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Kickstart Ventures targets 12 startup investments

STOCK PHOTO | Image by from Freepik

By Beatriz Marie D. Cruz, Reporter

KICKSTART Ventures, Inc., the corporate venture capital arm of Globe Telecom, Inc., is on track to fund at least 12 startups by the end of the year, with a growing focus on electronic commerce and artificial intelligence (AI).

“We invested in seven companies in total this year,” Joan Yao, general partner at Kickstart Ventures, told BusinessWorld in an interview. “These are follow-on investments.”

The firm has backed startups across industries such as cybersecurity, food and beverage, e-commerce, telecommunications, AI and business-to-business e-commerce.

Since its founding in 2012, Kickstart has invested P2.15 billion in Philippine startups. Its portfolio now includes about 70 local and foreign companies, among them Pickup Coffee, coins.ph, Kumu, Skillshare, RuralNet and edamama.

The venture firm said its local portfolio has generated about 600 jobs and raised $305 million (P17.4 billion) in follow-on funding. Five Philippine startups in Kickstart’s portfolio have since expanded overseas, while 17 of its funded companies have entered the Philippine market.

Kickstart primarily invests in early- and early-growth stage startups that aim to solve real-world problems. For the rest of 2025, the firm is looking more closely at AI-driven ventures.

“A lot of the opportunities we’re looking at right now is in the theme of ‘from automation to augmentation,’” Ms. Yao said. “We’re looking at how AI can augment human capability, and how AI tools can help make work more efficient in different business contexts.”

She noted that investment prospects include startups working on financial inclusion, healthcare solutions and climate resilience.

The funding push comes amid a downturn in Philippine startup equity financing. A joint report by Kickstart and Singaporean business news platform DealStreetAsia showed that startup equity funding in the country had fallen 55% to $86.4 million as of end-June from a year earlier.

By deal value, the country trailed Singapore ($1.21 billion), Vietnam ($275 million) and Malaysia ($196 million).

It only surpassed Indonesia ($78 million) and Thailand ($10 million), while Cambodia did not disclose figures.

Across Southeast Asia, startup equity investment fell by 20.7% year on year to $1.85 billion, the lowest in six years.

Globe says industry cooperation needed to advance Philippine digital network

BW FILE PHOTO

GLOBE TELECOM, INC., through its corporate arm Globe Business, said the industry must work together to co-create the Philippines’ digital backbone to position the country as a regional hub for connectivity, cloud, and content.

“Infrastructure is more than physical assets, it’s about trust, alignment, and the will to build beyond our individual interests… If we want real digital progress in the Philippines, we need to co-create the grid that will carry it,” KD D. Dizon, head of Globe Business, said in a media release on Tuesday.

According to the Ayala-led telecommunications company, the growing demand for reliable and secure connectivity highlights the need for coordination among industry stakeholders.

“The problem isn’t ambition; it’s coordination. The very networks meant to connect people and ideas are often built in silos, but solo runs won’t win the future. It will be shaped by ecosystems that share, scale, and build together,” Globe said.

The company also said that the managed optical fiber network (MOFN) would be an effective strategy to advance and address challenges in the Philippines’ connectivity ambition.

“The MOFN is a model that allows hyperscalers and carriers to tailor their connections without losing the benefits of a managed service. ProAssure, a proactive platform designed to preempt issues before they affect customers, was also discussed as part of this shift toward more intelligent and accountable infrastructure,” Globe said.

Further, the company said that the Philippines is becoming an attractive location for hyperscalers.

“Philippine infrastructure is no longer aspirational, it’s operational. The question now is how we scale that responsibly and fast enough to meet demand,” ST Telemedia Global Data Centres (STT GDC) Philippines President and CEO Carlomagno E. Malana said.

STT GDC Philippines, a joint venture between Globe, Ayala Corp., and ST Telemedia Global Data Centres, operates seven data centers in the country.

At the stock exchange on Tuesday, Globe shares fell by P44, or 2.8%, to close at P1,530 each. — Ashley Erika O. Jose

Hershey beats lawsuit claiming Reese’s Halloween candies aren’t spooky

HERSHEYLAND.COM

NEW YORK — Hershey defeated a lawsuit claiming it misled consumers who were disappointed the Halloween-themed Reese’s peanut butter candies they bought lacked the decorative details shown on the labels.

US District Judge Melissa Damian ruled on Friday that the plaintiffs did not show they suffered economic harm because their pumpkin-shaped candies, which they thought would contain “artistic carvings” of triangular eyes and crooked mouths, were blank.

The May 2024 lawsuit challenged the lack of details on nine Reese’s products, including a bat-shaped candy missing eyes, a ghost-shaped candy missing eyes and a mouth, and a football-shaped candy that resembled an egg because it had no stitching.

Ms. Damian also said the subjective belief of the plaintiffs that they overpaid did not support their claims, or give them standing to sue.

“Put simply, plaintiffs do not allege that the products were unfit for consumption, did not taste as plaintiffs expected, or otherwise were so flawed as to render them worthless,” the Miami-based judge wrote.

The proposed class action by Florida residents Nathan Vidal and Eduardo Granados sought at least $5 million in damages. Ms. Damian said they may seek to file an amended complaint.

Anthony Russo, a lawyer for the plaintiffs, called the ruling procedural, and said his clients will review their next steps.

Hershey and its lawyers did not immediately respond to requests for comment.

In seeking a dismissal, Hershey said the plaintiffs ignored disclaimers on packaging that the carvings were a “DECORATING SUGGESTION.”

The Hershey, Pennsylvania-based company also said the plaintiffs, in the end, got what they paid for: “delicious Reese’s candy.” — Reuters

Taiwan for ICA: Safety above politics, safe skies, and a sustainable future

TAIWAN TAOYUAN INTERNATIONAL AIRPORT

By Wallace Minn-Gan Chow

The 42nd International Civil Aviation Organization (ICAO) Assembly is set to convene in Montreal Canada from Sept. 23 to Oct. 3 with the theme “Safe Skies, Sustainable Future.” Yet Taiwan remains excluded — a gap that creates unnecessary risks in the global aviation network.

Taiwan is a vital hub connecting Northeast and Southeast Asia. The Taipei Flight Information Region (FIR) handled more than 1.6 million flights and 70 million passengers in 2024 alone.

In addition, Taiwan fully aligns its regulations with ICAO standards and is advancing carbon-offset programs and Sustainable Aviation Fuel (SAF) to reduce emissions, contributing to global efforts in achieving a sustainable future, as well as upholding ICAO’s mission for safe skies.

HIGH STAKES FOR TRAVELERS, COMMUNITIES
The stakes extend far beyond Taiwan.

The Taipei FIR borders four others: Fukuoka, Manila, Hong Kong, and Shanghai, and sits at the crossroads between China, Japan, and the Philippines.

Almost half a million Filipino travelers visited Taiwan in 2024, a number projected to exceed 600,000 in 2025. Meanwhile, nearly 200,000 overseas Filipino workers and residents live in Taiwan. The safety of flights linking the Philippines and Taiwan is therefore a matter of deep concern not only to Taiwan, but also to countless Filipino families.

The international community has long recognized this risk.

Recently, Canadian Conservative MP Michael Cooper in Canada’s House of Commons, called for Taiwan’s inclusion in ICAO, urging the organization to “stop placating the Beijing dictatorship, put global aviation safety first, and invite Taiwan to participate.” He added that excluding “one of the largest and most responsible airspace managers creates a dangerous gap that undermines global aviation safety, and makes a mockery of ICAO’s stated mission.”

Liberal MP Judy Sgro, chair of the Canadian-Taiwan Parliamentary Friendship Group, also echoed support for Taiwan’s participation during the House of Commons.

INCLUSIVE COOPERATION FOR SAFER SKIES
Their calls are timely. Granting Taiwan direct access to ICAO discussions is not a political gesture, it is a global safety imperative.

ICAO must invite Taiwan to the table. The safety of international travelers, including more than three-quarters of a million Filipinos, depends on inclusive cooperation, not political exclusion. The stakes are too high for the world to look away.

 

Wallace Minn-Gan Chow is the representative of Taipei Economic and Cultural Office in the Philippines.

Peso down on safe-haven dollar demand

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THE PESO sank on Tuesday as concerns over the health of the French economy drove safe-haven demand for the dollar.

The local unit closed at P57.295 versus the greenback, falling by 23.9 centavos from its P57.056 finish on Monday, Bankers Association of the Philippines data showed.

The peso opened Tuesday’s session stronger at P56.95 versus the dollar, which was also its intraday high. Its worst showing was at P57.33 against the greenback.

Dollars exchanged surged to $1.86 billion on Tuesday from $1.27 billion on Monday.

“The dollar-peso closed higher on market risk-off sentiment due to escalating concerns over France’s economy, which favored the dollar safe-haven demand,” a trader said in a phone interview.

For Wednesday, the trader sees the peso moving between P57.10 and P57.40 per dollar.

The US dollar was steady on Tuesday as investors took a beat to parse a hawkish tilt in comments by members of the Federal Reserve, while awaiting remarks on the economic outlook by Chair Jerome H. Powell, Reuters reported.

The greenback fluctuated between gains and losses, last trading flat after snapping a three-day winning streak on Monday, with the US dollar index last at 97.36.

Mr. Powell was set to speak on the economic outlook later on Tuesday and some central bank policymakers renewed focus on inflation risks in remarks on Monday, prompting a slight easing of wagers on a rate cut by the Fed next month.

Meanwhile, markets showed a largely muted reaction to a mixed bag of business survey readings in Europe.

While data showed that euro zone business activity grew at its fastest pace in 16 months in September, it also pointed to French economic activity contracting the same month at the sharpest rate since April. — AMCS with Reuters

Davao chili sauce brand eyes Manila factory

FACEBOOK.COM/AYANASCHILI

By Almira Louise S. Martinez, Reporter

DAVAO-BASED chili sauce maker Ayana’s Siling Kinamayo is seeing stronger demand in Metro Manila as it boosts its participation in trade fairs and food expos in the National Capital Region.

“In Manila, the demand is really high compared with the Davao region,” Edlun A. Ferrando, owner of Ayana’s Siling Kinamayo, told BusinessWorld in an interview. “In Davao City, we also supply to the malls, that’s why it’s a bit saturated.”

Mr. Ferrando credited the Department of Trade and Industry (DTI) for helping the brand enter the Manila market through free trade fair slots. “That’s the No. 1 source. People got to know our brand, and we were able to enter the market because of the trade fairs.”

The chili enterprise traces its roots to the aftermath of Super Typhoon Pablo in 2012, which devastated farms across Mindanao and caused P8.5 billion worth of farm damage, based on the Philippine Crop Insurance Corp. The banana sector bore the heaviest losses, followed by rice, corn and coconut farms.

“The only thing that sprouted was the chili,” Mr. Ferrando said. “That’s the only thing they were able to produce. That’s why the farmers took advantage of it.”

To aid recovery, the Trade department rolled out livelihood training for affected residents. Mr. Ferrando’s wife Maricel, who had cooking experience from their former eatery, joined the program and showcased her chili sauce recipe.

“They discovered that she knows how to make chili sauce… so the DTI told her to focus on that,” he said.

Production started modestly with 50 bottles per batch using a household blender that often overheated. Today, Ayana’s produces 1,000 to 1,500 bottles daily across five variants, including its flagship Siling Kinamayo made with native chilies, and Dare Devil Sauce featuring Carolina Reaper peppers.

Flavor preferences differ by region, Mr. Ferrando said.

“In Manila, the people there are fond of something sweet,” he said. “In Mindanao, in the western part, they are fond of something spicy because of our Muslim brothers. In the Visayas, they are not fond of spicy food.”

“It depends on the taste of the people, that’s where we base our flavors,” he added.

To support its expanding Metro Manila market, Ayana’s is considering setting up a small processing facility in the capital to reduce shipping costs.

“It would be better if there were small batches of production there. We are looking for a small processing area, as long as it’s okay with the FDA (Food and Drug Administration),” Mr. Ferrando said.

The company aims to hit P500,000 in sales by year-end.

Keyland Corp. to open first boutique hotel in November

ALINOHOTEL.COM

PROPERTY developer Keyland Corp. is set to open its 128-room boutique hotel in New Manila, Quezon City, by November.

The 20-storey Alino Hotel is located along E. Rodriguez Sr. Avenue in New Manila, a growing business hub in northern Metro Manila.

The hotel is expected to cater to business travelers, medical guests, and families in the area, the company said in a statement on Tuesday.

“Keyland’s entry into hospitality through Alino Hotel marks a diversification for the developer, which has until now focused primarily on residential and office projects,” it said.

“The Quezon City property, scheduled to open in November 2025, is positioned to capture business travelers, medical guests, and families in one of the city’s busiest commercial districts,” the statement added.

The property will offer 27-square-meter (sq.m.) Essential Twin rooms and 31-sq.m. Deluxe Twin rooms, according to Keyland’s website. Deluxe Queen and Premier Queen rooms are sized up to 32 sq.m. and 36 sq.m., respectively.

Key facilities include on-site parking, restaurants, room service, an indoor pool, self-service laundry facilities, a 24-hour front desk, a gym, an elevator, interconnecting rooms, and conference/meeting rooms.

Keyland appointed veteran hotelier Lady May Elegado as general manager for the property.

Ms. Elegado has held senior roles at The Taaras Beach & Spa Resort in Malaysia, Berjaya Makati Hotel, and City Garden Grand Hotel in Makati City.

“Over the course of her career, Elegado has overseen hotel functions ranging from pre-opening to day-to-day operations in both luxury and standard-class properties, giving her broad exposure to multiple areas of management,” Keyland said.

Rexsan Abarquez, with over 20 years of experience in the culinary industry, will lead the hotel’s food and beverage program, including its all-day dining outlet, Kutchara.

Mr. Abarquez previously served as executive sous chef and Acting Executive Chef at Marco Polo Ortigas in Mandaluyong City.

He also worked with Conrad Manila’s pre-opening team and held positions at Sofitel Philippine Plaza, Mandarin Oriental Manila, and Makati Shangri-La.

“His experience in international kitchens and high-end hotels allows him to blend global techniques with Filipino flavors,” Keyland said.

Keyland’s real estate portfolio includes townhouses such as Vermira in Batangas and condominium towers including 110 Benavidez in Makati, Southkey Place in Muntinlupa City, and Casa de Sequoia in Las Piñas City.

Its office and retail developments include Southkey Hubs 1 and 2 and Southkey Place (retail) in Muntinlupa City; Casa de Sequoia (retail) in Las Piñas City; Keyland Plaza in San Juan City; and Keyland Arnaiz, Keyland Valero, and Keyland Ayala in Makati City. — Beatriz Marie D. Cruz

Arts & Culture (09/24/25)

Benefit concert for Pablo Tariman

FOR the benefit of veteran performing arts and classical music journalist Pablo Tariman, who is battling multiple health complications, longtime friends are putting up a concert. Internationally renowned tenor Arthur Espiritu is one of many musicians headlining the fundraising show Let the Wind Blow: A Bouquet for Pablo, set for Sept. 26, 7:30 p.m., at the Mirror Theatre Studio, SJG Center, Poblacion, Makati City. Other musicians performing are sopranos Stefanie Quintin Avila and Angeli Benipayo, theater actress Jay Valencia Glorioso, baritone Ruzzel Clemeno, guitarist Aaron Aguila, cellist Renato Lucas, pianists Gabriel Allan Ferros Paguirigan and GJ Frias, clarinetist Herald Sison, and violinists Ghio Karylle Esteban and Cedie Nuñez. Tickets are available via 0920-954-0053 or 0918-347-3027, or the e-mail josephuy@yahoo.com.

Inter Alia, The Importance of Being Earnest on screen

THE NEXT presentations of Cultural Center of the Philippines’ National Theatre will be Inter Alia and The Importance of Being Earnest, both shows that explore the complexity and fragility of one’s identity amidst established social and personal norms. Shot live at the theaters they were performed at in London, Inter Alia will be screening at Glorietta 4 while The Importance of Being Earnest will be shown at Ayala Malls Vertis North and Ayala Malls Central Bloc Cebu. Screenings will be on Sept. 30 at 6 p.m. Regular ticket prices are P300 in Makati and Cebu, and P350 in Vertis North, with special ticket price for students at P150 upon presentation of a valid ID. Visit the cinema ticket booths or book online via SureSeats.

Dear Evan Hansen has sign language show

GMG PRODUCTIONS has announced that a sign language-interpreted performance of the award-winning musical Dear Evan Hansen will be mounted during its Manila run. In collaboration with the Filipino Sign Language (FSL) Deaf consultants and interpreters of the College of Saint Benilde, the upcoming Oct. 2 show of Dear Evan Hansen will be accessible to the Deaf community. The musical will be interpreted in FSL live by Benilde’s FSL interpreters. The musical runs until Oct. 5 at The Theatre at Solaire, with tickets exclusively available via TicketWorld.

UP Symphony Orchestra presents Tunog at Kulay

THE UP Symphony Orchestra will be joined by harpist Madeline Jane Banta in the concert titled Tunog at Kulay. The repertoire features pieces by Mussorgsky, Ravel, Debussy, Shostakovich, and De Leon. The show is in support of the PGH Pediatric Hematology-Oncology Clinic. The evening also features the participation of a Fine Arts 10 (Visual Perception) class of Mitzi Aguilar-Reyes and UP Fine Arts Gallery (Parola) curator Lisa Ito-Tapang. It is set for Oct. 3, 6 p.m., at the UP Theater, Diliman, Quezon City. Tickets cost P750, with registration via http://tinyurl.com/upsottkreg.

Anik-anik, burloloy culture explored in art exhibit

YOUNG mixed-media artist Chleia Zyrille Samson, also known as ZYRIBUBUT, is tackling the maximalist culture of anik-anik, abubut, and burloloy in the Philippines in their exhibition ANAK NG ABUBUT!. The researcher-artist also explores how the oversaturated representation of online personas on social media subjects the culture merely to an “aesthetic.” The exhibit is free and open to the public at the 9th Floor Landing of the Benilde Design + Arts Campus. It runs until Oct. 4.

Ballet Manila restages Florante at Laura

BALLET MANILA will again stage their dance interpretation of Francisco Balagtas’ Florante at Laura at the Aliw Theater, with performances on Oct. 3 at 8 p.m., and Oct. 4 and 5 at 5 p.m. Live music will be performed by the Orchestra of the Filipino Youth under the baton of Toma Cayabyab, interpreting the original score composed by National Artist for Music Ryan Cayabyab. Tickets are now on TicketWorld.

Metrobank presents the 2025 MADE exhibit

THE Metrobank Foundation, Inc. (MBFI) is inviting the public to the 2025 Metrobank Art & Design Excellence (MADE) Exhibition titled Vast Horizons, which is ongoing until Oct. 18 at the 2F North and South Galleries of The M in Bonifacio Global City, Taguig. Free and open to all, the month-long exhibition features the awardees, semi-finalists, and national finalists of this year’s MADE competition. Now on its 41st year, this edition marked the return of the Mixed Media category since it was last seen in the 1980s. The 2025 Grand Awardees are Rober Mark A. Liwanag for Sculpture with Sariling Tahanan, (…And We Are Home); Jao Eugene S. Pelaez for the Mixed Media category with Tulad ng Isang Halaman na Minsan Nanirahan (Like a Plant That Once Lived); and Jack Enriquez De Castro for the Painting (Oil/Acrylic on Canvas) category with Finding the Light Within.

Noel Comia, Jr., Tomas Rodriguez cast in Bagets

TWO ACTORS have been cast in the lead role of Gilbert in the upcoming production of Bagets the Musical. Noel Comia, Jr. and Tomas Rodriguez will both be playing the geeky member barkada who was originally portrayed by Herbert Bautista in the iconic 1980s film about high school life. Mr. Comia has a musical theater background while this will be the first theater outing for Mr. Rodriguez, a member of the P-pop boy group ALAMAT. The musical is a joint effort of VIVA Communications, Inc., The Philippine STAR and NEXT by the Philstar Media Group, and Newport World Resorts. Bagets The Musical is scheduled to run from Jan. 23 to March 2026 at the Newport Performing Arts Theater.

Silverlens now represents Geraldine Javier

SILVERLENS GALLERY has announced that it is now representing Geraldine Javier, a leading figure in Philippine contemporary art with a body of work spanning three decades. Recognized for her expansive art practice, from paintings to textile installations, Ms. Javier works closely with her local community — a workshop of weavers and organic gardeners — in the countryside of Cuenca, Batangas.

Civil liability in condominium disputes: The Supreme Court clarifies the HSAC’s jurisdiction

STOCK PHOTO | Image by Anatolii Nesterov from Unsplash

The rise of condominium developments across the Philippines has inevitably given rise to a plethora of issues and disputes between buyers and developers. To address these, the current legal framework provides various remedies against erring developers. For instance, Presidential Decree No. 957, or the Subdivision and Condominium Buyers’ Protective Decree, allows buyers to pursue criminal cases against developers who fail to deliver condominium titles.

But what happens when buyers also want to seek damages for the harm that they have suffered? Should their claims for civil liability be filed with the Human Settlements Adjudication Commission (HSAC, formerly the HLURB or Housing and Land Use Regulatory Board), which has jurisdiction over various housing-related disputes, or with the regular courts?

The Supreme Court answered this in the case of Vivien M. Cadungog v. Sung Ha Jung (G.R. No. 254543, April 2, 2025), which involved a criminal case filed by a buyer against a developer for failure to deliver the title to the condominium unit.

THE CASE
The dispute arose out of a Contract to Sell between a buyer and a developer of a condominium building in Cebu City. Under the contract, the buyer agreed to pay a downpayment for the unit, with the balance to be paid upon its delivery.

Upon the completion of the unit, the developer refused to deliver it, claiming that the buyer had not yet fully paid the purchase price. This prompted the buyer to file a criminal complaint against the developer for violation of Presidential Decree No. 957. The buyer alleged that the developer failed to deliver the title of the unit despite acceptance of the full purchase price of the condominium unit.

The Regional Trial Court dismissed the criminal complaint, finding that since the buyer had yet to pay the full purchase price for the unit, then the developer was under no obligation to deliver the title. However, the Regional Trial Court ruled that the developer was civilly liable, ordering either the delivery of the condominium unit to the buyer upon full payment or reimbursement of the amount already paid by the buyer.

The developer then questioned the award of civil liability, arguing that jurisdiction over the civil aspect of the case belonged to the HLURB.

The Supreme Court found that the civil liability of the developer did not arise out of a crime, but from the parties’ contractual obligations. The Supreme Court noted that the dispute between the parties arose out of the Contract to Sell that they entered into. Since the dispute involved a condominium developer and a buyer, jurisdiction over the civil aspect fell exclusively with the HLURB’s authority.

THE HLURB’S (NOW HSAC) JURISDICTION
While regular courts exercise general jurisdiction over contractual disputes, P.D. No. 957, as amended, expressly vested the HLURB with exclusive and original jurisdiction over contractual disputes between condominium developers and buyers.

With the passage of Republic Act No. 11201, the HLURB was reconstituted, and its adjudicatory functions were transferred to the HSAC. Today, the HSAC continues to exercise jurisdiction over disputes between condominium developers and buyers.

The HSAC’s specialized jurisdiction over matters involving real estate development and homeowners associations is intended to provide an efficient and accessible forum for resolving disputes, while at the same time helping to decongest the dockets of regular courts.

THE SUPREME COURT’S CLARIFICATION
Acquittal from a criminal case does not necessarily mean that the accused is free from civil liability (Dominguez v. People, G.R. No. 167546). In fact, when an accused is acquitted due to the prosecution’s failure to establish guilt beyond reasonable doubt, civil liability ex delicto (or that which arises out of the crime) may still be recovered in the same criminal case, except if the source of the obligation stems from a contract (Cheng v. People, G.R. No. 207373).

While the criminal aspect of the case is within the jurisdiction of the Regional Trial Court, since the HLURB was not specifically conferred with power to hear and decide cases which are criminal in nature, the same cannot be said about the civil aspect of the case.

Since the civil liability of the developer did not arise out of a crime, but out of a contract, specifically a contract between a condominium developer and a buyer, then the jurisdiction over the civil aspect of the case is under the exclusive jurisdiction of the HLURB (now HSAC). This being the case, the Regional Trial Court had no jurisdiction to rule on the civil liability of the developer.

The Supreme Court’s ruling in Cadungog provides guidance to parties on the proper forum and remedy when pursuing claims against erring developers.

The views and opinions expressed in this article are those of the author. This article is for general informational and educational purposes only and not offered as and does not constitute legal advice or legal opinion.

 

Juan Carlo C. Cabero is an associate of the Litigation and Dispute Resolution department of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW).

(632) 8830-8000

jccabero@accralaw.com

PHL growth may settle at low end of gov’t goal due to trade risks

PHILIPPINE STAR/EDD GUMBAN

PHILIPPINE economic growth may settle at the low end of the government’s target this year due to global trade risks, the central bank said.

“Domestic growth is expected to settle at the low end of the Development Budget Coordination Committee’s (DBCC) target range of 5.5-6.5% in 2025,” the BSP said in its Monetary Policy Report for August 2025.

“The moderation in domestic growth prospects for 2025 stemmed mainly from the lower-than-expected growth outturn in Q2 2025 amid slower construction activity due to the election-related ban on government projects. This will be partially offset by the BSP’s monetary policy easing. Nonetheless, uncertainty over global economic policies, particularly the potential impact of US policies on global trade and investment, poses additional downside risks to domestic growth.”

Gross domestic product (GDP) grew by 5.5% year on year in the second quarter, bringing the first-semester average to 5.4%, just a tad below the government’s goal.

Last month, the BSP slashed benchmark borrowing costs by 25 basis points (bps) for a third straight meeting to bring its policy rate to 5%. This brought cumulative cuts since August 2024 to 150 bps.

“Potential output growth is expected to slow in the near term, as subdued investment demand weighs on productivity. This is consistent with estimates showing trend total factor productivity growth remaining below pre-pandemic levels,” the BSP said. “Nonetheless, the output gap is seen to gradually improve and turn broadly neutral by 2027, supported by a more accommodative policy stance and expected real wage increases.”

It added that GDP expansion could fail to meet the government’s goal next year before returning within target in 2027. The government is targeting 6%-7% growth in the next two years.  

INFLATION
Meanwhile, results of the BSP’s survey of 23 external forecasters for August showed that analysts see inflation averaging 1.7% this year, down from the 1.9% in the July survey round, amid easing commodity price pressures.

This is below the BSP’s 2-4% annual target.

“Analysts cited the following upside risks to inflation: potential oil price hikes due to geopolitical tensions in the Middle East, rice-market policies involving the suspension of rice imports, and higher minimum wages. The downside risk cited was lower rice prices, which could weigh on the inflation outlook,” the central bank said.

The BSP likewise expects headline inflation to average 1.7% this year.

“The inflation outlook remains moderate over the near term. Inflation is projected to remain below the target range until Q4 2025,” the central bank said. “Compared with the previous round, the inflation projection for 2025 is slightly higher. This reflects the spillover effects of typhoons in July and the potential adverse impact of the approved rice import ban.”

In August, inflation picked up to 1.5%, faster than the 0.9% clip the prior month, bringing the eight-month average to 1.7%.

Analysts’ mean inflation forecast for 2026 also went down to 2.8% from 3%, while their projection for 2027 was unchanged at 3%.   

The BSP said they expect inflation to pick up in the next two years but still fall within its 2-4% target.

“Higher electricity rates and possible base effects from higher food prices are expected to drive inflationary pressures in 2026,” the BSP said. “Inflation is projected to approach the upper end of the government’s target range in Q4 2026 before easing in 2027, although it will remain above the midpoint, as global commodity prices stabilize.”

The analysts in the BSP survey expect the Monetary Board to cut benchmark rates by an additional 25 to 50 bps for the remainder of the year and by 25 to 50 bps more in 2026. For 2027, they expect the central bank to keep its policy settings steady.

The survey results are as of Aug. 22 or before the Monetary Board’s Aug. 28 meeting where it delivered a 25-bp cut. — K.K. Chan

Gallup: Filipinos Trust Law Enforcement but Safety Concerns Linger

The Philippines’ trust in the police and local institutions was moderately strong but concerns on personal safety persists, based on the 2025 Global Safety Report by Gallup. The report assesses how safe people feel in their communities and gauges their sense of security and how they trust their local police. The safety index is measured by percentage while the law and order index is scaled from 0 to 100, with higher scores indicating that people feel safer.

Filipinos Trust Law Enforcement but Safety Concerns Linger

How PSEi member stocks performed — September 23, 2025

Here’s a quick glance at how PSEi stocks fared on Tuesday, September 23, 2025.

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