THE PHILIPPINES dropped four spots in the 2025 Global Startup Ecosystem Index amid persistent gaps in infrastructure and regulations, according to global research firm StartupBlink. Read the full story.
THE PESO rebounded slightly on Tuesday as the dollar remained under pressure following the downgrade of the US’ credit rating.
The local unit closed at P55.63 per dollar, strengthening by four centavos from its P55.67 finish on Monday, Bankers Association of the Philippines data showed.
The peso opened Tuesday’s session weaker at P55.73 against the dollar, which was also its worst showing. Its intraday best was at P55.57 versus the greenback.
Dollars exchanged rose to $1.999 billion on Tuesday from $1.41 billion on Monday.
The peso rose “on mounting concerns over the US economy, still following Moody’s credit rating downgrade,” a trader said in a phone interview.
The downgrade caused the dollar to weaken against most currencies, which also supported the local unit’s recovery, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
For Wednesday, the trader expects the peso to move between P55.50 and P55.80 per dollar on Tuesday, while Mr. Ricafort said it could range from P55.55 to P55.75.
The dollar traded sideways on Tuesday after declining for a week, hemmed in by the US Federal Reserve’s caution over the economy and as US lawmakers came closer to passing a bill expected to widen the nation’s fiscal deficit, Reuters reported.
The greenback sold off broadly on Monday following last week’s downgrade of the US sovereign rating by Moody’s on deficit concerns. Now attention turns to a critical vote in Washington over US President Donald J. Trump’s sweeping tax cuts.
Mr. Trump was expected to join the congressional debate over his tax bill on Tuesday. The vote comes after Moody’s stripped the US government of its top-tier credit rating, citing concerns over the nation’s growing $36.2-trillion debt pile.
Mr. Trump’s bill would add $3 trillion to $5 trillion to the debt, according to nonpartisan analysts. Ballooning fiscal debt, trade frictions, and weakened confidence about enduring US exceptionalism have weighed on US assets. The US dollar index has tumbled as much as 10.6% from its January highs, one of the sharpest retreats for a three-month period.
The dollar got a breather after Mr. Trump paused many of the largest tariffs he announced last month. But comments from Japan’s top trade envoy on Tuesday that Tokyo was firm in its anti-tariff stance pointed to no easy off-ramp in the negotiations in the weeks and months ahead.
And in the wake of Mr Trump’s tariff turmoil, Britain on Monday agreed to the most significant reset of defense and trade ties with the European Union since Brexit.
The greenback was little changed at 144.75 yen after touching 144.66 on Monday that was the weakest since May 8. The dollar index slid 0.1% after losing 0.6% in the previous session. — A.M.C. Sy with Reuters
PHILIPPINE STOCKS slid further on Tuesday, with the main index falling to the 6,300 level, following weak data on the country’s external position and amid heightened cautiousness after Moody’s cut the United States’ credit rating.
The bellwether Philippine Stock Exchange index (PSEi) fell by 1.85% or 119.51 points to close at 6,335.33, while the broader all shares index dropped by 1.19% or 45.09 points to 3,720.57.
This was the PSEi’s lowest close in three weeks or since its 6,252.19 finish on April 29. The index has now ended in the red for five consecutive sessions.
“The local market plunged as investors dealt with the further widening of the Philippines’ balance of payments (BoP) deficit last April, which hit $5.52 billion,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. “Investors also digested the 10% drop in new vehicle sales in the Philippines, taking it as a sign of challenged consumption in the country.”
The Bangko Sentral ng Pilipinas said on Monday that the country’s BoP deficit widened to $2.56 billion in April from the $639-million gap in the same period last year and the $1.97-billion shortfall in March as the government paid back its external debt.
For the first four months, the country’s external position was at a $5.52-billion deficit, wider than the $401-million gap last year.
“Philippine shares extended their decline as investors grew more wary, opting to scale back their holdings after initial optimism waned following Moody’s US downgrade,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
On Friday, Moody’s lowered the US sovereign credit rating to “Aa1” from “Aaa” amid concerns over the country’s growing $36-trillion outstanding debt.
Asian stocks rose on Tuesday as investors took stock of the debt load of the world’s biggest economy and awaited trade deals, Reuters reported. MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.33% higher, hovering near the seven-month high touched last week.
All sectoral indices closed lower on Tuesday. Services sank by 2.2% or 47.54 points to 2,107.80; financials went down by 1.98% or 47.66 points to 2,350.33; holding firms declined by 1.83% or 100.21 points to 5,375.35; mining and oil shed 1.64% or 151.05 points to end at 9,033.68; property retreated by 0.98% or 22.41 points to 2,249.85; and industrials decreased by 0.47% or 43.54 points to 9,037.10.
“LT Group, Inc. was the day’s index leader, climbing 1.14% to P12.46. International Container Terminal Services, Inc. was the day’s worst index performer, dropping 3.85% to P400,” Mr. Tantiangco said.
Value turnover went up to P7.32 billion on Tuesday with 1.35 billion shares traded from the P6.19 billion with 755.08 million issues exchanged on Monday.
Decliners overwhelmed advancers, 126 versus 62, while 55 names closed unchanged.
Net foreign selling grew to P886.21 million on Tuesday from P223.77 million on Monday. — Revin Mikhael D. Ochave
THE Department of Agriculture (DA) said it is considering setting floor prices for traders buying palay (unmilled rice) from farmers.
The scheme, modeled after practices in Indonesia and Thailand, will encourage farmers to plant rice in the next cropping season, Agriculture Assistant Secretary Arnel V. de Mesa told reporters.
“If our farmers are assured that their harvests will be sold profitably, they will be encouraged to plant more in the next cropping season,” he said.
The DA is currently tracking areas where farmgate prices are unusually low, with traders enjoying leverage over farmers because they control milling, storage, and transport. Competition from cheaper imported rice is also forcing them to hedge against being stuck with expensive inventories of domestic rice.
Mr. De Mesa said the DA is studying the Price Act, the Anti-Agricultural Economic Sabotage Act, and other laws that could serve as the legal basis for imposing such a floor price.
The department said earlier this week that it was looking into reports that traders are paying farmers as little as P13 per kilo for their palay in Luzon.
The buying price set by the National Food Authority is between P18 and P24 per kilo for clean and dry palay.
The government projects a 24.4 million metric-ton (MMT) palay harvest this year due to favorable weather.
The volume of palay production rose to 4.7 MMT in the three months to March, from 4.69 MMT a year earlier.
The government is currently selling subsidized rice at P20 per kilo to vulnerable segments of society like the poor and persons with disabilities. Mr. De Mesa said the program will be expanded to lower middle-income families, with the government planning to observe its impact on farmgate and retail prices. — Kyle Aristophere T. Atienza
THE Philippine Statistics Authority (PSA) said recent reports on illiteracy levels of high school graduates are inaccurate, and clarified that the correct number is 5.58 million 2024 graduates that are “basically literate but not functionally literate.”
It was responding to reports that 19 million graduates are “functionally illiterate,” saying that it reported no such statistic.
“The PSA has no report, in any form, stating that the estimated number of functionally illiterate high school graduates and junior high school completers is 19 million,” it said, citing the results of its 2024 Functional Literacy, Education, and Mass Media Survey.
The PSA said the “not functionally literate” category, which had been misreported as “functionally illiterate,” covers graduates who can read, write, and compute only.
It said the 19 million figure reported referred to “basically literate but not functionally literate” individuals ages 10 to 64 years old regardless of highest grade completed — not high school and junior high school graduates only.
The estimated number of “not functionally literate” high school graduates, including junior high school completers aged 10 to 64 years is 6.45 million in 2024, it said.
Meanwhile, the “not functionally literate” population between 10 and 64 years old, regardless of highest grade completed, is estimated at 24.83 million.
In the report, the PSA said among persons for ages five years old and over, 6.9% cannot read and write and can be classified as illiterate. — Aubrey Rose A. Inosante
THE outcome of the midterm elections reflects general dissatisfaction with President Ferdinand R. Marcos, Jr.’s handling of the economy, GlobalSource said.
Voters took issue mainly with high food prices and swelling debt, according to a report by GlobalSource Country Analysts Diwa C. Guinigundo and Wilhelmina C. Mañalac.
“What is also significant in the outcome of this midterm election is that the electorate seems to be showing its general dissatisfaction, especially with the economic management of the Marcos administration,” they said.
“While inflation continues its downtrend, prices remain elevated, especially for food products.”
They added that the downtrend may not be sustainable as it was achieved “by extending a food subsidy, which will only be in effect for a few months, and by reducing tariff duties on rice imports, obviously for political reasons.”
Headline inflation slowed to 1.4% in April from 1.8% in March and 3.8% a year earlier. This brought average inflation in the first four months to 2%.
In June, Executive Order 62 slashed rice import tariffs to 15% from 35% until 2028.
Mr. Guinigundo and Ms. Mañalac also noted the debt situation, which stood at P16.68 trillion at the end of March.
Philippine debt as a share of gross domestic product rose to 62% at the end of the first quarter, the highest in 20 years.
“President BBM will have to outdo himself and focus more on building a legacy of good economic, political and social governance by pursuing strategic policy and structural reforms in order to invest the Philippine economy with greater potential and resiliency,” they said. — Aubrey Rose A. Inosante
TRADE between the European Union (EU) and the Philippines grew 3.8% in 2024 to 16.8 billion euros, the EU Delegation to the Philippines said.
Philipp Dupuis, minister counselor and head of the economic and trade section of the EU Delegation, said: “EU imports from the Philippines grew 3.1% to 9.1 billion euros. EU exports to the Philippines increased 4.7% to 7.7 billion euros,” he said in an e-mail.
“Electronic products remain the main export of the Philippines to the EU in terms of value at 6.3 billion euros in 2024. The majority of these products enjoy a most favored nation (MFN) rate of 0%,” he added.
Philippine exports to the EU include 2.8 billion euros worth of goods admitted under the EU Generalized Scheme of Preferences Plus (GSP+) scheme.
“This brings the Philippines’ GSP+ utilization rate to a record high of 80% in 2024,” he added.
He said that the Philippine exports that benefited from GSP+ accounted for 25% of the country’s total exports to the bloc.
“The main beneficiaries are the agri-food, chemicals, and footwear sectors,” he added.
The Philippines participates in the GSP+ scheme, a special incentive arrangement for low and lower middle-income countries, under which over 6,000 Philippine products are admitted duty-free.
The Philippines will lose its EU GSP+ eligibility once it reaches upper middle-income status and maintains it for three consecutive years. The government is hoping to achieve upper middle-income status next year.
The Philippines and the EU are negotiating a free trade agreement (FTA), which is set to improve on the market access provided under GSP+.
The parties are set to hold a third round of negotiations for the FTA next month. — Justine Irish D. Tabile
THE Department of Transportation (DoTr) will once more bid out the contract to build the common station for Metro Manila’s commuter railways, with a public-private partnership (PPP) under consideration.
“We are looking for other modes of procurement. We can do this through bidding, but we can also do this via PPP. We are now assessing how we can do this,” Transportation Secretary Vivencio B. Dizon told reporters on Tuesday.
Last week, the DoTr issued a notice of termination to the contractors of the Unified Grand Central Station at North Avenue-EDSA, Quezon City, also known as the common station for the Metro Rail Transit (MRT) and Light Rail Transit (LRT) lines and the Metro Manila Subway.
The contractors — BF Corp. and Foresight Development and Surveying Co. (BFC-FDSC) were terminated due to excessive delays, the DoTr said.
“For now, we are looking at PPP because it would be the fastest,” Mr. Dizon said.
The BFC-FDSC consortium signed a P2.8-billion agreement with the government in 2019 for the construction of Area A of the Unified Grand Central Station project.
The project aims to link Metro Manila’s main commuter rail lines, including LRT-1, MRT-3, MRT-7, and eventually the Metro Manila Subway.
The project was initially targeted for completion in the first quarter of 2021. It was designed to have three sections, each built separately: Area A by BFC-FDSC, Area B by Ayala Corp., and Area C by San Miguel Corp., the concessionaire for the MRT-7 project.
Mr. Dizon said the DoTr is now hoping to complete the common station project by early 2027, in line with the target completion of MRT-7 which is projected to start full operations by 2026.
Foresight Development and Surveying Co. was formerly registered with the Securities and Exchange Commission on March 25, 1997, as Foresight Surveying Co., with a primary focus on surveying and related geodetic engineering services.
Meanwhile, BF Corp., founded by former Metropolitan Manila Development Authority Chairman Bayani F. Fernando, is primarily engaged in general construction and engineering.
The DoTr is also studying the possibility of imposing penalties against the joint-venture company over the delays, Mr. Dizon said, adding that the department is not yet studying the possibility of filing charges against the contractor.
“What we are discussing right now are the financial obligations,” Mr. Dizon said.
Asked to comment, the BF-FSDC consortium said it had complied with its contractual obligations and delivered all the engineering work for the project, but experienced payment delays.
“The undue and habitual delays in payment of quality work forced BF-FSDC consortium to stop work, since 2024; otherwise, its financial standing and quality reputation would be severely impaired… The work stoppage was solely due to DoTr’s prolonged non-payment of completed work,” it said. — Ashley Erika O. Jose
EAST ZONE concessionaire Manila Water Co., Inc. said it is hoping to complete a wastewater recovery project at its Cardona treatment plant in Rizal by September.
“The wastewater recovery project at the Cardona Treatment Plant does not only enhance our efficiency and reduces costs but also plays a crucial role in minimizing environmental impact,” Manila Water Communications Affairs Group Director Jeric T. Sevilla said in a statement on Tuesday.
The P13-million improvement involves the installation of a 200-millimeter diameter high-density polyethylene (HDPE) pipeline with concrete encasement, as well as a 110-millimeter diameter HDPE pipeline.
A key component of the project is the supply and installation of four 7.5-kilowatt submersible pumps with a capacity of 1.5 million liters per day (MLD), new wastewater recovery pumps, valves, and other equipment.
Manila Water said these elements are “crucial for the efficient handling and transportation of brine wastewater during treatment.”
Upon completion of the project, the improved facility will treat and reuse over 6 MLD of brine wastewater.
The company said advanced automation systems will streamline operations, reduce costs, improve treatment performance, and mitigate environmental impact.
The Cardona water treatment plant currently yields 100 MLD of potable treated water drawn from Laguna de Bay. It distributes potable water to a service area with a population of about 800,000.
Manila Water provides water supply, wastewater, and sanitation services to over 7.3 million customers in 23 cities and municipalities in the east zone of Metro Manila, as well as Rizal province.
Outside the east zone, Manila Water operates in Laguna, Clark, and Boracay. — Sheldeen Joy Talavera
THE Philippine Fiber Industry Development Authority (PhilFida) said on Tuesday that it is in talks with the Bangko Sentral ng Pilipinas (BSP) for the use of abaca fiber in banknotes.
“We are now working together to restore the use of abaca fiber in bills,” PhilFida Executive Director Arnold I. Atienza said on government radio.
He said the initial talks centered on the process of “liquefying” abaca fiber for use in the production of polymer bills.
“PhilFida has the capacity to do it,” he said.
Polymer notes were introduced in April 2022. They are produced by melting and forming plastic pellets into sheets.
The Department of Agriculture (DA) in April said it was seeking a reversal of a central bank decision halting the use of abaca fiber in banknotes, “given the impact this decision has on the livelihoods of millions who rely on the abaca industry.”
The DA also urged the Department of Foreign Affairs to use abaca fiber in passports, and asked other government agencies to consider using abaca in official documents.”
Mr. Atienza said the BSP is “interested” in the proposal if the abaca can be liquefied for use in the polymer notes.
Abaca, also known as Manila hemp, is indigenous to the Philippines, which accounted for 86% of the global supply in 2023.
The abaca industry generated an average annual export revenue of $139.2 million between 2013 and 2024, with 18% generated by raw fiber and 82% by manufactured products, including pulp.
Abaca production fell to about 40,000 metric tons (MT) in 2024, from 61,100 MT in 2023. — Kyle Aristophere T. Atienza
THE Department of Budget and Management (DBM) said economic managers will meet on May 26 to set the budget ceiling for 2026 after government agencies submitted spending proposals of as much as P11 trillion.
In a statement on Tuesday, the DBM said the Development Budget Coordination Committee, chaired by Budget Secretary Amenah F. Pangandaman, will set the spending cap after considering revenue projections by the Department of Finance, Bureau of Internal Revenue, and Bureau of Customs.
Afterwards, economic managers will meet with the President to review key projects, especially those identified as administration priorities.
The DBM has said that government agencies’ budget proposals of about P11 trillion, far exceeding the record P6.325-trillion budget for 2025.
It said officials are still deliberating on which of the spending proposals will be designated Tier 2, which consists of new spending, to be funded only if there is available fiscal space. The Tier-1 category represents ongoing spending, which the government is already committed to fund.
In 2026, the overall National Expenditure Program is expected to hit a record P6.793 trillion, up 7.38%.
Ms. Pangandaman said President Ferdinand R. Marcos, Jr. could join the bicameral deliberations to supervise the drafting of the 2026 national spending plan.
“If it is necessary for him to sit in the Bicam, our President will sit in the Bicam,” Ms. Pangandaman said in a statement on Tuesday.
It is unclear whether the Chief Executive is constitutionally authorized to participate in a Congressional proceeding, though it could reflect the government’s longstanding concerns about eventually getting a budget that is in line with its priorities.
“In fact, bago mag-eleksyon may mga bilin po siya. Uupuan po namin lagi ’yan hanggang sa dulo po (Even before the election the President has been advising us to oversee the budget process to the end),” she said. — Aubrey Rose A. Inosante
APPROVED building permits rose 3.4% in March, arresting a run of three straight months of declines, the Philippine Statistics Authority (PSA) reported on Tuesday.
The March reading was a turnaround from the 10.6% decline a year earlier and the revised 0.7% drop in February.
The 3.4% outcome was the strongest since the 10.7% reading posted in November.
Citing preliminary data, the PSA said building projects covered by the permits numbered 14,973 in March, against 14,477 a year earlier.
Construction projects represented by the permits were valued at P47.50 billion, up 20.9% from a year earlier.
Permits for residential projects, which accounted for 63% of the total, declined 0.2% to 9,426 in March.
These projects were valued at P17.88 billion, against the P17.37 billion a year earlier.
Single homes made up 87.8% of the residential category with approved permits rising 1.3% to 8,272.
Applications for apartment buildings contracted 11.7% to 1,027 while applications for duplex or quadruplex homes were up by 3.9% at 106.
In March, nonresidential projects tallied 3,329 approvals, increasing 2.1% from a year earlier.
Nonresidential permits were valued at P22.48 billion, up 25.7%.
Approved commercial construction permits numbered 2,321, up 0.5%.
Agricultural projects totaled 98 approvals, up 3.2%, while other nonresidential works accounted for 94 building permit approvals, up 19%.
Industrial permits rose 26% to 305, while institutional projects fell 4.8% to 511 approvals.
Permits for additions climbed 35.9% to 587 in March, while alteration and repair permits totaled 1,201, up 17.6%.
Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) accounted 25.4% of the total approved construction projects with 3,796 permits, followed by Central Luzon (1,752) and the Ilocos Region (1,204).
Construction projects in the National Capital Region were valued at P11.46 billion, followed by Calabarzon (P9.86 billion), and Central Luzon (P6.18 billion).
John Paolo R. Rivera, senior research fellow at the Philippine Institute of Development Studies, said via Viber that the rebound in approved building permits for March likely reflects both seasonal and cyclical factors.
“March is typically the start of peak construction activity as the dry season sets in, enabling builders and developers to accelerate or resume projects that may have been delayed in the previous months due to weather-related constraints,” he said.
Mr. Rivera added that “the uptick may also be a sign of renewed confidence in the property and construction sectors as inflation has started to ease and interest rate hikes have paused, giving developers a bit more clarity in planning capital expenditures.” — John Phoebus G. Villanueva
