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Infrastructure spending expected to accelerate after election pause

CONSTRUCTION WORKERS continue work on the Skyway project at the corner of Quirino Avenue and Osmeña Highway in Manila. — PHILIPPPINE STAR/RYAN BALDEMOR

INFRASTRUCTURE spending is expected to pick up in the third quarter after a pause during the run-up to the May elections, the Department of Finance (DoF) said.

“We expect that to pick up in the third quarter,” Finance Undersecretary and Chief Economist Domini S. Velasquez said on the sidelines of an event on Thursday.

The Department of Budget and Management (DBM) reported that spending on infrastructure and other capital outlays declined 9.2% to P123.8 billion in May.

In the first five months, spending fell 0.6% to P417.5 billion.

“The lower outturn was mainly attributed to the lagged effects of the election-related prohibition on public spending that in turn affected the disbursement performance of the Department of Public Works and Highways (DPWH) for its road infrastructure programs,” the DBM said in its disbursement report.

The Commission on Elections’ 45-day ban on public works spending started on March 28 and ended with the May 12 elections.

Budget Secretary Amenah F. Pangandaman has said that disbursements are expected to pick up in late May.

Meanwhile, Nigel Paul C. Villarete, senior adviser on public-private partnerships at the technical advisory group Libra Konsult, Inc., said a spending slowdown due to adverse weather is a “regular occurrence” and accounted for each year.

The government weather service, known as PAGASA, is forecasting up to 16 cyclones between August and December.

“However, we should not look at these negatively as these are regular and expected outcomes of our electoral processes and the occurrence thereof were already included and incorporated in the program and project planning of the various agencies of our government,” Mr. Villarete said via Viber.

The government has set a target for public infrastructure spending of 5%-6% of gross domestic product.

According to the Budget of Expenditures and Sources of Financing, the government is hoping to spend P1.54 trillion on infrastructure in 2025. — Aubrey Rose A. Inosante

Exporters left in the dark after Marcos silence on 19% tariff

PRESIDENT FERDINAND MARCOS, JR. — PHILIPPINE STAR/KRIZ JOHN ROSALES

By Justine Irish D. Tabile, Reporter

EXPORTERS said President Ferdinand R. Marcos, Jr. did not outline a government plan to deal with increased US tariffs in his fourth State of the Nation Address (SONA).

Foreign Buyers Association of the Philippines (FOBAP) President Robert M. Young said that exporters had been expecting the SONA to signal relief measures after US President Donald J. Trump announced a 19% tariff on Philippine goods, two percentage points higher than the initial rate announced in April.

“The whole thing to us is still opaque. When I say opaque, there’s no clarity,” he said in a phone interview, noting that government officials are giving off mixed signals regarding the conclusion of the reciprocal trade agreement.

“That’s why we expected him to say some comforting words,” he added.

He said exporters were hoping for forms of assistance that will “lessen their selling price.”

The Philippines and the US recently concluded talks on reciprocal tariffs, which are due to take effect on Aug. 1. The Philippine rate gives it little or no advantage over regional competitors like Indonesia (19%) or Vietnam (20%).

He expressed fears that the tariff will render Philippine goods unattractive, with consumers “instead picking commodities from Vietnam, Bangladesh, and Indonesia, among others,” he added.

He said there is some leeway to cushion the blow against exporters, such as tax reductions or holidays and subsidized customs and port fees.

“Right now, the sentiment is that nobody is pushing for this kind of remedy,” he added, noting the absence of “assurance from the government that we are here to assist you in any way.”

He said clear direction from the government will not only provide comfort to exporters but also to buyers.

“When they hear these kinds of comforting words, their trust level will also increase, which will be good for us, as that will push them to somehow continue (dealing with us),” he added.

BCDA approves new BSP complex in Clark

BASES CONVERSION AND DEVELOPMENT AUTHORITY (BCDA)

THE Bases Conversion and Development Authority (BCDA) said it approved the development of the New Bangko Sentral ng Pilipinas (BSP) Security Complex in New Clark City.

In a statement, the BCDA said the move to Clark from the current security complex site in East Avenue, Quezon City is intended to decongest Metro Manila.

The new 31.3-hectare BSP Security Complex in New Clark City will “accelerate countryside development, stimulate job creation, and strengthen our institutions for generations to come,” BCDA President and Chief Executive Officer Joshua M. Bingcang said.

The detailed design phase is scheduled to conclude by August, while the procurement process to appoint a general contractor is expected in December.

“The facility will ensure uninterrupted BSP operations during disruptions such as natural disasters,” the BCDA said.

“The long-term lease agreement with BCDA, effective for 50 years and renewable for another 25, provides a stable base for BSP’s operations outside Metro Manila,” it added.

It expects the construction of the new BSP facility to generate demand for housing and services when it starts operations.

“This movement of skilled workers and their families will invigorate the local economy, generating new demand for housing, retail, transport and public services in Tarlac and nearby provinces,” Mr. Bingcang said.

The BCDA has broken ground on an 900-unit affordable housing project in New Clark City. Further units will be offered after the first phase.

“The BSP Complex is being designed for Leadership in Energy and Environmental Design (LEED) certification, ensuring world class standards in energy efficiency, climate resilience, and environmental performance,” the BCDA said. — Justine Irish D. Tabile

VAT filing deadline extended for foreign digital providers

STOCK PHOTO | Image by andrespradagarcia from Pixabay

THE Bureau of Internal Revenue (BIR) said it extended the deadline for filing value-added tax (VAT) returns for non-resident digital service providers to Aug. 5.

In a Revenue Memorandum Circular on Thursday, the extension applies to VAT returns and payments for the second quarter.

The original deadline had been July 25 but was later moved to July 31 in the wake of widespread flooding in many parts of the country last week.

“If the extended due dates fall on a holiday or non-working day, the filing of the VAT returns and payment of VAT due thereon shall be made on the next working day,” it said.

The government imposed a 12% VAT on digital services consumed in the Philippines on June 1. President Ferdinand R. Marcos, Jr. signed the digital services VAT law in October.

The Department of Finance (DoF) has said that the government will generate P102.12 billion in revenue from the VAT between 2025 and 2028. — Aubrey Rose A. Inosante

P5-B Lemery, Batangas logistics hub completed

SINISIANPORTANDINDUSTRIALPARK.COM

THE P5-billion Sinisian Lemery Batangas Port & Industrial Park (SLBPIP) has been completed and will start commercial operations this Friday, the park’s CEO said.

“We are now fully operating and actively serving our locators,” SLBPIP’s Ferdinand Co said in a statement.

The facility’s three components are a port, a cement silo, and a fuel depot.

“Development of the park began after the pandemic and was fast-tracked last year. Strategically located in Sinisian, Lemery, the hub offers convenient access for trade and logistics,” Mr. Co said.

“The port can accommodate both international and domestic vessels with a maximum size of 50,000 deadweight tons,” SLBPIP said.

“As a hub for import, export, and transshipment, SLBPIP also features bulk storage facilities for cement, oil, chemicals, and other petroleum products, as well as warehouses for storing bulk cargo,” it added.

Meanwhile, a group company, Lemery Cement Silo Tank Corp., operates storage facilities for cement, oil, chemicals, and petroleum products and warehouses for bulk cargo.

With a capacity of 2 million tons of cement and slag a year, Lemery Cement supplies Portland cement, blended Portland cement, and granulated ground blast furnace slag.

“We specialize in delivering high-quality cement and slag, ensuring durability and strength for all your construction needs,” Mr. Co said.

Another group company, Lemery Oil Terminal Corp., operates the fuel depot, which will serve independent oil and fuel importers. — Justine Irish D. Tabile

Gov’t scientists develop ASF rapid test kits

REUTERS

THE Department of Science and Technology (DoST) said it collaborated in the development of technologies that will speed up the detection of African Swine Fever (ASF) in hog farms.

The Industrial Technology Development Institute, an arm of the DoST, developed a rapid DNA extraction kit known as TUSLOB and a real-time detection kit known as VIPtec that will speed up Polymerase Chain Reaction (PCR) testing on samples.

TUSLOB can also be used to detect other animal diseases and is optimized for point-of-care testing, according to the DoST’s Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development (PCAARRD) said in a statement.

VIPtec, meanwhile, is optimized for use with portable PCR machines, making it suitable for on-site diagnosis of ASF.

The test kits were developed under the Virology and Vaccine Research Program funded by DoST and overseen by PCAARRD.

The DoST also announced the first domestically developed Mobile Biocontainment Laboratory by BioAssets Corp.

The laboratory is designed to support rapid response to potential outbreaks and improve disease surveillance at the point of need, PCAARRD said. — Kyle Aristophere T. Atienza

Telcos say Konektadong Pinoy bill should be returned to Congress

THE Philippine Chamber of Telecommunications Operators (PCTO) again cautioned President Ferdinand R. Marcos, Jr. against signing the Konektadong Pinoy bill, warning that it could cause the Philippines to breach its treaty obligations.

It added that the proposed law could cause the government to violate the terms of franchises held by incumbent telecommunications operators.

“If a law has some flaws, an IRR (implementing rules and regulations) really cannot cure what flaw that law has in its entirety. We ask again if it is possible for the President to consider our plea that it be sent back, redrafted to include our inputs,” Smart Communications, Inc. Head of Regulatory Affairs and PCTO Vice-President Roy D. Ibay told Money Talks with Cathy Yang on One News on Thursday.

During the program, Information and Communications Technology (ICT) Secretary Henry Rhoel R. Aguda said his department remains confident that the measure will be signed into law.

“It has been a very busy two weeks for the President. But… we are just waiting for the official announcement to proceed with the next activities,” he said.

The Senate and House of Representatives ratified on June 9 the bicameral conference committee report on the Konektadong Pinoy bill.

The PCTO has said that while it supports the measure’s objective of expanding internet access, it warned that the version passed by the bicameral conference committee could create national vulnerabilities and weaken regulatory oversight.

“Aside from national security concerns, we feel that it introduces a lot of unfair rules,” Mr. Ibay said, noting that one section of the measure talks about technology and neutrality while favoring the presence of satellite providers.

“In (the Konektadong Pinoy bill) it says that the satellite providers do not even have to register and just file their agreements with the DICT and do not even have to coordinate as regards to spectrum,” he said.

This provision violates the International Treaty on Radio Regulations, Mr. Ibay said, noting that the Philippines adheres to the International Telecommunication Union (ITU), which governs frequency use.

“The ITU provides that any satellite should do local coordination with the regulator. But in this law, it is absent, it does not provide that,” Mr. Ibay said.

In June, the PCTO sought a review of the Konektadong Pinoy bill, warning that some provisions could undermine regulatory oversight and pose risks to national security and fair competition.

Mr. Ibay said that the transitory provision of the Konektadong Pinoy bill provides that duly enfranchised players will retain all their rights and privileges except those concerning data transmission.

“They removed our rights and privileges over whatever inherent provisions that’s contained in our franchise… This bill now governs data transmission. That is unconstitutional because a franchise is already considered a property right. Removing this, this inherent, granted, and already enjoyed privilege of franchise holders will now be rendered ineffective under the new Konektadong Pinoy bill,” he said. — Ashley Erika O. Jose

Marcos orders support measures for exporters

BW FILE PHOTO

THE Department of Trade and Industry (DTI) said President Ferdinand R. Marcos, Jr. has ordered it to undertake measures to support exporters.

Trade Secretary Ma. Cristina A. Roque said the support activities include providing targeted market intelligence, facilitating business matching, and organizing international trade missions.

“Amid global challenges like geopolitics and supply chain issues, Filipino businesses continue to find ways to grow and compete. Their strength helps boost our export performance,” Ms. Roque said in a statement on Thursday.

Citing the Philippine Statistics Authority, the DTI said merchandise exports in June grew 26.1% to $7.02 billion, led by mineral products, machinery and transport equipment, gold, manufactured goods, and coconut oil.

The US remained the Philippines’ top export destination accounting for $1.21 billion or 17.3% of the total. Other top markets were Hong Kong and Japan.

Export Marketing Bureau Director Bianca Pearl R. Sykimte attributed the strong export performance in the US market to the “accelerated deliveries by exporters in anticipation of potential tariff adjustments.”

“While this contributed to the June surge, it also underscores the importance of diversifying our export markets,” she said.

“We are actively working to support sectors that are heavily reliant on the US by opening new trade avenues and strengthening our presence in emerging and strategic markets,” she added. — Justine Irish D. Tabile

ODA portfolio rises 6% to nearly $40B in 2024

The South Commuter Railway is part of the 147-km North-South Commuter Railway network. — BW FILE PHOTO

THE active official development assistance (ODA) portfolio rose 6% to $39.6 billion in 2024, the Department of Economy, Planning, and Development (DEPDev) said.

In its ODA Portfolio Review Report, the DEPDev said ODA consists of 426 loans and grants, with infrastructure development driving the bulk of new commitments.

Overall, 111 loans supported 93 programs and projects of the government, it said.

“New loan commitments on infrastructure drove the increase, with nine of the 17 fresh loans worth $8.2 billion supporting the Marcos Administration’s Infrastructure Flagship Projects (IFPs),” it said.

Aside from the new loans, the portfolio includes 76 ongoing loans ($23.32 billion), 17 closed loans ($5.70 billion) and one cancelled loan ($4.48 billion).

Economy Undersecretary Joseph J. Capuno said the closed loans were mostly related to pandemic response and social protections while the cancelled one was for the Bureau of Customs Modernization Project.

“This is the highest total ODA amount recorded in a decade,” Mr. Capuno said at a briefing.

Some 62.7% of the portfolio involved transport and connectivity infrastructure.

The Japanese government remains the top development partner, with $13.23 billion in active commitments across 82 loans and grants.

It was followed by the Asian Development Bank ($11.05 billion), the World Bank ($8.64 billion), other sources ($2.96 billion), the Asian Infrastructure Investment Bank ($2.38 billion), and South Korea ($1.34 billion).

Among the recently completed projects were Phase III of the Arterial Road Bypass in Bulacan and the Panguil Bay Bridge in Lanao del Norte.

Mr. Capuno noted several recurring issues causing project implementation delays, including budget and fund flow problems, which affected 29 projects.

“Among the major concerns here include non-inclusion of some proposed projects in the 2024 GAA (General Appropriations Act), or their reclassification to unprogrammed allocations,” he said.

Site conditions and availability issues affected 26 projects. The issues include delays in land acquisition, right-of-way, and unresolved expropriation cases.

Procurement-related challenges affected 25 projects, including bid preparation delays, failed bids, and weak planning.

However, 43 projects were identified as “at-risk,” most of them being implemented by the Department of Public Works and Highways (DPWH) and the Department of Transportation (DoTr).

These include the Cebu Bus Rapid Transit Project, the Support to Parcelization of Lands for Individual Titling (SPLIT) Project, the Philippine Seismic Risk Reduction and Resilience Project and the Metro Manila Subway Project Phase I.

Mr. Capuno said ODA will continue to serve as the primary source of financing for government projects, even as the country gradually transitions to upper middle-income (UMIC) status.

“As we move toward UMIC classification, there is a grace period during which we can still access concessional loans from our development partners,” Mr. Capuno said, adding that the government will increasingly explore public-private partnerships. — Aubrey Rose A. Inosante

Cybersecurity company expanding PHL talent pool

NCCGROUP.COM

NCC Group, a cybersecurity company, said on Thursday that it is scaling up talent development in the Philippines by offering specialized cybersecurity skills training.

“The Manila office has been an integral part of our global capacity for clients and has opened doors to develop local technology talent,” NCC Group Philippines Country Leader Mirei Magallona said.

“We are now growing into a hub for specialized cyber expertise and continuing to expand our cybersecurity scope to support our clients,” she added.

Since operations started in Manila last year, the company has expanded its local capabilities through training and plans to offer its services to Philippine companies.

“The company’s push for local talent development comes at a time when local firms plan to invest in their tech capabilities,” NCC added.

According to Ms. Magallona, NCC’s goal is to continue attracting and developing expertise.

Citing Forrester, it said that tech spending in the Philippines is expected to increase 9.4% in 2025, with artificial intelligence (AI) and cybersecurity among the key drivers of investment.

Recently, NCC Group has launched a new suite of Digital Identity Services, which aims to help organizations manage and protect their digital assets.

“It is the latest addition to NCC Group’s suite of solutions powered by its professionals all over the world, including the Filipino workforce,” NCC said.— Justine Irish D. Tabile

PSEi hits one-month low as tariff deadline looms

BW FILE PHOTO

THE BENCHMARK INDEX sank to the 6,200 level on Thursday, hitting a one-month low, as investors were cautious ahead of the Trump administration’s Aug. 1 tariff deadline and after the US Federal Reserve kept rates unchanged.

The Philippine Stock Exchange index (PSEi) dropped by 1.03% or 65.50 points to close at 6,252.73, while the broader all shares index went down by 1.05% or 39.68 points to 3,736.91.

This was its lowest close in over a month or since it finished at 6,218.28 on June 23.

“The local market dropped further as investors continued to deal with global trade uncertainties as the US’ Aug. 1 negotiations deadline looms,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message. “Investors also digested the outcome of the Fed’s latest policy meeting wherein rates were kept unchanged and no definite outlook was given.”

“(The) PSEi went down… as investors are already cautious in their positions about the potential impact and how it might affect stock market movements ahead of tomorrow’s tariff deadline,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

US President Donald J. Trump said on Wednesday that his tariff deadline will not be extended. He also announced a 25% tariff rate on products from India, a 50% duty on copper pipes and wiring, and a 15% tariff on goods from South Korea.

Meanwhile, the US central bank held interest rates steady on Wednesday and Federal Reserve Chair Jerome H. Powell’s comments after the decision undercut confidence that borrowing costs would begin to fall in September, Reuters reported.

Mr. Powell said the Fed is focused on controlling inflation — not on government borrowing or home mortgage costs that Mr. Trump wants lowered — and added that the risk of rising price pressures from the administration’s trade and other policies remains too high for the central bank to begin loosening its “modestly restrictive” grip on the economy until more information is collected.

The latest policy decision was made by a 9-2 vote, what passes for a split outcome at the consensus-driven central bank, with two Fed governors dissenting for the first time in more than 30 years.

All sectoral indices closed in the red on Thursday. Mining and oil plunged by 3.01% or 273.77 points to 8,808.23; holding firms sank by 1.6% or 86.45 points to 5,299.36; financials declined by 1.48% or 33.07 points to 2,190.06; industrials retreated by 1.31% or 120.32 points to 9,002.71; services lost 1.22% or 27.26 points to end at 2,194.68; and property fell by 0.93% or 22.29 points to 2,351.30.

Value turnover went up to P7.85 billion on Thursday with 902.65 million shares traded from the P4.66 billion with 800.01 million shares exchanged on Wednesday.

Decliners overwhelmed advancers, 134 against 61, while 56 names closed unchanged.

Net foreign buying was at P228.54 million on Thursday, a turnaround from the P57.49 million in net selling recorded on Wednesday. — Revin Mikhael D. Ochave with Reuters

Marcos urges vigilance amid regional tensions as he names new army chief

NEWLY INSTALLED Philippine Army chief Lieutenant General Antonio G. Nafarrete (right) shakes hands with his predecessor Roy M. Galido as President Ferdinand R. Marcos, Jr. looks on. — NOEL B. PABALATE/PPA POOL

PRESIDENT Ferdinand R. Marcos, Jr., on Thursday urged his newly appointed Philippine Army chief to show strong leadership and vigilance as the country faces growing global uncertainty and security threats.

At a change of command ceremony held at Fort Bonifacio in Taguig City, the President cited the importance of firm and focused leadership at a time “when geopolitical tensions and global uncertainty are high.”

“This will demand your vigilance and leadership to deliver clear direction and to show a firm commitment,” Mr. Marcos told Lieutenant General Antonio G. Nafarrete, according to a transcript from the Presidential Communications Office.

“I have full confidence that under your command, the Philippine Army will remain steadfast [as] a pillar of strength, integrity [and] professionalism,” he added.

Mr. Nafarrete’s appointment as the 67th commanding general of the Philippine Army comes at a time of heightened tensions in the South China Sea and rising global instability.

Mr. Marcos pledged continued support to modernize the Armed Forces, telling the troops in Filipino: “As your commander-in-chief, I promise that we will continue to strengthen and further reinforce our Armed Forces.”

In his assumption speech, Mr. Nafarrete unveiled a five-point command strategy focused on human capital development, calling soldiers the army’s “most important asset.”

“We are entering an era where wars are not only fought with bullets but also with bytes — where battles can be won or lost through morale, awareness and unity,” he said in remarks broadcast by Radio Television Malacañang.

His five-point agenda involves prioritizing personnel, boosting morale, improving health and education and ensuring financial well-being.

“Each and every soldier, remember this: You are not just part of the force, you are the force,” he said. “You are not just defending the nation; you are the nation.”

The Armed Forces of the Philippines expressed support for Mr. Nafarrete in a separate statement.

“Under his leadership, the army will continue to enhance operational readiness, pursue modernization and uphold its core values of honor, patriotism and duty in service to the Filipino people,” it said.

Mr. Nafarrete replaces Lieutenant General Roy M. Galido, who retired after almost four decades of service, having served as army chief since 2023.

A member of the Philippine Military Academy Bigkis-Lahi Class of 1990, Mr. Nafarrete held key positions within the Armed Forces, including commander of the 6th Infantry Kampilan Division, the 1st Infantry Tabak Division and the Joint Task Force Zampelan under the Western Mindanao Command.

During his tenure in Mindanao, he focused on dismantling local armed threats and combating terrorism, contributing to the region’s economic development and stability, the army said in a separate statement.

It noted that his leadership in internal security operations laid the foundation for the force’s transition to territorial defense and external security.

Earlier in the ceremony, Mr. Marcos awarded Mr. Galido the Presidential Legion of Honor for his “exceptional service,” recognizing his role in modernizing the army, improving civil-military ties and boosting regional defense partnerships.

“The army has been enriched by your service and will grow stronger under the leadership of its next commanding general,” he added. — Chloe Mari A. Hufana

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