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EastWest Bank expects 10-15% loan growth

PHILSTAR FILE PHOTO

EAST WEST Banking Corp. (EastWest Bank) expects its loan portfolio to grow between 10% and 15% this year, backed by the strength of its consumer business and despite weakening business sentiment amid domestic corruption concerns.

“A good performing bank on the consumer market needs to grow at a regular pace over time. That’s what we’re trying to achieve. Maybe 10% to 15% is what we’re targeting; in between is probably most likely. So, consumer demand in the country is still okay. My biggest fear is that, again, from a macro perspective, it’s government spending, investments, consumer, net flows, import, export,” EastWest Bank Chief Executive Officer Jerry G. Ngo told reporters on Tuesday.

“And I hope that consumption continues to be robust, because that’s really what’s going to end up driving economic growth.”

As of end-June, EastWest Bank’s loans and receivables stood at P351.41 billion, up by 4.46% from P336.41 billion at end-2024.

Its consumer loans grew by 15% year on year in the first half to P298 billion, making up 84% of its total loan portfolio, Mr. Ngo earlier said.

He said last week that they hope to post steady loan growth in the coming years.

“We continue to be hopeful. Long term, we’ve been looking at low- to mid-teens growth. Actually, right now, we’re probably looking at 10% to 15% ranges of overall growth. And what we want to do is, across the cycle, we want to keep that type of growth.”

Mr. Ngo added that the bank has a low exposure to the expected economic drag from the corruption mess involving state flood control and infrastructure projects amid its consumer-centric lending business.

However, he noted that foreign investors have been harder to attract due to the scandal.

“[Exposure] is very limited because we rely on consumption… [But] the reality is, we will be affected [because] it affects the entire economy. And it’s quite sad, particularly if I speak to foreign investors. Before you even start the conversation, that’s the first thing they ask. So, it’s a bit challenging.”

Meanwhile, Mr. Ngo said they also want to expand their lending to the small and medium enterprise (SME) segment.

“The country’s demographic age is 26 years old, median. At 26 years old, we will consume. And what I always look out for is the employment rate. One of the key things that we’re trying to do is to spur people to do your own business… And I think that’s what we should be doing to really make sure that the country expands that base,” he said.

The bank last week launched its BizAccess Visa Debit card, which caters to SMEs.

Mr. Ngo added that lending growth will be supported by lower interest rates amid the central bank’s easing cycle.

“I think additional rate cuts would boost consumption. We just need to watch the foreign exchange (FX). But the US is cutting rates also, and I know that it is not because of the rate cut that the FX is low. The currency should start appreciating because the inflows should be coming in,” he said.

The peso last week recorded a new all-time low of P59.13 against the dollar, surpassing the previous record of P59 logged on Dec. 19, 2024.

EastWest Bank booked attributable net earnings of P2.3 billion in the second quarter, bringing its first-semester profit to P4.13 billion, rising from P3.49 billion in the comparable year-ago period. — A.M.C. Sy

Thoughtful gift-giving: How to avoid wasteful generosity

STOCK PHOTO | Image by Jcomp from Freepik

By Leo Jaymar Uy

WE’VE BEEN giving gifts for as long as we can remember. Beyond a simple gesture, it’s how we say thanks, celebrate milestones, or sometimes, win someone over.

In the case of acquaintances and colleagues, the gifts tend to be low stakes and more practical. Food packs, organizers, towels, and coin purses are some of the common (and safe) choices. In contrast, gifts exchanged among loved ones invite more variety. The assumption is that we know each other well enough to tailor presents to actual needs or preferences, raising emotional stakes.

Viewed through this lens, gifts function as a “social currency” of sorts. They act as proxies for understanding, signaling attention and emotional fluency in ways that words often can’t.

And yet, how do we know if a gift truly lands?

Economist Joel Waldfogel attempted to quantify this dynamic in his 1993 paper “The Deadweight Loss of Christmas”* wherein he essentially argued that gift-giving often results in a “deadweight loss” (a loss of economic efficiency) because recipients typically value gifts less than what givers paid for them. In his paper, he surveyed students to estimate how much they would be willing to pay for gifts they received, and then compare these valuations to the actual prices paid by gift-givers, barring sentimental value.

The results appear to be intuitive and rather unsurprising. On the one hand, gifts from close friends and romantic partners tended to perform better, that is, the perceived value of the gifts approximates the actual cost of the gifts paid for. On the other hand, gifts from extended family members or distant acquaintances missed the mark, reflecting a huge gap and thus sizeable loss of perceived value. Overall, he estimated that between a tenth and a third of the value of holiday gifts is destroyed by gift-giving.

Waldfogel revisited the topic in his 2009 book Scroogenomics: Why You Shouldn’t Buy Presents for the Holidays wherein he reiterated his critique of holiday gift-giving, but also conceded thoughtful gifts can rival or even exceed the value of items that would have otherwise been bought by the recipients themselves. Thus, he proposed alternatives such as charitable donations and gift cards believing they minimize waste and better match preferences while also retaining the spirit of giving.

Over time, the way we give gifts has changed. More people now opt for digital or experience-based presents such as e-wallet credits, mobile load, store vouchers, or travel perks. These choices offer convenience and a personal touch, while avoiding the discomfort that sometimes comes with handing over cash (unless you are a five-year old waiting for that crisp P1,000 bill from your rich uncle).

Regardless of the format, the intent of giving a gift that resonates remains. Thus, even with the best intentions, the activity may still end up being wasteful. Some items end up getting re-gifted or tucked away unused, while others are used out of obligation to perform gratitude (“I haven’t seen you wear the shirt I gave you.”) or to exercise polite restraint (“These cookies are… experimental”). In these cases, the gift shifts from a gesture of care to a burden. What was meant to signal closeness or at least offer utility, ends up being a cost to the recipient (through that burden) and to the giver (through the actual expense).

So how do we give with intention? Here are some suggestions that might help:

• Think about what they actually need. Self-explanatory.

• Listen for hints. Even throwaway comments can reveal more about one’s preferences.

• Gift cards aren’t lazy if they’re thoughtful. Just make sure they match the person’s interests. If she loves books, go for a bookstore voucher. If he’s into gaming, grab credits for his favorite platform. If they’re into nothing, then go full tito mode and get a handkerchief — classic, safe, and says “I tried.”

• Food still works. A favorite snack, a nostalgic treat, or a curated basket can hit the right note. Comforting, personal, easy to enjoy.

• Just ask. A quick chat or a shared wish list can save everyone the guesswork. Sites like elfster make it easy. Even a Google Sheet does the trick.

• Show up. Visit your parents. Message that friend. As the cliché goes, presence may be the best present (an easy out for the “gift-averse,” but one that still works)

Bottomline: A well-chosen gift, whether it meets a need, strengthens a bond, or simply spreads holiday cheer, can carry more weight than its price tag suggests. In a season often marked by excess, it is intention that gives a gift its meaning. That is the real return on investment.

*Waldfogel, J. (1993). “The deadweight loss of Christmas.” The American Economic Review, 83(5), 1328–1336.

 

Leo Jaymar Uy was research head at BusinessWorld from 2017 to 2021 and currently works in finance. He enjoys video games, collects obscure but oddly satisfying trivia, and occasionally thinks about the Roman Empire.

Style (11/03/25)

Montblanc releases new Meisterstücks

SUNSET is captured in two new iterations of Montblanc’s Meisterstück: the Meisterstück Golden Hour Solitaire and the Meisterstück Burgundy Red collection, both bringing to life the hues of the setting sun. The metal cap and barrel of the Meisterstück Golden Hour Solitaire feature an engraved hexagon pattern covered by translucent burgundy red lacquer and finished with signature gold-coated fittings. This hexagon pattern decorates the fountain pen’s handcrafted solid Au 750 gold nib, completed with a signature gold coating. On the cap top, the Montblanc emblem crowns the writing instrument. The Meisterstück Golden Hour Solitaire is available in the LeGrand size as a fountain pen, rollerball, and ballpoint. The hues of the golden hour are also captured in the Meisterstück Burgundy Red collection, which presents the Meisterstück form in a deep burgundy-colored resin. The new colorway is available as a fountain pen featuring a handcrafted, bi-color solid Au 585 gold nib, rollerball, and ballpoint in a variety of sizes. Montblanc is available at Rustan’s Makati, Rustan’s Shangri-La, Rustan’s Cebu, Greenbelt 5, and Solaire Resort Entertainment City. For more information, visit Rustans.com.

Dyson releases new Airwrap Co-anda 2x

UNLOCK next-level styling with the new Dyson Airwrap Co-anda 2x multi-styler and dryer, powered by Dyson’s fastest and most powerful hair care motor, the Hyperdymium 2 motor. The supercharged motor delivers twice the air pressure to wrap hair more easily, dries hair as fast as a full performance hair dryer, and creates sleek, straight looks. The Dyson Airwrap Co-anda 2x offers six-in-one versatility to reveal styling possibilities: dry, curl, wave, straighten, smooth, and volumize, with no heat damage. New Radio-Frequency Identification (RFID) enabled attachments automatically adjust to styling needs, and deliver results for all hair types. When connected to the MyDyson app, users can enjoy curling with one-touch i.d. curl technology, a curling sequence customized to the user. Dyson has made the Airwrap2x smaller and lighter in hand for improved maneuverability and control. Styling attachments have been engineered for the Airwrap2x multi-styler. In the Philippines, the Straight+Wavy set is available and comes with six attachments in a Dyson-designed presentation case. These are the 30mm Co-anda 2x curling barrel, 40mm Co-anda 2x curling barrel, Anti-snag loop brush 2x, Round volumizing brush 2x, AirSmooth2x attachment, Fast dryer 2x. The Dyson Airwrap Co-anda 2x multi-styler and dryer is available in the Ceramic Pink and Jasper Plum colorways this month, priced at P38,900. For more information, visit https://www.dyson.ph/.

Filipino students showcase tech-driven business solutions at 51st Philippine Business Conference and Expo

The Byte Forward Hackathon 2025 concluded with a showcase of innovation and collaboration as young Filipino students competed in the Grand Finals held during the 51st Philippine Business Conference and Expo (PBC&E) at the SMX Convention Center.

Organized by Converge ICT Solutions, Inc. and Rev21 Labs, under the auspices of the Philippine Chamber of Commerce and Industry (PCCI), the nationwide hackathon brought together Filipino tech talent from across the country to develop digital solutions that address real-world business challenges. From 200 participants across five regional rounds, 15 finalists advanced to the national stage to showcase how Filipino creativity and technology can shape a smarter, more connected future.

“In launching the Hackathon, we wanted to partner with the largest economic force in the country — our SMEs. They drive so much of our economy and we believe that once we connect these businesses to strong digital infrastructure, they’ll have the power to ideate, build, and innovate. Over the last six months, through our partnership with PCCI, we’ve seen this play out. We took real business challenges from SMEs across the country and gave them to students — and the ideas that came back were nothing short of inspiring,” Rev 21 CEO Ron Puno said.

After intensive rounds of pitching and live demos, Team TECHMEHOW2DOUGIE from De La Salle University Manila emerged as the Grand Winner for their project ‘Caya,’ an AI-powered inventory assistant that helps small business owners make smarter restocking decisions. When an item runs out of stock, Caya automatically evaluates its profitability, negotiates with suppliers and initiates restocking, or recommends reducing or discontinuing purchases, turning complex business data into clear, actionable insights for entrepreneurs.

Second place went to Team K-MAS from the University of the Philippines — Mindanao, while Team CABUYAO from the University of Cabuyao placed third. Each team presented forward-thinking projects that demonstrated the vast potential of Filipino tech talent to create real impact through technology.

Beyond the competition, the hackathon featured workshops, mentorship sessions, and networking opportunities designed to sharpen participants’ skills and connect them with industry professionals. It also served as a platform for collaboration between students, tech experts, and business leaders to turn innovative ideas into impactful solutions.

“The Byte Forward Hackathon reflects our belief that Filipino innovators have the creativity and drive to transform communities through technology. By supporting programs like this, we’re helping bridge digital gaps and empowering the next generation to lead in the country’s digital transformation,” said Converge CEO and 51st PBC&E Chairman Dennis Anthony Uy.

The event was supported by the Department of Trade and Industry (DTI) and the PCCI, further solidifying the collaborative ecosystem driving digital innovation in the Philippines.

“Empowering young developers to build real solutions not only strengthens local businesses but also supports our shared goal of inclusive, technology-driven growth. This kind of collaboration is what truly moves the nation forward,” added Consul Enunina V. Mangio, PCCI president.

The Byte Forward Hackathon is part of Converge SME Solutions’ initiatives to strengthen the country’s tech ecosystem by providing platforms that inspire innovation, encourage collaboration, and develop digital solutions aligned with the government’s digitalization goals.

 

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.

Cebu Pacific adds Airbus A330neo to domestic fleet

CEBUPACIFICAIR.COM

CEBU PACIFIC, the Philippines’ largest budget carrier, has expanded its wide-body fleet with the arrival of its 13th Airbus A330neo aircraft, part of efforts to boost capacity on key domestic routes.

“Being the largest A330neo operator in Asia reflects our strong commitment to enhancing connectivity across the region,” Cebu Air, Inc. Chief Commercial Officer Alexander G. Lao said in a statement on Sunday. “This aircraft enables us to serve more passengers while keeping costs low, which is a key part of our mission to offer affordable fares.”

The 459-seater aircraft — the third of four A330neos expected to arrive this year — will begin serving Manila-Puerto Princesa flights on Nov. 2, operating four times weekly. It will also be deployed on the Manila-Bohol route starting Nov. 16, with daily operations.

The A330neo is Airbus’ latest-generation widebody jet, designed for improved fuel efficiency and compatibility with sustainable aviation fuel. All Airbus aircraft are certified to operate with up to a 50% sustainable fuel blend, aligning with Cebu Pacific’s sustainability goals.

“The arrival of a widebody A330neo in Puerto Princesa is a testament to how far our regional airports have advanced in terms of readiness and operational standards,” Civil Aviation Authority of the Philippines Director General Raul L. Del Rosario said in the statement.

Cebu Pacific last week said it had signed a lease agreement with Bulgaria Air for two Airbus A320ceo aircraft to serve domestic routes between Manila and Cebu, Davao, Iloilo and Cagayan de Oro from December 2025 to January 2026.

The airline flies to 37 domestic and 26 international destinations across Asia, Australia and the Middle East. — Ashley Erika O. Jose

Peso may move sideways before data

BW FILE PHOTO

THE PESO could move sideways against the dollar this week before the release of October Philippine inflation data.

On Thursday, the local unit closed at P58.85 versus the greenback, dropping by 16 centavos from its P58.69 finish on Wednesday, Bankers Association of the Philippines data showed.

Philippine financial markets were closed on Oct. 31 for a holiday.

Week on week, the peso fell by 22.5 centavos from its P58.625 per dollar close on Oct. 24.

For this week, the market could take cues from the October consumer price index (CPI) report to be released on Wednesday (Nov. 5), a trader said in a phone interview.

A BusinessWorld poll of 17 analysts yielded a median estimate of 1.8% for the October CPI, within the central bank’s 1.4-2.2% forecast for the month.

If realized, headline inflation would have picked up slightly from the 1.7% clip in September but slowed from the 2.3% seen in the same month last year.

This would also be the fastest print in eight months or since the 2.1% logged in February.

Still, this would be the eighth month in a row that inflation was below the Bangko Sentral ng Pilipinas’ (BSP) annual 2-4% target.

The market could also react to the European Central Bank’s (ECB) latest policy decision, the trader added.

The ECB kept interest rates unchanged at 2% for the third meeting in a row on Thursday and repeated that policy was in a “good place” as economic risks recede and the euro zone shows continued resilience in the face of uncertainty, Reuters reported.

The ECB has been on hold since cutting rates by a total of 2 percentage points in the year to June. A sanguine assessment from ECB President Christine Lagarde indicates the central bank is in no hurry to change policy, although sources suggest the debate may heat up at its next meeting in December.

Ms. Lagarde argued that Europe’s trade deal with the United States, the Gaza ceasefire and Thursday’s agreement between US President Donald J. Trump and China’s Xi Jinping to trim tariffs had all mitigated downside risks to growth.

“From a monetary policy point of view, we are in a good place,” Ms. Lagarde told a press conference. “Is it a fixed good place? No. But we will do whatever is needed to make sure that we stay in a good place.”

While growth across the 20 countries that use the euro is not spectacular, Ms. Lagarde said she would not complain about the currency bloc’s 0.2% expansion rate in the third quarter, which beat both market and ECB projections.

But while growth risks have abated, she said, the same could not be said for inflation, which the ECB expects to undershoot the target next year. “I think on that front, it’s a more balanced picture,” Ms. Lagarde said.

The ECB will publish its first set of projections for 2028 in December and some policymakers think that clear evidence pointing to a continued undershooting in inflation that year would justify debating a rate cut at the meeting, four sources told Reuters.

But others argued that long-term projections should be taken with a pinch of salt, given their track record, and in any case, a modest undershooting of just 20 basis points (bps) or 30 bps can be tolerated, the sources added.

Financial investors did not materially alter their view on the policy outlook and still see a 40% to 50% chance of one last rate cut by the middle of next year.

Meanwhile, the peso could be supported by the seasonal increase in remittances to finance holiday-related spending, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The trader sees the peso moving between P58.50 and P59 per dollar this week, while Mr. Ricafort expects it to range from P58.60 to P59.10. — AMCS with Reuters

NASA to Kim Kardashian: We’ve been to the moon six times

KIM KARDASHIAN attends the Baby2Baby gala at Pacific Design Center in West Hollywood, California, US, Nov. 12. — REUTERS

IN A TESTAMENT to Kim Kardashian’s power to grab the spotlight, the head of NASA felt compelled to set the record straight when the reality TV queen said she believed a well-worn conspiracy theory that the 1969 Apollo 11 moon landing was a fake.

In a new episode of Hulu’s long-running family saga The Kardashians, the show’s star said she thinks the lunar landing by astronauts Neil Armstrong and Buzz Aldrin was a fiction.

What convinced her, she said during the segment, was a video she saw online of an Aldrin interview. She said she interpreted his comments in that interview to mean the moon landing never occurred.

Since the 1970s, skeptics have floated the notion that the mission — viewed live by tens of millions of people around the world — was actually staged.

That theory has waxed and waned over the years, but Sean Duffy, US Transportation Secretary and NASA’s acting administrator, wasted no time in shooting it down after Ms. Kardashian told her 4 million viewers that she was embracing the idea.

“Yes, @KimKardashian, we’ve been to the Moon before … 6 times!” Mr. Duffy wrote on Thursday on the X social media platform.

In fact, he said, the US was going back to the moon under the leadership of President Donald J. Trump. In 2026, the Artemis II mission is scheduled to send astronauts on a 10-day trip around the moon, ahead of a planned moon landing in 2027.

“We won the last space race and we will win this one too,” Mr. Duffy wrote.

Ms. Kardashian referenced a video in which Mr. Aldrin, now 95, was asked what was the “scariest moment” during the Apollo mission. Reading from her phone, Ms. Kardashian quoted Mr. Aldrin as saying: “There was no scary moment, because it didn’t happen.”

The reality star then said: “So I think it didn’t happen.”

Mr. Aldrin’s remarks appear to have been taken out of context from a 2015 onstage appearance at Britain’s Oxford Union debating society.

During the event, Mr. Aldrin was asked by someone in the audience, “What was the scariest moment of the journey?”

He hesitated and said, “The scariest?” throwing up his hands as if to dismiss the notion. “It didn’t happen. It could have been scary,” he said, suggesting that nothing frightening happened.

Then someone in the audience asked him about a faulty circuit breaker, and he proceeded to describe a technical problem that arose during the mission.

A spokesperson for NASA could not immediately be reached to elaborate on the story. A spokesperson for Ms. Kardashian did not immediately respond. A spokesperson for Mr. Aldrin was not immediately available. — Reuters

Crooks incorporated: Pushers, enablers, players gaming the system in band

STOCK PHOTO | Image by Vectorjuice from Freepik

(Part 1)

Today the trading of mud between those who accuse, investigate, and claim corruption in flood control and other projects in the Philippines has become ritualistic. Just a few admit, and more rant about, the corruption, silent and evasive though about how they pushed, enabled, and played it. Pass the blame, deny any part in the wrongdoing, eschew getting any share from the spoils, preserve claimed honor — it’s our ritualistic name-and-shame game that we might call the failure of nobility.

In the circle of corruption, pushers, enablers, and players abound. Those inside and outside the government are gaming the system, assisted or triggered by incompetence, negligence, ambition, greed, or all these in a bundle. Flood control projects that are ghost or bad, kickbacks and commissions fleeced off contracts, are a series of acts of many, and involve not just one or a few persons and agencies.

THE BUDGET CYCLE, AS INTENDED
And yet the process they are gaming was supposed to limit, if not block, foul play, as well as ensure accountability at every step.

The Administrative Code of 1987 (EO 292) devotes Book VI to National Government Budgeting. It provides the budget policy and approach and divides the process into four stages: Budget Preparation, Budget Authorization, Budget Execution, and Budget Accountability. This is more commonly referred to as the Budget Cycle.

The first stage is Budget Preparation, which is led by the Executive Branch. Each head of department, office, or agency of the National Government submits a request for its annual appropriation to the Department of Budget and Management (DBM). These requests are meant to reflect the agency’s plans, priorities, and funding needs for the coming year. The DBM then reviews these submissions. Once these proposals are consolidated, they form the National Expenditure Program (NEP). The President submits the NEP to Congress as the official proposal for the national budget, pursuant to Article VII, Section 22 of the 1987 Constitution.

After the NEP is submitted, the process enters the second stage: Budget Authorization. Congress deliberates on the proposed budget through committee hearings and plenary debates. Their task is to examine the proposals, make necessary adjustments, and ultimately pass the General Appropriations Act (GAA), which becomes the legal basis for government spending in the following fiscal year.

With the GAA in place, Budget Execution begins. In this phase, the focus shifts to carrying out the plans approved in the budget. The DBM releases funds to agencies according to the amounts and purposes stated in the GAA. Agencies then implement their programs, projects, and activities, procure goods and services, and deliver outputs such as infrastructure and social services.

The final stage is Budget Accountability. Agencies report back on how they used the funds and what they accomplished with them. These reports, covering both financial information and physical results and showing whether projects were completed and goals were met, are subject to the DBM’s continuing review. The Commission on Audit (CoA) plays a central role in this stage by independently reviewing and auditing these reports.

By design, the national budget cycle is meant to be airtight. Each stage embeds checks and balances to ensure efficiency, integrity, and accountability throughout the process.

At the budget preparation stage, several safeguards are in place to ensure that government spending plans are aligned with national priorities, formulated in an inclusive manner, and follow technical and financial standards.

PROCESS SAFEGUARDS
A key safeguard in this process is the use of a two-tier budgeting approach, designed to separate ongoing commitments from new initiatives. Tier 1 covers the estimated actual cash requirements for ongoing programs, activities, and projects (P/A/Ps) at their current scope and quality. This ensures that essential services and continuing operations are sustained without disruption.

Tier 2 is for proposals to scale up or expand existing P/A/Ps, or to introduce new priority initiatives. These proposals must be aligned with the Philippine Development Plan (PDP) and the government’s Budget Priorities Framework. Tier 2 proposals are evaluated against several criteria, among which are available fiscal space, agency absorptive capacity, and implementation readiness that includes feasibility studies, detailed engineering designs, and annual procurement plans, among others.

The Budget Call, the formal guide for all departments, offices, and agencies as they prepare their budget submissions, instructs agencies to include performance measures in their proposals. This performance-based budgeting approach is intended to make the process more results-oriented and to provide a basis for monitoring and evaluation throughout implementation. Agencies are also assumed to have citizen engagement mechanisms as part of the process, encouraging civil society and community stakeholders to provide feedback on proposed programs and projects.

Taken together, these safeguards are designed to make the budget preparation process transparent and responsive to real needs.

During Budget Authorization, the main safeguard is legislative oversight. The power of appropriation, commonly referred to as the “power of the purse,” belongs to Congress. Under the Constitution, no money shall be paid out of the treasury except in pursuance of an appropriation made by law.

The National Expenditure Program submitted by the President becomes the basis for the General Appropriations Bill (GAB). This bill undergoes the full legislative process, beginning in the House of Representatives, where the Committee on Appropriations and its subcommittees hold hearings.

At these hearings, agency heads and officials are required to defend their proposed budgets, explaining the programs and projects they seek to fund. The committee and subcommittees review the proposals, questioning assumptions, and scrutinizing the justifications for the line items. Based on these hearings, the committee may propose amendments to realign or reduce certain appropriations.

The Senate Committee on Finance conducts its own set of hearings in preparation for when the House-approved GAB is transmitted to the Senate. If the Senate makes amendments to the House-approved GAB, a bicameral conference committee is convened to reconcile conflicting provisions. Once the bicameral report is finalized, it is submitted back to both chambers for ratification. After ratification, the enrolled bill is sent to the President for signature, to become the General Appropriations Act, the official law governing government spending for the fiscal year.

Congressional deliberations provide a layer of public transparency. This open process allows not only lawmakers, but also the media, civil society, and ordinary citizens to observe and scrutinize how funds are being allocated.

The power of appropriations is subject as well to a number of limitations to prevent its abuse.

While Congress may reallocate or realign budget items in the NEP/GAB, Article VI Section 25 (1) of the Constitution prohibits Congress from increasing the total appropriations recommended by the President. This limitation serves as a safeguard against runaway spending and protects the overall fiscal balance of the government.

By jurisprudence (Belgica v. Ochoa, G.R. Nos. 208566, 208493 & 209251, Nov. 19, 2013), the GAA cannot provide Congress with any post-enactment authority over project identification, fund release, or fund realignment. According to the Court, such power would have the effect of allowing legislators “to intervene and/or assume duties that properly belong to the sphere of budget execution,” which would be unconstitutional as these would violate the separation of powers.

In the same case, the Court held that not only are post-enactment authorities not permitted, the delegation of such authorities to individual legislators is also of itself unconstitutional. The power of appropriation can only be exercised by Congress itself through legislation, and not by individual legislators.

(To be continued.)

 

Nepomuceno Malaluan, Malou Mangahas, and Jenina Joy Chavez are co-convenors of the Right to Know, Right Now! (R2KRN) Coalition.

VITRO seeks wider Visayas, Mindanao region footprint

STOCK PHOTO | Image by Wirestock from Freepik

VITRO, INC., the data center unit of PLDT, Inc., is expanding its footprint in the Visayas and Mindanao through a partnership with Alliance End-to-End Solutions, Inc. (AEES) to strengthen enterprise connectivity and digital infrastructure in the regions.

The partnership, signed through PLDT’s corporate business unit PLDT Enterprise, brings Alliance into the VITRO Partner Network (VPN) — a group of carrier and technology partners that aims to accelerate digital transformation for businesses across the Philippines.

“Through this collaboration, VITRO and Alliance aim to accelerate innovation and deliver advanced enterprise technology and connectivity solutions, leveraging the resilience and robustness of VITRO’s world-class data centers,” the company said in a statement on Sunday.

Under the agreement, both companies will promote digital adoption in the Visayas and Mindanao by providing enterprise clients with enhanced access to cloud-ready data infrastructure and connectivity solutions.

VITRO’s data centers will now be integrated into Alliance’s expanding information and communications technology (ICT) portfolio, allowing its customers — which rely on Alliance for IT services and software solutions — to access co-location and server hosting services at VITRO Cebu 2.

Alliance’s suite of software products will also be hosted within VITRO’s infrastructure to ensure business continuity and operational resilience. “Enterprises benefit from a professionally managed environment for business-critical systems, enhancing efficiency and reducing risk,” VITRO said.

VITRO operates 11 data centers nationwide with a combined capacity of almost 100 megawatts (MW). VITRO Sta. Rosa, its biggest facility, has a 50-MW capacity and serves as the company’s premier hyperscale-ready hub. Other VITRO sites are located in Makati, Taguig, Pasig, Parañaque, Subic, Clark, Cebu and Davao.

The company said the Alliance partnership supports its strategy to expand outside Metro Manila and strengthen its regional presence, particularly as more enterprises pursue digitalization and cloud migration. The collaboration also aligns with PLDT’s broader goal to boost the Philippines’ digital competitiveness by enhancing data infrastructure nationwide.

The partnership is expected to open opportunities for enterprises in emerging regional hubs to access secure, scalable and locally hosted digital solutions — a key factor for business continuity and compliance.

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

Fishport modernization seen unlocking enterprise potential

Buckets of fish are sold at the Navotas fish port in this file photo. — PHILIPPINE STAR/MICHAEL VARCAS

AGRICULTURE Secretary Francisco P. Tiu Laurel, Jr. said the Department of Agriculture’s (DA) bid to modernize major fishports under the Philippine Fisheries Development Authority (PFDA) has the potential to transform traditional fishing hubs into modern agri-fishery business centers.

Speaking at the Navotas Business Conference, Mr. Laurel was quoted in a DA statement as calling the city “the fishing capital of the Philippines” whose entrepreneurship and innovation can be replicated in other regions.

Mr. Laurel said modernization will upgrade ports, cold storage facilities, and logistics systems to make fish landing sites more competitive. Each improvement opens opportunities for local businesses while improving incomes of fisheries workers.

The modernization will ensuring that landed fish is properly handled, preserved, and sold at competitive prices.

The PFDA manages regional ports and oversees the development of 136 sites under the Municipal Fish Ports Program.

Mr. Laurel said the program’s priorities are building climate-resilient infrastructure, promoting science-based practices, and stabilizing logistics and supply chains.

“Resilience means having systems that can adapt and recover quickly. We want every port, especially Navotas, to not just bounce back after a disaster, but to forge ahead stronger and smarter,” he said.

Mr. Laurel said that investments in newer facilities should be aimed at empowering food producers, streamlining supply chains, and ensuring safe, affordable, and nutritious food.

Plan V

One of the heavily robotized production lines at the VinFast Haiphong Manufacturing Complex in Vietnam — PHOTO BY KAP MACEDA AGUILA

How Vietnamese BEV specialist VinFast is aiming to replicate its success outside its mother country

AMID AN embarrassment of automotive riches in the Philippines — more than 50 brands of which about half are accounted for by Chinese marques alone — VinFast is working quite hard to get customers to look its way. Aside from being widely seen to be a friendly neighbor, dealing with Vietnam also allows Philippine customers to benefit from the ASEAN Free Trade Area (AFTA) agreement. This trade bloc pact, forged in 1992, effectively creates a single market by removing tariffs and other barriers to trade and investment among member states toward lowering cost.

While having a competitive advantage in this regard, VinFast was, admittedly, off to a rather shaky start in the Philippines. Yes, it had made a splash owing to well-designed battery electric vehicles, but there was also a view that it wasn’t adequately ready to compete in our market just yet — whether as a result of past executives’ unfamiliarity with the market’s inner workings or just simply misfortune with some products. I leave it to those with a more direct interaction with the brand — at least through the latter — to make their conclusions. I did ask an owner of the VF 3, the marque’s entry-level model, for an honest assessment of this vehicle. He is happy with it and, despite some minor hiccups, swears by his car’s reliability.

And personally, I have driven VinFast vehicles without issue, at least for the short instances I was behind the wheel during a trip in Ho Chi Minh in the middle of the year, and just recently for a media/content creator trip to Hanoi — where VinFast officials also took us on what can be described as a short tour of the Vingroup kingdom where it belongs to.

Vingroup is a Hanoi-headquartered conglomerste chaired by its founder Pham Nhat Vuong. With vast interests in various sectors from technology, real estate, infrastructure, healthcare, to energy and social enterprise, belonging to this massive empire is arguably VinFast’s biggest value proposition. It deigns to move in big ways because, well, it can.

In Vietnam, VinFast is not only the largest BEV (battery electric vehicle) brand but the leading mobility marque, period. After three quarters of 2025, the company reported it had moved more than 100,000 units in the country — becoming the first auto brand there to notch the feat. “The milestone follows 11 consecutive months as the nation’s best-selling car maker, underscoring VinFast’s unchallenged leadership in the domestic automotive market,” it added in a release.

Its local success notwithstanding, the future of VinFast is predicated on how well it does on the world stage. In this regard, there is still a lot of work that needs to be done. Establishing a foothold in overseas markets is not a cakewalk.

If a tour of its company’s institutional “trophies” is meant to inspire confidence in VinFast, the hiring of the right people should, in a manner of speaking, help ensure last-mile delivery.

To this end, VinFast recently tapped the services of Antonio “Toti” Zara III to help realize its aspirations. “The story of VinFast goes beyond the product,” he said recently as he met with a delegation of media and content creators in Hanoi. “It’s about the ownership experience.” Mr. Zara steps into the role of VinFast CEO for Southeast Asia — overseeing not just the Philippines but crucial markets of the region, including Thailand, Malaysia, and Indonesia.

Mr. Zara is no stranger to the industry where he has assumed various leadership positions in the past. He was last seen with ACMobility, handling new energy vehicle specialist BYD. Over the many years I’ve had a chance to interview Toti, he’s always harped on the inevitability of electrified mobility — even in the Philippines — owing to a range of benefits and advantages. For him, BEV dominance is just a matter time.

At VinFast, he gets to double down on his vision as a newly minted executive. Not only will he lead the Vietnamese full-electric auto brand’s charge in the region, but make sure that an ecosystem supports its rollout. Plenty of things are keeping the executive busy: One is checking on VinFast’s US$200-million production facility in Indonesia, expected to open by next year. Another similar factory in India is already open, and VinFast intends to scale up its initial US$500-million investment there to US$2 billion.

“So today, we’ve explained to media our strategy on how we would use the Vingroup ecosystem to really redefine and change the ownership experience,” he told a number of reporters right after a formal Q&A session with himself and VinFast Chief Engineer for the VF 6 and VF 7 Vincent John Pendlebury.

Amid a glut of so-called new energy vehicle marques and offerings in the Philippines today, the aforementioned girth of what constitutes VinFast’s ecosystem is among the brand’s main unique selling propositions (USPs), according to Mr. Zara.

“We are actually better, if not the same, as other brands in terms of range — which is critical,” he continued. “But again, I’d like to stress (that) it’s not about the car itself. It’s not about range, it’s not only about the technology, but the entire BEV ownership experience.”

For Toti, it’s about getting behind the brand to inspire confidence in buyers. Obviously cognizant of a need to improve in this crucial area, Mr. Zara revealed plans to launch “special programs” unique to VinFast.

A particular one intends to show that VinFast is willing to bet on its vehicles. The so-called “Residual Value Guarantee Program” will see VinFast Philippines guaranteeing 90% value for products that are six months old, with promises also in place for older products. For Mr. Zara, it makes perfect sense.

“It eliminates that barrier of BEV ownership. Let me say that this is an offer that ICE (internal combustion engine) brands would not be able to do. How can we do this? It’s because of the ecosystem within the Vingroup. We are not only a car company, we are a mobility provider, and it’s the ecosystem that would generate that benefit.”

In the Philippines, Mr. Zara wants to continue making inroads for VinFast by rolling out brand-exclusive charging points — toward realizing a dream of being the top BEV brand (yes, you read that correctly) in the country. “We have clear line of sight on how to do that, and I’d like to think that it will happen very soon, (the) exact timing of which I dare not say,” he posited.

“Are we competing against other BEVs? Not directly, no. All the other EV brands (are) doing the same thing. We are advocating the transformation to green mobility. So while we are competing, we are complementing each other… as other brands become strong, as we become stronger. That’s good, because then we would accelerate the transformation towards electrified mobility.”

Another program, launched recently, “Pili Pilipinas.” Disclosed Mr. Zara, “It will be highlighting our future products, and we will ask people to vote instead of having these designs confidential, like all the other brands. We’ll make these designs public, and ask people to vote on their preferred design that will be critical inputs as we finalize future projects.”

Part of moving forward also means accepting that boxes need to be ticked. “We’re in a startup phase,” he conceded. We’re building the network. Right now, we have 10 showrooms that are not yet 100% in terms of facility readiness, in terms of people.

The key is to build brand awareness, and to that end VinFast is gearing up for a relaunch “in a big way.” At the end of the day, Toti Zara wants people to test-drive VinFast vehicles and remove doubts and misgivings over the brand and the powertrain format. “Everyone knows about the practicality of owning a BEV, right? Our task now is to bust the myth surrounding its ownership. We will bust the myth on range anxiety through the expansion of our partner V Green network.

Part of removing that particular pain point is to roll out charging points in destination areas and transit points. The V Green network, serving the growing fleet of full-electric GSM taxis, will also lend itself to private VinFast owners. “Most of the infrastructure is not used at nighttime,” said Mr. Zara in response to this writer during another Q&A session. “Our taxis will be utilizing those EV chargers during those lean hours. This would allow us to build a healthier business case for the infrastructure investment we will make.”

VinFast in Vietnam, according to the executive, boasts more than 150,000 charge points. In the Philippines, V Green has “about 1,000.” Mr. Zara added, “Our first milestone is to get to 15,000 charge points (and) we’re working together with other infrastructure companies, which also have aggressive plans.”

Additionally, VinFast Philippines will also restore the battery subscription program it originally offered when it was launched, but was subsequently scrapped. “Velocity” asked why the company is bringing it back, and why the business model now makes sense.

“It was a key program that (led to) VinFast’s success in Vietnam. That’s why you find VinFast in Vietnam as the number-one car brand. As we launch in other markets, we would like to cut and paste the success story,” posited Mr. Zara. “What’s the difference with the program that we will launch and the one we had (here) for a short time? First, we have more aggressive price gaps between buying a car with a battery and buying one without. Also we have very aggressive subscription fees.”

As an example, the executive said that the entry-level VF 3 BEV bears a standard retail price of P746,000 with a high-capacity battery. Without a battery, the price would be trimmed to “more or less P600,000… even cheaper than an equivalent ICE (internal combustion engine) vehicle. Subscription fees will be less than P2,000 a month.” For a car of similar size, the owner can usually expect to fork over P5,000 to P6,000 for fuel cost.

“That means considerable savings on fuel and cash outlay,” Mr. Zara declared.

There’s more. “We will bust the myth on accessibility of service through our third-party workshops… again, we want to make that jump to electrified mobility an easier decision for the Filipino consumer to make.”

Toti Zara is not coy about the company’s aspirations. “Again, we want to be the number-one BEV brand by next year,” he stated. The Philippine auto industry is expected to close the year with a BEV share of 4% to 5% — around 20,000 to 25,000 vehicles in absolute terms. VinFast is therefore eyeing to register 8,000 units in sales by next year — helped along by small and subcompact categories, along with an MPV model it will launch in the future. The taxi/TNVS (transportation network vehicle service) market and PUV use might also propel the number to more lofty levels.

Laying out a more comprehensive plan is always a good start — or, in this case, restart. Let’s see if VinFast can manifest its destiny this time.

Debt yields end mixed amid market volatility

YIELDS on government securities (GS) were mixed last week amid broad market volatility due to developments at home and overseas, with the peso hitting a new record low and the US Federal Reserve adopting a cautious tone.

GS yields, which move opposite to prices, declined by an average of 0.76 basis point (bp) week on week at the secondary market, according to data from the PHP Bloomberg Valuation System Reference Rates as of Oct. 30 published on the Philippine Dealing System’s website.

Philippine financial markets were closed on Oct. 31 for a holiday.

At the short end, yields on the 91- and 182-day Treasury bills (T-bills) went down by 3.12 bps (to 4.8951%) and 0.11 bp (5.0966%) week on week, respectively. Meanwhile, the rate of the 364-day T-bill rose by 1.55 bps to 5.1781%.

At the belly of the curve, rates of the two-, three-, and four-year Treasury bonds (T-bonds) dropped by 1.51 bps (to 5.3924%), 0.87 bp (5.5055%), and 0.43 bp (5.6100%), respectively. Meanwhile, the five- and seven-year bonds climbed by 0.23 bp (to 5.7025%) and 1.14 bps (5.8366%), respectively.

Rates at the long end declined, with the 10-, 20-, and 25-year T-bonds falling by 4.12 bps (to 5.9382%), 0.57 bp (6.4221%), and 0.53 bp (6.4205%), respectively.

GS volume traded surged to P70.02 billion as of Oct. 30 from P28.52 billion a week prior.

“[The] volatility with regards to the foreign exchange moves spilled over in the local bond markets as well, especially when the peso hit all-time low levels,” Dino Angelo C. Aquino, vice-president and head of fixed income at Security Bank Corp., said in an e-mail.

“Rates are relatively elevated at current levels, with the 10-year bond still trading at around 5.9% as recent political noise along with the weakness of the local pair added premium to current GS yields, especially in the longer-dated maturities.”

On Oct. 28, the peso logged a new historic low of P59.13 against the dollar. It also fell to an intraday low of P59.26 during the Oct. 29 session but managed to recoup its losses.

The local unit closed at P58.85 on Oct. 30, down by 16 centavos from the prior day and by 22.5 centavos from its Oct. 24 finish.

“The Fed cut was highly anticipated and priced in by both the bond and the foreign exchange markets. Hence, despite the perceived ‘hawkish cut’ by the Fed, it drew very minimal reaction in the aftermath of the event,” Mr. Aquino added.

“The Fed’s 25-bp cut provided some strength to the local currency despite reaching historic lows [last] week. However, bond yields mostly moved in mixed directions on further rate cuts and upward risks to domestic inflation,” a bond trader said in an e-mail.

On Wednesday, after the Fed’s policy-setting committee voted 10-2 to lower its benchmark interest rate to the 3.75%-4% range, Fed Chair Jerome H. Powell delivered an unusually clear warning to markets: given “strongly differing views” about how to proceed in December, he said, a rate cut was “not a foregone conclusion, far from it,” Reuters reported.

Financial markets pared what had been near-certain pricing for a December rate cut after Mr. Powell’s remarks, although bets still reflect twice as high a chance of a rate cut as none.

A clutch of Federal Reserve bank presidents on Friday aired their discomfort with the US central bank’s decision to cut interest rates, even as influential Fed Governor Christopher Waller made the case for more policy easing to shore up a weakening labor market.

This yawning divide within the Fed’s policymaking ranks poses a challenge for Mr. Powell in forging a consensus in his final six months as the chair.

While it is not unusual for Fed policymakers to differ on policy, particularly when the economic data is mixed, the frank expression of that disagreement and the explicit focus on what the Fed ought to do at its next meeting, on Dec. 9-10, was striking.

Despite the US central bank’s cautious tone, both analysts said they still expect the Bangko Sentral ng Pilipinas (BSP) to continue its easing cycle, with another cut likely next month as domestic inflation remains low and amid fragile growth prospects.

“The BSP has been moving independently from the Fed as of late,” Mr. Aquino said.

“However, the magnitude and timing of these cuts might be influenced more by the incoming third-quarter Philippine gross domestic product (GDP) data,” the trader said.

The Monetary Board last month cut benchmark borrowing costs by 25 bps for a fourth straight meeting, bringing the policy rate to 4.75%.

It has now lowered rates by a cumulative 175 bps since it began its easing cycle in August 2024.

BSP Governor Eli M. Remolona, Jr. said further policy easing is possible until next year as they want to help stimulate the economy as they expect a widening corruption scandal involving state flood control and infrastructure projects to affect both public and private investments.

The release of October Philippine inflation data on Wednesday (Nov. 5) and the third-quarter GDP report on Friday (Nov. 7) will be key drivers for the market this week, both analysts said.

“More emphasis will be on the GDP print, as a weaker print could spark a rally on local bonds. Inflation on the other hand still remains well below the BSP’s target; hence, it would not play a big factor,” Mr. Aquino said.

“The GDP report will likely provide more clarity to the BSP regarding the amount of monetary support it needs to deliver in order to sustain local economic growth momentum despite headwinds from the corruption probe and the potential adverse impact of dimming business and investor sentiment on the capital formation and household spending portions of the GDP,” the trader added. — Pierce Oel A. Montalvo with Reuters

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