfolio investment flows. Even in 2023, when global investment slowed under higher interest rates and geopolitical uncertainty, FDI into the region remained close to $290 billion.

For a region facing a $1.5-trillion annual financing gap to achieve the Sustainable Development Goals (SDGs), this is more than a statistic. It is a reminder that the future of development finance and achievement of the 2030 Agenda for Sustainable Development depends on whether countries can effectively attract and channel FDI. From the Addis Ababa Action Agenda (AAAA) in 2015 to the most recent Sevilla Commitment agreed at the International Conference on Financing for Development (FFD4), the global community is aligned to leveraging FDI for sustainable development. In fact, the Sevilla Commitment elevated the role of FDI. While the AAAA positioned FDI as complementary to public finances for sustainable development, the Sevilla Commitment identified FDI as a key source of development capital, devoting an entire subsection to scaling up FDI.

ODA, portfolio investments, and remittances all play important roles. But none match the stability, scale, or transformative power of FDI. While ODA is vital for humanitarian and social priorities, donor budgets are increasingly squeezed by competing demands such as defense spending and climate adaptation. Portfolio investments represent a large volume but are more susceptible to global economic events and often seek short-term returns. Personal remittances are stable and sustain household welfare. However, remittances are primarily consumption-oriented and often are not channeled to building productive capacity. FDI is different. It can build renewable energy plants, expand digital infrastructure, and create jobs. It is not just money flowing in; it is productive capital tied to long-term development.

Nonetheless, not all FDI is equal. Its impact depends on whether investments are effectively channeled towards SDG priorities. To accomplish this, investment promotion agencies (IPAs), with their mandates to promote, attract, and facilitate FDI, play a crucial role. With the right strategies and tools, IPAs can ensure that the FDI contributes to sustainable development needs.

The following three areas are particularly important for action by the IPAs.

1. Aligning and implementing IPA’s investment attraction strategies with SDGs. IPAs need to create medium-term investment promotion and attraction strategies that are aligned with their SDG priorities. This involves IPAs finding their country’s “niche” target sectors to attract investments. Aligning strategies with the SDGs is essential because many corporate investors now value alignment as part of their ESG investment criteria. Over the past several years, ESCAP — the United Nations Economic and Social Commission for Asia and the Pacific — has supported its member States in developing and implementing practical, targeted investment promotion and attraction strategies. These projects have enabled IPAs to narrow their focus, identify niche opportunities, and connect with high-potential investors.

2. Leveraging regional cooperation on investment promotion. While IPAs often compete for investors, regional cooperation can be even more powerful — especially in attracting cross-border investments that require scale. By pooling markets and aligning promotion efforts, countries can present themselves not as fragmented destinations but as part of a larger, integrated investment destination. This approach not only makes the region more attractive to global investors but also enables each country to highlight its comparative strengths within wider value chains.

ESCAP has been at the forefront of advancing such cooperation. In Southeast Asia, the ASEAN Regional Investment Promotion Action Plan (RIPAP) 2025-2030 was endorsed by all ASEAN member States as the first region-wide initiative to jointly promote investment opportunities. In Central Asia, ESCAP and the International Islamic Trade Finance Corporation launched the Boosting Exports through FDI program, which helps countries attract investment that strengthens regional value chains and to become more competitive.

Regional collaboration of this kind demonstrates that cooperation — not just competition — can unlock larger, more sustainable flows of FDI.

3. Developing impact measurement tools. Developing and utilizing impact measurement tools can help IPAs demonstrate how their work is contributing to advancing the SDGs. With database systems and tools, IPAs can track growth in sectors like green industries or progress on digital transformation, making their impact more visible. For example, Investment Fiji has tailored its Customer Relationship Management system to more effectively monitor how the investment they have helped facilitate contributes to the SDGs.

As traditional development aid budgets plateau, FDI remains the most stable and transformative capital for building productive capacity. FDI has already been instrumental in driving SDGs in areas such as transitioning to clean energy, accelerating digital connectivity, and generating decent jobs needed for inclusive growth. But to fully realize this potential, governments and IPAs must be strategic, collaborative and impact-driven.

ESCAP stands ready to support its member States and their IPAs in developing and implementing FDI promotion and attraction strategies aligned with SDGs.

 

Heather Lynne Taylor-Strauss is the Economic Affairs Officer while Eiichiro Takinami is a Junior Economic Affairs Officer at ESCAP.

Home Credit eyes P100-billion loan receivables this year

HOMECREDIT.PH

HOME CREDIT PHILIPPINES is targeting P100 billion in loan receivables by the end of 2025, supported by a growing customer base, expanding partner stores, and manageable non-performing loans (NPLs).

“As of the end of 2024, our loan receivables were at about P74 billion,” Sheila A. Paul, chief marketing officer at Home Credit Philippines, said on the sidelines of a press event on Thursday. “

As of June 2025, it is P85 billion already. And we’re hoping to hit the magic P100 billion within the year.”

The consumer finance company recorded 12.2 million customers as of July, up from 11 million in October last year. “It is increasing faster than last year … So, it actually signifies we’ve made a lot of progress on making our products more accessible,” Ms. Paul said.

Home Credit also expanded its partner stores to 18,000 from 16,000 last year, alongside a growing sales associate network that now totals 10,000. Its top-selling products remain televisions, air conditioners, and refrigerators, with rising demand for inverter technology helping customers lower electricity costs.

Smartphone financing is expected to reach P20 billion this year, double last year’s P10 billion, with iPhones remaining the top choice among consumers upgrading to premium devices.

The company’s NPL ratio remains below 10%, still higher than traditional banks but considered manageable. “Of course, the lower, the better. But as long as we’re able to manage it within that threshold, I think we are fine,” Ms. Paul said.

She added that the company does not require additional safeguards at present but will review its strategy if market conditions change.

Home Credit is also anticipating strong sales during the Christmas season, its historically busiest period. “So I think it is also going to be the same this year, and so we expect to hit our targets for the year,” Ms. Paul said. — Justine Irish D. Tabile

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