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254 flood control projects in Quezon City without COC 

QUEZON CITY MAYOR MA. JOSEFINA G. BELMONTE — PHILSTAR FILE PHOTO

by Almira Louise S. Martinez, Reporter

The Quezon City (QC) government said that 254 flood control projects implemented by the Department of Public Works and Highways (DPWH) did not acquire a Certificate of Coordination (COC) from the mayor’s office before construction.

“They need to coordinate and present every project to us so we can work with them to improve it, and that COC is equivalent to a building permit,” QC Mayor Josefina “Joy” G. Belmonte told BusinessWorld in an interview on Thursday.

Although the city’s ordinance has worked well with vertical projects, flood control projects have not applied for COC and were not coordinated. “That’s why I do not know about the flood control projects,” said Ms. Belmonte.

“As a mayor, I always think we have a law and they will respect it because they are part of the government, but they did not follow it when it comes to flood control,” she added.

In 2022, the QC government implemented an ordinance that requires every government-funded project to coordinate with the city’s infrastructure committee prior to construction.

“It’s important that if there’s a project from the national government in our city, it aligns with the city’s plans,” Ms. Belmonte said. “If we’re not aware of the projects, there’s the threat of wasting public funds, duplication or overlapping, and it may also be inconsistent with the city’s plans.”

The city’s mayor noted that the Matalahib Creek pumping station, built over a creek, was among the projects that violated the city’s ordinance and Water Code.

“We wrote letters to them to halt the project and discuss first if it’s right to continue, but they did not stop and continued it,” she said. “Now it caused much more flooding to its surrounding barangays.”

“If there were more coordination with us… We could’ve worked together to come up with a better flood control solution,” she added.

The P350-million Matalahib Creek pumping station project in Barangay Talayan is being petitioned by the QC government to be terminated immediately.

“I’m pushing to terminate it since it’s still in phase one, and they are blocking the creek,” the city’s mayor said. “Demolish what was built on the creek, and the remaining P250 million let us implement a different intervention for flood control.”

 

Outdated flood control projects

The flood control projects by the DPWH are undersized and outdated, according to an urban planner and veteran architect, Felino A. Palafox, Jr.

“It’s outdated. 75% are undersized,” Mr. Palafox told reporters on Wednesday. “Because it’s 25-year return, the 100-year typhoons are now happening every year.”

“They are not designed for a 100-year return of flooding in typhoons,” he added.

The veteran architect said that the government must review its existing flood control design to improve efficiency. “They need to revisit the solutions established in the mid-70s and continuously upgrade them.”

Mr. Palafox noted that he also gave 150 recommendations to President Ferdinand R. Marcos Jr. to help improve the flood control and urban planning in Metro Manila, but they were ignored.

“From Marcos Sr. to Digong, I was invited to Malacañang. This one, never,” he said. “I even write to him every week and texted him one time, ‘Corruption is worse now because there’s no more factor of fear’.”

Mr. Marcos stated in a press release earlier this month that flood control projects nationwide have cost P545 billion in public funds since July 2022. Of these projects, around 20% or P100 billion, went to only 15 contractors.

“Out of those 15 contractors, five have contracts covering the entire Philippines,” he said in Filipino.

BSP cuts rates for 3rd straight meeting

Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. -- REUTERS/Elizabeth Frantz

By Katherine K. Chan

THE BANGKO Sentral ng Pilipinas (BSP) on Thursday cut its key policy rate for a third meeting in a row and signaled another cut this year that may be the last for this monetary easing cycle.

The Monetary Board reduced the target reverse repurchase rate by 25 basis points (bps) to 5% from 5.25%, as expected by 20 analysts in a BusinessWorld poll last week. This was also the lowest level in nearly three years or since November 2022.

Rates on the overnight deposit and lending facilities were also lowered by 25 bps each to 4.5% and 5.5%, respectively.

The central bank has so far lowered borrowing costs by a total of 150 bps since it began its easing cycle in August last year. It delivered two 25-bp cuts each at its last two meetings in April and June.

“Based on the latest data, I think this puts us at our sweet spot for both inflation and output,” BSP Governor Eli M. Remolona, Jr. said during a briefing.

Inflation fell to a nearly six-year low of 0.9% in July, bringing average inflation in the first seven months to 1.7%.

The Philippine economy expanded by an annual 5.5% in the second quarter, picking up from 5.4% in the first quarter but slower than the 6.5% growth in the second quarter of 2024. In the first half, gross domestic product growth averaged 5.4%, below the government’s 5.5% to 6.5% growth target range for this year.

“The projected inflation rate over the next year or so is where we want it to be. Output is moving to where we think our capacity is,” Mr. Remolona said. “The policy rate itself is at our ‘Goldilocks’ rate -— neither too high nor too low.”

“I would characterize this as still dovish, but slightly less so than before in terms of the forward guidance… We had to look at so many scenarios because there’s still a lot of uncertainty.”

The BSP projected inflation to average 1.7% this year, a tad higher than its 1.6% projection in June. Its inflation projection for 2026 is at 3.3% from 3.4% previously. For 2027, inflation is projected to rise to 3.4% from 3.3% previously.

Despite reaching a “sweet spot,” Mr. Remolona said there is space for another rate cut this year. “The data can change. The sweet spot can move.”

“I think we have space for one more cut. If the data develops the way we think it will develop, then maybe one more cut this year,” the BSP chief said, adding that this could mark the end of the current easing cycle. “That’s the likely evolution in the policy rate. Of course, if something bad happens to output that suggests there’s a lack of demand, then we cut some more.”

“Overall, we see the inflation outlook to be very manageable, inflation expectations to be well-anchored but we still see more significant risks to the inflation outlook than the output outlook,” Mr. Remolona said.

The Monetary Board has two more policy meetings this year, in October and December.

In a statement, the BSP noted that potential electricity rate adjustments and increased rice tariffs could “raise inflationary pressures over the policy horizon.”

While domestic demand has held firm, recent US trade policies could dampen global growth.

“The impact of US policies on global trade and investment continue to weigh on global economic activity. This could temper the outlook for the Philippine economy,” the BSP said.

US President Donald J. Trump upended global trade by unilaterally raising tariffs on all of its trading partners. The US slapped a 19% tariff on Philippine goods, same as four other Southeast Asian countries.

“Emerging risks will continue to require close monitoring. The Monetary Board will determine the monetary policy response based on the evolving outlook for inflation and growth,” the BSP said.

Meanwhile, Mr. Remolona said the increased likelihood of an interest rate cut by the US Federal Reserve “doesn’t worry them too much.”

“As you know, we used to worry that our policy rate was within 100 bps of the Fed’s policy rate,” he said. “If that spread narrows to less than 100 bps, then the peso might depreciate. We don’t see that anymore, and that doesn’t seem to be happening anymore.”

Mr. Remolona said the peso has been appreciating against the US dollar even as the difference between the BSP and the Fed’s current target rate of 4.25%-4.5% has been below 100 bps for some time.

Gareth Leather, a senior Asia economist at Capital Economics, said the “relatively dovish tone” of the BSP suggests further easing is likely.

“We are expecting at least one more 25-bp cut by yearend,” he said.

Mr. Leather said the Philippine economy may need more support, as growth may slow in the second half.

“Low inflation and falling interest rates will provide some support to demand this year. But with fiscal policy being tightened and exports set to weaken, we expect growth to struggle,” he said.

“However, the main reason we are expecting further easing is that price pressures are very weak,” he added.

Metrobank Chief Economist Nicholas Antonio T. Mapa said the BSP would be data dependent, “with potential additional easing in the pipeline should inflation remain behaved, and inflation expectations anchored.”

Sunny Liu, lead economist at Oxford Economics, said they expect the central bank to deliver another rate cut in the fourth quarter.

“We expect inflationary pressures to remain subdued given softer commodity prices. While recent peso weakness could raise concerns over the pass-through to domestic prices, the anticipated Fed rate cut as early as September could ease some depreciation pressure. We continue to expect BSP to maintain its easing bias, with another 25-bp cut expected in Q4,” she said.

Budget deficit shrinks to P18.9B in July

Senior citizens receive pension from social welfare personnel in Quezon City. -- PHOTO BY MIGUEL DE GUZMAN, The Philippine Star

By Aubrey Rose A. Inosante, Reporter

THE NATIONAL Government’s (NG) budget deficit sharply narrowed in July amid the sluggish pace of revenue collection and spending, the Bureau of the Treasury (BTr) said on Thursday.

Data from the BTr showed that the budget gap shrank by 34.42% to P18.9 billion in July from P28.8 billion in the same month a year ago.

Month on month, the fiscal gap plunged by 92.17% from the P241.6-billion deficit in June.

In July, revenues went up by 3.26% to P472.3 billion from P457.4 billion in the same month last year, as higher tax collections offset the decline in nontax revenues.

Tax revenues, which made up the bulk of revenue collections, jumped by 5.01% to P423 billion in July from P402.8 billion in the same month in 2024.

Collections by the Bureau of Internal Revenue (BIR) rose by 4.83% to P335.3 billion in July from P319.8 billion a year ago. This included a P3.8-billion tax refund.

“The BIR sustained its strong performance due to higher revenues from corporate income tax. This was followed by personal income tax, tax on government securities, excise tax on tobacco products, percentage tax on banks and fi-nancial institutions, and documentary stamp tax,” the BTr said.

Collections by the Bureau of Customs (BoC) increased by 6% to P85.2 billion, net of a P256-million tax refund, while other offices’ revenues fell by 3.47% to P2.6 billion.

The BTr attributed the higher Customs revenue to the 12.69% year on year increase in excise tax collections, as well as the 6.13% rise in value-added tax collections.

On the other hand, nontax revenues slid by 9.66% to P49.3 billion in July from P54.6 billion in the same month in 2024, mainly due to the 62.6% plunge in collections by other offices to P13 billion.

However, this was offset by the 82.42% surge in Treasury income to P36.3 billion in July from P19.9 billion a year ago. This was attributed to strong dividend remittances, interest income on NG deposits, and NG share from Manila International Airport Authority’s profits.

Meanwhile, government spending inched up by 1.02% to P491.2 billion in July from P486.2 billion in the same month in 2024.

The BTr said the increase was driven by higher National Tax Allotment releases to local government units, the Annual Block Grant to the Bangsamoro Autonomous Region in Muslim Mindanao, interest payments and personnel services expenditures.

“Spending in July was weighed down by the timing of big-ticket disbursements of the Department of Public Works and Highways, Department of Social Welfare and Development, and Department of National Defense for their respective banner programs,” it said.

Primary expenditure (net of interest payment) fell by 5.36% to P385 billion in July, while interest payments went up by 33.72% to P106.2 billion.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed the narrower fiscal deficit in July to a deceleration in overall government spending.

“The narrower budget deficit sends a positive signal for fiscal and debt management,” he said in a Viber message.

7-MONTH DEFICIT

In the first seven months of the year, the NG budget deficit ballooned by 22.04% to P784.4 billion from the P642.8-billion gap last year, as expenditure growth outpaced revenues.

The BTr said the budget deficit was on track to hit the revised P1.56-trillion full-year deficit ceiling.

“This performance underscores the government’s commitment to support economic development while keeping within the bounds of prudent fiscal management,” it said.

State spending rose by 8.22% to P3.52 trillion in the January-to-July period. This was already 57.82% of the P6.08-trillion revised full-year expenditure program.

Primary expenditures rose by 7.26% to P2.99 trillion as of end-July, while interest payments went up by 14.1% to P521 billion.

On the other hand, total revenue collection during the January-to-July period increased by 4.82% to P2.73 trillion from P2.61 trillion in the same period last year. The BTr said the cumulative collection was 60.45% of the P4.52-trillion revised full-year program.

Tax revenues rose by 9.71% to P2.46 trillion as of end-July, which was already 58.27% of the P4.21-trillion target.

BIR collections stood at P1.89 trillion, up 12.34% as of end-July, driven mainly by increases in corporate income tax, value-added tax, and personal income tax. This was 58.68% of the BIR’s P3.22-trillion full-year target.

Customs collection inched up by 1.51% to P544 billion as of end-July. This was 56.74% of the revised P958.7-billion program for the year.

Nontax revenues plunged by 24.88% to P277 billion for the first seven months of the year, largely due to the base effect of non-recurring large dividend remittances in 2024. It accounted for 91.87% of the P301.5 billion-full-year nontax revenue program.

Treasury income dipped by 1.21% to P181.6 billion as of end-July, while other offices’ income slumped by 48.41% to P95.4 billion.

Mr. Ricafort said the narrower budget deficit reduces the urgency for more borrowings, implementing new taxes and raising tax rates.

The NG deficit ceiling is set at P1.56 trillion this year, equivalent to 5.5% of gross domestic product (GDP). This is projected to decline to P1.55 trillion, or 4.3% of GDP, by 2028.

Philippines seeking US tariff exemptions for selected exports

The US flag and the word “tariffs” are seen in this illustration taken on April 4, 2025. — REUTERS/DADO RUVIC/ILLUSTRATION

By Kenneth Christiane L. Basilio, Reporter

THE PHILIPPINES is asking the US to exempt exports of agricultural products and other goods from the 19% tariff imposed by US President Donald J. Trump, a Trade official said on Thursday.

Trade Undersecretary Allan B. Gepty said the government is seeking US tariff exemptions for exports of agricultural commodities, electronics, vehicle tires, bags and aircraft parts.

“We submitted a list of products we asked the US to exempt from the imposed tariff rates, because these are key and complementary items. And some of them, in fact, are not even produced or manufactured there (in the US),” he told senators at a Senate briefing on the tariff set by Washington on Philippine exports.

“The immediate need right now is we want to negotiate for an exemption, because we want to protect our industries whose main export market is the US,” he added.

The US began imposing a 19% tariff on Philippine goods starting Aug. 7.

“We already submitted to the US the products that should be exempted from the reciprocal tariffs,” he said.

Mr. Gepty said about 23% of the country’s total exports to the US are exempted from the 19% tariff.

In June, the United States was the top destination for Philippine-made goods amounting to $1.22 billion, 35.2% higher from the same month a year ago.

Around 53% of the Philippines’ total exports to the US were semiconductors and electronics, Mr. Gepty said.

The US has yet to set new global tariffs for semiconductors and pharmaceuticals. Mr. Trump had earlier said he plans to announce higher tariffs on imports of semiconductors, but companies that plan to build manufacturing facilities in the US would be exempted.

“Ninety-nine percent of our semiconductors as of now are still exempted, there’s still no problem” he said. “If the 100% continues, that’s a big problem,” he added.

Mr. Gepty said most of the semiconductors are made by US companies in the Philippines and exported to the US. He noted the higher tariffs would pose problems for the US supply chain, particularly for its defense industry.

Meanwhile, the Philippines has not formally granted zero tariffs on US products, as negotiations over a reciprocal trade agreement remain ongoing, he said.

“We have not yet concluded and signed [any deal].”

Senator Maria Imelda “Imee” R. Marcos said that any trade deal with the US should undergo a Senate review, citing concerns it could be lopsided and pose risks to domestic industries.

“[Based on] the scant information that we have been provided, it’s clearly more onerous upon the Philippines and extremely beneficial to the US,” she said. “There is even more reason that this agreement should be submitted for the concurrence of the Senate.”

Mr. Trump said in July that the Philippines is “going to open market with the United States, and zero tariffs,” following his meeting with President Ferdinand R. Marcos, Jr. in Washington.

Also on Thursday, Department of Economy, Planning, and Development Undersecretary Rosemarie G. Edillon said the effects of US tariffs on Philippine exports could lead to modest medium-term gains through trade diversion.

However, the US tariffs are projected to trim 0.013% from the country’s gross domestic product by next year, she added.

“If we manage the transition well, then we think that… in the medium term, it could have positive effects by virtue of trade diversion,” she said. “It’s minus 0.013% from the baseline, and this is equivalent to $70 million in the short term.”

The impact of the US tariff was partly mitigated as the Philippines is not a major exporter, she said.

Meanwhile, US tariffs could help ease inflationary pressures in the country, as trade disruptions slow global economic activity and dampen demand, Bangko Sentral ng Pilipinas Deputy Governor Zeno Ronald R. Abenoja said.

“In the near term, because of the moderation of economic activity both globally and possibly the domestic economy, this could lessen pressures on the inflation rate right now,” he said. “We are seeing inflation rate below 2% on average for 2025.”

PHL pledges full funding for JICA-assisted infrastructure projects

The Department of Public Works and Highways has 21 Japan International Cooperation Agency-assisted projects, including the flood risk management project for the Imus River (in photo), under its portfolio. -- Courtesy of the Department of Public Works and Highways

THE Philippine government has committed to fully financing its counterpart share in Japan International Cooperation Agency (JICA)-assisted infrastructure projects, aiming to resolve budget constraints that have delayed implementation.

Transportation Secretary Vivencio “Vince” B. Dizon said counterpart funding issues were raised during a roundtable meeting with Japanese parliamentarians on official development assistance (ODA).

“(Counterpart funding and right-of-way issues are) the main causes of the delay of the project. I personally assured them that the President himself is giving the assurances that these will be fully funded,” Mr. Dizon told reporters on Wednesday.

Ongoing projects supported by JICA include the Davao City Bypass, Metro Manila Subway Project, and North-South Commuter Railway (NSCR).

Problems surrounding the budget allocation and funding flows have delayed project implementation. Around 29 projects were delayed last year, according to the Department of Economy, Planning, and Development in its ODA Portfolio Review Report.

Japan remains the Philippines’ top development partner, accounting for 33.41% of total active commitments, or $13.23 billion across 82 loans and grants.

The country’s active ODA portfolio rose by 6% to $39.6 billion in 2024.

Mr. Dizon also said the government is accelerating public works projects, including those for transportation and flood control.

“We will cooperate continuously with JICA and the other Japanese agencies to make sure that these projects are completed quickly and are completed with the utmost quality that Japan is very well known for,” he said.

The Transportation chief said most right-of-way issues for the Metro Manila Subway Project have been resolved, except for the Ortigas station.

For the NSCR, he said the Valenzuela-to-Clark segment is on track for completion before the end of Marcos’ term in mid-2028.

Other government officials present were Economy Undersecretary Joseph J. Capuno, Budget Undersecretary Rolando U. Toledo, and Philippine Coast Guard Commandant Admiral Ronnie Gil L. Gava.

MORE DPWH PROJECTS

“Through the partnership with the Government of Japan thru JICA, we are seeing tangible progress for a future-ready Philippines such as the Davao City Bypass Construction Project which includes the country’s first long-distance road tunnel system constructed through mountainous terrain that is reshaping the infrastructure landscape of the Philippines,” Mr. Sadain was quoted as saying in a DPWH statement.

There are 21 JICA-assisted projects under the DPWH portfolio, including seven new projects with a tentative cost of P525.365 billion that are under varying stages of study, evaluation and loan processing.

The DPWH said the proposed new projects under JICA cooperation include the Parañaque Spillway/Tunnel Project; second San Juanico Bridge Project; EDSA Transport Road Network Rehabilitation Project; Central Mindanao High Standard Highway Construction Project; Davao City Flood Control and Drainage Project; Pasig-Marikina River Channel Improvement Project, Phase VI; and Rehabilitation/Reconstruction/Improvement and Operation and Maintenance of Kennon Road.

The DPWH said it has completed five JICA-assisted projects worth a combined P61.468 billion, including the rehabilitation and reconstruction of Marawi City and the flood risk management projects for Cagayan, Tagolan and Imus rivers.

Six projects worth P188.75 billion are currently under construction: the Pasig-Marikina River Channel Improvement Project, Phase IV; Central Luzon Link Expressway Phase I; Davao City Bypass Construction Project; Cavite Industrial Area Flood Management Program; Road Network Development Project in Conflict-Affected Areas in Mindanao; and Metro Manila Priority Bridges for Seismic Improvement (Guadalupe and Lambingan Bridges).

Three DPWH projects worth P147.82 billion are for civil works.

Meanwhile, JICA Parliamentary League Chairperson and Japanese Senator Yuko Obuchi said the Philippines remains a key partner for Japan, especially as the global community faces a “historical turning point.”

“Through this visit, we aim to gain a comprehensive understanding of the ongoing ODA projects and support their smooth progress and operation,” Ms. Obuchi said.

The delegation is in the country for a three-day visit to observe the progress of ODA projects and to participate in the 60th anniversary ceremony of the JICA Overseas Cooperation Volunteers. — Aubrey Rose A. Inosante

ACEN readies 2 GW of solar, wind farms in Australia

STOCK PHOTO | Image by acenrenewables.com

SYDNEY, Australia — ACEN Australia is planning to expand its presence here by developing more than 2 gigawatts direct current (GWdc) of renewable energy (RE) projects over the next three years.

Speaking to reporters, ACEN Executive Chairman Jose Maria Zabaleta said the company is building “a strong and diverse portfolio” spanning wind, solar, pumped hydro, and battery storage across the National Electricity Market, the country’s wholesale electricity market.

“This positions ACEN to help achieve Australia’s energy transition objectives, and reflects our long-term goals and commitments,” Mr. Zabaleta said.

ACEN Australia is a subsidiary of ACEN Corp. that manages its renewable energy assets in the country.

Among the projects set for construction is the 900-megawatt (MW) Valley of the Winds project near Coolah in New South Wales (NSW).

Targeted for completion by 2030, the wind project is expected to supply power to 500,000 homes annually and generate 500 jobs during the construction phase.

Covering about 20,000 square kilometers, the project will involve the installation of 131 wind turbines grouped into electrically connected clusters.

On solar initiatives, ACEN Australia is preparing to build the 780-MWdc Birriwa Solar project in NSW.

The proposed facility, spanning about 1,440 hectares, will have the capacity to power around 262,000 homes.

ACEN is also planning to equip the solar farm with a 1,200-megawatt-hour battery energy storage system.

At present, ACEN operates the 522-MWdc New England Solar 1 and the 520-MWdc Stubbo Solar.

In 2023, ACEN Australia secured a 20-year long-term energy service agreement for Stubbo Solar under the NSW Government’s first renewable energy and storage auction.

ACEN, the listed energy platform of Ayala Corp., holds a portfolio of around 7 GW of attributable renewable capacity in operation, under construction, and in committed projects.

The company operates in the Philippines, Australia, Vietnam, India, Indonesia, Laos, and the United States.

In another international development, ACEN said in a disclosure that its 600-MW Monsoon Wind project in Laos has achieved commercial operation, enabling exports of electricity to Vietnam.

Located across the Dak Cheung District of Sekong Province and the Sanxay District of Attapeu Province, the wind farm consists of 133 wind turbines.

The project is expected to offset about 1.3 million tonnes of carbon dioxide emissions per year.

“The project not only delivers renewable energy at scale but also demonstrates how ASEAN countries can work together for a cleaner, more sustainable future,” said Nat Hutanuwatr, managing director of Monsoon Wind Power. — Sheldeen Joy Talavera

DITO: Konektadong Pinoy IRR should not kill law’s purpose

ADEL A. TAMANO — BW FILE PHOTO

DITO TELECOMMUNITY Corp. said it wants to play a role in crafting the implementing rules and regulations (IRR) of the Konektadong Pinoy Act, particularly on data security and privacy, warning that poorly designed rules could “kill the purpose of the law.”

“That is where we can come in, in terms of security and data privacy… We can help craft the IRR. I do not want the IRR to be done in such a way you are killing the purpose of the law,” DITO Telecommunity Chief Revenue Officer Adel A. Tamano told reporters on Thursday.

Mr. Tamano said the law should be lenient toward new entrants, as the objective of Konektadong Pinoy is to entice more players into the industry.

“I think part of it is to really make the barrier to entry really easier. The barrier to entry they gave us was very high. For the DTIPs (data transmission industry participants), though, I think we need to have that balance. Let us make it easy but at the same time we want to make sure that these choices are not fly-by-nights and not bad security levels,” he said.

He added that new players should not be subjected to the same level of requirements currently imposed on incumbent operators.

“Maybe we will take a little bit of a different approach (than other telcos). For us, I am not going to fight that policy. Instead, I support it. We will fully participate in the preparation of the IRR,” Mr. Tamano said.

“The spirit of Konektadong Pinoy was part of the spirit that allowed us in the (industry). We are brought in to increase competition. I think it is hypocritical for me to oppose competition,” he added.

Mr. Tamano noted that DITO sees the new legislation as an opportunity.

“I think Konektadong Pinoy can be very positive business-wise. The framework of Konektadong Pinoy of opening up the telcos, so that smaller players can use our network was our business strategy… If we position ourselves properly to take the opportunity, Konektadong Pinoy can be very positive for you,” he said, adding that this is how DITO approached its business in its first two years of operations.

“Does that seem like it’s against my interest? Maybe in the short term, yes. But I think in the long term, especially if we partner with these DTIPs to use our infrastructure, use our security systems, it would be a win-win situa-tion,” he added.

The Department of Information and Communications Technology (DICT) is targeting to finalize the Konektadong Pinoy Act’s IRR within 60 to 90 days.

The Konektadong Pinoy Act, or the Open Access in Data Transmission Act, streamlines the licensing process in the industry. It also adopts an open-access policy to create a more accessible and competitive environment for all qualified participants across the data transmission network, while encouraging investments in digital infrastructure to support reliable and affordable data services.

Under the law, new data transmission entrants are no longer required to secure a legislative franchise or a certificate of public convenience and necessity.

To recall, Globe Telecom, Inc. and PLDT Inc. have both expressed concerns over the measure lapsing into law.

Earlier, the Philippine Chamber of Telecommunications Operators said this provision undermines regulatory oversight and threatens fair competition, as the law only requires entrants to secure cybersecurity certification after two years of operations.

In a separate statement on Thursday, advocacy group Better Internet PH (BIP) said the law “is a response to the Filipino people’s clamor for better connectivity.”

“BIP looks forward to helping draft the law’s IRR and working closely with government, industry, and community stakeholders to ensure its swift and effective rollout,” it added.

It said that by encouraging more investment and empowering small players, the law “will promote access to work, education, health, and other life-changing digital services.”

Hastings Holdings, Inc., a unit of the PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose

SSS sees profit breaching P100B as it aims to grow membership

BW FILE PHOTO

THE SOCIAL Security System (SSS) expects its net income to surpass the P100-billion mark this year as it targets to increase its membership and ramp up its collection efforts.

“Definitely, we’ll reach the P100-billion mark in net income for 2025. We estimate that in terms of percentage growth of net income, it will range from about 38% to 43% year on year,” SSS President and Chief Execu-tive Officer Joseph M. De Claro said at a press briefing on Thursday.

SSS posted a P1.13-trillion net loss in 2024, according to its financial statement posted on its website, wider than the P444.13-billion loss in 2023. However, before changes in policy reserves, it booked a net in-come of P90.25 billion last year, up from P83.13 billion in 2023.

In the first six months of 2025, SSS’ net income before the increase in policy reserves was at P67.42 billion, up by 51.4% from P44.53 billion in the same period last year.

Mr. De Claro said the agency’s profit growth will be driven by its collection efforts, especially in sectors with high delinquency rates like the construction industry.

“We need to have our program be successful in terms of generating additional collection to meet this. So, we’re actually setting the bar a bit higher for next year,” he said.

The agency also targets expand its overseas Filipino worker (OFW) membership in collaboration with the Department of Migrant Workers and other related agencies.

“Today, I think there’s more than 2.5 million registered OFWs outside the Philippines, and we have only about a million members registered with the SSS,” he said. “What I can tell you is that we realized that Filipinos living in Ri-yadh are different from ones living in Singapore or the US. And we need to make sure that the social security adapts to the needs of our Filipino members living outside the Philippines.”

The state pension fund also targets to increase membership among those in the gig economy, informal sector workers, and government employees that are not covered by the Government Service Insurance System. It also wants to educate self-employed individuals about the importance of social security.

“So, our drivers for net income this year would be, from a membership perspective, the continuous drive to generate additional members. We’ll work with better collection, making sure that we are more strict,” Mr. De Claro said.

For 2026, SSS targets to grow its earnings by at least 8% year on year, he said.

The agency will also focus on digital transformation to improve service delivery and collaborate with other institutions to boost social protection.

It is likewise working to reinstate the stock investment loan program and is set to launch a micro-loan facility in partnership with Union Bank of the Philippines, Inc.

INVESTMENT INCOME
Meanwhile, Social Security Commissioner Victor Alfonso A. Limlingan said the agency wants to hike its equity holdings to boost its investment income while lowering the overall risk profile of their portfolio.

“I believe we have roughly about P100 billion [invested] in equities at the moment, and that’s certainly a number that can increase,” he said.

Mr. Limlingan said they expect SSS’ investment income to continue rising even as the Bangko Sentral ng Pilipinas’ easing cycle could affect yields.

“As a pension fund and given that we are a young population, the duration of our liability is very long. Because of that, we invest for the long term. So, while it’s not an alarming or imminent threat to our income, precisely because we have many hold-to-maturity securities, it will still have an impact when these securities mature,” he said. “As you know, we are constantly getting more contributions, and that will be invested at, unfortunately, lower rates. So, there will be an impact, but not as material as it seems on paper.”

About 55% of the SSS’ investments are in long-term government securities, equivalent to about P500 billion, he said.

“Our current investment income is still growing. I think last year we were at about P50 [billion] to P52 billion in income from investment. This year,… give or take, we’ll be reaching a little more than P50 billion from invest-ments.”

The state pension fund is also looking to diversify its offshore investments to add to their dollar-denominated assets due to uncertainties about the US’ economic prospects, Mr. Limlingan said.

“Investment teams are looking at finding the right markets and the right geographies that are not directly correlated with our own market. It will give us the best diversification benefit. It’s a very well-thought-out strategy.” — A.M.C. Sy

More Cebu Pacific domestic flights moving to Clark; Naga, San Jose up first

Clark International Airport
STOCK PHOTO | Image by BCDA.GOV.PH

BUDGET CARRIER Cebu Pacific will transfer more of its domestic flights to Clark International Airport in October, starting with its Naga (Camarines Sur) and San Jose (Mindoro) routes.

In a media release on Thursday, Cebu Pacific said its regional brand Cebgo will shift the Naga and San Jose routes from Manila to Clark beginning Oct. 26.

This move is in line with a resolution issued by the Department of Transportation through the Manila Slot Coordination Committee directing the transfer of turboprop operations outside Metro Manila.

With this, direct flights between Manila and Naga will be reduced to once daily from the current twice daily. All direct flights to San Jose will now depart from and arrive at Clark airport.

“Cebu Pacific recognizes the importance of managing airport capacity effectively, which will lead to improved passenger experience and greater public convenience,” it said.

All affected passengers will be notified, Cebu Pacific said, adding that it will provide free rebooking, travel fund conversion, and full refund options to affected customers.

Boutique airline AirSWIFT, a wholly owned unit of Cebu Pacific, will continue operating from Ninoy Aquino International Airport (NAIA) until March 2026.

Earlier, the government deferred its resolution mandating the relocation of turboprop operations from NAIA to March next year instead of October this year.

Cebu Pacific began the gradual transfer of its domestic flights on March 30, starting with its Manila-Masbate-Manila and Manila-Siargao-Manila routes from NAIA to Clark International Airport. — Ashley Erika O. Jose

Swimming through history: From the Jordan River to the Dead Sea

NORMAN P. AQUINO

By Norman P. Aquino, Editor

IT FELT like I was inside an oven when I waded into the Jordan River — the same river where John the Baptist once immersed Jesus. The water at Qasr al-Yahud — one of two tourist sites in the western section of the river where Jesus was supposed to have been baptized — wasn’t postcard-blue; it was brown, murky, and less inviting than symbolic. Still, I dove in. Not because of faith or ritual, but just to be able to say I had done it.

A TOURIST takes a dip in the Jordan River — NORMAN P. AQUINO

Less than a minute of swimming in the water, I suddenly hear our tour guide shout: “Not there, come back here!” I swam back to the edge, and my companions teased me about trying to breach the border with the Hashemite King-dom of Jordan. “Were they seriously concerned that Jordanian guards would shoot me?” I thought.

“This place was full of tourists before the war,” Or Rochlin, our tour guide from Tel Aviv, tells us. “I hope the war will end soon so people can go back to their lives.” Normally, the site teems with tour buses and pilgrims in white robes, their baptisms captured on smartphones and cameras. But this time, the only group in the souvenir shop was ours, made up of more than a dozen journalists from the Philippines.

The shelves at the souvenir shop sagged with trinkets no one was buying: olive-wood crosses, bottled “Jordan River water,” ref magnets stamped with “Jerusalem” and an image of the Last Supper. The war in Gaza and tensions with Iran and Yemen have scared off foreign tourists. Silence hung over the riverside, broken only by our laughter as we compared the heat index to Manila.

DEAD SEA — NORMAN P. AQUINO

From the river, our bus took us south to the lowest point on earth: the Dead Sea. The salt content of the lake is so high it makes swimming impossible; the body simply bobs like a cork. I leaned back, sat in the water, and floated without effort. The sensation is both comical and surreal. But beauty has its limits. Accidentally rubbing my eyes with wet hands left them stinging for minutes. The Dead Sea is no spa pool; it is nature in its harshest form.

Our resort, however, was another story. The pool, packed to the brim with Israeli families, was buzzing with chatter and children squealing. There were no foreign tourists apart from us, but Israelis seemed nonchalant, unde-terred by conflict or heat. They swam, picnicked, and danced to the resort’s booming music. Later, I bought the famous mudpack from the sea, more out of curiosity than faith in its mineral powers.

YAD VASHEM MUSEUM — NORMAN P. AQUINO

The mood was different two days earlier at Yad Vashem, Israel’s Holocaust memorial in Jerusalem. Susan Caine, a senior guide at the museum, led us through exhibits of photographs, artifacts, and survivor testimonies. It was history stripped bare, impossible to ignore. The air was thick with grief, but also with resilience — the kind that insists on being remembered. Walking back into the sunlight, I felt the city differently. Jerusalem wasn’t just stones and shrines; it was memory, loss, and survival carved into its very walls.

One of our most striking stops was Capernaum, the small Galilean town where, according to the Bible, Jesus lived and preached after his baptism. We walked through the remains of an ancient synagogue where he once taught and performed miracles, according to the Books of Mark and Luke.

Henry Maaravi, our tour guide, pointed at a carved basalt chair among the ruins known as the Moses Seat, where teachers or scribes would read from the Hebrew Scriptures to the congregation. Standing before it, I imagined the scene of Jesus unrolling the scroll of Isaiah — as he once did in Nazareth — and declaring words that would spark both hope and controversy.

Nearby stood the ruins of a modest stone house traditionally identified as belonging to Peter’s mother-in-law — the same home where Jesus healed a paralyzed man who was lowered through the roof.

Normally, such stories draw crowds. Yet we stood nearly alone. Our guide spoke softly, pointing out worn steps and crumbling walls without needing to raise his voice. Even the restaurant stop afterward carried an air of irony. The specialty was “St. Peter’s fish.” Expecting something exotic, I ordered it — only to discover it was tilapia. Even holy places, it seems, are not immune to marketing tricks. I traded my plate for kebab instead.

Yet for all the solemnity of sacred sites, what struck me was the resilience — and nonchalance — of many young Israelis. Despite the drumbeat of war, they gathered on the beaches on a Sabbath to swim, sunbathe, play volleyball, and dance to music on portable speakers as if conflict were far away. On one beachfront, a KFC and the Herbert Samuel boutique hotel stood as reminders that life goes on, even under the shadow of rockets.

THE OLD CITY OF JERUSALEM
No trip to Israel is complete without a visit to Jerusalem, the heart of three major faiths and the epicenter of centuries of devotion — and dispute. We entered the Old City through its stone gates, and it felt like walking through a labyrinth of time. Cobbled alleys twisted past spice markets, candle-lit chapels, and stone arches that have seen countless empires rise and fall.

A view from the Church of the Holy Sepulchre (below), the venerated burial place of Jesus. — NORMAN P. AQUINO

Sigal Dolan, our guide, led us to the Cenacle, the site long associated with the Last Supper. The room is bare now, but its vaulted ceilings carry centuries of whispered prayers and arguments among scholars. From there, we moved to Golgotha, where Jesus was crucified, and the nearby tomb venerated as his burial place. The Church of the Holy Sepulchre, which houses both sites, is an architectural patchwork of chapels maintained by rival Christian sects — each fiercely guarding its portion of stone.

Further along, we passed the Tomb of David, revered by Jews and Christendom alike, before stopping for a view of the Temple Mount. Here, tensions sharpened. The raised plaza holds the Al-Aqsa Mosque and the Dome of the Rock, one of Islam’s holiest sites. For Jews, it is also the location of the First and Second Temples. Our guide explained how this shared reverence fuels the tension that lingers to this day.

Our last stop in Jerusalem was the Western Wall, the only surviving remnant of the Second Temple. On one side, men pressed their foreheads against the stone; on the other, women prayed, their hands tracing ancient grooves. Many slipped folded notes on which are written petitions into the cracks.

As a journalist, I simply observed, and as one of Jehovah’s Witnesses, the act of praying at such a site is not part of my worship. Still, the atmosphere was undeniable: a mixture of fervor, grief, and hope condensed into one stone wall.

THE WESTERN WALL, otherwise known as the Wailing Wall. — NORMAN P. AQUINO

Everywhere we went, reminders of conflict lingered. There were armed reservists and soldiers, and the photos of the 50 remaining hostages in Gaza plastered everywhere, and news bulletins punctuated our days. Yet ordinary life went on: teenagers laughing on the sand, couples and families dining late into the night, traffic jams in Tel Aviv. Israel is a land where history is always alive, whether in a synagogue ruin or in the morning headlines.

Israel, at this moment, is a land of absences: absent tourists, absent pilgrims, absent peace. Yet it is also a land of presences: of heat, of history, of people stubbornly clinging to normal life.

For me, the journey wasn’t about prayer but perspective. And in a country where every stone carries a story, that was more than enough.

Consumer push to drive rise in Philippine banks’ nonperforming loans

STOCK PHOTO | Image from Unsplash

S&P GLOBAL RATINGS expects Philippine banks’ nonperforming loans (NPL) to increase over the next two years amid their aggressive expansion into the consumer segment.

“We are observing an uptick in the NPL ratios in these unsecured loan segments. We believe this trend is likely to continue over the next two years. As this portfolio matures, the NPL should inch up further,” S&P Financial Insti-tutions Ratings Director for South and Southeast Asia Nikita Anand said in a webinar on Thursday. “Our forecast is that the sector-level NPLs could rise to 3.4% to 3.5% of total loans over the next two years.”

As of June, Philippine banks’ NPL ratio stood at 3.4%, which was the lowest level in three months or since the 3.3% in March, data from the Bangko Sentral ng Pilipinas showed.

S&P also expects credit losses to stay elevated at around 0.8% to 0.9% of total loans — higher than the pre-pandemic average of 0.5% — due to banks’ expansion into riskier segments, she said.

Consumer loans now comprise a bigger share of banks’ loan portfolios amid the large number of underserved or unserved individuals in the retail segment, Ms. Anand said.

“The share of consumer loans and total loans has risen steadily. It is currently 22%. More importantly, the share of riskier loans such as credit cards and personal loans has risen significantly in the last few years. This segment formed around 5% of total loans back in 2019. It has grown to about 9% today. The growth in these portfolios is also very high. It’s typically in the range of 20% to 30%, which means the portfolio is un-seasoned.”

Meanwhile, NPL levels for secured lending products such as housing and auto loans have seen a sustained reduction over the past few years since spiking during the pandemic due to higher unemployment rates, she said.

Soured loans have also declined for secured products amid improving household incomes and the economy’s reopening, she added.

However, despite the continued rise in consumer loans, household debt levels in the Philippines are expected to remain manageable over the next two years as lower borrowing costs will help ease debt burdens, Ms. Anand said.

“Unemployment rates stay low in the Philippines and households continue to benefit from a steady flow of remittances,” she added.

Household debt as a percentage of Philippine gross domestic product remains low at 12% despite rising in comparison to other emerging markets, which average at around 60-65%, she said.

Operating conditions for Philippine banks are also expected to remain stable over the next two years as the economy is “expected to be resilient to the external volatilities, especially the trade tensions and tariffs due to its low reliance on exports,” Ms. Anand said.

“Our forecast is that the credit demand and credit growth is likely to stay steady with 11% to 13% growth over the next two years and this is broadly in line with the growth of 12.7% that we saw back in 2024.” — Aaron Michael C. Sy

Crawling beneath the bar of Caesar’s wife

PEOPLE and motorists wade through gutter-deep flood along United Nations Avenue in Manila after a sudden downpour on Aug. 16. | Philippine Star/Ryan Baldemor

In public service, the old adage remains timeless: “Caesar’s wife must be above suspicion.” It demands not just the absence of guilt, but the presence of unquestionable integrity and propriety.

Sadly, what we witness today is far from that standard. We are not just dealing with public officials who fail to rise above suspicion — they are, in fact, sinking deep into a mire of damning evidence. Guilt, in this case, is not a matter of conjecture but of documentation.

Let us remember Julius Caesar. When his wife, Pompeia, became entangled in a scandal during the Bona Dea festival, Caesar divorced her — not because she was proven guilty, but because her position demand-ed she be beyond any trace of suspicion. He famously declared, “My wife ought not even to be under suspicion.”

Today, it is not suspicion but actual proof that convicts many public projects, particularly those under the government’s flood control program. In his State of the Nation Address (SONA) on July 28, President Ferdinand Mar-cos, Jr. didn’t mince words: the corruption is real, the structures are substandard, and the people’s money is wasted.

FLOODED IN FUNDS, DROWNED
IN CORRUPTION
Since July 2022, a staggering P545 billion has been allocated to flood control projects. Yet what has emerged from these funds is not protection from floods, but a flood of evidence pointing to corruption, waste, and conspiracy.

• Concentration of Projects: Just 10 provinces cornered the lion’s share of these projects — Bulacan (668), Cebu (414), Isabela (341), Pangasinan (313), Pampanga (292), Albay (273), Leyte (262), Tarlac (258), Camarines Sur (252), and Ilocos Norte (224). Meanwhile, equally vulnerable areas such as Metro Manila, Maguindanao, and North Cotabato were conspicuously neglected.

• Concentration of Contractors: Only 15 contractors monopolized these projects, bagging nearly P100 billion in contracts. Five of them had nationwide reach. This tight concentration raises serious questions about transpar-ency, competitiveness, and favoritism.

• Ghost Projects and Substandard Work: The President himself uncovered abandoned or subpar projects — like the multi-million flood control structure in Baliwag, Bulacan that was declared “completed” in June but was visibly untouched by August. In Calumpit, Bulacan, dredging works certified as completed were found unfinished and made of substandard materials.

THE SENATE UNCOVERS A DELUGE OF DECEIT
On Aug. 19, the Senate’s Blue Ribbon Committee launched an inquiry aptly titled “The Philippines Under Water.” Its findings were chilling:

• Massive Anomalies: Out of 9,855 projects, 6,021 — worth around P350 billion — lacked details on the structure being built. This level of documentation failure all but invites duplication, poor accountability, and, yes, corruption.

• Shameless Sharing of the Pie: In his privilege speech, Senator Ping Lacson revealed that only about 40% of a typical P100-million flood control project actually goes to implementation. The rest is allegedly distributed among legislators, Department of Public Works and Highways (DPWH) officials, Commission on Audit (CoA) auditors, and “royalty owners.” What we need now, Lacson declared, is greed control.

This is no longer about suspicion — it is about plunder.

A TRAIL OF GHOSTS AND GOLD
In Bulacan alone, nearly 30 ghost projects have been discovered. One P77-million riverbank project in Malolos was still “ongoing” even after being marked as completed. A similar budget was used for a supposed flood structure in Hagonoy — contracted to the same ghost company. It seems many small contractors simply lease the licenses of triple-A builders and execute substandard work.

In Oriental Mindoro, another congressman proudly claimed credit for P3.6-billion worth of flood control projects. The quality of the work, however, did not match the claim. Some areas reportedly received up to P19 billion in just three years, even though they lacked the capacity to properly implement and monitor the projects.

It gets worse. Some legislators reportedly admitted that contractors involved in these scandals contributed to their electoral campaigns in the last two national elections. This opens the door to clear conflicts of interest, if not outright bribery.

Meanwhile, luxury watches worth over P10 million, fleets of high-end SUVs, and even private choppers owned by some government officials and contractors are now paraded on social media. Salaries alone and legitimate profit from operations could not justify such wealth. Something is terribly wrong.

PROPRIETY OVER POLITICS
The lesson from Caesar’s wife is not just about guilt or innocence — it is about propriety. Ethical behavior is non-negotiable in public service. Integrity must not only be presumed; it must be seen and felt by the public.

Yet today, we see legislators who once served in implicated agencies failing to recuse themselves from investigations. Both current and past Congresses approved budgets riddled with anomalies and turned a blind eye to dubious insertions that robbed funding from vital sectors such as public health, education, and social infrastructure.

Presidents Duterte and Marcos — along with their economic and technical advisers — must also bear some responsibility. After all, the President has the power to veto suspicious budget allocations. Why was that power not used?

WHAT MUST BE DONE
In response to the unfolding scandal, Malacañang ordered the DPWH to submit a list of all flood control projects since 2022. It tasked the Regional Project Monitoring Committees to audit failed, unfinished, and ghost projects, with the findings to be made public.

This is a good start, but insufficient. We need:

• Independent Audit: Civil society and independent auditing bodies must be empowered to review and validate government records. A whitewash is the last thing we need now.

• Prosecutions, Not Performances: The Senate has voiced support for the President’s directive. But will it walk the talk if some of its members are implicated? Can it resist protecting its own?

• House’s Toned-Down Response: The House of Representatives has echoed the President’s orders but watered down key points — such as replacing a proactive audit with a passive investigation. This does not inspire con-fidence.

Even the CoA, implicated in the notorious “sharing of the pie,” has only belatedly ordered a fraud audit in Bulacan. One wonders: what has CoA been doing all this time? Why does it now need the DPWH to hand over “rele-vant documents” before acting?

THE REAL COST OF CORRUPTION
This is not just about bureaucratic theft. Corruption of this magnitude weakens the nation’s capacity to grow. It erodes investor confidence, saps public morale, and steals resources that could have improved productivity, nur-tured human capital, and funded crucial infrastructure for connectivity and inclusion across the archipelago.

No, the biggest drag on our economic momentum is not inflation, nor interest rates. They have been tamed. It is corruption — plain, cruel, and devastating.

Indeed, Caesar’s dictum remains as relevant as ever. But today, we do not even need the moral high bar of Caesar’s wife. The bar is already on the ground. And yet, many in power and their kind, still manage to crawl be-neath it.

There is no suspicion anymore. Only facts.

And the facts are damning.

 

Diwa C. Guinigundo is the former deputy governor for the Monetary and Economics Sector, the Bangko Sentral ng Pilipinas (BSP). He served the BSP for 41 years. In 2001-2003, he was alternate executive director at the International Monetary Fund in Washington, DC. He is the senior pastor of the Fullness of Christ International Ministries in Mandaluyong.

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