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European-Philippine Business Dialogue 2025 reinforces momentum for stronger EU-PH trade relations

From left to right: Jaime Urquijo, Ayala Corp. chief sustainability and risk officer; Tony Peralta, ECCP Southern Mindanao Business Council chairman; Lars Wittig, ECCP vice-president & APAC IWG Plc senior vice-president; Paulo Duarte, ECCP president & Robert Bosch, Inc. managing director; Hon. Frederick D. Go, Special Assistant to the President for Investment and Economic Affairs; EU Ambassador to the Philippines H.E. Massimo Santoro; Sharon Toh, EU-ASEAN Business Council vice-chair and treasurer & head of ASEAN, Society for Worldwide Interbank Financial Telecommunication; Florian Gottein, ECCP executive director; Juha-Pekka Hoikka, Airbus Helicopters Philippines, Inc. managing director / Airbus chief representative-Philippines; Tarang Gupta, Alaska Milk managing director; and Albert Perez, ECCP treasurer & Paul Morgann founder/CEO

In a significant show of support for renewed momentum behind the European Union-Philippines Free Trade Agreement (EU-PH FTA) negotiations, key stakeholders from the public and private sectors convened on Oct. 16, 2025 at the 2025 European-Philippine Business Dialogue (EPBD) and European Investors’ Night held at Raffles & Fairmont Makati City.

Organized by the European Chamber of Commerce of the Philippines (ECCP) and the EU-ASEAN Business Council (EU-ABC), this year’s dialogue carried the theme “Keeping the Philippine Centrestage” — a reference to the country’s increasing relevance as a vibrant hub for trade and investment in Southeast Asia.

As the flagship platform for high-level policy dialogue and investment promotion between Europe and the Philippines, the 2025 EPBD attracted a wide range of participants, including top-level executives, diplomats, government officials, and thought leaders. Key discussions centered around the resumption of the EU-PH FTA negotiations and the Philippines’ role in driving inclusive, sustainable growth within the ASEAN region.

In his welcome remarks, ECCP President Paulo Duarte emphasized the significance of the upcoming trade discussions between the European Union and the Philippines. He stated, “As negotiations for the EU-Philippine Free Trade Agreement resume next week, the Philippines is at a crucial juncture to strengthen its trade, investment, relationship with one of its key economic partners.”

Echoing this sentiment, European Union Ambassador to the Philippines H.E. Massimo Santoro shared a message from the EU Delegation in Manila. He stated, “let’s continue to work hand-in-hand, to build not just stronger economies, but also a shared future. One that is prosperous, green and inclusive.” His remarks highlighted the EU’s commitment to sustainable and inclusive growth, reinforcing the shared vision for a resilient and forward-looking partnership.

The dialogue sessions addressed timely topics including the EU-PH Free Trade Agreement (FTA), the future of EU-PH trade and investment relations, opportunities for European investors, strategies for enhancing investor confidence, the Philippines’ spending priorities and fiscal policies, and private sector insights.

Bridging Continents, Keeping the Centrestage: The Philippines in the EU-ASEAN Trade Arena

In her remarks, Executive Director Evariste Cagatan of the Department of Trade and Industry-Board of Investments highlighted the Philippines’ commitment to fostering stronger economic ties with the European business community. She affirmed the country’s readiness to provide a supportive environment for foreign investors, stating, “The Philippines is ready to welcome and support you, our dear European investors, and there is no better time to deepen our partnership than now.”

Her message emphasized the strategic opportunities available in the country and encouraged European investors to take part in the Philippines’ growth journey.

Launch and Handover of the 2025 ECCP Advocacy Papers

This year’s dialogue also featured the launch of the ECCP’s 2025 Advocacy Papers, the Chamber’s flagship publication, which was distributed to key government offices and the heads of mission of European embassies in the Philippines. These papers highlight key policy priorities identified through extensive consultations with stakeholders and partners. It likewise reflects the Chamber’s steadfast commitment to constructive engagement with our government partners.

ECCP Executive Director Florian Gottein emphasized the collective effort behind this important initiative. He noted that the Advocacy Papers reflect the insights and recommendations of industry leaders and policy advocates who share a common goal: “That is to help shape a more competitive and sustainable business environment in the Philippines.”

Unlocking the Philippines’ Economic Potential: The Role of Policy Reforms and Private Sector Growth

In her address, Hon. Lea Grace B. Salcedo, Deputy Director-General for Operations of the Anti-Red Tape Authority (ARTA), emphasized the government’s commitment to creating a more efficient and investor-friendly business environment. She encouraged greater collaboration between the Philippines and its European partners, stating, “As we look into the future, we invite our European partners to deepen their engagement with the Philippines, whether it is renewable energy, digital transformations, healthcare, work education. There is a vast potential for collaboration.”

Her message reflected ARTA’s ongoing efforts to reduce bureaucratic barriers and promote ease of doing business as a key driver for economic growth.

In her keynote address, Department of Budget and Management (DBM) Secretary Amenah F. Pangandaman outlined the government’s strategic spending priorities aimed at fostering a more competitive and resilient economy. She emphasized the importance of international collaboration and acknowledged the critical role of the European Union in supporting the Philippines’ national development goals. “The EU is an invaluable partner of the Philippines in our Agenda for Prosperity. We look forward to our continued partnership in pursuing regional growth and security, fostering our shared values of transparency and accountability, and achieving our vision of a Bagong Pilipinas anchored on sustainability and inclusivity,” she stated.

Secretary Pangandaman also expressed optimism about the potential for deeper collaboration between the public and private sectors in driving inclusive growth and long-term progress. “I’m confident that together, we can promote economic expansion and move in a wide range of opportunities towards fulfilling our agenda for prosperity and the vision of the model Philippines,” she added. Her message reinforced the government’s commitment to transparent, efficient, and future-ready fiscal management as a key pillar in building a stronger and more inclusive economy.

In a session highlighting private sector insights, Michael G. Tan, Board Member of PMFTC, Inc., underscored the importance of trust and collaboration in fostering inclusive growth, stating, “We believe that the EU and Philippine partnership can be a powerful force for good, enabled by mutual trust, fairness, and shared prosperity.” His remarks reflected the private sector’s strong support for deepening bilateral ties and promoting a business environment grounded in cooperation and long-term value creation.

Echoing the spirit of collaboration, Secretary Arsenio Balisacan of the Department of Economy, Planning, and Development (DEPDev), highlighted the government’s commitment to sustaining reforms that enhance the country’s global competitiveness. He stressed the importance of partnerships among the government, private sector, and international institutions in achieving economic transformation. “Together with the private sector, our institute, and international partners, the Philippines remain steadfast in its commitment in building a dynamic, competitive, and inclusive economy, one that’s future ready and full of opportunities,” he stated.

In his remarks, Usec. Karlo Fermin S. Adriano, Undersecretary of the Fiscal Policy and Monitoring Group at the Department of Finance (DoF), highlighted the important role of sound fiscal policies in driving economic growth and creating a conducive environment for trade and investment. He acknowledged the longstanding cooperation between the European Union and the Philippines, and emphasized the need to continue building on this partnership to unlock future opportunities. “So tonight, as we commemorate the success of European-Philippine cooperation, let us look ahead with optimism and resolve to the new opportunities that await us,” he stated.

European Investor’s Night

The European Investors’ Night, held in the same evening, offered a more informal yet impactful networking platform, celebrating enduring business partnerships while fostering new connections across industries.

Both events underscored the shared commitment of European and Philippine stakeholders to creating a more predictable, sustainable, and inclusive business environment. As negotiations on the EU-PH FTA move forward, the outcomes of the 2025 EPBD are expected to play a key role in shaping the dialogue around future economic collaboration.

Delivering the keynote message on behalf of President Ferdinand Marcos, Jr., Hon. Frederick D. Go, Special Assistant to the President for Investment and Economic Affairs, emphasized the Philippine government’s unwavering commitment to creating a more attractive and investor-friendly business environment.

He highlighted the administration’s ongoing efforts to implement transformative economic reforms, noting, “The Philippines is pursuing the most open and liberal investment policies in our history. Streamlining processes, reducing operational barriers, and crafting strategies that foster investor confidence.” His message reinforced the government’s dedication to strengthening the country’s position as a prime investment destination, grounded in transparency, efficiency, and long-term growth.

The 2025 European-Philippine Business Dialogue and European Investors’ Night are organized by the ECCP and the EU-ABC, in partnership with DEPDev, the Philippine Economic Zone Authority (PEZA), and the Philippine Board of Investments (BoI).

We also recognize the invaluable support of a diverse group of partners and organizations. The IT & Business Process Association of the Philippines (IBPAP) and the Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) served as Industry Partners, while PMFTC, Inc. as the Gold Partner. Ayala Corp., Concentrix, Elsal Ventures, HSBC, Lufthansa Technik Philippines, Pru Life UK, and SGV & Co. contributed as Bronze Partners.

The events are strongly supported by a network of Advocacy Partners, including the Delegation of the European Union to the Philippines, Embassy of Finland in Manila, Embassy of the Republic of Poland in Manila, Embassy of the Republic of Slovenia in Manila, Embassy of Sweden in Manila, Embassy of Ukraine in the Philippines, Embassy of the Czech Republic in Manila, Embassy of the Federal Republic of Germany in Manila, Embassy of Ireland in the Philippines, Embassy of Romania to the Philippines, and The Royal Norwegian Embassy in Manila.

The events also featured Booth Partners: GROW, Inc., PNB, and Loft, with ADP proudly serving as the Table Top & Conference Kit Partner. B.Braun, Bureau Veritas, Coca-Cola Europacific Aboitiz Philippines, Jollibee Group, Nestlé, and Nague Malic Magnawa and Associates (NMM) Customs Brokers joined as Table Top Partners.

Advocacy is further bolstered by Advocacy Supporters – Advantage Austria, the British Chamber of Commerce in the Philippines, the French Chamber of Commerce in the Philippines, the German-Philippine Chamber of Commerce, Inc., the Italian Chamber of Commerce Philippines, the Nordic Chamber of Commerce of the Philippines, the Polish Chamber of Commerce in the Philippines, and the Swiss Chamber of Commerce of the Philippines.

The events’ prestigious venue partner is Raffles & Fairmont Makati, while leading media outlets The Manila Times, BusinessWorld, and the Philippine Business and News support the event as Media Partners.

Together, these esteemed partners played a vital role in the success of the 2025 EPBD and European Investors’ Night, promoting collaboration and deepening business ties between Europe and the Philippines.

 

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Maynilad Water seeks to raise up to $591 million in IPO

BW FILE PHOTO

Hong Kong’s First Pacific said on Tuesday that its Philippine affiliate Maynilad Water Services would raise up to 34.33 billion pesos ($590.58 million) in an initial public offering, making it the country’s biggest listing in four years.

Shares of the largest private water concessionaire in the Philippines have been priced at 15 pesos per share.

The initial public offering will be the country’s largest since food maker Monde Nissin’s record IPO that raised $1 billion in 2021.

Majority owned by Metro Pacific Investments Corp, DMCI Holdings and Japan’s Marubeni Corp., Maynilad serves the west zone of Metro Manila and parts of Cavite province.

The offer will open from October 23 till October 29, with trading expected to commence on November 7 on the Philippine Stock Exchange.

Cornerstone investors are likely to buy more than half of the offering, Reuters had reported earlier this month.

In a separate statement, First Pacific said the offering comprises a public offer of 1.66 billion shares, along with reserved, overallotment option and upsize option shares.

The listing adds to a growing pipeline of IPOs in the Philippines, where IPO proceeds more than tripled to $234.1 million last year from $72.9 million in 2023, according to data compiled by LSEG.— Reuters

Maynilad sets final IPO price at P15 per share

MAYNILADWATER.COM.PH

WEST zone water concessionaire Maynilad Water Services, Inc. has set the final offer price for its initial public offering (IPO) at P15 per share, according to a notice from the Philippine Stock Exchange (PSE) on Tuesday.

The final price confirms the company’s earlier indicative ceiling, which was lowered from P20 per share following feedback from institutional investors.

Maynilad will offer 1.66 billion common shares to the public and 24.9 million primary shares reserved for First Pacific Co. Ltd.

The company also has an overallotment option of up to 249.05 million shares and an upsize option of 354.7 million secondary shares, bringing the total potential offer size to 2.29 billion shares.

At P15 per share, the offer could raise as much as P34.3 billion in gross proceeds.

The shares will be listed on the PSE’s Main Board under the ticker symbol MYNLD.

The offering is poised to be the largest IPO in the Philippines this year, with reported interest from institutional investors including the United Kingdom’s Mobilist, the International Finance Corp., and the Asian Development Bank.–A.G.C. Magno

Defiant former French president Sarkozy to begin five-year prison term

STOCK PHOTO | Image from Freepik

PARIS — Former French president Nicolas Sarkozy will be put behind bars on Tuesday, starting a five-year sentence for conspiring to raise campaign funds from Libya, in a stunning downfall for a leader once known for his swagger and taste for the global spotlight.

Sarkozy, who was the conservative president of France between 2007 and 2012, will become the first former French leader to be jailed since Nazi collaborator Marshal Philippe Petain after World War Two.

“I’m not afraid of prison. I’ll keep my head held high, including at the prison gates,” Sarkozy told La Tribune Dimanche newspaper ahead of his incarceration.

ACCESS TO TV, LANDLINE AND PRIVATE SHOWER
The conviction caps years of legal battles over allegations that his 2007 campaign took millions in cash from Libyan leader Muammar Gaddafi, who was later overthrown and killed during the Arab Spring uprisings.

While Sarkozy was found guilty of conspiring with close aides to orchestrate the scheme, he was acquitted of personally receiving or using the funds.

He has consistently denied wrongdoing and called the case politically motivated, saying judges were seeking to humiliate him. He has appealed, but the nature of his sentence means he must go to jail as his appeal process plays out.

The former president has already been convicted in a separate corruption case, in which he was found guilty of trying to obtain confidential information from a judge in return for career favors, serving that sentence by wearing an electronic tag around the ankle.

At La Santé prison in Paris, which in the past has housed leftist militant Carlos the Jackal and Panamanian leader Manuel Noriega, Sarkozy will likely be held in the isolation unit, where inmates are housed in single cells and kept apart during outdoor activities for security reasons.

Conditions are similar to the rest of the prison: cells measure 9 to 12 square meters and, following renovations, now include private showers.

Sarkozy will have access to a television – for a monthly fee of 14 euros ($16) – and a landline telephone.

“THE COUNT OF MONTE CRISTO” ON READING LIST
Sarkozy told Le Figaro he would take three books for his first week behind bars, including Alexandre Dumas’ “The Count of Monte Cristo” – the story of a man unjustly imprisoned who plots his revenge against those who betrayed him.

The decision to jail a former president has sparked outrage among Sarkozy’s political allies and the far right.

However, the ruling reflects a shift in France’s approach to white-collar crime, following reforms introduced under a previous Socialist government. In the 1990s and 2000s, many convicted politicians avoided prison altogether.

To counter perceptions of impunity, French judges are increasingly issuing “provisional execution” orders – requiring sentences to begin immediately, even as appeals are pending – legal experts and politicians told Reuters.

Far-right leader Marine Le Pen has been banned from running for office under the same “provisional execution” provision, pending an appeal early next year.

According to an October 1 Elabe poll for BFM TV, 58% of French respondents believe the verdict was impartial, and 61% support the decision to send Sarkozy to jail without waiting for the appeal.

President Emmanuel Macron, who had warm relations with Sarkozy and his wife Carla Bruni, said on Monday he had met Sarkozy ahead of his incarceration.— Reuters

Amazon says AWS cloud service is back to normal after outage disrupts businesses worldwide

Image via Tony Webster/Flickr/CC BY 2.0

SAN FRANCISCO — Amazon.com cloud service returned to normal operations on Monday afternoon, the company said, after an internet outage that caused global turmoil among thousands of sites, including some of the web’s most popular apps like Snapchat and Reddit.

Still, Amazon said some AWS services had a backlog of messages that would take a few hours to process.

AWS hosts applications and computer processes for companies around the world, and the disruption knocked workers from London to Tokyo offline and halted others from conducting normal everyday tasks like paying hairdressers or changing their airline tickets. Users on Monday afternoon had complained of lingering difficulties using services such as digital wallet Venmo and video calling site Zoom.

It was the largest internet disruption since last year’s CrowdStrike malfunction hobbled technology systems in hospitals, banks and airports, highlighting the vulnerability of the world’s interconnected technologies.

It was at least the third time in five years that AWS’s northern Virginia cluster, known as US-EAST-1, contributed to a major internet meltdown.

Amazon did not address a request for more clarity about why that particular data center keeps being impacted. The problems stemmed from what is known as the Domain Name System, or DNS, which prevented applications from finding the correct address for AWS’s DynamoDB API, a cloud database relied upon to store user information and other critical data.

ROOT CAUSE IS NETWORK HEALTH MONITOR
Earlier, AWS said the root cause of the outage was an underlying subsystem that monitors the health of its network load balancers used to distribute traffic across several servers.

The issue, AWS said, originated from within the “EC2 internal network”, Amazon’s “Elastic Compute Cloud” service, which provides on-demand cloud capacity within AWS.

Shortly after 3 p.m. PT (2200 GMT), Amazon said, “all AWS services returned to normal operations. Some services such as AWS Config, Redshift, and Connect continue to have a backlog of messages that they will finish processing over the next few hours.”

Ken Birman, a computer science professor at Cornell University, said software developers need to build better fault tolerance. He said AWS provides tools developers can use to protect themselves in the event of a problem at one of any of its sprawling network of data centers, and developers can also create backups with other cloud providers.

“When people cut costs and cut corners to try to get an application up, and then forget that they skipped that last step and didn’t really protect against an outage, those companies are the ones who really ought to be scrutinized later,” Birman told Reuters.

ISSUE ORIGINATED FROM AWS SITE KNOWN FOR PREVIOUS OUTAGES
AWS provides computing power, data storage and other digital services to companies, governments, and individuals and is the world’s largest cloud provider, followed by Microsoft’s Azure and Alphabet’s Google Cloud.

Disruptions to its servers can cause outages across websites and platforms – ranging from food delivery apps to gaming platforms and airline systems – that rely on its cloud infrastructure.

AWS said on its status page that Monday’s outage originated at its US-EAST-1 location, its oldest and largest for web services. The site suffered outages in 2021 and 2020.

According to documentation on the AWS website, the US-EAST-1 site is often the default region for many AWS services.

“FRAGILE INFRASTRUCTURES”
The problem highlights how interconnected everyday digital services have become and their reliance on a small number of global cloud providers, with one glitch wreaking havoc on business and day-to-day life, experts and academics said.

“This outage once again highlights the dependency we have on relatively fragile infrastructures,” said Jake Moore, global cybersecurity advisor at European cybersecurity firm ESET.

In Britain, Lloyd Bank, Bank of Scotland and telecom service providers Vodafone and BT were all hit, according to Downdetector’s UK website, as was UK tax, payments and customs authority HMRC’s website.

“The main reason for this issue is that all these big companies have relied on just one service,” said Nishanth Sastry, director of research at the University of Surrey’s Department of Computer Science.

Ookla, which owns Downdetector, said over 4 million users reported issues due to the incident.

“For major businesses, hours of cloud downtime translate to millions in lost productivity and revenue,” said Ryan Griffin, US cyber practice leader at insurance broker McGill and Partners.

Wall Street was largely unfazed, sending Amazon shares 1.6% higher to $216.48.

FROM SNAPCHAT TO VENMO: OUTAGE TAKES DOWN APPS
Ookla said at least a thousand companies were affected by the outage.

Apps like Reddit, Roblox, Snapchat, and Duolingo had all been affected.

Artificial intelligence startup Perplexity, cryptocurrency exchange Coinbase and trading app Robinhood all experienced platform disruptions and attributed them to AWS.

Amazon’s own services, including its shopping website, Prime Video and Alexa, were also hit.

Fortnite, owned by Epic Games, Clash Royale and Clash of Clans were among the gaming platforms affected. Uber rival Lyft was also knocked down in the United States.

In a post on X, Signal President Meredith Whittaker confirmed the messaging app was hit by the outage, though billionaire Elon Musk, who owns X, said his platform continued to work.

Amazon remains the global cloud leader in terms of revenue.— Reuters

ERC approves higher FIT-All rate

PHILSTAR FILE PHOTO

By Sheldeen Joy Talavera, Reporter

CONSUMERS may see higher electricity bills starting next month as the Energy Regulatory Commission (ERC) approved a new feed-in tariff allowance (FIT-All) that goes to paying renewable energy (RE) developers.

At a press briefing on Monday, ERC Chairperson and Chief Executive Officer Francis Saturnino C. Juan said the commission has approved a new rate of P0.2073 per kilowatt-hour (kWh), higher than the P0.1189 per kWh previously imposed.

“Under the rules of the feed-in tariff system released by the ERC, FIT-eligible plants are guaranteed to be paid the approved rate. And if they already generated and delivered this electricity, they must be paid because this is essentially a commitment we made, and it is grounded in law,” Mr. Juan said.

The FIT-All is a uniform charge billed to all on-grid electricity consumers to support the development and promotion of renewable energy.

Payments are remitted to the FIT-All fund established and administered by the National Transmission Corp. (TransCo). The fund goes towards paying eligible RE developers who have obtained fixed rates for electricity generated by their projects.

As the administrator, TransCo is tasked to file the application before the ERC to determine the annual FIT-All rate.

The ERC said it has conducted public hearings across the country and “carefully reviewed” the application from TransCo.

“This decision is a careful balance. It secures the growth of renewable energy that our country needs, while keeping electricity rates affordable for every Filipino household and business,” Mr. Juan said.

According to the ERC, the new rate covers outstanding payments and maintains a small buffer fund to prevent delays in future payments to RE producers.

The funds are required to settle a P19.06-billion FIT differential and build a P3.74-billion working capital allowance, which serves as a buffer to guarantee timely payment to RE generators.

The ERC has ordered an immediate audit to guarantee that the FIT-All fund is managed properly. All parties involved, including grid operators and power distributors, have been directed to make their records available for this review.

The National Association of Electricity Consumers for Reforms (Nasecore) called for full transparency and accountability in FIT-All rate adjustments, saying that public consultations are not enough.

In a statement sent to BusinessWorld, the consumer group urged the ERC to release an annual audit of the FIT-All fund and provide detailed explanations of calculations used to determine any shortfall requiring rate adjustments.

Nasecore also called on the regulator to consider alternative measures to sustain RE funding without putting too much financial pressure on consumers.

“Transparency is not optional; it is a legal and moral obligation. If ERC fails to release the audit and provide proper documentation and accountability, it can only mean a failure of regulatory oversight. Consumers deserve to see how their money is collected and utilized,” said Nasecore President Patronilo L. Ilagan.

ANOTHER HIKE
The ERC also approved the proposed new market fee of the Independent Electricity Market Operator of the Philippines (IEMOP) covering the period of 2025 to 2027 to improve the operations of the Wholesale Electricity Spot Market (WESM).

The new market fee of P0.0071 per kWh is the cost of administering and operating the WESM, which will be collected from generators transacting in the spot market.

The approved fee covers the operational, administrative, and capital expenditure budgets of both IEMOP as the market operator and the Philippine Electricity Market Corp. (PEMC), which is the WESM’s governing body.

According to the ERC, the market fee ensures “a reliable and transparent WESM,” as it provides cost predictability for generators and guarantees the integrity of the market’s critical functions like pricing, settlement, and data reporting.

The allocation includes critical IT and cybersecurity upgrades.

“This approval is a key step in the ongoing reform of the electricity market. It ensures IEMOP and PEMC can operate sustainably and fulfill their mandates, balancing industry needs with accountability to consumers,” Mr. Juan said. “This decision is part of our continuing efforts to promote a secure, competitive, and consumer-oriented power industry.”

WESM is where energy companies can purchase power when their long-term contracted power supply is insufficient for customer needs.

BoP surplus narrows to $82 million in Sept.

An employee holds US dollar bank notes at a money changer in Jakarta, Indonesia, April 9, 2025. — REUTERS/WILLY KURNIAWAN

By Katherine K. Chan

THE PHILIPPINES’ balance of payments (BoP) surplus sharply narrowed year on year in September, the central bank reported on Monday.

The country’s BoP position was at a $82-million surplus in September, shrinking from the $3.526-billion surfeit in the same month a year ago, preliminary Bangko Sentral ng Pilipinas (BSP) data showed.

This was also narrower than the $359-million surplus seen in August and marked the second straight month that the Philippine external position yielded a surfeit.

Philippines: balance of payments (BoP) position

“The BoP surplus reflected the Bangko Sentral ng Pilipinas’ net income from its investments abroad and National Government’s (NG) net foreign currency deposits with the BSP,” the central bank said in a statement.

BoP refers to the country’s economic transactions with other nations. A surplus indicates more funds entered the country, while a deficit shows that the country spent more than it received.

Last month’s surplus helped narrow the country’s end-September BoP deficit to $5.315 billion. However, this was a reversal from the $5.117-billion surplus posted in the same period last year.

“Preliminary data indicate that the year-to-date BoP deficit was largely due to the continued trade in goods deficit,” the BSP said.

“This was partly offset by the sustained net inflows from personal remittances from overseas Filipinos, trade in services, foreign direct and portfolio investments, and foreign borrowings by the NG.”

The country’s trade gap, or the difference between its exports and imports, was at $32.38 billion in the first eight months of the year, the latest data from the Philippine Statistics Authority showed. This was narrower than the $34.33-billion deficit in the comparable year-ago period.

The Philippines’ trade-in-goods balance has been in deficit for over a decade or since the $64.95-million surplus recorded in May 2015.

“September’s BoP surplus was likely bolstered by net receipts in services trade, overseas Filipino remittance inflows, and net foreign equity investments that, combined, overshadowed trade-in-goods deficit and net foreign bond outflows. This led the third-quarter BoP to be in a surplus position,” Angelo B. Taningco, research head and chief economist at Security Bank Corp., said in an e-mail.

BSP data showed that the country recorded a $274-million surplus in the July-September period. This was smaller than the $3.676-billion surfeit in the same quarter last year.

Mr. Taningco said they expect another surplus this quarter, which would help trim the end-2025 BoP deficit to $4.5 billion.

The BSP expects the overall BoP position to end at a $6.9-billion deficit this year or -1.4% of gross domestic product.

“The smaller BoP surplus reflects fewer one-off inflows and a still-wide trade gap, but the external position remains manageable with steady remittances, strong services exports, and solid reserves,” Robert Dan J. Roces, economist at SM Investments Corp., said in a Viber message.

“As global rates ease and regional demand recovers, investment inflows may return and support liquidity and credit conditions, which should help firms with deep local roots and diverse sources of growth.”

RESERVES
The BSP said the country’s BoP position mirrored the increase in its gross international reserves (GIR) to $109.1 billion at end-September from $107.1 billion as of August.

“The level of GIR remains an adequate external liquidity buffer, equivalent to 7.3 months’ worth of imports of goods and payments of services and primary income,” it said. This is well above the three-month standard.

“Moreover, it covers about 3.8 times the country’s short-term external debt based on residual maturity.”

This ensures that the country has ample foreign exchange to meet its financing needs, such as import and debt payments, the central bank said.

The country’s gross reserves are made up of foreign-denominated securities, foreign exchange, and other assets such as gold. Aside from financing its external obligations, these are used by the central bank to help stabilize the peso and also serve as a buffer against global economic disruptions.

The BSP expects dollar reserves to settle at $105 billion by end-2025.

Digital transformation ‘no longer optional’ amid changing global order

PHILIPPINE STAR/EDD GUMBAN

DIGITALIZATION will not only make the Philippines a more competitive market for investments amid the shifting world order but also help in deterring corruption, industry leaders and a government official said.

At the 51st Philippine Business Conference and Expo on Monday, Philippine Chamber of Commerce and Industry President Enunina V. Mangio said that digital transformation has become more important than ever amid global economic uncertainty due to growing protectionism and changing trade policies.

“We stand at an inflection point where digital transformation is no longer optional — it is imperative for national competitiveness and prosperity,” Ms. Mangio said.

“The question before us is not whether transformation will occur, but whether the Philippines will position itself at the forefront of this change,” she said. “Our neighbors are moving decisively. The competitive landscape is rapidly intensifying. The opportunity for regional leadership exists — but only for those bold enough to claim it, strategic enough to execute it, and committed enough to sustain it.”

In particular, artificial intelligence (AI) is reshaping how businesses are conducted, services are delivered, and complex problems are solved.

“From predictive analytics that optimize supply chains to AI-powered diagnostics that democratize healthcare, from intelligent automation to natural language processing — AI represents a quantum leap in human capability,” she said.

“The question is whether the Philippines will be a creator and beneficiary of these technologies or merely a passive consumer.”

Blockchain technology has also helped improve supply-chain traceability, particularly in authenticating Philippine exports and smart contracts that reduce transaction costs and increase trust, Ms. Mangio said.

However, the Philippines has yet to fully tap the opportunities being offered by digital transformation, she said, as it must address issues concerning data sovereignty, cybersecurity, and privacy protection that continue to hamper its digitalization journey.

“We must confront technological displacement in labor markets and develop comprehensive strategies for workforce adaptation and social protection,” she said.

“We must establish regulatory frameworks that foster innovation while safeguarding the public interest. We must ensure that digitalization benefits are broadly distributed, not concentrated among a privileged minority.”

Philippine Vice-President Sara Duterte-Carpio said that technology can also be a weapon against corruption.

“As we digitize, we automate our processes, make data and all government transactions transparent, and leave no room for scrupulous backdoor transactions,” she said in her keynote address at the event on Monday.

“We take away the power of corrupt leaders to manipulate public funds and capitalize on people’s money for their personal interests, greed, and political ambition.”

Technology can be used to “impose checks and balances, monitor paper trails, eliminate arbitrary and politically motivated decision-making, and prevent unconstitutional budget insertions to curry political favor at the expense of the people’s money,” she said.

However, the government should make sure that it develops and equips Filipinos so that the country can effectively leverage technology, she said.

“Digital transformation will be the bridge to the future, paving the way for inclusivity through training, upskilling, deep-dive mentoring, and industry exposure to equip our human resources,” she said.

“The new skills and knowledge they acquire will prove useful as they figure into roles that require creative and innovative thinking, problem-solving, and leadership.”

She added that the country should aspire to create future innovators, thinkers, producers, and entrepreneurs.

“Our goal is to maximize the potential of our human and natural resources, leveraging the power of technology and digital transformation to create growth centers that host competitive homegrown producers, service providers, and exporters,” she said.

“These strategies will be significant economic drivers that will help create local jobs, increase domestic economic activities, and spur development and progress in domestic and micro-economies across the Philippines.” — Justine Irish D. Tabile

Maharlika says focus is on long-term investments amid calls to help stem stock rout

THE MAHARLIKA Investment Corp.’s (MIC) focus remains on long-term investments, its chief said amid calls for its help to stabilize the Philippine stock market, which has been on a downtrend amid weak sentiment due to a widening corruption scandal that has threatened the country’s growth prospects.

“The Maharlika Investment Corp. is guided by a dual mandate: to generate optimal, long-term financial returns and contribute to the nation’s long-term development. Our role is not short-term market stabilization. Our investment decisions are driven by a strategy that prioritizes sustainable growth and prudent risk management,” MIC President and Chief Executive Officer Rafael D. Consing, Jr. told BusinessWorld via Viber.

“With a paid-up capital of P125 billion, the MIC’s focus is on building a diversified portfolio of assets through rigorous due diligence to achieve these goals,” he added.

Mr. Consing was responding to a statement made by Philippine Chamber of Commerce and Industry Vice-President Bryan L. Ang, who called on the sovereign wealth fund to deploy some of its cash to stimulate the stock market by buying blue-chip shares, according to a report on Bilyonaryo.com.

MIC holds a 20% stake in Synergy Grid & Development Phils., Inc. The sovereign wealth fund also signed an agreement with Saudi Arabian energy company ACWA Power to develop renewable energy projects for off-grid locations.

“Institutions like the GSIS (Government Service Insurance System) and SSS (Social Security System), with their distinct mandates, are perhaps more suitable for direct market stimulation,” Mr. Consing added.

Both state-run pension funds can invest in private equities and securities, as well as government securities, to help grow their investment incomes and extend their fund life.

The MIC chief also assured the public that the fund “is being managed with the highest standards of governance and transparency to deliver on both financial returns and our country’s economic development and prosperity.”

President Ferdinand R. Marcos, Jr. had flagged anomalous flood control projects during his State of the Nation Address in late July. This sparked several investigations into alleged corruption involving lawmakers, government officials, and private contractors.

State economic managers have said that the scandal could affect gross domestic product growth due to the likely slowdown in government spending amid increased scrutiny.

This month, the Bangko Sentral ng Pilipinas also said that the issue has affected business sentiment, which partly led to its decision to deliver a fourth straight 25-basis-point cut to help stimulate domestic demand amid softening economic prospects.

As more details about the corruption mess surfaced in Congress hearings, the Philippine Stock Exchange index (PSEi) has gone down, settling at the 6,000 level as of last week from the 6,300 level recorded early in August, with analysts attributing the drop to both weak domestic sentiment and global trade policy developments.

On Monday, the PSEi edged down by 0.09% or 5.46 points to end at 6,084.07, while the broader all shares index slipped by 0.08% or 3.16 points to close at 3,661.92.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that the MIC should stay focused on its mandate of pursuing long-term investments rather than deploying capital to buoy the market.

“(This is) in view of other more important investment priorities with bigger long-term benefits,” he said.

Mr. Ricafort said the MIC’s investment decisions should be guided by the highest risk-reward tradeoff and the biggest positive impact on the economy and society.

“The hurdle rate for return and benefit for the country is much higher in terms of economic growth and development. That is more inclusive.” — Aubrey Rose A. Inosante

Megawide bags P1.2-B Baguio City terminal project

THE BAGUIO CITY Integrated Terminal project involves leasing, operating, and maintaining an intermodal terminal to serve provincial buses arriving from outside Baguio City. — BAGUIO CITY PUBLIC INFORMATION OFFICE OFFICIAL FACEBOOK ACCOUNT

MEGAWIDE Construction Corp. said it has received the notice of award from the Baguio City Government for the implementation of the P1.2-billion Baguio City Integrated Terminal (BCIT) project, expanding its transport infrastructure portfolio.

In a stock exchange disclosure on Monday, the listed engineering and infrastructure company said it had been confirmed as the private sector proponent for the project after successfully completing the Swiss challenge on Oct. 14.

According to the Public-Private Partnership (PPP) Center, no other comparative challenge proposals were received by the deadline.

The award remains subject to the company’s compliance with the city’s conditions.

The project will be undertaken through a 40-year lease agreement with the Baguio City Government.

According to Megawide, the BCIT is designed to accommodate up to 25,000 passengers daily and initially serve seven southbound routes — La Union, Pangasinan, Tarlac, Pampanga, Bulacan, Metro Manila, and Cavite via the planned South Luzon Integrated Terminal Exchange (SLITX).

The facility will rise on a five-hectare property in Barangay Dontogan, about five kilometers from Baguio City proper. The terminal aims to help decongest major roads by relocating provincial buses and UV Express vans outside the central district.

“Our vision of a First World Philippines goes beyond building structures and critical facilities — we also need to connect key districts across the country to promote commerce and accelerate economic activity,” Megawide Chairman and Chief Executive Officer Edgar B. Saavedra said in a statement.

He said the company is working with local government partners that share the goal of promoting socio-economic development through improved mobility.

Megawide said the project forms part of its broader plan to expand its network of transit-centric developments (TCDs) alongside the Parañaque Integrated Terminal Exchange (PITX) and SLITX.

Last month, the company’s subsidiary Megawide One Mobility Corp. signed a 30-year joint venture agreement (JVA) with the Carmona City Government for the development of the P800-million SLITX, which will have a design capacity of 30,000 passengers daily.

The planned SLITX will connect to PITX and other terminals in Metro Manila, with direct access to the South Luzon Expressway (SLEX) through a new toll entry and exit to be completed before operations begin.

“Landports such as our PITX, BCIT, and SLITX, as well as the ongoing Cavite BRT system, are part of our objective to provide the public with safe, secure, and efficient public transport while improving connectivity and mobility across key cities,” Megawide Head of Business Development Jaime Raphael C. Feliciano said.

He said the company expects its TCD portfolio to contribute P300 million to P400 million in recurring net income annually once full operations are achieved over the next two to three years.

Megawide earlier said it targets to post more than P1 billion in net income by 2026, supported by new contracts and recurring income from infrastructure operations. — Ashley Erika O. Jose

Government fully awards T-bills as demand surges

BW FILE PHOTO

By Aaron Michael C. Sy, Reporter

THE BUREAU of the Treasury fully awarded Treasury bills at an auction on Monday as investors flocked to short-term debt amid expectations of further interest rate cuts from the Bangko Sentral ng Pilipinas (BSP) and US Federal Reserve.

It raised P22 billion as planned, with total bids hitting P95.17 billion — more than four times the offer volume but slightly below the P97.19 billion in tenders logged a week earlier.

The Treasury awarded P7 billion in 91-day securities as bids reached P26.68 billion. The average yield for the tenor inched up by 0.4 basis point (bp) to 4.884% from the previous auction, with accepted rates ranging from 4.82% to 4.93%.

It also raised P7.5 billion as programmed from the 182-day T-bills, which attracted P40.63 billion in bids. The six-month paper fetched an average rate of 5.058%, down by 1.4 bps from last week. Accepted yields were 5.01% to 5.088%.

The final P7.5 billion came from the 364-day tenor, which drew P27.86 billion in tenders. The one-year bill’s average yield declined by 2.2 bps to 5.097%, with accepted rates at 5.05% to 5.145%.

Before the auction, secondary market yields stood at 4.9708%, 5.1380%, and 5.2031% for the 91-, 182- and 364-day securities, based on Bloomberg Valuation Service reference rates.

“Lack of yield movement is likely due to the absence of catalysts before the auction and subdued market activity,” a trader said in a text message.

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said the slight easing in yields reflected dovish signals from both the BSP and Fed.

BSP Governor Eli M. Remolona, Jr. earlier said the central bank’s “sweet spot” for the policy rate could be closer to 4%, hinting at more cuts this year and in 2026. The Monetary Board earlier this month trimmed benchmark rates by 25 bps for a fourth straight meeting, bringing the key rate to 4.75%, the lowest since September 2022.

The BSP has lowered borrowing costs by 175 bps since beginning its easing cycle in August 2024.

The Fed is scheduled to meet on Oct. 28–29 and is widely expected to deliver a second straight 25-basis-point cut. Fed Chairman Jerome H. Powell said a reduction remains possible as inflation and labor market trends remain steady.

On Tuesday, the Treasury will auction P35 billion in reissued Treasury bonds — P20 billion in 20-year debt with about seven years left to maturity and P15 billion in 25-year bonds with 24 years and three months remaining.

The BTr aims to raise P180 billion from the domestic market this month, consisting of P110 billion in T-bills and P70 billion in T-bonds.

The government borrows from local and foreign sources to finance its budget deficit, capped at P1.56-trillion or 5.5% of gross domestic product this year.

Stories for kids at Ascott Makati

THE Adarna Books Suite has a cozy reading nook filled with over 20 handpicked books, ranging from picture books to graphic novels. — BRONTË H. LACSAMANA

Adarna Books Suite offers a stay filled with children’s literature

ASCOTT MAKATI is hoping to attract families to its newest room offering which it developed in partnership with children’s book publisher Adarna House — the Adarna Books Suite.

Marla Mendoza, marketing communications head at Ascott Makati, said that they expect to cater to balikbayans and families looking for staycations from October to December.

“For the kids in those families, the Adarna Books Suite is a way for them to have extra fun during their stay,” Ms. Mendoza told BusinessWorld at the Oct. 16 launch.

The new offering is basically a two-bedroom suite, transformed into a book haven for families thanks to illustrations from Filipino children’s books like Si Laleng at ang Lakbay Paaralan, Alamat ng Ampalaya, Ang Mabait na Kalabaw, Tara, Itok! and more.

All of the artworks found in the suite were included with permission from the illustrators, namely Ara Villena, Kora Dandan-Albano, Domz Agsaway, Liza Flores, Haru Sabijon, and Rob Cham.

“Originally, we wanted to do it for Buwan ng Wika, but stuff kept getting pushed back and delayed, so we ended up doing a Florante at Laura and Ibong Adarna theme. From there it was just choosing the art and artists that would match the suite, designing how some of the things would look,” Izo Lopez, marketing lead of Adarna House, told BusinessWorld in an interview.

At the heart of the Adarna Books Suite is a cozy reading nook filled with over 20 handpicked books, ranging from picture books to graphic novels.

Ascott Makati requested for a few titles by National Artist for Literature Virgilio Almario, such as Si Pagong at Si Matsing, Isang Mayang Uhaw, Ang Alamat ng Palay, and The Love of Lam-Ang, so that guests could be exposed to iconic Filipino children’s literature.

“We wanted good representation across our favorite titles in the Book Nook. We tried to make the titles diverse,” Mr. Lopez said. “Some are for preschoolers; some are for middle-grade. We put one or two high-school level books.”

Teens would be interested in history and mythology-related titles like Dead Balagtas Tomo 1: Mga Sayaw ng Dagat at Lupa and Si Janus Silang at ang Tiyanak ng Tabon. Both Adarna House and Ascott Makati made sure to consider a wide age range.

Aside from helping families rediscover the richness of Filipino children’s literature, the hotel also invited Best Buddies Philippines to the launch. The non-profit organization, dedicated to fostering inclusion for people with intellectual and developmental disabilities, organized a storytelling session with a group of disabled kids.

The launch of the Adarna Books Suite also coincides with Adarna House’s 45th anniversary. This led the publisher to “explore more collaborations in the second half of the year,” said Mr. Lopez.

“It’s a huge milestone for us so it makes sense for us to partner with a lot of brands. We’re picky because we really look for brands who match our vision,” he said.

Meanwhile, Ascott Makati aims to continue their “high level of care for the experience of children,” said Ms. Mendoza.

Stays can be booked via 8550-3200 or 7729-8888, or through e-mail to reservations.global@the-ascott.com or frontoffice.am@the-ascott.com. — Brontë H. Lacsamana

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