Philippine factory activity rebounds in October despite drop in new orders, output

November 3, 2025 | 11:04 am

electronics-worker — A WORKER wipes an automotive computer component part at an electronics assembly line in Biñan, Laguna, April 20, 2016. — REUTERS

Philippine factory activity bounced back in October, despite a drop in new orders and production, S&P Global said.

The S&P Global Philippines Manufacturing Purchasing Managers’ Index (PMI) improved to 50.1 in October, a turnaround from 49.9 in September.

A PMI reading above 50 denotes better operating conditions from the preceding month, while a reading below 50 shows a deterioration in operating conditions.

Maryam Baluch, economist at S&P Global Market Intelligence, said the Philippines PMI reading in October reveals a “mixed picture.”

“The two largest segments, new orders and output, indicated further declines. Additionally, fresh contractions were observed in new export orders and purchasing activity, highlighting underlying demand conditions,” she said.

S&P Global noted that output and new orders “have now failed to record any growth for a second consecutive month, a trend not seen in over four years.”

Despite this, Ms. Baluch said Filipino manufacturers grew more optimistic about their growth prospects for output in the coming year.

“The sector has now remained in sluggish territory for most of the second half of 2025 so far. Whether it can see a notable recovery in performance in the coming months will depend greatly on efforts to stimulate consumer demand,” she added. — Aubrey Rose A. Inosante

Unshaken by adversity: BingoPlus Foundation’s P6-M earthquake relief efforts uplift Cebuano communities

November 3, 2025 | 10:30 am

Photo-1-OL — BingoPlus Cebu employee volunteers distributed water, food, medicine and other essentials enough for 56,000 Filipinos across earthquake-affected communities in Bogo, San Remigio, Medellin, Daanbantayan, Borbon, and Tabogon. The P6-million relief effort, led by the BingoPlus Foundation, was carried out in coordination with local government units and mobilization partners.

The memory of the magnitude 6.9 earthquake that struck Northern Cebu on Sept. 30 still haunts the region, but for BingoPlus Foundation, it was a call to action defined by dedication and grit.

Armed with a commitment to multiply the good and spread hope, the BingoPlus Foundation immediately mobilized the relief operations to deliver the P6-million support from DigiPlus Interactive and BingoPlus to thousands of Cebuanos affected by the earthquake.

Little did the team know that their dedication and perseverance would be tested as the mission, implemented under the Foundation’s BayanihanPlus program, became one of its most arduous operations to date.

Serving Beyond the Quake

BingoPlus Store Manager Mark Gibson Dingal surveyed the devastation in Medellin and Bogo, Cebu, after a 6.9-magnitude earthquake and its aftershocks destroyed numerous establishments on Sept. 30, 2025.

While BingoPlus Foundation, social development arm of DigiPlus Interactive Corp., is no stranger to difficult relief operations, the recent leg was the most challenging to date. For the Manila-based Foundation team and the local Cebu BingoPlus employee volunteers, the journey was a test of commitment.

The distribution was fraught with challenges, ranging from aftershocks, heavy rains, impassable roads, and infrastructural damage. This difficult environment peaked on Oct. 13 when volunteers experienced a 5.8-magnitude aftershock, which intensified the already complex relief operations.

Despite the hazards, the team’s resolve was unwavering. Everyone was committed to fulfilling public service — to deliver not just the relief goods but multiply the good and provide hope to thousands of affected Cebuanos.

Distribution activities proceeded from Oct. 5 to 23 despite aftershocks, heavy rains, impassable roads, and infrastructural damage.

As Jem Tumbaga, BingoPlus Foundation communications officer, shared, “I learned that serving others is not about how easy the journey is, but how willing your heart is to keep going for those who need you the most.”

Tumbaga added, “Despite the bad weather, rough roads, and the scary aftershocks we experienced in Cebu, my commitment to serve others remains unshaken because I know our service will bring hope to our kababayans severely affected by the earthquake.”

Collaboration to Multiply the Good

In the spirit of multiplying the good through collaboration, the Foundation coordinated with BingoPlus branches, local government units, the Philippine Army 53^rd Engineering Brigade, the Philippine Accessible Disability Services (PADS) and supply chain networks, to carry out one of its most complex relief operations, delivering aid barangay to barangay across six municipalities within days. The combined effort in logistics and communications ensured efficient distribution of relief goods to thousands of residents in far-flung areas across Northern Cebu.

“Ang mga ayudang ito ay aming ipinamamahagi house-to-house sa aming mga miyembro dahil mahirap ang access ng daanan dito… kaya umaabot ng 17 kilometro ang biyahe,” shared PADS Focal Person Nino Mangubat to Jem Tumbaga of BingoPlus Foundation, describing the challenges of delivering relief to PWDs. The collaboration helped bridge access to essential goods directly to remote homes, sparing vulnerable sectors the long and difficult travel to distribution sites.

“Wala man lisod kaayo ang access diri samot na sa agianan samot na ang kaning sa Tagnucan kay mubalik pa sa mainland (Access here is very difficult, especially the roads, especially for Tagnucan, because the road goes back to the mainland),” said Nino Mangubat, the focal person of PADS in Borbon, shared on a Facebook post.

He added “Karon, kaning gihatag sa BingoPlus Foundation ayuda dako jud kaayo ni ug kwan sa persons with disabilities diri sa Borbon kay nakita jud nato ba bisan og lisod kaayo ang PWD karon amo saning gipaningkamutan sa mga chapter president nga ang tanang ayuda nga gihatag sa BingoPlus amo ning i-house to house na sa mga members. (Now, this aid given by the BingoPlus Foundation is really a huge help for the persons with disabilities here in Borbon, because we truly see that even though it is very difficult for PWDs right now, we — the chapter presidents — are making every effort to ensure that all the aid given by BingoPlus is delivered house-to-house to the members.)”

The PADS representative said “Thank you kaayo BingoPlus sa inyong hatag na suporta sa moa o sa PADS. Thank you kaayo (Thank you very much, BingoPlus, for the support you gave us, or to PADS. Thank you very much).”

P6-million Aid of BayanihanPlus

Sama-sama sa tulong. Sabay-sabay sa pagbangon — through its BayanihanPlus program, BingoPlus Foundation’s P6-million support from DigiPlus and BingoPlus represents an immediate lifeline and a step towards recovery for thousands of individuals who lost their homes, livelihoods and loved ones.

Through the Foundation’s program BayanihanPlus, volunteers successfully delivered thousands of relief packs to an estimated 56,000 residents across six municipalities in Northern Cebu. This extensive distribution, valued at P6 million, spanned a phased approach from Oct. 5 to Oct. 23.

“Our commitment to the people of Cebu is unwavering,” said Angela Camins-Wieneke, BingoPlus Foundation executive director. “This P6-million support from DigiPlus and BingoPlus represents an immediate lifeline for tens of thousands of individuals who lost their homes, livelihoods, and some even their loved ones. We’ve prioritized swift, targeted action to ensure the relief gets into the hands of those who need it most. Sama-sama sa pagtulong. Sabay-sabay sa pagbangon. (We help together. We recover together.)“

Understanding that earthquake recovery is a long-term process, the BingoPlus Foundation will continue working with partners to assess the changing needs of the affected communities as the complex recovery progresses.

For the latest updates on the BingoPlus Foundation, as well as inquiries regarding coordination, assistance, or partnership opportunities, please contact the Foundation via its official Facebook page https://www.facebook.com/BingoPlusFoundation/.

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.

Hegseth visits South Korea for talks on US troops, tour of DMZ border

November 3, 2025 | 10:06 am

SEOUL — US Defense Secretary Pete Hegseth visits South Korea on Monday for talks expected to involve Washington’s goal of reshaping the role of US troops in Korea in an evolving security environment and is also expected to visit the DMZ border with North Korea.

The defense chiefs are scheduled to hold the annual Security Consultative Meeting (SCM) on Tuesday, the highest-level forum where the two countries chart the course of their military alliance and South Korea’s defense against nuclear-armed North Korea.

South Korean Defense Minister Ahn Gyu-back and Hegseth will discuss combined defense readiness against North Korea and cooperation on regional security and cyber and missile defense, the South’s ministry said.

The two are expected to discuss plans to respond to the “changing security environment and threats” by developing the alliance between the two countries, it said.

Washington is considering making the role of the 28,500 US troops in South Korea more flexible with an eye on maintaining the balance of power in Asia amid concerns about Chinese activities in the South China Sea and around Taiwan.

US officials have signaled a plan to make the US forces more flexible to potentially operate outside the Korean peninsula in response to a broader range of threats such as the defense of Taiwan and to check China’s growing military reach.

South Korea has resisted the idea of shifting the role of US troops but has worked to grow its defense capabilities in the past 20 years with the goal of taking on the command of the combined forces – including its 450,000 troops – in wartime.

South Korea plans the largest defense budget increase in years for 2026 partly to address US President Donald Trump’s demand its allies pay more for US military presence in their countries.

Mr. Hegseth is expected to visit the Panmunjom truce village on the Demilitarized Zone (DMZ) border with North Korea with South Korea’s Mr. Ahn.

Nuclear-armed North Korea has ignored overtures from Trump and South Korean President Lee Jae Myung for dialogue and has dramatically advanced its missile and conventional military capabilities.— Reuters

Youth for Dagat Summit: Empowering the next wave of sustainability leaders

November 3, 2025 | 10:00 am

The France-Philippines United Action (FPUA), in partnership with Plastic Odyssey and with the support of the Embassy of France to the Philippines under the Blue Nations Initiative, held the Youth for Dagat Summit on Oct. 25, 2025, at the Alliance Française de Manille in Makati City.

The Summit stands as a testament to the Embassy’s steadfast commitment to advancing sustainability and empowering youth in the Philippines. Through continued French support, initiatives like Youth for Dagat bridge collaboration between France and the Philippines, creating lasting impact in environmental education and action. This partnership reaffirms that even the simplest awareness efforts, when nurtured through international cooperation, can inspire transformative change and cultivate the next generation of sustainability leaders.

A Culminating Celebration of Youth and Collaboration

Serving as the culminating event of the Youth for Dagat (YFD) program, the Summit gathered over 120 participants, including student ambassadors from seven universities, sustainability professionals, policymakers, and development partners.

The morning plenary opened with remarks from Mr. Fabrice Place, Deputy Ambassador of the Embassy of France to the Philippines, and Mr. Olivier Guilly, President of FPUA. This was followed by Mr. Prince Dellosa, Project Coordinator of FPUA, who shared updates on the YFD program, and Mr. Maxime Thirouin of Plastic Odyssey, who presented upcoming initiatives in recycling and circular economy training in the Philippines.

Panel Discussions: Sharing Challenges, Inspiring Action

In the afternoon, a series of expert panels delved into key sustainability topics and youth empowerment themes.

Panel 1: Green Leadership: Moving the Circular Economy from Belief to Policy

Speakers: Vincent Vinarao (QC LGU), Elmerei Cuevas (UNDP), Arnaud Tomc (Better With Water), Ronald Teng (Youth for Dagat)

Moderator: Patrick Tiongson

Panelists shared firsthand experiences implementing waste reduction and recycling initiatives in their organizations and local communities, highlighting the ongoing challenges in shifting habits and systems at both individual and municipal levels. Representing Quezon City LGU, Mr. Vincent Vinarao noted that while cities like QC are leading sustainability efforts, policy implementation is far from simple. Even “simple” bans on single-use plastics — such as shampoo sachets — often face criticism as “anti-poor,” underscoring the need for inclusive and well-planned policymaking that balances environmental and social realities.

Panel 2: Circular Economy & EU-PH Green Economy Partnership

Speakers: Maxime Thirouin (Plastic Odyssey), Nelson De Luna (EcoPoly), Liz Peñaflor (PCIEERD), Amrendra Kumar (ASM Global), Ralph Cuazon (Ecosustainability Consultant)

Moderator: Maxime Thirouin

This discussion bridged perspectives from across industries and countries, revealing how sustainability policies evolve differently among organizations and international partners. While progress can sometimes seem gradual, collaboration between European and Filipino stakeholders continues to strengthen the circular economy ecosystem. The panel also encouraged participants to reflect on how they, as future leaders, can integrate these learnings into their own practices and institutions.

Panel 3: Empowering the Next Generation through Education

Speakers: Yzette Guiwan (YFD), Ronelli Espina (UP Integrated School), Raphael Dionisio (Mad Travel), Razel Suansing (House of Representatives, 2nd District of Sultan Kudarat)

Moderator: Patrick Tiongson

This session emphasized that education is the most powerful foundation for long-term behavioral change. Raphael Dionisio of Mad Travel illustrated this creatively, noting how even classroom lessons can foster sustainability thinking — for instance, turning a simple math problem like “If you have 10 melons and give away 3” into “If we reduce our plastic waste by 3 tons a year, how many tons will we save in 8 years?” Small shifts in education, he shared, can reshape how young minds view environmental responsibility.

Panel 4: Navigating Plastic Pollution & EPR Law: Challenges and Opportunities

Speakers: Hyacinth Magat (GIZ Philippines), Ma. Lourdes Nicole J. Liu (SM Investments Corp.), Atty. Ivy De Pedro (DENR), Maxime Thirouin (Plastic Odyssey)

Moderator: Carlos Hechanova

This final panel brought together voices from government, industry, and international organizations to discuss how policies like the Extended Producer Responsibility (EPR) Law can drive systemic change. Ms. Ma. Liu of SM Investments Corporation shared how SM integrates sustainability across its operations, while Atty. Ivy De Pedro of the DENR emphasized that accountability and cooperation are key to the law’s success. Panelists agreed that sustainable change requires consistent, cross-sector collaboration and long-term commitment.

Continuing the Movement

The Summit concluded with a screening of the Plastic Odyssey documentary and a networking session that encouraged participants to connect and share reflections on their environmental journeys.

In the coming weeks, FPUA will distribute EcoBins — three-compartment trash bins made entirely from recycled plastic waste processed at Plastic Odyssey’s Microfactory in Cavite. These will be donated to partner universities as both a token of gratitude and a tangible reminder that “great change begins with small actions from students who dare to lead.”

Through the continued collaboration of FPUA, Plastic Odyssey, and the Embassy of France, Youth for Dagat demonstrates that awareness, education, and action can ripple outward — empowering a new generation of changemakers to lead the way toward a cleaner, more sustainable future for all.

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.

EU considers weakening 2040 climate goal over forest CO2 absorption, draft shows

November 3, 2025 | 9:48 am

European Union Flag-EU — A EUROPEAN UNION’S flag flutters outside the European Commission headquarters in Brussels, Belgium, Oct. 15, 2020. — REUTERS

BRUSSELS — The European Union is considering a brake clause to weaken its 2040 climate target in the future, if it becomes clear countries’ forests are not absorbing enough CO2 emissions to meet the goal, a draft EU compromise proposal showed.

EU countries are attempting to approve their new 2040 climate target at a November 4 meeting of their climate ministers, just in time to avoid European Commission President Ursula von der Leyen going empty-handed to the UN’s COP30 climate summit with other world leaders on November 6.

But with some countries concerned about the costs to struggling domestic industries, the EU is considering various flexibilities and options to weaken the climate target, which the commission has said should be to cut planet-warming emissions 90% by 2040.

Countries’ latest draft negotiating compromise, seen by Reuters on Sunday, added a new clause that said if forests and other land-based activities that absorb CO2 emissions fall short, the EU will be allowed to propose “an adjustment of the 2040 intermediate target corresponding to and within the limits of the possible shortfalls”.

Brussels could also respond by proposing extra measures to help get the forest sector back on track for the emissions goal, it said.

The move echoes a proposal made by France last week, previously reported by Reuters, which had demanded an “emergency brake” to reduce the 90% emissions target by 3%, if forests and the land-use sector underdeliver.

The amount of CO2 absorbed by Europe’s forests and land-use sector dropped by nearly a third in the last decade, because of factors including wildfires and unsustainable forest management.

Previous negotiating drafts showed countries were already considering letting the EU revise the 2040 goal every two years, another route that could weaken it in the future.

But their ministers will still have to thrash out key issues on Tuesday, including the share of the 90% emissions reduction which countries will be allowed to cover by buying foreign carbon credits.

Support from at least 15 of the 27 EU members is needed to pass the goal.

A spokesperson for Denmark, which holds the EU’s rotating presidency and drafted the document, said all the necessary ingredients were now in place to land a deal.

“With COP30 about to start this is the time to agree on the 2040 target,” the spokesperson said.— Reuters

Magnitude 6.3 earthquake shakes Afghanistan’s Mazar-e Sharif city, casualties feared

November 3, 2025 | 9:45 am

Afghan-Flag — US Office of the Chairman of the Joint Chiefs of Staff/Flickr

An earthquake of magnitude 6.3 struck near one of Afghanistan’s largest cities Mazar-e Sharif early on Monday, the US Geological Survey said.

The USGS issued an orange alert in its PAGER system, which is an automated system that produces information on the impact of earthquakes, and indicated that “significant casualties are likely and the disaster is potentially widespread.”

Past events with this alert level have required a regional or national level response, the system’s alert added.

The earthquake hit at a depth of 28 kilometers near Mazar-e Sharif, which has a population of about 523,000, according to USGS.

The country’s national disaster management agency said reports on casualties and damage would be shared later. Reuters could not immediately verify the extent of damage from the earthquake.

Videos of rescue efforts being carried out to save people trapped under rubble and images of fallen debris in buildings were shared on the social media platform X. One video showed rescuers pulling what appeared to be dead bodies from rubble.

Reuters could not immediately verify the footage and the images.

Thousands died and thousands more were injured after an earthquake and a series of aftershocks hit Afghanistan in August, the Taliban administration said.

Afghanistan is especially vulnerable to earthquakes as the country is located on two major active faults that have the potential to rupture and cause extensive damage.

In 2015, an earthquake struck northeastern Afghanistan, killing several hundred people in Afghanistan and nearby northern Pakistan. Another in 2023 killed at least 1,000 people.— Reuters

Poll: Inflation likely picked up in Oct.

November 3, 2025 | 12:34 am

public market-shopper — Shoppers check Halloween masks and costumes in Divisoria in Manila. — PHILIPPINE STAR/RYAN BALDEMOR

By Katherine K. Chan

PHILIPPINE inflation may have slightly accelerated in October amid elevated prices of food, fuel and electricity as well as a weak peso, analysts said.

A BusinessWorld poll of 17 analysts yielded a median estimate of 1.8% for the consumer price index in October. If realized, October inflation would have slightly picked up from the 1.7% clip in September but slowed from the 2.3% seen in the same month last year.

The median estimate also falls within the Bangko Sentral ng Pilipinas’ (BSP) 1.4-2.2% forecast for October.

It may also be the fastest clip in eight months or since the 2.1% in February and would match the 1.8% in March.

October could likewise mark the eighth month in a row that inflation undershot the BSP’s 2-4% target.

The Philippine Statistics Authority is set to release the October inflation data on Nov. 5.

Aris D. Dacanay, economist for the Association of Southeast Asian Nations at HSBC Global Investment Research, said inflation likely settled at 1.8% in October as prices of vegetables rose following typhoons.

“Electricity prices also increased as the depreciation of the peso over the US dollar led to higher generation charges,” he added.

The Manila Electric Co. hiked the overall electricity rate by P0.2331 per kilowatt-hour (kWh) to P13.3182 per kWh in October.

Moody’s Analytics economist Sarah Tan said increased transport and fuel prices may have also contributed to faster inflation in October.

“Higher transport and fuel costs, together with weather-related disruptions affecting some food items, are putting mild upward pressure on prices,” she said in an e-mail.

In October, pump price adjustments stood at a net increase of P1.80 a liter for gasoline, P2.10 per liter for diesel and P1.10 per liter for kerosene.

“Fuel prices also remained stable; global oil prices cooled in October, offsetting any inflationary impact brought by a weaker peso,” Mr. Dacanay said.

In October, the peso performed weaker against the greenback at P58.850 per dollar, slipping by 65.4 centavos from its P58.196 finish at end-September. The peso also hit a new all-time low of P59.13 versus the greenback on Oct. 28.

“Downside price pressures also persisted (in October), the biggest coolant being rice. The price of regular milled rice in Metro Manila remained stable at P39.4 a kilogram despite the ongoing import ban on the grain,” Mr. Dacanay said.

Bank of the Philippine Islands Lead Economist Emilio S. Neri, Jr. said lower prices of meat, fruit and oil could have also prevented further acceleration of inflation.

“Going forward, upside risks to inflation are building as favorable rice base effects fade and the extension of the rice import suspension through yearend adds further pressure,” Mr. Neri said.

President Ferdinand R. Marcos, Jr. had earlier ordered a 60-day suspension of rice imports starting Sept. 1 to support Filipino farmers during harvest season and to stabilize rice prices.

The suspension was originally supposed to end on Nov. 2 but is now expected to be extended until end-2025. The ban applies only to imports of regular milled and well-milled rice.

STICKY CORE INFLATION
Meanwhile, core inflation is expected to remain “sticky,” analysts said.

“That is partly driven by firm inflation expectations and recent wage increases. Further, the peso has weakened broadly since June, feeding through to services and other core components as firms adjust prices to reflect higher costs,” Ms. Tan said.

Core inflation, which excludes volatile prices of food and fuel, slowed to 2.6% in September from 2.7% in August. It averaged 2.4% in the nine-month period, easing from 3.1% in the same period a year ago.

Union Bank of the Philippines Chief Economist Ruben Carlo O. Asuncion said in an e-mail that he expects core inflation to remain near that level in October.

“This stickiness suggests underlying demand-side pressures and second-round effects (e.g., wage adjustments, service costs) are persisting despite low headline inflation. It signals that disinflation is largely driven by volatile items, while structural price components remain firm,” Mr. Asuncion said.

Security Bank Chief Economist Angelo B. Taningco said in an e-mail that core inflation will likely remain elevated in the coming months amid holiday-driven spending.

Meanwhile, Maybank Investment Bank economist Azril Rosli said core inflation may settle between 2.5% and 3% until December.

“(This is due to) holiday season labor market tightening, annual rent adjustment cycles incorporating (year-to-date) inflation expectations, utility cost pass-through to business operating expenses, school year 2025-2026 tuition adjustments continuing to flow through, healthcare cost pressures from pharmaceutical imports affected by peso weakness, and the BSP’s expected continuation of supportive monetary policy,” he said in an e-mailed note.

BELOW 2% INFLATION
Despite emerging risks, analysts still expect full-year inflation to settle below the 2-4% target band of the central bank.

“Looking ahead, inflation is expected to remain manageable, averaging below the BSP’s 2-4% target this year and hovering around the midpoint of the target range next year,” Chinabank Research said in an e-mail.

If the 1.8% median estimate materializes, headline inflation would average 1.7% in the 10-month period, matching the BSP’s goal for the year.

For 2026, the central bank sees inflation accelerating to 3.1%, before slowing to 2.8% in 2027.

“Even with slight upticks in Q4, full-year inflation will likely stay below the BSP’s 2-4% target range, thanks to benign global commodity prices, improved domestic food supply, and policy support and subdued demand conditions,” Mr. Asuncion said.

This expectation gives the central bank room to continue its accommodative monetary policy until yearend and potentially in 2026, analysts said.

“We don’t expect the central bank to deviate much from their planned monetary policy easing path, especially if economic growth remains muted,” Reinielle Matt M. Erece, economist at Oikonomia Advisory & Research, Inc., said in a Viber message.

Last month the Monetary Board cut its benchmark policy rate by 25 basis points (bps) to 4.75%, the lowest in over three years. This brought its cumulative reductions to 175 bps since it began its easing cycle in August 2024.

BSP Governor Eli M. Remolona, Jr. has penciled in another 25-bp cut at the Monetary Board’s last meeting this year on Dec. 11 and potentially more in 2026 as they seek to support the economy amid weak business sentiment due to the flood control scandal.

“Looking beyond December, the BSP could still deliver up to two additional cuts in 1H 2026 if growth continues to run below potential,” BPI’s Mr. Neri said. “The central bank may also align its policy path with that of the Federal Reserve, particularly if markets begin to price in aggressive US rate cuts after Chairman Powell’s term ends in May 2026.”

Last week, the Fed delivered its second 25-bp cut this year, bringing its interest rate to the 3.75-4% range. This brought its cumulative cuts since September 2024 to 150 bps.

However, Fed Chair Jerome H. Powell signaled a pause at their next rate-setting meeting this year, citing risks from the unavailability of economic data due to the ongoing US government shutdown.

Q3 underspending to ‘temporarily’ drag growth — Recto

November 3, 2025 | 12:33 am

Unfinished roadworks are seen along a street in Caloocan City, Oct. 11. The Public Works department has indefinitely suspended all road reblocking activities due to allegations of corruption. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Aubrey Rose A. Inosante, Reporter

GOVERNMENT UNDERSPENDING in the third quarter, mainly due to a corruption crackdown that curbed public disbursements, is expected to temporarily dent economic growth this year, Finance Secretary Ralph G. Recto said.

“This (underspending in the third quarter) is expected to temporarily weigh on government final consumption expenditure and the overall GDP (gross domestic product) growth,” he told BusinessWorld in a Viber message on Oct. 31.

The Marcos administration only disbursed P1.46 trillion in the third quarter, data from the Bureau of the Treasury showed, P141.73 billion less than its P1.6-trillion program for the period. This is mainly due to lower spending by the Department of Public Works and Highways, which is at the center of a corruption scandal involving flood control projects.

“Nevertheless, the government’s swift and decisive action following the recent flood control controversy marks the beginning of a major government cleanup that will lead to stronger institutions, better governance, and faster growth in the medium term,” Mr. Recto said.

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

“The controversy has also revealed that not all capital expenditures translate into growth. And now that we’re plugging those leaks and reallocating funds to high-impact investments — such as education, healthcare, agriculture, and digitalization — we will only grow faster,” Mr. Recto said.

As of end-September, the National Government has released P4.48 trillion, equivalent to 73.72% of its P6.08-trillion full-year disbursement program for 2025.

Economic managers, including Mr. Recto, earlier warned that gross domestic product (GDP) growth likely softened in the third quarter. The government is targeting 5.5-6.5% GDP growth this year.

Official GDP data will be released by the Philippine Statistics Authority on Nov. 7.

Mr. Recto also vowed that “catch-up measures” are underway to keep spending on track and fuel growth.

“Although there has been a slowdown in government spending as we continue to address the flood control corruption controversy, this reflects the administration’s commitment to spend only on legitimate programs and projects,” he said.

He noted the “short-term adjustment” will pave the way for more efficient and transparent public expenditures in the future.

“Having identified and removed anomalous projects, we are ensuring that taxpayers’ money goes to genuine initiatives, eliminating waste and paying only for the true cost of government programs,” Mr. Recto said, adding the President has directed government agencies to cut costs by 50%.

Economy Secretary Arsenio M. Balisacan and Budget Secretary and Development Budget Coordination Committee Chairperson Amenah F. Pangandaman has earlier said the 5.5% to 6.5% GDP growth target remains achievable.

However, some economists have lowered their growth forecast for the Philippines, citing the corruption probe that led to lower investor sentiment.

Last week, Nomura Global Markets Research slashed its 2025 growth forecast for the Philippines to 4.7% from 5.3%, noting the mounting downside risks from a corruption scandal tied to flood control projects.

Sought for comment, Mr. Recto said Nomura’s downgrade is “overly conservative.”

“To reach a 4.7% GDP for 2025, this means the economy will grow by just 4% in the second half of the year. This fails to account for progress made in terms of lower inflation and improvements in the labor market, which will boost household spending, recovery in the agriculture sector, continued growth in services, and stronger performance of merchandise exports despite higher US tariffs,” he said.

Meanwhile, Mr. Recto said the Department of Finance (DoF) is regularly assessing the performance of revenue-collecting agencies as revenues are expected to be affected by the corruption scandal.

“The DoF… is open to making the necessary adjustments, when necessary,” he said. “Nevertheless, the economic managers remain committed to fiscal consolidation by closely monitoring the latest developments internally and externally to ensure we attain the set deficit targets.”

Philippines extends rice import ban until end-2025

November 3, 2025 | 12:32 am

ASIA-RICE — A farmer harvests rice by a paddy field outside Hanoi, Vietnam on June 10, 2019. Vietnam’s rice exporters have raised concern over the impact of the Philippines’ ban on rice imports and urged their trade ministry to contest the measure. — REUTERS/KHAM

PHILIPPINE President Ferdinand R. Marcos, Jr. approved the extension of the country’s rice import ban until yearend to help stabilize farmgate prices for unmilled rice, Agriculture Secretary Francisco P. Tiu Laurel, Jr. said on Sunday.

An executive order formalizing the decision would be issued on Nov. 3, Mr. Laurel said in a statement.

“With the import ban having little impact on retail prices and supply of rice but a significant effect on the farmgate price of palay, President Marcos deemed it necessary to extend the suspension for two more months,” he added.

Palace Press Officer Clarissa A. Castro did not immediately reply to a Viber message when asked for confirmation.

The Marcos administration first imposed the import halt on Sept. 1 to counter falling palay prices ahead of the wet harvest season.

Prices briefly improved after the suspension but began easing again as the policy neared its Oct. 31 expiry.

The country is the world’s top rice importer, according to the US Department of Agriculture (USDA). However, due to the rice import ban, it lowered its 2025 forecast for Philippine rice imports to 4.9 million metric tons (MT) from 5.4 million MT.

As of August, the Philippines had already imported 2.58 million MT of rice this year, compared with 4.81 million MT in 2024.

Mr. Laurel said the extended ban, coupled with assistance to farmers and fisherfolk and the implementation of a floor price for palay, would provide continued relief to rice farmers.

Mr. Laurel said the extension will allow the government to conduct a better assessment of the ban’s impact on the market while “continuing to protect local producers from the downward pressure of cheaper imports.”

At a Senate hearing last month, the Agriculture chief cited excessive import volume, poor-quality harvest, and adverse weather as factors that drove farmgate prices lower.

The Department of Agriculture (DA) estimated that the national rice supply will remain sufficient even with a four-month import suspension.

Retail rice prices have stayed relatively stable, according to the DA’s Agribusiness and Marketing Assistance Service. By November, well-milled rice is expected to average P42 per kilo, while regular-milled varieties will hover around P40 per kilo.

Sought for comment, Roy S. Kempis, retired agriculture economics professor at the Pampanga State Agricultural University, said he supported the extension of the rice import ban.

“This allows adjustments to align with (1) the desired outcome of higher and stable farmgate prices expected by farmers, (2) the predicted farmer behavior to produce and supply more rice because of the incentive to rake in more revenues and profits at the end of each cropping given a higher and stable farmgate price regime, and (3) the clearer policy regime surrounding trade, prices, production, and supply,” Mr. Kempis said in a Viber message.

Jayson H. Cainglet, executive director of the Samahang Industriya ng Agrikultura, urged the government to restore rice import tariffs to their original levels — 35% for Association of Southeast Asian Nations (ASEAN) countries and 50% for non-ASEAN nations — and to strengthen state participation in the palay market.

He said the current 15% tariff has kept farmgate prices low by encouraging cheaper imports, undermining local producers.

Mr. Cainglet added that the rice import ban and Executive Order (EO) No. 100, which established a floor price for unmilled rice, have failed to lift palay prices to the equitable level of P18 per kilo.

He also noted that limited government procurement, covering only 2-4% of total harvest, leaves most of the market under the control of private traders and millers.

“The institutionalization of a palay floor price is a crucial reform,” he said via Viber.

“However, its success depends on the government’s capacity and commitment to buy directly from farmers at scale, ensuring that state procurement truly sets a price floor rather than a symbolic benchmark.”

On Oct. 25, Mr. Marcos signed EO 100, which established a floor price for unmilled rice to protect farmers from sharply falling farmgate prices and to promote fair returns on production.

The order mandated the DA to determine and regularly adjust the floor price based on production costs, market conditions, and regional disparities. — Chloe Mari A. Hufana

Debt service bill jumps to P328 billion in Sept.

November 3, 2025 | 12:31 am

THE NATIONAL Government’s (NG) debt service bill more than tripled in September as the government increased both amortization and interest payments, the Bureau of the Treasury (BTr) said.

The latest data from the Treasury showed that the debt service bill surged by 250% to P327.89 billion in September from P93.61 billion in the same month last year.

Month on month, the debt service bill slides by 50.67% from P664.72 billion in August.

Debt service refers to the payments made by the government on domestic and foreign borrowings.

The bulk, or 75.08% of debt payments, was made up of amortization payments, the BTr data showed.

In September, amortization payments soared by 1,146% to P246.19 billion from P19.76 billion in the same month a year ago.

This was mainly composed of principal payments on domestic debt, which sharply grew to P237.93 billion in September from P87 million in the same month last year.

Amortization paid on foreign debt plunged by 57.99% to P8.26 billion in September from P19.67 billion in 2024.

Meanwhile, interest payments stood at P81.7 billion in September, up by 10.63% from P73.85 billion a year ago.

Domestic interest payments also increased by 17.81% to P65.27 billion in September from P55.41 billion in the same month last year.

Broken down, P42 billion went to fixed-rate Treasury bonds, P19.18 billion to retail Treasury bonds, P4.04 billion to Treasury bills (T-bills) and P48 million to others.

Interest payments for foreign borrowings slipped by 10.92% to P16.43 billion in September from P18.45 billion in the same month in 2024.

“This is largely due to the large Treasury bond maturity worth P288 billion in September 2025 in terms of large principal payments of the NG,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message over the weekend.

NINE-MONTH PERIOD
The NG debt service bill stood at P1.87 trillion in the first nine months of the year, up 13.69% from P1.64 trillion in the same period last year.

The nine-month tally already accounted for 90.97% of the P2.05-trillion debt service program this year.

Amortization payments, which made up the bulk of total payments, rose by 13.43% to P1.2 trillion in the January-to-September period from P1.06 trillion. This was 99.73% of the P1.21-trillion full-year amortization program.

Principal payments on domestic debt increased by 14.4% to P1.01 trillion, while payments on external debt rose by 8.7% to P196.48 billion.

Meanwhile, interest payments grew by 14.15% to P665.85 billion as of end-September from P583.29 billion a year ago. This was 78.52% of the P848.03-billion programmed interest payments for 2025.

Interest payments on domestic debt stood at P494.39 billion, 18.24% higher than P418.13 billion in 2024.

This was made up of P334.14 billion in fixed-rate Treasury bonds, P118.89 billion in retail Treasury bonds, P34.4 billion in T-bills and others (P6.96 billion).

On the other hand, interest payments on external debt rose by 3.81% to P171.46 billion as of end-September from P165.17 billion in the same period a year ago.

In the coming months, Mr. Ricafort said no large Treasury bonds will mature in the fourth quarter, which will likely temper the debt servicing bill.

“Large Treasury bond maturity of at least P200 billion each are scheduled in February 2026 and April 2026,” he said.

The US Federal Reserve and Bangko Sentral ng Pilipinas’ cumulative rate cuts since the later part of 2024 may have helped to trim NG’s interest payments, he said.

However, this may be offset by the peso weakness against the US dollar, which could lead to higher servicing of foreign debt, Mr. Ricafort said.

The peso plunged to a record low of P59.13 per dollar on Oct. 28.

The NG debt stock fell to P17.46 trillion as of end-September but still remained above its projected P17.36-trillion ceiling by end-2025. — Aubrey Rose A. Inosante

Philippine Startup Week 2025 returns to champion Filipino innovation, entrepreneurship

November 3, 2025 | 12:10 am

The country’s largest startup gathering, Philippine Startup Week (PHSW) 2025, will take place from Nov. 10 to 14, highlighting efforts to scale Filipino innovation and support startups aiming to expand beyond local markets.

The country’s premier startup gathering, themed “Scaling Filipino Innovation: Start Local, Go Global,” will feature insights on the world-class nature of local startups and how they can seize opportunities to broaden their impact globally.

Now in its sixth year, PHSW is jointly organized by the Department of Science and Technology (DoST), Department of Trade and Industry (DTI), and Department of Information and Communications Technology (DICT). The three agencies also lead the Innovation Startup Act (ISA) Steering Committee, which coordinates national initiatives to strengthen the country’s startup ecosystem.

This year’s edition, organized with the National Development Company (NDC) and the Strategic and Collaborative Alliance for Leveraging Ecosystems of Startups-National Capital Region (SCALE NCR), will be held at the newly opened Philippine Innovation Hub in Marikina. The five-storey venue will host conferences, startup expos, community events, and partner showcases throughout the week.

PHSW 2025 will revolve around five main tracks: Discover, which focuses on exploring technopreneurship and startup creation; Collaborate, which emphasizes partnerships among stakeholders; Develop, which provides mentorship and support for scaling; Showcase, which spotlights tech startups through pitching events; and Invest, which promotes funding for high-impact ventures.

Attendees can also hear from the ISA on upcoming initiatives to strengthen the country’s startup ecosystem, and network with prominent startup enablers, champions, venture capital (VC) firms, and top startups of the country.

Philippine Startup Week 2025 is the country’s largest startup conference, dedicated to showcasing Filipino innovators who create solutions for local and global challenges. It’s the space for collaboration, connection, and inspiration.

Founders, investors, advocates, and anyone interested in exploring the Philippine startup community are invited to come.

Visit www.phstartupweek.com for more information about the event from participant registration to exhibitor, partner, and community event opportunities.

SparkUp is BusinessWorld’s multimedia brand created to inform, inspire, and empower the Philippine startups; micro, small and medium enterprises (MSMEs); and future business leaders. This section will be published every other Monday. For pitches and releases about startups, e-mail to bmbeltran@bworldonline.com (cc: abconoza@bworldonline.com). Materials sent become BW property.

Data-driven ideas take center stage at ASEAN Data Science Explorers 2025 regional finals

November 3, 2025 | 12:08 am

The ASEAN Foundation and SAP concluded the ASEAN Data Science Explorers (ASEAN DSE) 2025 Regional Finals in Kuala Lumpur, Malaysia, gathering 22 students from secondary and tertiary institutions across the 10 ASEAN member states to present data-driven solutions to regional socioeconomic challenges.

Now in its ninth year, the program encourages youth to apply data analytics to real-world issues using SAP Analytics Cloud, with this year’s projects aligned with six key Sustainable Development Goals (SDGs): Zero Hunger, Good Health and Well-being, Clean Water and Sanitation, Sustainable Cities and Communities, Responsible Consumption and Production, and Climate Action.

Team DataMinions from Lao PDR was officially named the Regional Winner of ASEAN DSE 2025 for presenting ‘Namjai Smart Water Tank,’ a device that filters and detects harmful substances in water while alerting households, NGOs, and authorities to maintain water quality. The innovation targets clean water challenges in Lao PDR, Cambodia, and the Philippines. Team Mamamamoodeng from Thailand and Team MyKXLab from Malaysia placed first and second runner-up, respectively.

Representing the Philippines, Team Sharksfin, composed of Lizzie Annika Montemayor and Val Allen Eltagonde, presented ‘HydroLink,’ a two-pronged system addressing the water crisis in Southeast Asia. The project combines a field-deployed groundwater monitoring device with a mobile application and centralized dashboards to promote better water management.

According to a 2022 ASEAN Foundation-Google study, 72.2% of underserved youth in the region have low or no advanced digital skills. The ASEAN DSE program seeks to bridge this gap by equipping young people with data literacy and analytical capabilities essential to the future job market.

Supported by the Ministry of Education Malaysia, the regional finals formed part of the ASEAN Chairmanship 2025 events. The Ministry facilitated the participation of high-level delegates from all 10 member states and emphasized the importance of fostering digital readiness among ASEAN youth for sustainable development.

“The ASEAN DSE program is a prime example of how regional collaboration can drive innovation and build critical future skills amongst our youth. Over the past nine years, the program has played a significant role in advancing digital literacy in Malaysia, impacting students and educators,” said Ybhg. Dr. Mohd. Azam Ahmad, director-general, Ministry of Education Malaysia.

Dr. Piti Srisangnam, executive director of the ASEAN Foundation, emphasized the program’s pivotal role, “The ASEAN DSE program is a key initiative to nurture young talents across our region. By providing them with digital tools and data skills they need, we empower them to think critically and innovate solutions to real-world problems, helping both their personal growth and the development of ASEAN as a whole.”

Since its launch in 2017, the ASEAN DSE program has empowered more than 111,000 young people aged 15 to 30, including those from underserved communities, and engaged over 3,300 educators across the region, with women making up 55% of the beneficiaries.

SparkUp is BusinessWorld’s multimedia brand created to inform, inspire, and empower the Philippine startups; micro, small and medium enterprises (MSMEs); and future business leaders. This section will be published every other Monday. For pitches and releases about startups, e-mail to bmbeltran@bworldonline.com (cc: abconoza@bworldonline.com). Materials sent become BW property.