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NG debt inches up to record-high P17.65T

REUTERS/THOMAS WHITE/ILLUSTRATION

THE PHILIPPINES’ total outstanding debt inched up to a fresh high of P17.65 trillion as of end-November, the Bureau of the Treasury (BTr) said.

Latest data from the Treasury showed that the National Government’s (NG) outstanding debt went up by 0.49% to P17.65 trillion in November from P17.56 trillion at end-October 2025.

The debt level is already 1.7% above the projected year-end level of P17.36 trillion.

November also marked the fifth month in a row that the end-2025 debt projection was breached.

Year on year, NG debt jumped by 9.94% from P16.05 trillion at the end of November 2024.

“The month-on-month increase was underpinned by the net issuance of domestic and external debt, which was partly offset by significantly lower valuations of foreign currency-denominated obligations due to the peso’s appreciation,” the BTr said in a statement on Wednesday.

The peso appreciated against the US dollar from P58.771 at the end of October to P58.729 at the end of November 2025.

NG debt is the total amount owed by the Philippine government to creditors, including international financial institutions, development partner countries, banks, global bondholders, and other investors.

In November, the bulk or 68.66% of the debt stock came from domestic sources, while the rest came from external sources.

The BTr said it continues to borrow mainly from domestic creditors and in local currency to keep debt levels “sustainable.”

“This is because peso obligations do not fluctuate with foreign exchange rates and the payment of interest redounds to the benefit of Filipino investors, further boosting domestic income,” it said.

Domestic debt inched up by 0.6% to P12.12 trillion as of end-November from P12.05 trillion as of end-October. This is mainly composed of government securities.

At end-November, debt was already 0.6% higher than the P12.04-trillion year-end domestic debt projection.

“This (increase) was driven by the P71.85 billion in net issuance of government securities, despite a P0.12-billion reduction in peso valuation on retail dollar bonds,” the BTr said.

Since the start of 2025, domestic debt jumped by 10.86% or P1.19 trillion. Of this, P1.18 trillion came from fresh issuances and P2.52 billion “was caused by the weakening of the peso from its level at the end of 2024.”

Year on year, domestic debt rose by 10.95% from P10.92 trillion recorded in November 2024.

Meanwhile, external debt stood at P5.53 trillion as of end-November, up 0.26% from P5.52 trillion in the previous month. This also exceeded the P5.32-trillion external debt projection by 4.07%.

“This is due to the P22.84 billion in net loan availment for the month, which was offset by the P8.73 billion in downward valuation adjustments caused by favorable foreign exchange movements,” the Treasury said.

The BTr noted that the stronger peso against the US dollar trimmed foreign currency debt valuation by P3.94 billion. At the same time, third-currency movements, such as the Japanese yen and the euro, contributed another P4.79 billion to the valuation cut.

Year on year, foreign debt climbed by 7.81% from P5.13 trillion in 2024.

Foreign debt was composed mainly of P2.82 trillion in global bonds and P2.71 trillion in loans.

External debt securities totaled P2.39 trillion in US dollar bonds, P258.77 billion in euro bonds, P58.73 billion in Islamic certificates, P57.01 billion in Japanese yen bonds, and P54.77 billion in peso global bonds.

“The NG’s external financing operations remained prudent, measured, and anchored on long-term debt sustainability considerations,” the BTr said.

“External borrowings continue to be largely concessional and program-based, offering very long maturity terms and relatively lower interest costs, thereby supporting a cost-effective and resilient debt profile.”

Since the start of the year, NG external debt jumped by 8.01% or P410.04 billion.

“Of the total, P276 billion was due to new loans and bonds, while P134.04 billion was net adjustments to valuation linked to peso depreciation against foreign currencies in the first eleven months of 2025,” it added.

For November, NG-guaranteed obligations increased by 3.38% to P356.04 billion from the end-October level of P344.41 billion.

The BTr attributed the monthly increase to the net availment of domestic guarantees by the Power Sector Assets and Liabilities Management Corp., amounting to P12.71 billion.

However, external guaranteed repayments and favorable exchange rate movements tempered the increase by P0.42 billion and P0.66 billion, respectively, it added.

Year on year, NG-guaranteed obligations fell by 15.64% from P422.03 billion.

WAKE-UP CALL

Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., said the record-high debt is a “wake-up call.”

“The challenge now is balancing fiscal discipline with growth,” he said in a Viber message.

Mr. Ravelas also urged the government to accelerate infrastructure and investment projects that generate jobs and revenue, while keeping borrowing focused on productive spending.

“Otherwise, higher debt means higher interest costs — and less room to maneuver,” he said.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that the higher debt stock in November partly reflected new government securities issued to cover the wider fiscal gap in recent months.

The budget deficit swelled to P1.26 trillion as of end-November from the P1.18-billion deficit in the same period in 2024.

“The weaker peso exchange rate vs. the US dollar over the past 3.5 years by about 16% effectively increased the peso equivalent of the outstanding National Government external debts when converted to pesos,” he said in a Viber message.

Asked if the government would be able to bring down debt to P17.36-trillion programmed level, he said: “Already beyond the target, with possible budget deficits still in December 2025.”

Meanwhile, Mr. Ravelas said a weaker peso and failure to address the country’s issues would inflate the debt in 2026.

NG debt as a share of gross domestic product (GDP) went up to 63.1% at end-September from 60.1% in the same period last year. This is above the 60% threshold deemed sustainable for developing countries.

The Department of Finance expects the NG debt-to-GDP ratio to ease to 61.3% by end-2025 and eventually fall to 58% by 2030. — Aubrey Rose A. Inosante

BoC falls short of full-year target in 2025

PHILSTAR FILE PHOTO

By Aubrey Rose A. Inosante, Reporter

THE BUREAU of Customs (BoC) on Wednesday said revenue collections rose to P934.4 billion in 2025 but missed its P958.7-billion full-year target, amid a rice import ban and weak import volumes.

In a statement on Wednesday, the BoC said it booked P934.4 billion in revenues in 2025, up 1.9% or P17.726 billion from the P916.7-billion actual collection in 2024.

However, Customs’ full-year collection was 2.53% below its P958.7-billion target.

This marked the second consecutive year that it missed its annual revenue goal.

“This growth was achieved despite the challenges including the lower import volumes, the suspension of rice importation, and global commodity price fluctuations,” BoC said.

The government banned rice imports from September to December, as it sought to protect farmers during the harvest season.

“(The year) 2025 was more than numbers or milestones — it was a year that showed the Bureau of Customs can transform, proving that integrity, service, and trust are not just ideals, but values we put into action every single day,” BoC Commissioner Ariel F. Nepomuceno said in a statement.

Mr. Nepomuceno had earlier flagged slower import activity and corruption scandals as risks to the collection target.

The Development Budget Coordination Committee (DBCC) is now targeting Customs revenues to reach P1.013.8 trillion, P1.072.5 trillion in 2027, and P1.139.9 trillion in 2028.

“Every reform, every operation, every decision we make is about changing the way the public experiences the BoC. As we step into 2026, our mission is clear: to make the Bureau faster, more transparent, and genuinely reliable, and to build an institution that earns the confidence and respect of every Filipino,” Mr. Nepomuceno said.

In addition, the BoC said that border protection remained a core priority last year, as it ramped up efforts to prevent the entry of prohibited, misdeclared, and undervalued goods.

Preliminary data showed that the Customs seized smuggled and prohibited goods worth P61.71 billion from 1,024 enforcement operations in 2025.

The agency noted that the outcomes demonstrated enhanced intelligence coordination, more effective risk assessment, and closer partnerships with law enforcement and regulatory authorities.

“The Bureau also continued to improve oversight of bonded warehouses and expanded the use of non-intrusive inspection technologies to ensure regulatory compliance while minimizing disruption to legitimate trade,” the BoC said.

The BoC also instituted reforms such as the “No Take” policy, the issuance of an Anti-Conflict of Interest directive, and the launch of the “Isumbong kay Commissioner” online portal.

Other initiatives include the rollout of the enhanced Customs tax estimator, revisions to the Code of Conduct and the Citizens’ Charter, and the establishment of the Balikbayan and Overseas Filipino Worker Action Center.

“Looking ahead, BoC remains committed to sustaining these reforms, deepening partnerships, and harnessing digital innovations to further enhance efficiency and public service,” it said.

Analysts said Customs revenue collection could rebound in 2026 but may face challenges arising from weak economic growth and a continued rice import ban.

“Short-term recovery in collections in 2026 is possible if import volumes pick up, commodity prices stabilize, and operational efficiency improves,” Ser Percival K. Peña-Reyes, director of the Ateneo Center for Economic Research and Development, said in a Viber message on Wednesday.

Data from the DBCC Technical Working Group showed that Customs revenue collection could reach P1.0038 trillion in 2026, 0.99% below the emerging goal.

“However, persistent policy impacts (especially on rice), external economic headwinds, and structural tariff changes mean that a full return to pre-2025 revenue levels is not guaranteed without policy adjustments or new revenue measures,” Mr. Peña-Reyes said.

Leonardo A. Lanzona, an economics professor at the Ateneo de Manila University, said Customs collections may be affected by slower economic growth momentum.

“With prospects of lower economic growth, imports are likely to decline. In this case, the BoC will also likely miss its target again,” he said in a Messenger chat.

The DBCC now projects gross domestic product growth of 5-6% in 2026, and 5.5-6.5% in 2027, while maintaining the 6-7% target for 2028.

Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., said Customs collections could recover by midyear if there is a rebound in infrastructure spending and consumer demand.

“Customs will face tough headwinds this year — sluggish global trade, peso volatility, and policy uncertainty on key imports like rice and fuel,” he said in a Viber message.

Rockwell Land seeks approval for P10-B bonds

ROCKWELL LAND CORP.

ROCKWELL LAND CORP. has filed a registration statement with the Securities and Exchange Commission (SEC) for a bond issuance of as much as 10 billion, marking its return to the domestic debt market after more than a decade.

In a disclosure to the stock exchange on Wednesday, the company said the offer would consist of three-year bonds due in 2029 and five-year bonds due in 2031. The bonds will have a base amount of P7 billion, with an oversubscription option of as much as P3 billion.

The offer period is scheduled for March 4 to 10, with the bonds to be listed on the Philippine Dealing & Exchange Corp. Rockwell Land said the registration statement was submitted to the SEC via e-mail on Wednesday.

“The bonds are intended to be issued at 100% face value, and interest will be calculated on a 30/360 day count basis to be paid quarterly in arrear,” the company said.

The proposed issuance represents the first tranche of Rockwell Land’s P20-billion shelf registration program and its first bond sale in 12 years.

Philippine Rating Services Corp. assigned the bonds its highest rating of PRS Aaa with a “stable” outlook, citing the company’s extremely strong capacity to meet its financial obligations.

Proceeds from the bond offer will be used to partially fund capital expenditures, including land development and construction costs for projects.

These include Power Plant Mall Angeles in Pampanga; Rockwell at IPI Center and Aruga Mactan Hotel in Cebu City; and Rockwell Center Bacolod.

BDO Capital & Investment Corp. and First Metro Investment Corp. were named joint issue managers. They will also serve as joint lead underwriters and bookrunners alongside PNB Capital and Investment Corp. and RCBC Capital Corp.

Rockwell Land has been expanding its residential and retail footprint nationwide and has launched several premium residential projects in key provincial areas since late 2024.

The company recently acquired a 74.8% stake in Alabang Commercial Corp., the operator of Alabang Town Center in Muntinlupa City.

For the first nine months of 2025, Rockwell Land reported a 7% increase in consolidated revenue to P15 billion, driven by demand for its high-end residential developments.

Shares of Rockwell Land rose 1.06% or 2 centavos to close at P1.90 each on the Philippine Stock Exchange. — Beatriz Marie D. Cruz

PHL media companies brace for tougher 2026

GLENN CARSTENS PETERS-UNSPLASH

By Ashley Erika O. Jose, Reporter

LISTED media companies in the Philippines are expected to face a more difficult operating environment this year as ad revenues ease after last year’s election-driven surge and as traditional platforms continue to lose ground to digital channels, analysts said.

“It will be a challenging year coming off the 2025 election cycle, when political spending boosted their earnings,” First Grade Finance, Inc. Managing Director Astro C. del Castillo said in a Viber message on Wednesday.

He added that legacy media revenues remain under pressure as advertisers continue shifting budgets to digital platforms.

China Bank Capital Corp. Managing Director Juan Paolo E. Colet said earnings of listed media companies are likely to decline as revenues normalize after the election year. He added that companies might also scale back ad spending amid a more cautious economic backdrop.

The post-election period usually brings weaker advertising demand, Mr. Colet said, noting that companies tend to be more conservative with marketing budgets when growth expectations soften.

GMA Network, Inc. and ABS-CBN Corp. both reported weaker third-quarter results in 2025 as political advertising faded and commercial spending normalized.

For the three months ending September 2025, GMA Network’s gross revenue fell 17.23% to P3.89 billion, partly due to higher operating expenses.

Despite the weaker quarter, the broadcaster posted stronger results for the nine-month period, with attributable net income rising 46.81% to P2.07 billion. Revenue climbed 11.92% to P13.99 billion, while expenses increased at a slower pace.

Advertising remained GMA Network’s main revenue driver, rising 10.47% to P12.77 billion, while consumer sales grew to P1.22 billion from P942.24 million a year earlier.

ABS-CBN, meanwhile, widened its attributable net loss to P1.28 billion in the third quarter from P389.87 million a year earlier, even as revenues rose year on year. For the first nine months, however, the company narrowed its net loss to P2 billion as expenses declined faster than revenue.

Mr. Colet said investors might pay closer attention to ABS-CBN after its content licensing agreement with Villar-led Advanced Media Broadcasting System, Inc. (ALLTV).

Under the deal, selected Kapamilya Channel programs began airing on ALLTV’s free-to-air Channel 2 on Jan. 2.

The agreement followed the termination of ABS-CBN’s content supply deal with TV5 Network, Inc., which said the move stemmed from ABS-CBN’s failure to meet its financial obligations.

“The market may take a closer look at ABS-CBN to see whether its free-to-air Channel 2 deal with ALLTV will help improve cash flows and narrow losses,” Mr. Colet said.

Analysts said digital transformation remains key to stabilizing earnings, though execution risks remain. Mr. Del Castillo said a hybrid strategy that balances traditional broadcasting with digital distribution might help media companies sustain performance by building on their content strengths.

GMA Network has begun upgrading its broadcast operations by shifting its international channels to cloud-based distribution through a partnership with global video technology firm Synamedia Ltd. and its local distributor Telered Technologies and Services Corp.

ABS-CBN has said it expects to return to profitability within 18 months, supported by advertising and contributions from its digital, film and music businesses.

At the local bourse, shares of GMA Network rose 1.07% to P5.65, while ABS-CBN gained 4.57% to close at P4.39 each.

Dollar edges up as focus shifts to data

US DOLLAR and euro banknotes are seen in this illustration taken on July 17, 2022. — REUTERS/DADO RUVIC/ILLUSTRATION

THE DOLLAR hugged tight ranges on Wednesday ahead of a slew of US economic data that could set the tone for the US Federal Reserve’s rate outlook, a factor traders consider more consequential for currencies than ongoing ge-opolitical tensions.

Markets have so far largely brushed off deepening geopolitical fractures around the world, with stocks rallying and currencies and bonds little moved following the US intervention in Venezuela and the capture of President Nicolas Maduro.

They were in a wait-and-see mode ahead of a batch of US labor market data, with figures on private payrolls and job openings due later in the day, before Friday’s closely watched nonfarm payrolls report comes due.

Ahead of the outcome, the dollar index strengthened slightly to 98.63.

“Traders seem to be okay with the rhetoric coming from the US when it does not imply that ‘boots on the ground’ will be needed to run Venezuela,” said Thierry Wizman, global forex and rates strategist at Macquarie Group.

“A military invasion and a prolonged on-the-ground conflict would have risked a major dollar depreciation, as did the Iraq and Afghanistan wars in 2002-2008,” he added.

Investors have struggled to get an accurate read of the world’s largest economy following a record US government shutdown last year which hampered the collection and release of key economic data.

However, they remain convinced that the Fed will cut rates two more times this year.

That has weighed on the dollar, though growing divisions within the Fed and US President Donald J. Trump’s imminent pick for the next Fed chairman have further complicated the outlook for US monetary policy.

EURO EDGES DOWN AS DATA WEIGH
The euro edged down after falling the previous day, as German inflation slowed more than expected in December, prompting traders to slightly scale back bets on a rate hike in early 2027.

Markets have been pricing policy rates to remain stable through 2026 since last summer, while expecting the European Central Bank to tighten policy in 2027 as inflationary pressures build from German fiscal stimulus.

The single currency was down 0.10% to $1.1676, after falling 0.28% on Tuesday.

Also on traders’ radar, China on Tuesday banned exports of dual-use items to Japan that can be used for military purposes, marking Beijing’s latest move in reaction to an early November remark by Japanese Prime Minister Sanae Takaichi about Taiwan.

The move didn’t impact the forex market, strategists said.

The greenback fell 0.10% against the Japanese yen to 156.51.

The Aussie dollar hit its highest since October 2024 at $0.6766, as a mixed inflation report kept alive the prospect of a near-term hike in interest rates. The New Zealand dollar bought $0.5783.

“The most impactful publication will be ADP’s monthly jobs report, as an uptick in unemployment is one of the significant risks in this new year, alongside the potential failure of heavy investments in AI to deliver blockbuster re-turns,” Jose Torres, senior economist at Interactive Brokers, said of Wednesday’s releases. — Reuters

PCC clears logistics JV of Ayala and EMIF II

ACLOGISTICS.COM.PH

THE Philippine Competition Commission (PCC) has approved the proposed joint venture (JV) between Ayala Corp. and EMIF II Holding III B.V., saying the deal is unlikely to significantly reduce competition in the freight and logistics sector.

In a statement on Wednesday, the PCC said both domestic and international freight forwarding markets are highly fragmented, with customers often using multiple providers.

“The market for container liner shipping services is characterized by the presence of numerous global and regional carriers and strong buyer power, which effectively limits any ability or incentive to restrict capacity or degrade service,” it said.

It also noted that contract logistics and container shipping services remain competitive, with strong buyer power and performance-based tenders limiting any incentive to restrict capacity or reduce service quality.

The approval follows a March 2025 agreement in which Denmark-based A.P. Moller Capital, through EMIF II Holding III B.V., agreed to acquire as much as 40% of Ayala’s logistics unit, AC Logistics Holdings Corp., subject to final pricing, regulatory approvals and the achievement of agreed business milestones.

Ayala Corp. said the entry of A.P. Moller Capital, an affiliate of A.P. Moller Holding — the parent of global shipping and logistics giant Maersk — would enhance AC Logistics’ capacity to address growing and more complex logistics demand.

A.P. Moller Capital manages infrastructure funds focused on expanding transport and logistics setups while supporting the energy transition.

Founded in 2021, AC Logistics provides supply chain services including cold chain management, freight forwarding, national distribution, and contract logistics.

It operates a nationwide network of distribution centers and maintains a fleet of temperature-controlled trucks and other transport assets, complemented by an extensive agent network.

The PCC said its review examined markets potentially affected by the transaction, including domestic and international freight forwarding, nationwide contract logistics and container liner shipping for sea freight. The agency’s assessment relied on information from the parties, as well as input from logistics regulators and industry stakeholders.

Shares of Ayala Corp., which operates across real estate, banking, telecommunications, renewable energy, healthcare, mobility and logistics, rose 1.46% to P487.60 each on the Philippine Stock Exchange. — Alexandria Grace C. Magno

Global regulators softening bank capital rules

PEXELS-PIXABAY

LONDON/WASHINGTON — Seventeen years on from the global financial crisis, regulators are cutting red tape for their banks in a bid to keep lenders competitive and stimulate their economies.

The Trump administration is leading the charge, including with measures that will reduce the amount of capital lenders need to set aside. Lowering capital requirements is worrying some observers that the US has triggered a global rowback from regulations designed to keep financial systems safer, just as chatter about market bubbles and financial stability risks intensify.

So how do bank capital requirements in the major markets stack up, and which lenders might emerge winners?

THE GLOBAL LANDSCAPE
At the highest level, each country’s regulators should align with the Basel regulatory regime agreed after the 2008 global financial crisis. That’s designed to ensure supervisors worldwide apply similar minimum capital standards so lenders can survive loan losses during tough times. It suggests a level playing field.

But in practice there is lots of wiggle room, as the different approaches to implementing the latest rules — the “Basel III Endgame” — show.

The European Commission and Bank of England (BoE) have delayed implementation of key parts such as those governing banks’ trading activities, while they wait to see what the US does.

THE US VS EUROPE
Capital ratio requirements for banks in the euro zone, Britain and the US look similar on paper.

The Federal Reserve has a core equity tier-1 ratio (CET1) — the most common measure of capital — ranging from 10.9% to 11.8% once some add-ons are included for Wall Street banks such as JPMorgan, Citi and Goldman Sachs.

Lenders in the euro zone such as Deutsche Bank, Santander and BNP Paribas need, on average, to hold a minimum CET1 ratio of 11.2%, according to the European Central Bank (ECB).

The BoE’s financial policy committee last month lowered its system-wide estimate of capital requirements by 1 percentage point (ppt), to an equivalent CET1 ratio of around 11%.

All major lenders hold more capital than required, with these self-imposed buffers designed to keep regulatory worries at bay and investors confident.

BUT CAN YOU COMPARE?
Ask big bank CEOs and most will tell you their lender has it tougher. In reality, the picture is much murkier than that.

That’s because comparing simple ratios can be misleading, as prudential regulators take different approaches, reflecting how their local banking industries differ.

Capital rules have two parts: the risk-weighting, which gauges the risk of a bank’s assets, and a capital ratio that sets how much capital they must hold as a share of those assets.

Unlike in the UK and euro zone, US banks cannot rely on internal models to set their risk weightings, which for larger banks often means tighter constraints.

“Say it quietly, but the US may have a tougher approach,” said Jackie Ineke, chief investment officer at Spring Investments and a former banks analyst.

Higher US weightings also reflect different models: US banks tend to offload residential mortgages to public groups Fannie Mae and Freddie Mac, whereas mortgages stay on European and UK bank balance sheets.

ISN’T THE US SOFTENING ITS STANCE?
Yes.

Bank regulators appointed by President Donald J. Trump are seeking to delay and water down the introduction of new rules, and they are reviewing and rewriting existing capital regulations. They argue there is am-ple room to make them better tailored to actual risks.

Led by the Federal Reserve’s Michelle Bowman, proposals include tweaking leverage rules, the so-called “GSIB (Global Systemically Important Banks) surcharge” applied to the largest global banks, and a redo of Basel III End-game requirements.

The Fed is also overhauling its annual “stress tests” of large banks, a shift expected to shrink the capital banks must set aside against hypothetical losses.

Taken together, it means US lenders will have a lot more excess capital. Morgan Stanley analysts have estimated possible changes could hand US banks another $1 trillion in lending capacity.

That doesn’t mean the banks will necessarily lend more, however, with some preferring to increase payouts to investors to aid their share price or fund acquisitions.

WHERE DOES THAT LEAVE THE EURO ZONE, BRITAIN AND JAPAN?
Both want to ease the burden on banks, but in limited ways that suggest there is no regulatory race to the bottom.

The ECB in December announced plans to simplify its rule book but maintain capital levels. That was despite lobbying from banks arguing that softer rules would free up lending to boost the bloc’s lackluster economic growth.

Jose Manuel Campa, outgoing chairperson of the European Banking Authority, said it was wrong to conclude lower capital demands made lenders more competitive. “Well-capitalized banks are much better at taking lend-ing decisions,” he told Reuters.

The BoE last month cut its headline estimate of system-wide bank capital needs by 1 ppt to 13%, the first move downwards since the financial crisis, and said it would review the leverage ratio, which sets a minimum level of capital banks must hold relative to their total exposures, regardless of asset risk.

Analysts described the changes as important but measured.

In Japan, however, the banking regulator has pushed ahead with implementing the finalized Basel III framework, which went into effect for its three “megabanks” at the end of March 2024. The regulator had pre-viously delayed implementing the rules amid the coronavirus pandemic and war in Ukraine.

MORE TO IT THAN CAPITAL
There is more to the debate than the scale of capital requirements.

In Switzerland, for example, the government wants to toughen the rules on what counts as capital, much to the annoyance of UBS.

Then there are country-specific frameworks like Britain’s ring-fencing regime that requires banks including Barclays and HSBC to capitalize their retail units separately from their investment banking op-erations.

Supervisory enforcement often matters more than headline capital ratios in determining what banks hold, according to economist Enrico Perotti at the University of Amsterdam.

He said this is particularly true in the US, where the latent message under Mr. Trump is “to get regulators off the backs of banks,” showing that what mattered today was “less to do with numbers.” — Reuters

SEC warns public vs unregistered platforms

BW FILE PHOTO

THE SECURITIES and Exchange Commission (SEC) has issued advisories against HFM-HF Markets and Exness Global Ltd., warning investors that both platforms operate without the required license in the Philippines.

In separate notices, the corporate regulator noted that while the firms are registered as broker-dealers in other countries, they lack Philippine registration as required under the Securities Regulation Code to operate as securities dealers or exchanges.

HFM-HF Markets describes itself as a multi-asset contract for difference (CFD) trading platform offering access to foreign exchange, commodities, bonds, metals, energies, shares and indexes. The platform promotes a seamless trading experience combining technology, education and trading conditions, according to its website.

Exness Global, meanwhile, positions itself as a global brokerage providing access to financial markets including foreign exchange, cryptocurrencies, stocks and commodities, largely via CFDs.

The SEC said both platforms use social media and mobile apps to attract Filipino investors. Local users can access HFM-HF and Exness through their websites and apps on Google Play and Apple App Store.

Commission records show neither HFM-HF nor Exness is registered as a corporation in the Philippines, nor are they licensed to sell securities, act as brokers or dealers or operate an exchange under the Securities Code.

The SEC advised the public to exercise caution when engaging with unregistered online investment platforms and their representatives.

It warned that anyone selling or promoting these platforms in the Philippines, including through online channels, may face fines of as much as P5 million or a jail term of up to 21 years.

Representatives, brokers, agents, promoters, influencers or enablers could be held liable under the code, the regulator said.

Both HFM-HF and Exness did not immediately reply to separate e-mails seeking comment. — Alexandria Grace C. Magno

Young Filipino adults prefer human financial advisers over online tools

ANGIE REYES-PEXELS

YOUNG ADULTS in the Philippines prefer to get financial and insurance advice from humans over online resources, a study by Prudential plc showed.

“Young adults in the Philippines actively seek guidance from human advisers and are less inclined to rely on digital tools for financial management. When it comes to insurance, the human touch matters most,” the insurer said in the report titled “Financial Mindset of Young Adults in Asia.” There were 657 Filipino respondents aged 20 to 35 for the survey.

The results showed that Filipinos are people-based planners as 76% of these respondents said they prefer human advisors, while the remaining 24% prefer digital tools.

This was the widest gap seen among the seven markets included in the study, which were the Philippines, Hong Kong, Indonesia, Malaysia, Singapore, Taiwan, and Thailand.

Indonesia had the most digitally progressive respondents, with only 51% preferring human advisors. Among the total 5,348 respondents surveyed across all seven markets, 64% said they prefer human advisors, while the re-maining 36% prefer digital tools.

Majority of the Filipino respondents said they rely on human interactions for financial guidance, with 80% having met or spoken with a financial adviser in the past five years.

This was higher than the 71% share recorded overall in the survey.

It showed that 76% of Filipinos also said they prefer consulting a human adviser for insurance advice over digital tools, also higher than the 64% seen for all markets.

Meanwhile, 36% of Filipino respondents believe that artificial intelligence (AI) can replace financial advisers within the next 10 years, close to the 28% overall share.

In terms of preferences, Filipino respondents said they are set on investing long term with a moderate risk appetite.

“They favor a balanced approach to risk in investing with a clear preference for long-term investment. Financial security and stability dominate their motivations,” Prudential said.

It added that 44% of young Filipinos prefer safe, low-risk options to protect their savings, while 37% prefer high-risk investments for higher returns. Meanwhile, 67% prefer to invest in long-term instruments, while 19% prefer short-term instruments.

Young Filipino adults are also optimistic about their financial future and are focused on enjoying the present despite health and financial concerns, Prudential said.

“Amidst a sense of unpredictability, they are enjoying the present moment. They are also highly positive about better personal finances in the future, although worries about increasing living expenses and family members’ health weigh heavily.”

The survey showed that even as 73% said they feel they are living in an era of unpredictability, 81% still expect their personal finances to improve over the next five to 10 years.

Some 32% of respondents also said they are focusing on enjoying the present more than worrying about the future. The report added that 44% see more opportunities from the uncertainties than risks, compared to the 38% that expect more risks.

However, respondents flagged related to increasing living expenses, family members’ health, and financial security and support in old age.

The top three reasons of Filipino respondents for buying insurance were to ensure family’s health expenses are covered, worries about unexpected events in the future, and to secure their incomes in case of unexpected health issues. — Aaron Michael C. Sy

Just can’t teach old dogs new tricks

AI IMAGE SUPPLIED BY THE AUTHOR

It hasn’t been that happy of a new year that greeted us a week ago, at least not on the governance front.

The state’s momentum here seems to have stalled, with top-level resignations crippling an already underfunded, underpowered ad hoc fact-finding commission; the untimely death of a ranking Public Works official who may have taken secrets of influential corruptors to the grave; the apparent lack of progress in legal action against several top lawmakers and officials (except one, for now); and the persistence of funds available to lawmakers and which could be used as political leverage by the Executive in what is supposed to be a “pork-free” 2026 national budget1, among others.

In contrast, broadsheets and news sites on Dec. 28 reported that ex-Malaysian prime minister Najib Razak was meted at least four 15-year jail terms after that country’s High Court ruled that he had diverted more than $700 million from the state investment fund 1MDB to his personal bank accounts. The jail terms come on top of some $2.8 billion in fines for abuse of power and another $514 million in assets to be confiscated under Malaysia’s anti-money laundering law. He faces more years in prison should he fail to cough up these amounts2.

Add to that periodic reports on ranking state officials and top businessmen charged or sentenced to death in China and Vietnam for corruption. Not that I espouse the capital penalty for any crime (especially not in our seriously flawed justice system in which our underprivileged sectors are always compromised), but I do think that we are far too lenient with criminals who — by their socioeconomic/political stature/educational attainment — ought to know better.

Parochial minds among us are wont to downplay such comparisons by saying that we Filipinos deal with the same problems differently. Go say that to parents who cannot feed their kids or afford them even just basic life-saving medicines/treatment due to a lack of sufficient income (as well as fund diversions from healthcare and other social programs).

GOVERNANCE NOW PARAMOUNT
Gainful jobs are generated only when business grows. Business groups have cited graft and corruption as among their top five constraints for quite some time (signaling that the government has never done enough to curb this blight), and the Philippines has long been counted by foreign investors as the most corrupt among Southeast Asia’s seven biggest economies (minus Cambodia, Laos, Myanmar, and Timor-Leste… for now).

So, yes, such optics count in the eyes of investors who are always on the lookout for the best sites for setting up shop or expansion. Those who wonder how the Philippines can still stagnate or even fall in various global competitiveness rankings despite improving scores need to remember that the country is always compared to close competitors like Indonesia and Vietnam which may improve by a greater degree that we do.

In the latest report on its annual economic health check on the Philippines, the International Monetary Fund (IMF) joined other outfits (and, on Jan. 5, the government itself3) in further tempering economic growth projections of the Philippines, blaming “uncertainty from global trade policies, corruption allegations related to flood control projects, and extreme climate events”.4

“[IMF Executive Board d]irectors underscored the need to continue prioritizing governance reports, greater private investment, economic diversification, and resilience to climate shocks to sustain inclusive growth,” according to the Dec. 15, 2025 public statement on the multilateral lender’s 2025 Article IV Consultation with the Philippines (note that this is the first time, at least in recent memory, that this report has brought governance concerns to the fore). “Directors emphasized the importance of strengthening governance and the rule of law, reducing corruption vulnerabilities, and enhancing human capital and workforce skills to support inclusive, sustainable growth.”

ELEPHANT IN THE ROOM
I have yet to see more business groups cite their concerns for 2026, but I am sure that more convincing anti-corruption measures would top their lists.

Not that there is a total lack of such efforts. For example, the Executive at least addressed one nagging investor concern early last month by suspending the Bureau of Internal Revenue’s field audits, which taxmen have used to extort money from otherwise compliant businesses ever since I can remember (in effect, one is punished for complying with the law).

But such state measures have been few and far between compared to our competitors in the region (watch out for the four smaller ASEAN economies — remember that we had outclassed Vietnam in many indicators up to a decade ago, but it has beaten us across the board since then).

Business chambers release their reform wish lists every year and have not been sparing of late in flagging corruption concerns and recommending remedies. But due to the constraints of bureaucracy or vested interests at the top — likely both — the government has not moved as fast as we want it to.

Hence, it behooves business and civil society to constantly tighten the screws on the government, which has proven sensitive to public opinion provided that such pressure is considerable and sustained.

In a recent opinion piece for the Makati Business Club (MBC), Guillermo M. Luz, who has led the Livable Cities Philippines since March 2014 and who had co-chaired the National Competitiveness Council for more than seven years until June 2018, cited a few examples of private sector initiatives5. He noted, among others, that in 2000 the MBC teamed up with the Social Weather Stations, the Philippine Center for Investigative Journalism, and the Philippine Center for Policy Studies to form the Transparent Accountable Governance project, which in 2004 evolved into the Coalition Against Corruption under the MBC, the Church, academe and civil society. This coalition then developed into the Integrity Initiative in 2009. And then…

SUSTAINED
Right there lies one problem, I think: what happened to that worthwhile effort? If anything, graft and corruption in the Philippines has only worsened since at least 2016, according to Transparency International’s annual Corruption Perceptions Index. Hence, the need to revive this multisectoral pressure amid the currently improved democratic space.

“I believe it is possible to combat corruption, but it will take citizen action combined with internal reforms by honest government workers, reinforced by the rule of law and strengthened by values,” Mr. Luz wrote.

Neither have the Church and other religious groups in the country been wanting in calling the government to account for the flood control project mess since this was highlighted in the State of the Nation Address last year.

Can the Church do more? OMG, yes! Starting by training its priests better when it comes to delivering more effective, relevant homilies. I mean, how many sermons has one sat through that left one wondering at the end: “What on earth was that about?” Which is probably why the late Pope Francis had prescribed that homilies be capped at 10 minutes, in order to force priests to prepare their messages better and not treat them as extemporaneous speeches6. Those of us who conduct briefings and product presentations can relate, knowing that audience attention lasts for only that long, and so we have only that much time to make our point/s.

Let’s not forget that the Mass is the only point of regular contact between the Church and most of the faithful, making the pulpit the perfect communication platform(which is not available to any other institution, mind you) to impart social values. Man, what a waste of a uniquely precious platform. Perhaps this explains the contradictory perceptions of us being the most corrupt major Southeast Asian economy and “the only predominantly Catholic country in Asia” (so can we please, please stop calling ourselves that from now on, sheesh.)

Similarly, each one in the private sector also needs to determine how one can contribute to the anti-corruption drive.

Two organizations that have been at the forefront of this effort for more than a quarter of a century now — the Institute of Corporate Directors since 1999 for the private sector and the Institute for Solidarity in Asia since 2001 for the public sector — have soldiered on, notwithstanding potentially discouraging cases in which participants in their programs slid back to “the old ways” after they succumbed to pressure from bureaucratic culture.

GENERATIONS IN THE MAKING
Think about it: a quarter of a century of such well-crafted, well-executed governance programs, and yet the results have been less than desired.

What has been missing all this time?

Perhaps the University of Asia and the Pacific (UA&P) is on to something, as this year it starts its Bachelor of Arts program in Public Governance and Leadership. Noting that some students are children of senior career government officials or belong to political dynasties, Nicomedes B. Alviar, dean of UA&P’s School of Politics and Governance, said in a recent chat: “We want to train these people to be good leaders in the future,” hence, a focus “on the practical side of governing.”

A primer he e-mailed to me said the new interdisciplinary course “addresses the growing need for ethical, effective, and visionary leadership in government, politics, and civil society” in the face of “governance crises, economic inequality, corruption, climate change, and political instability…”

It builds on the “typical” public administration course by aiming “to produce leaders, not just bureaucrats or functionaries.”

Starting with foundational courses in political science, public administration, economics, and ethics that will “lay the groundwork for understanding the political and institutional frameworks of governance, as well as the moral principles guiding leadership and decision-making in the public realm,” students will engage in “specialized subjects such as policy analysis, public finance, governance innovations, local and National Government systems, and public sector management,” with “strong emphasis… [on] research methods, data analysis, and strategic planning — core competencies for addressing complex governance challenges.”

Development of governance and leadership values “is integrated throughout the curriculum, with courses focusing on organizational leadership, negotiation, conflict resolution, and communication.”

Program requirements include a group capstone project involving a community development initiative, on top of the usual internship in a national or local government office.

Next on the program menu: a support system by which graduates making a career in politics or the bureaucracy can draw inspiration or seek advice from top proven public reformers, as well as tips from each other.

Let’s see how this program will pan out, shall we?

And so we hope to see more private sector initiatives on governance in the next few years, based on the core competencies of each organization.

Because this is clearly a protracted war that the corrupt, even now, hope will soon be forgotten, and each one of us is in it for the long haul.

1 https://tinyurl.com/247v6h5t
2 https://tinyurl.com/27w7pt4r
3 https://tinyurl.com/2ycpnret
4 https://tinyurl.com/272gb3m6
5 https://tinyurl.com/2ar5ozd2
6 https://tinyurl.com/26tjqu4h

 

Wilfredo G. Reyes was editor-in-chief of BusinessWorld from 2020 through 2023.

Boulevard Holdings posts 17% December sales gain

BOULEVARDHOLDINGS.COM

LISTED hotel and resort developer Boulevard Holdings, Inc.’s (BHI) consolidated sales rose 16.9% in December, driven by the strong performance of its luxury resort in Puerto Galera, Oriental Mindoro.

In a disclosure to the Philippine Stock Exchange on Wednesday, BHI reported that total sales of products and services for the month rose to P2.89 million from P2.48 million a year earlier.

The growth was largely attributed to Friday’s Puerto Galera Beach Resort, which posted a 44.8% month-on-month sales increase. The resort is owned and operated by BHI unit Friday’s Puerto Galera, Inc.

BHI operations focus on hotels, leisure and tourism developments. Its other notable properties include Friday’s Boracay Beach Resort, which was demolished in August 2023 and has yet to begin reconstruction, and Friday’s Siargao Beach Resort in Surigao del Norte, registered under unit Friday’s Siargao, Inc. in June 2024, which has yet to open.

The company’s units also invest in hotel and resort operations, leisure estates, residential and office condominiums, as well as travel-related services and other allied businesses both in the Philippines and overseas.

Despite the December sales gains, BHI posted a net loss of P11.43 million for the three months ending Aug. 31, 2025.

In its quarterly report released in October 2025, the company outlined plans to strengthen its resort operations through enhanced marketing, promotional activities, and a focus on attracting the “upper niche market” of Western and Asian travelers.

BHI shares rose 8.11% or 0.3 centavos to close at 4 centavos each on the Philippine Stock Exchange. — Beatriz Marie D. Cruz

HONOR X9d 5G set for PHL launch on Jan. 9

HONOR.COM

HONOR PHILIPPINES is set to launch its latest mid-range smartphone, the HONOR X9d 5G, in the country on Friday (Jan. 9.)

The brand is dubbing the device as “the toughest phone,” with pre-release promotions showing it being subjected to various durability tests, including a high-altitude drop test from an ultralight plane and pitting it against the all-steel Tesla Cybertruck in smash and rollover tests.

“Positioned as the toughest mid-range smartphone of the year, the latest addition to the X Series is built to withstand extreme challenges while delivering powerful everyday performance,” it said in a statement.

“Year after year, HONOR fans and consumers push us to go beyond expectations, and that inspires everything we do,” said Stephen Cheng, vice-president of HONOR Philippines. “The HONOR X9d 5G was designed with Filipino users in mind — combining toughness, innovation, especially value. Our extreme durability tests reflect our confidence in delivering a device that can keep up with real life challenges.”

Based on the brand’s website, the HONOR X9d 5G has a 6.79-inch AMOLED screen made of aluminosilicate glass.

It has water and dust resistance ratings of IP66, IP68, IP69, IP69K, which HONOR said would allow it to withstand up to 85°C high-temperature water, 24 hours of high-humidity, salt-rich environments, and 10,000 water exposure cycles. Users can automatically expel dust and water with a single tap, and the phone also has rainproof and glove friendly touch control.

It also has drop resistance of up to 2.5 meters.

The HONOR X9d 5G is powered by a Snapdragon 6 Gen 4 octa-core chipset and runs on MagicOS 9.0 based on Android 15. It has 12GB in memory and 256GB storage.

At the rear, it features a 108-megapixel (MP) main camera and a 5MP wide lens. The camera system supports up to 10x digital zoom and 4K video shooting, and also has optical image stabilization. It also has various capture modes, including Highlights Capture, Moving Photo, AI photography, time-lapse photography, and Multi-Video, among others.

The smartphone also has a 16MP front camera that supports up to 1080P video recording.

It has a typical battery life of 8,300 mAh and supports 66-watt wired charging, as well as reverse charging. — Bettina V. Roc

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