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Signal No. 4 still up in parts of Palawan amid Typhoon Tino

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Tropical Cyclone Wind Signal No. 4 still threatens several areas in Palawan due to Typhoon Kalmaegi, locally known as Tino, which is expected to bring significantly life-threatening winds to the affected areas, according to the state weather bureau.

Kalmaegi was last located over the coastal waters of El Nido Palawan and has maintain its typhoon category strength despite multiple landfalls, the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) said in an 8:00 a.m. advisory.

It was packing 120 kilometers per hour (kph) of sustained winds and 165 kph gustiness, moving west northwestward at 25 kph.

Signal No. 4, where significant to severe life-threatening winds are expected, is hoisted in the northernmost portion of Palawan, covering El Nido, Taytay, Araceli, and the Calamian Islands.

Signal No. 3, where moderate to significant life-threatening winds are expected, is in effect in the northern portion of Palawan, including Dumaran, San Vicente, Roxas, and the Cuyo Islands.

Meanwhile, Signal No. 2 is placed in the southern portion of Occidental Mindoro, including Magsaysay, San Jose, Rizal, and Calintaan, as well as in Puerto Princesa City and the Kalayaan Islands, where minor to moderate life-threatening winds are expected.

Signal No. 1 is hoisted in the rest of Occidental Mindoro, Oriental Mindoro, the southern portion of Romblon, and the southern portion of Palawan, where minimal to minor life-threatening winds are expected.

PAGASA also raised storm surge warnings for various coastal areas of Palawan, particularly in the low-lying areas of El Nido, Bacuit, San Vicente, and Taytay, where storm surges of more than 3.0 meters may occur.

The bureau advised that all marine activities be canceled and that residents evacuate immediately.

Possible Super Typhoon brewing

PAGASA is considering the possibility that the tropical depression east of the Philippine Area of Responsibility (PAR) may intensify into a typhoon, or even a super typhoon, in the coming days.

The tropical depression, packing sustained winds of 55 kph and gusts of up to 70 kph, was last located 1,925 kilometers east of northeastern Mindanao, moving west-southwestward at 25 kph, PAGASA said in an 8:00 a.m. advisory.

The tropical depression is expected to enter the Philippine Area of Responsibility (PAR) by Friday evening or Saturday morning and will be locally named Uwan, becoming the country’s 21st tropical cyclone this year.

PAGASA has not yet indicated whether the storm may make landfall in the country, as it is still outside the agency’s five-day forecast period.

The weather bureau advised the public to monitor updates on the storm, as forecasts may still change given its current distance. — Edg Adrian A. Eva

Shutdown could close some US airspace, airline stocks fall

STOCK PHOTO | Image from Pixabay

WASHINGTON/CHICAGO — US Transportation Secretary Sean Duffy warned on Tuesday he could be forced to close some of the national airspace to air traffic if the federal government shutdown extends for another week, warning of travel chaos and sparking a selloff in airline shares.

The shutdown entered its 35th day due to a political stalemate over government funding, forcing air traffic controllers and airport security screeners to work without pay. The standoff is amplifying staffing shortages, causing widespread flight delays and longer security wait times.

An airline industry group estimates that over 3.2 million passengers have been affected by flight delays or cancellations due to a spike in air traffic controller absences since the shutdown began October 1. Airlines have been raising concerns with lawmakers about the impact on operations.

‘MASS CHAOS’ AHEAD: DUFFY
“If you bring us to a week from today, Democrats, you will see mass chaos, you will see mass flight delays. You’ll see mass cancellations, and you may see us close certain parts of the airspace, because we just cannot manage it,” Mr. Duffy said at a press conference. “We will restrict the airspace when we feel it’s unsafe.”

The comments represented the Trump administration’s most dire warnings of impending impacts from rising air traffic controller absences.

Shares of Southwest, Delta, United, and American Airlines closed down 3% to 5% after the comments.

Mr. Duffy did not provide details on how the government would structure such a move. Industry experts warn that because the air traffic control system is an intertwined network, even a partial closure of the airspace would have nationwide consequences.

“You can’t simply close one sector without it affecting the rest of the country,” said Sheldon Jacobson, a professor at the University of Illinois.

The last time the United States fully closed its airspace for domestic air traffic was on September 11, 2001, in response to terrorist attacks.

THOUSANDS OF FLIGHTS DELAYED
Airlines say the shutdown has not significantly affected their business, but have warned bookings could drop if it drags on.

Tens of thousands of flights have been delayed over the last month. On Tuesday alone, more than 2,900 flights were delayed as the FAA imposed delays in Phoenix and Houston after seeing staffing issues in Denver, Detroit, and elsewhere.

FAA Administrator Bryan Bedford said on Fox Business’ “Varney & Co” that 20% to 40% of controllers at the agency’s 30 largest airports are failing to show up for work.

Democrats blame Republicans for not negotiating with them to reopen the government. The shutdown has exacerbated staffing shortages, forcing 13,000 air traffic controllers and 50,000 Transportation Security Administration officers to work without pay, leading many of them to call in sick or absent.

In 2019, widespread disruptions in air travel pressured lawmakers into ending a 35-day government shutdown during President Donald Trump’s first term in office.— Reuters

EU eyes weaker climate goal in scramble for deal by COP30, sources say

REUTERS

BRUSSELS — EU climate ministers on Tuesday were considering further weakening their planned 2040 climate target, EU diplomats told Reuters, a last-ditch attempt to pass the goal and avoid going to the UN COP30 summit in Brazil empty-handed.

The European Union had hoped to clinch backing from member countries to cut emissions 90% by 2040, from 1990 levels. The upcoming COP30 talks will test the will of major economies to keep fighting climate change in the face of opposition from US President Donald Trump.

After 13 hours of negotiations failed to yield a breakthrough, ministers on Tuesday evening were discussing various options to weaken the 90% emissions-cutting goal. These included buying foreign carbon credits to cover 5% of the target, EU diplomats told Reuters.

That would effectively weaken to 85% the emissions cuts required from European industries. It would make up the rest by paying foreign countries to cut emissions on Europe’s behalf.

The European Commission had originally proposed a 90% emissions-cutting target, with a maximum 3% share of carbon credits.

Countries including France, Italy and Portugal had demanded the 5% flexibility, while others including Poland sought as much as 10%. Spain and the Netherlands were among those opposed to weakening the target further, said the diplomats, who were granted anonymity to discuss the closed-door negotiations.

Ministers were debating a raft of other options, the diplomats said – including a clause to allow a further weakening of the 2040 goal by adding more carbon credits in future, plus fresh changes to an upcoming EU carbon market, which Poland and the Czech Republic have opposed.

The EU was making a last-ditch attempt to land a deal before European Commission President Ursula von der Leyen meets other world leaders at the COP30 summit on November 6.

“We have a lot at stake. We are risking our international leadership, which is fundamental in this extraordinarily complicated context,” Spanish Environment Minister Sara Aagesen told reporters on Tuesday.

OPPOSING VIEWS
The dilution of the climate target reflects a backlash against Europe’s ambitious climate agenda, from industries and some governments skeptical that it can afford the measures alongside defense and industrial priorities.

“We don’t want to destroy the economy. We don’t want to destroy the climate. We want to save both at the same time,” Polish Deputy Climate Minister Krzysztof Bolesta said.

Support from at least 15 of the 27 EU members is needed to approve the new target on Tuesday. EU diplomats said they expected a tight vote that could depend on one or two countries flipping positions.

Poland, Italy, the Czech Republic and others opposed this as too restrictive for domestic industries struggling with high energy costs, cheaper Chinese imports and US tariffs.

Others, including the Netherlands, Spain and Sweden, cited worsening extreme weather and the need to catch up with China in manufacturing green technologies as reasons for ambitious goals.

The EU’s independent climate science advisers have warned that buying foreign CO2 credits would divert much-needed investments away from European industries.

Brussels has also vowed to change other green measures to attempt to win buy-in. These include considering weakening its 2035 combustion engine ban, as requested by Germany and Italy.

Ministers will try first to agree the 2040 goal, and from there come up with an emissions pledge for 2035 – which is what the UN asked countries to submit ahead of COP30.— Reuters

French court probes TikTok on algorithms’ risks regarding suicide

STOCK PHOTO | Image by Solen Feyissa from Pixabay

PARIS — French judicial authorities said on Tuesday they had opened an investigation into Chinese social media platform TikTok and the risks that its algorithms could push young people to suicide.

Paris prosecutor Laure Beccuau said the probe was in response to a French parliament committee’s request to open a criminal inquiry into TikTok’s possible responsibility for endangering the lives of its young users.

The committee sought to examine the psychological effects of TikTok, owned by China’s ByteDance, on young people after seven families accused it in a 2024 lawsuit of exposing their children to content pushing them to commit suicide. Social media companies have faced numerous US lawsuits as well that allege their algorithms have helped fuel mental health problems among teenagers.

Ms. Beccuau said a report by the committee had noted “insufficient moderation of TikTok, its ease of access by minors and its sophisticated algorithm, which could push vulnerable individuals toward suicide by quickly trapping them in a loop of dedicated content”.

A TikTok spokesperson said in an email to Reuters: “We strongly refute the accusations and legal grounds referred to in the press release of the Paris prosecutor and will vigorously defend our record.”

“With more than 50 preset features and settings designed specifically to support the safety and well-being of teens, and 9 in 10 violative videos removed before they’re ever viewed, we invest heavily in safe and age-appropriate teen experiences.”

The Paris police cybercrime brigade will look into what the prosecutor called the offence of providing a platform for “propaganda in favor of products, objects, or methods recommended as means of committing suicide”, which is punishable by three years’ imprisonment.

PARLIAMENT REPORT SAID TIKTOK “ENDANGERS LIVES OF YOUNG USERS”
The parliamentary committee’s chairman said on September 11 that TikTok had deliberately endangered the health and lives of its users and therefore referred the matter to the court.

TikTok said at the time it “categorically rejects the Commission’s misleading presentation, which seeks to make our company a scapegoat for issues that concern the entire sector and society as a whole”.

The prosecutor’s office said that besides the parliamentary report, the inquiry would also consider findings from a 2023 Senate report highlighting risks involving freedom of expression, data collection and offensive algorithms.

It said it will also review a 2023 Amnesty International report warning that TikTok algorithms are addictive and pose a risk of self-harm among young people, and a February 2025 report by French state agency Viginum, which tracks foreign digital interference and warned that public opinion could be manipulated in elections.— Reuters

Typhoon Kalmaegi kills at least 58 in the Philippines, heads toward Vietnam

PAGASA tracking Typhoon Tino in a briefing on Monday, Nov. 3. — PHILIPPINE STAR/MIGUEL DE GUZMAN

CEBU – At least 58 people were dead after Typhoon Kalmaegi left a trail of destruction in the central Philippines and continued to batter parts of Palawan island on Wednesday as it headed toward the South China Sea.

Among the fatalities were six military personnel whose helicopter crashed in Agusan del Sur on the island of Mindanao during a humanitarian mission.

Scenes of devastation emerged in the province of Cebu, a major tourist hub, as floodwaters receded, revealing destroyed homes, overturned vehicles, and widespread debris. The disaster agency reported 13 people missing.

The devastation from Kalmaegi, locally named Tino, comes just over a month after a magnitude 6.9 earthquake struck northern Cebu, killing dozens and displacing thousands.

Kalmaegi, which has weakened after making landfall early Tuesday, is forecast to regain strength while over the South China Sea, state weather agency PAGASA said in its latest bulletin.

More than 200,000 people were evacuated across the Visayas region, including parts of southern Luzon and northern Mindanao, ahead of a storm that submerged homes and caused widespread flooding and power outages.

Packing winds of 120 kilometers per hour (kph) and gusts of up to 165 kph, Kalmaegi, the 20th storm to hit the Philippines this year, is heading towards Vietnam where preparations are underway ahead of its expected landfall on Friday.

In September, Super Typhoon Ragasa swept across northern Luzon, forcing schools and government offices to shut down as it brought fierce winds and torrential rain. — Reuters

US may ask UN to mandate international force in Gaza for two years, document shows

REUTERS FILE PHOTO

UNITED NATIONS — The United States has drafted a United Nations resolution that approves a two-year mandate for a Gaza transitional governance body and an international stabilization force in the Palestinian enclave, according to the text seen by Reuters on Tuesday.

The draft – which is still being developed and could change – was shared with some countries this week, but has not yet been formally circulated to the 15-member Security Council for negotiations, diplomats said. It was not immediately clear when Washington planned to do that.

A State Department spokesperson said discussions with UN Security Council members and other partners on how to implement President Donald Trump’s Gaza plan were ongoing and declined to comment on “allegedly leaked documents.”

The two-page text would authorize a so-called Board of Peace transitional governance administration to establish a temporary International Stabilization Force (ISF) in Gaza that could “use all necessary measures” – code for force – to carry out its mandate.

The ISF would be authorized to protect civilians and humanitarian aid operations, work to secure border areas with Israel, Egypt and a “newly trained and vetted Palestinian police force, which the ISF will be responsible for training and supporting.

The ISF would stabilize security in Gaza, “including through the demilitarization of non-state armed groups and the permanent decommissioning of weapons, as necessary.”

SECOND PHASE OF TRUMP PLAN

Israel and Palestinian militants Hamas agreed a month ago to the first phase of Trump’s 20-point plan for Gaza, a ceasefire in their two year war and hostage release deal.

The next phase of the plan, which the draft UN resolution would endorse, is to establish the Board of Peace and the ISF.

The Trump plan also ends Hamas governance of Gaza and says the enclave would be demilitarized. Hamas has not said whether it will agree to disarm and demilitarize Gaza — something the militants have rejected before.

The ISF would deploy under a unified command agreed by the Board of Peace and in close consultation with Egypt and Israel after detailed status of mission and forces agreements have been reached, according to the resolution.

While the Trump administration has ruled out sending US soldiers into the Gaza Strip, it has been speaking to Indonesia, the United Arab Emirates, Egypt, Qatar, Turkey and Azerbaijan to contribute to the multinational force.

It remains unclear whether Arab and other states will be ready to commit troops to the international force and Israel has repeatedly objected to the deployment of Turkish troops.

The draft UN resolution calls on the World Bank and other financial institutions to facilitate and provide financial resources to support the reconstruction and development of Gaza, “including through the establishment of a dedicated trust fund for this purpose and governed by donors.”

It was not immediately clear when the United States could put a draft resolution to a vote in the Security Council. A resolution needs at least nine votes in favor and no vetoes by the US, Britain, France, Russia or China to be adopted.

The draft resolution was first reported by Axios. — Reuters

Flexible rice tariff adjustments OKd

Workers load sacks of flour in a delivery truck in Manila, July 11, 2022. — PHILIPPINE STAR/ MIGUEL DE GUZMAN

THE Economy and Development (ED) Council has approved the recommendation to allow a more flexible rice tariff scheme starting in 2026, the Department of Economy, Planning, and Development (DEPDev) said.

“Starting Jan. 1, 2026, a more gradual and flexible tariff adjustment shall be adopted, with adjustments by 5 percentage points per 5% change in international prices, subject to a minimum rate of 15% and a maximum rate of 35%,” DEPDev said in a statement on Tuesday. 

This was the recommendation presented by the Tariff and Related Matters Committee (TRMC).

However, this fell short of farmer groups’ demand to restore the 35% rice tariff, slamming the lower rate for flooding the market with cheap imports and gutting farmgate prices.

The ED Council also approved the TRMC recommendation to maintain the current Most Favored Nation tariff rate on rice imports at 15% until Dec. 31, for both in-quota and out-quota imports. 

President Ferdinand R. Marcos, Jr. had issued Executive Order (EO) No. 102 extending the rice import freeze until Dec. 31, in line with the Department of Agriculture recommendation.

However, DEPDev Secretary and ED Council Vice Chairperson Arsenio M. Balisacan said Mr. Marcos’ order makes tariffs “redundant,” and will not affect local prices.

“The TRMC’s recommendation is part of a broader government strategy to ensure stable rice prices and protect both farmers and consumers, while safeguarding macroeconomic stability,” DEPDev said.

Meanwhile, the Council also tweaked scope and implementation arrangements of the Jalaur River Multipurpose Project-Stage II to facilitate the completion of the remaining project works and ensure delivery of irrigation water to farmer beneficiaries.

It also approved new rules for formulation, prioritization and monitoring of Infrastructure Flagship Projects (IFP) amid a corruption crackdown on flood control projects.

This seeks to streamline the IFP list, tighten agency accountability, and lock projects into the government’s planning and budgeting pipeline.

ODA LOANS
At the same meeting, the ED Council greenlit two official development assistance (ODA) loans from the World Bank amounting to P53.25 billion.

This includes the Department of Education’s P38.27-billion Project for Learning Upgrade Support and Decentralization (PLUS-D) that aims to bolster learning outcomes, education management and delivery systems in the country.

PLUS-D is set for implementation from 2026 to 2032 and will introduce system-level interventions, provide targeted support to schools, and establish monitoring and evaluation mechanisms, DEPDev said.

The program, with public schools as the primary beneficiaries, focuses on raising literacy and numeracy among Kindergarten to Grade 6 learners.

It also approved the P14.98-billion Accelerated Water and Sanitation Project in Selected Areas (AWSPSA) project. This is targeted to improve access to safe water supply and sanitation services in underserved communities.

The project will be implemented in the Loboc Cluster (Bohol), Siargao Island (Surigao del Norte), and Jolo (Sulu).

The ED Council also endorsed an EO that facilitates voluntary Social Security System, Philippine Health Insurance Corp., Pag-IBIG Fund contributions for contract of service and job order personnel in National Government agencies. 

“The proposed EO seeks to close gaps in social protection coverage by making it easier for non-regular government workers to maintain contributions through a voluntary, payroll-based mechanism,” it said. — Aubrey Rose A. Inosante

Inflation to pick up until early 2026

Fresh meat products are displayed at a market in Quezon City, June 22. — PHILIPPINE STAR/MIGUEL DE GUZMAN

PHILIPPINE INFLATION is projected to accelerate until the first semester of 2026 but will likely remain within the 2-4% target, the Bangko Sentral ng Pilipinas (BSP) said.

“That increase in the fourth quarter of 2025 and also the first half of 2026 is driven or could be driven mainly by statistical effects, as well as some of the anticipated adjustments of some of the utilities that we have seen,” BSP Deputy Governor Zeno Ronald R. Abenoja said during the BSP-ADB (Asian Development Bank) ASEAN (Association of Southeast Asian Nations) Economic Outlook seminar on Tuesday.

However, he said inflation may moderate from the second half of 2026 as global oil prices are projected to stabilize.

“After that, we think that the relatively stable oil prices in the international markets would help contain inflation pressures moving forward,” he added.

The BSP forecasts inflation to average 1.7% this year, before picking up to 3.1% in 2026. It sees inflation easing to 2.8% in 2027.

The ADB projects Philippine inflation to settle at 1.8% in 2025 and 3.2% in 2026.

“Overall, inflation continued to be relatively muted. And it’s not within the target; it’s below the target range so far for 2025,” Mr. Abenoja said.

For the first nine months, headline inflation averaged 1.7%. A BusinessWorld poll of 17 analysts yielded a median estimate of 1.8% for the consumer price index in October, within the central bank’s 1.4-2.2% forecast. The October inflation data will be released on Wednesday, Nov. 5.

Mr. Abenoja noted that the BSP’s inflation forecasts account for the monetary policy decisions aimed at managing inflation pressures.

Since August 2024, the central bank has lowered borrowing costs by a total of 175 basis points, bringing the policy rate to 4.75%.

“Although headline inflation could be up because of some supply-side shocks, the underlying pressures have started to come down, and that has been one of the factors that was considered in shifting to a more accommodative stance,” Mr. Abenoja said.

BSP Governor Eli M. Remolona, Jr. has remained dovish, signaling at least two more rate cuts until next year as they now see the nominal rate closer to 4%.

The Monetary Board will hold its last policy-setting meeting this year on Dec. 11.

ECONOMIC GROWTH
On the other hand, ADB Regional Lead Economist James P. Villafuerte said the National Government’s higher budget allocation for infrastructure could help drive economic growth.

“In the Philippines, our main instrument for stimulus is actually the increased national budget of around 5% allocated for infrastructure,” he said.

The 2026 Budget of Expenditures and Sources showed that the government’s infrastructure spending program for next year is set at P1.51 trillion or 5.3% of the gross domestic product (GDP).

“Social services in the Philippines have also received substantial support, such as funding for education, healthcare, and social programs like the 4Ps (Pantawid Pamilyang Pilipino Program) and also the new Walang Gutom food voucher initiative by President Marcos,” Mr. Villafuerte added.

The ADB projects Philippine GDP growth at 5.6% this year, within the government’s 5.5-6.5% goal. This also positions the Philippines to be the second-fastest economy in the region, after Vietnam which is projected to grow by 6.7% this year.

Mr. Villafuerte said Vietnam and the Philippines are the “industrial and trade powerhouses” in ASEAN.

For 2026, the ABD expects the Philippine economy to grow by 5.7%, lower than the government’s 6-7% target. Still, the Philippines is likely to be the second-fastest in the region behind Vietnam’s 6%.

Meanwhile, the BSP said the Philippine banking system’s solid performance remains one of the economy’s buffers against global trade woes and financial market volatility. 

“The banking system, if you look at the balance sheet, [banks] continue to be solid, they continue to expand… Overall, the Philippine banking system continues to be effective and they’re supportive of domestic economic activity,” Mr. Abenoja said.

However, he noted that the government still has to employ the proper policy mix to manage emerging domestic and global headwinds. 

“The environment continues to be challenging. The sand dunes continued to shift if you look around in our policy environment,” Mr. Abenoja said. “And at this time, we have to rely on robust policy frameworks to make sure that we remain vigilant and agile (and that) we are well informed.” — Katherine K. Chan

Philippines jumps to 56th in digital competitiveness index

A teacher works on a computer at a school in this file photo. — PHILIPPINE STAR/EDD GUMBAN

By Beatriz Marie D. Cruz, Reporter

THE PHILIPPINES improved five spots in the World Digital Competitiveness Ranking by the International Institute for Management Development (IMD), but remained a laggard in the Asia-Pacific region.

The country ranked 56th out of 69 economies, with an overall score of 50.87 (out of 100), in the 2025 World Digital Competitiveness Ranking of the IMD World Competitiveness Center.

This was an improvement from last year when the Philippines ranked 61st, its worst ranking since the report was launched in 2017.

Philippines rises five spots in IMD’s digital competitiveness ranking

Among 14 Asia-Pacific economies, the country ranked 13th, ahead only of Mongolia (67th).

Switzerland ranked first in the global digital competitiveness index with a score of 100, followed by the United States (99.29), Singapore, (99.18), Hong Kong (97.79), and Denmark (97.23).

The ranking measures a country’s readiness to adopt and explore digital technologies to transform government practices, business models, and society overall.

The index measures a country’s capacity based on three key factors: knowledge or the quality of human capital, excellence of technological infrastructure, and future readiness.

The Philippines ranked 65th in the knowledge factor, 52nd in future readiness and 54th in technology.

According to IMD, the country showed weakness in the ease of starting a business (66th), enforcing contracts (66th), communications technology (66th), and secure internet servers (63rd).

However, the Philippines ranked high in investments in high-tech exports (3rd) and telecommunications (9th).

The country also slipped one spot in the knowledge factor, amid low rankings in talent (56th), training & education (62nd) and scientific concentration (63rd).

According to IMD, the Philippines inched up by two spots in the technology factor, ranking 46th in capital and 47th in technological framework. However, it ranked 67th for regulatory framework.

For future readiness, IMD said the country improved by six spots due to its performance in adaptive attitudes (40th), business agility (50th), and IT integration (57th).

IMD noted that the Philippines’ business process outsourcing (BPO) sector, which serves foreign clients across North America, Europe and Asia, is vulnerable to trade barriers.

“Trade-related barriers (e.g., remote work taxes, licensing hurdles, and data flow restrictions) make it harder or firms to maintain contracts and retain talent, especially in smaller BPO centers with limited shock absorption capacity,” according to the report.

Globally, countries’ digital competitiveness is challenged by increased volatility in trade relations, IMD said.

It also cited the growing difference among countries and regions on how they regulate, develop, and adopt technologies.

“Trade conflicts were once thought to be confined to disputes over tariffs or quotas, but are now clearly extending deep into the intangible roots of the digital economy: intellectual property, data flows, technical standards, and strategic technologies,” José Caballero, a senior economist at the IMD World Competitiveness Center, said.

John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said the Philippines’ low ranking in the digital competitiveness index highlights the need to address structural bottlenecks like digital infrastructure quality, broadband affordability, and skill readiness.

“While connectivity has improved, it remains uneven and costly outside major cities. Moreover, the shortage of highly skilled digital talent and slow technology adoption among micro, small, and medium enterprises limit how fast digital transformation spreads across the economy,” he said in a Viber message.

Higher production costs and slow trade activity could delay technology upgrading and job creation among high-value sectors, Mr. Rivera added.

“To stay competitive, the Philippines must double down on digital infrastructure investment, talent development, and innovation incentives, while pursuing trade diversification and stronger regional digital partnerships to cushion external shocks,” he added.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the growth in online transactions and digital payment systems provide an opportunity to boost the country’s digital competitiveness.

The IMD report was published in partnership with IMD’s local partner institute, Asian Institute of Management’s Rizalino S. Navarro Policy Center for Competitiveness.

PHL external debt service bill dips to $7.5 billion at end-July

Euro, Hong Kong dollar, US dollar, Japanese yen, pound and Chinese yuan banknotes are seen in this picture illustration in Beijing, China. — REUTERS

THE PHILIPPINES’ external debt service burden declined by 5% at end-July as less foreign loans matured, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed.

Debt servicing on external borrowings slipped to $7.53 billion in the first seven months from $7.935 billion in the same period last year.

Broken down, principal payments dropped by 12.2% to $2.894 billion from $3.296 billion a year earlier.

Interest payments inched down by 0.1% to $4.636 billion from $4.639 billion the previous year.

“The slight year-on-year decline in the external debt servicing bill could largely be attributed to lower share of foreign borrowings in the (National Government’s) total borrowing mix in recent years to better manage or minimize risk of forex (foreign exchange) losses entailed in foreign borrowings,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Based on its fiscal program, the National Government (NG) plans to source 81% or P2.11 trillion of its P2.6-trillion financing from local lenders this year, while the rest will be from foreign lenders. Domestic borrowings were slightly higher in this year’s borrowing mix versus the 75:25 borrowing mix in 2024.

“Furthermore, lower foreign debt maturities in recent months also reduced external debt servicing,” Mr. Ricafort added.

The debt service burden represents principal and interest payments after rescheduling, according to the BSP.

This includes principal and interest payments on fixed medium- and long-term credits, including International Monetary Fund credits, loans covered by the Paris Club and commercial bank rescheduling, and new money facilities. It also covers interest payments on fixed and revolving short-term liabilities of banks and nonbanks.

However, the debt service data exclude prepayments on future years’ maturities of foreign loans and principal payments on fixed and revolving short-term liabilities of banks and nonbanks.

In the seven months to July, the debt service burden as a share of gross domestic product (GDP) stood at 2.9%, slightly lower than  3.2% a year ago.

Based on the latest BSP data, the country’s outstanding external debt stood at a record $148.87 billion in the April-June period.

This brought the external debt-to-GDP ratio to 31.2% at end-June, higher than 28.9% seen a year ago.

Mr. Ricafort said less foreign debt and lower borrowing costs of other central banks such as the US Federal Reserve could partly reduce the foreign debt service bill for the rest of the year.

“For the coming months, lower share of foreign borrowings in the NG total borrowing mix and any further reduction in Fed rates and other global interest rates could somewhat help reduce or at least temper future external debt servicing bills,” he said.

For the next three years, the NG’s programmed financing mix consists of 77% domestic borrowings and 23% foreign.

“However, this would also be a function of future NG budget deficit that would lead to additional NG borrowings, including external debt,” Mr. Ricafort added.

The latest government data showed that the country’s budget deficit widened by 15.15% year on year to P1.117 trillion as of September. This was 71.6% of the government’s P1.56-trillion ceiling for 2025.

The BSP’s external debt data cover borrowings of Philippine residents from nonresident creditors, regardless of sector, maturity, creditor type, debt instruments or currency denomination.

The central bank gathers data on external debt through reports submitted by borrowers, banks, and major foreign creditors. — Katherine K. Chan

First Gen eyes Agus-Pulangi hydro complex rehab to boost RE portfolio

PHILSTAR FILE PHOTO

FIRST GEN CORP. is exploring participation in the planned rehabilitation of the Agus-Pulangi hydroelectric power complex in Mindanao, as part of its push to expand its hydro portfolio and strengthen its renewable energy (RE) mix.

“We will look into it,” Jay Joel Soriano, First Gen vice-president and head of strategy and planning, told reporters last week. “We will consider it as, ‘Is there room to upgrade? Is there room to make something really good, even better?’ That’s always a healthy perspective to take.”

The Agus-Pulangi complex consists of seven run-of-river hydro plants with a combined installed capacity of about 1,000 megawatts (MW), though only 600-700 MW are operational due to aging equipment.

The Power Sector Assets and Liabilities Management Corp. (PSALM) is pursuing a rehabilitation plan to extend the facilities’ life and restore full dependable capacity.

Implementation of the concession is expected between 2027 and 2030, after which the government may opt to privatize the complex.

PSALM President and Chief Executive Officer Dennis Edward Dela Serna earlier said the project could yield as much as P90 billion in revenues once completed.

Under the Electric Power Industry Reform Act of 2001, PSALM must privatize government-owned power assets and use the proceeds to pay down National Power Corp. liabilities. The Agus-Pulangi complex and the decommissioned Mindanao coal plant remain among PSALM’s last power holdings.

Next year, PSALM is set to turn over the Caliraya-Botocan-Kalayaan hydro complex to the Thunder Consortium — composed of Aboitiz Renewables, Sumitomo Corp. and Electric Power Development Co. — which offered P36.27 billion, outbidding the FGKW Consortium of First Gen Prime Energy and Korea Water Resources Corp., which submitted P19.62 billion.

Last year, the government also transferred the 165-MW Casecnan hydro plant to Fresh River Lakes Corp., a First Gen unit, for $526 million.

Mr. Soriano said First Gen continues to pursue hydropower opportunities, calling the technology a “nice complement” to its geothermal, solar and wind assets.

“We need the right mix of technologies,” he said. “To support all the solar that’s coming up, we need balancing technologies — and hydro is a great balancing technology.”

First Gen, among the country’s biggest renewable developers, operates with about 1,600 MW of clean energy capacity. — Sheldeen Joy Talavera

Robinsons and Ayala Land officials make it to Forbes Asia list

Ayala Land’s Mariana Beatriz E. Zobel de Ayala

TWO FILIPINAS have been named to Forbes Asia’s 2025 Power Businesswomen list, which recognizes 20 female leaders reshaping the region’s corporate landscape.

Ayala Corp. Managing Director Mariana Beatriz E. Zobel de Ayala, an eighth-generation member of one of the Philippines’ oldest business families, was cited for her leadership in the leasing and hospitality units of Ayala Land, Inc. She also serves as president of Ayala Malls, one of the country’s largest retail chains.

Forbes Asia noted that Ms. Zobel de Ayala is leading the company’s pipeline to redevelop and build new malls, a move expected to increase its gross leasable area to 2.9 million square meters by 2028.

She was also cited for steering Ayala Land’s $500-million (P29.3 billion) investment to double its hotel room inventory to 7,500 by 2030.

Joining her on the list is Mybelle V. Aragon-GoBio, president and chief executive officer (CEO) of Robinsons Land Corp. She is the first woman and nonfamily executive to head the Gokongwei-led property arm of JG Summit Holdings, Inc.

Ms. Aragon-GoBio is steering Robinsons’ P125-billion expansion over the next five years, including a push to “premiumize” its brands.

“The women on this year’s Forbes Asia’s Power Businesswomen list are not just adapting to change but actively shaping the future of the region’s business landscape,” Forbes Asia Editorial Director Rana Wehbe Watson said in a statement.

“Some are forging paths in hot sectors like data centers, semiconductors and rare earths, while others are guiding their family businesses to new heights,” she added.

Forbes Asia said more than half of the women named have a track record in banking, consumer goods and transportation. Three are first-generation entrepreneurs, it added.

Other female leaders included in the list are HSBC Hong Kong CEO Maggie Ng and Shangri-La Asia CEO Kuok Hui Kwong of Hong Kong and Sunway Executive Deputy Chairperson Sarena Cheah of Malaysia.

Forbes Asia also named South Korea’s Shinsegae, Inc. Chairperson Chung Yoo-Kyung, CIMB Group Country Head and Bank CIMB Niaga President Director and CEO Lani Darmawan from Indonesia and Lynas Rare Earths Managing Director and CEO Amanda Lacaze from Australia.

It also cited three leaders from India — Hindustan Unilever CEO Priya Nair, OfBusiness co-founder Ruchi Kalra and Toyota Kirloskar Motor Vice-Chairperson Manasi Kirloskar Tata.

From Singapore, leaders cited were DayOne Data Centers CEO Jamie Khoo and Temasek Singapore incoming President Png Chin Yee.

Also on the list are Kasikornbank CEO Kattiya Indaravijaya of Thailand, Trip.com Group CEO Jane Wiwynn, Chairperson and Chief Strategy Officer Emily Hong and Marketech International Chairperson and CEO Margaret Kao of Taiwan. — Beatriz Marie D. Cruz

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