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Globe signs P7.6-B loan with Japan’s Mizuho to support capex

GLOBE.COM.PH

GLOBE TELECOM, INC. has signed a ¥20-billion (around P7.6 billion) term loan facility with Mizuho Bank, Ltd., a major Japanese commercial bank, to partially finance its capital expenditures (capex), debt refinancing, and other corporate requirements for the year.

In a stock exchange disclosure on Wednesday, the Ayala-led telco said it had invested approximately P31.4 billion in capex for the first nine months of 2025, down 23% from P41 billion in the same period last year.

The company said its full-year 2025 capex is expected to fall below $1 billion, reflecting a strategic shift toward targeted investments and reinvestment of proceeds from tower sales for the remainder of the year.

“By pursuing focused investments and innovation shaped around customer demand, Globe continues to empower more Filipinos to thrive in a digitally connected economy,” the company said.

Globe noted improvements in capital efficiency, saying its cash capex-to-revenue ratio improved to more sustainable levels at 26% from 33%, while the capex-to-earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio narrowed to 49% from 63%.

“These improvements pave the way for targeted network initiatives for the remainder of the year and strengthen Globe’s positive free cash flow position,” the company added.

“Consistent with prior periods, approximately 89% of capex was allocated to data-related projects, reaffirming Globe’s commitment to advancing digital capacity and expanding connectivity nationwide,” it also said.

For Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., Globe’s reliance on debt financing is strategic, as it helps ease the immediate strain on the company’s internal cash flow while still funding critical network investments.

“Also, by refinancing existing liabilities, they may be optimizing their cost of capital, extending maturities, or reducing their interest burden, which is prudent in a capital-intensive business like telecom,” he said in a Viber message on Wednesday.

He also noted that borrowing carries risks, particularly given the volatility of local and foreign currencies, which could expose Globe to foreign exchange and interest rate risks.

“Overall, I view Globe’s approach as relatively balanced and disciplined. They are not over-leveraging; rather, they’re strategically layering in external funding to preserve liquidity, while using internal cash flow improvements to underpin their network investments,” he said.

For the three months ending September 2025, Globe reported a 12.79% drop in attributable net income to P5.25 billion from P6.02 billion a year ago, on slightly lower revenues of P44.36 billion, down 1.68% from P45.12 billion.

For the January-to-September period, attributable net income rose 14.04% to P17.69 billion, while revenues fell 2.34% to P131.59 billion.

Earlier this year, Globe also signed P20 billion in loan facilities with local banks BDO Unibank, Inc. and Metropolitan Bank & Trust Co. to fund its 2025 capex and reduce debt.

At the local bourse on Wednesday, shares in Globe closed P4, or 0.25% higher, at P1,629 apiece. — Ashley Erika O. Jose

Good vibes with a good pig

MRCOCHINILLO.COM

WE’VE had quite a few good times dining in rather sleepy Marikina, but aside from the odd lugawan, two of our standout experiences were in private dining rooms: at 61 Orange for a birthday party, and, on a professional basis, Mr. Cochinillo.

Former photographer Tinee de Guzman originally invited just a team from another publication for dinner on Nov. 16. When the pair found out that they had to finish off one of Mr. De Guzman’s cochinillos by themselves — a whole suckling pig which is good for between six to eight diners — the invitation list just grew longer and longer (part of the draw for us was an outlet that sold traditional Ilokano fabric, inabel, next to Mr. Cochinillo; a story for another day). While cochinillo is often best enjoyed at home, Mr. De Guzman opened his own tasting room in Marikina, just in case.

It’s this element of surprise that shapes Mr. De Guzman’s approach. While he grew up around people who liked food, as a photographer he would also learn from chefs while he shot pictures of their food, on commission from magazines in the city. In his own photography studio, he built a brick oven to amuse and feed guests (saying he “threw anything” in there). When someone wanted to rent the studio for a party, wanting to get the account, Mr. De Guzman bluffed his way into catering it with recipes picked up from work. One of these was cochinillo — which, quite frankly, he had not made yet when this happened back in 2012.

At that time, it was hard to source a month-old pig. Now, they can be found in high-end supermarket shelves, and there’s a handful of roasters in the city making the same thing. Mr. De Guzman had to find a supplier of young pigs, so he could practice. “Napasubo ako (I had to do it),” he said.

He still sometimes uses that brick oven, though he has added more, and some other kinds. “The char, the smoke, and the distribution of the heat is different,” he said.

We can say that’s true: Mr. De Guzman (we’re tempted to just call him Mr. Cochinillo at this point; the business name and nickname coming from a previous interview where the reporter called him by that name) brought out his pride and joy, a one-month-old pig cooked long and slow for hours. The skin was crispy, the meat soft, demonstrated by him cracking the pig open with a plate. The flesh and the fat were mild and buttery. This was accompanied by an Iberian Chicken, surrounded by roast potatoes and garlic. Paella and Fabada (a Spanish bean stew) and Rabo de Toro (a similar stew, but made with oxtails) were also on the table, making for an overall hearty experience (it also helped that he had a well-stocked wine and liquor cabinet).

While his kitchen didn’t produce the dessert — a luxurious Sansrival, done the French way, but with the innovation of studding it with macadamia nuts instead of the traditional almonds — if you order the cochinillo (which ranges in price from P11,999 to P13,999; smaller 1/4 options start at P2,899), he’d be sure to tell you where to get it.

Mr. De Guzman has worn many hats: he’s helped out at the family business and had gone into photography, among other ventures. We place an emphasis on this because when we ask him questions about the cochinillo, he turns back time and answers using examples from one of his old lives.

For example, when asked how to tell what a good pig is, he told us a story about another former career, which involved balut (fertilized duck eggs). His source told him that you could tell the quality of the eggs the duck is about to lay from the way it walks.

Finally getting to the point about the pigs, he said he used to inspect faces and noses, but African Swine Flu (AFS) changed it all: “It’s gotten a bit difficult, and it’s stricter.”

Swine health issues aside, he boils (roasts?) it all down to single quality: “A happy pig.” Pigs that lived a good life and were killed swiftly yield good, soft, delicate flesh; stressed pigs who died slowly stiffen up and yield low-quality meat.

On another question about how his previous paths shaped the way he cooks now, he answers by mentioning two of his jobs.

“It’s things done the old way, and the long way,” he said — he recalled how it took him some time to get a digital camera and stuck to film long after it became unfashionable. “When you see them come… then you play something bad, and they leave, then they come back — ang sarap n’on (that feels good).” He wasn’t talking about cooking, he was talking about DJ-ing (though the principles are the same).

He summarized it all — cooking, photography, music, etc. — in one maxim: “Simple things done properly are sometimes more difficult to do consistently.”

One can order from the website mrcochinillo.com, and get in touch with them via Instagram (@mrcochinillo) to book the private dining room at No. 16 Major Dizon St., Marikina. — Joseph L. Garcia

Media companies face tempered Q4 prospects as ad spend normalizes

STOCK PHOTO | Image by DC Studio from Freepik

By Ashley Erika O. Jose, Reporter

LISTED media companies are heading into a challenging fourth quarter after weaker third-quarter earnings, as the post-election advertising boost dissipated and ad budgets normalized, analysts said, although a modest year-end recovery remains possible on seasonal holiday spending.

“The industry narrative for 2025 has been clear all year — election advertising gave a meaningful, concentrated boost in H1 (first half) across listed media houses, and Q3 was the natural correction month when those incremental ad budgets disappeared,” Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said in a Viber message on Tuesday.

During the third quarter, both GMA Network, Inc. and ABS-CBN Corp. posted lower attributable net income as revenues softened.

“Looking ahead, a recovery by Q4 or by yearend is possible but far from guaranteed; the most likely near-term uplift would come from seasonally stronger year-end advertising and any successful new content or digital monetization wins,” Mr. Arce added.

For the three months ending September, GMA Network’s gross revenue declined by 17.23% to P3.89 billion from P4.70 billion, weighed down partly by higher expenses.

Despite the weaker quarter, GMA Network’s attributable net income for the nine-month period climbed 46.81% to P2.07 billion from P1.41 billion a year ago. Revenues rose 11.92% to P13.99 billion from P12.50 billion, while gross expenses increased 6.06% to P11.37 billion from P10.72 billion.

By segment, advertising revenues increased to P12.77 billion, up 10.47% from P11.56 billion, while consumer sales grew to P1.22 billion from P942.24 million.

Meanwhile, ABS-CBN widened its attributable net loss for the third quarter to P1.28 billion from P389.87 million previously. The company posted combined revenues of P3.48 billion, 19.63% higher than P4.33 billion a year earlier, as total expenses fell 7.85% to P4.58 billion from P4.97 billion.

For the nine months to September, ABS-CBN trimmed its attributable net loss to P2 billion from P2.41 billion despite lower revenues. Gross revenue dipped 3.05% to P11.75 billion from P12.12 billion, while expenses dropped 10.99% to P13.52 billion from P15.19 billion a year earlier.

Advertising revenues rose 14.68% to P5.47 billion from P4.77 billion, while consumer revenues expanded 13.31% to P3.66 billion from P3.23 billion.

First Metro Investment Corp. Head of Research Cristina S. Ulang said: “Recovery is possible by Q4 given higher ads during holiday season.”

“Fourth quarter improvement is plausible and even likely in headline revenue terms because of seasonality, but meaningful earnings recovery to H1 levels will depend on durable ad reallocation,” Mr. Arce added.

At the stock exchange on Wednesday, shares in GMA slipped by three centavos, or 0.57%, to close at P5.22 each, while shares in ABS-CBN closed six centavos, or 1.73% lower, at P3.40 apiece.

Any excuse to come back

WAGYU WITH MAITAKE

After a very short stint at Red Lantern, visiting Singapore chef Zor Tan hopes to return

OOPS! We missed announcing that Zor Tan, with one Michelin star for his restaurant Born in Singapore, was in town from Nov. 14 to 16 at Solaire’s Red Lantern. Don’t worry, we’ll tell you all about the eight-course dinner he served us at a preview media luncheon on the 13th — besides, he’s always raring to come back here.

The meal opened cold with Kanpachi (greater amberjack), ginger, and pear snow (frozen puree); cold, cutting, and sharp, like a slap of winter air to the face. The fish was surprisingly the mildest ingredient here, and the cold was accentuated by the snap of ginger.

The second dish was a Bao with Wagyu and Oyster: indulgent and served with caviar on top. The bao itself is bouncy in both flavor and texture coupled with the tender beef, with a mild unthreatening flavor despite the caviar. The oyster was not to be found: it had been made into a creamy emulsion at the bottom.

Our favorite dish was the Jade Fungus and Poached Abalone with Chicken Fat, accompanied by a Szechuan pepper sauce. It had a very clean, clear flavor, and just a whisper of meaty flavor, then the rest of the heat came after.

Next was a King Crab Risotto with Fish Maw, flavored with a familiar ingredient: taba ng talangka (crab fat), an ingredient introduced to him by the late great chef Margarita Forés (we assume the pili nuts used in this dish were also her influence). The fish maw was braised in bak kut teh, a clear Malay pork bone soup, giving bite to the creamy but spicy risotto.

For the last of the savories, he served Wagyu with Maitake (dancing mushrooms), served with an onion-based soubise. We already had some expectations about how this should taste, but in the hands of a gifted chef, it exceeded all expectations. The beef was extremely tender, matching its mild taste; the mushrooms beside them give it a mere hint of a snap. The sauce, just lightly enveloping it, gave it a mere suggestion of onion. We skipped the dessert (sweet potato chips on sea salt and oolong tea ice cream) to get to another engagement.

Zor Tan started his career being mentored by Andre Chiang, who himself earned various Michelin stars, including in Taiwan’s Raw, which closed in 2024. “Born,” he said, “Is a new birth of me: to start my own journey, and my own venture.”

Speaking about his own awards, he said, “I always dreamt to get a star. I think I worked hard for it, and the team as well.” Hoping for another star next year, he said, “We need to get ready before we move up to the next level.”

We mentioned a previous relationship between Mr. Tan and a great Filipino chef, but it turned out these Philippine bonds run deep. During previous visits, he visited the country’s recent Michelin-star awardees: Helm (with two stars), and Toyo Eatery and Gallery by Chele (one each). Now that his previous haunts have stars, he said in a group interview, “It made me very busy, because there are so many restaurants I want to visit, but I don’t have much time.”

“It’s good to visit and learn from them as well,” he said. “Anyone who wants me to cook here, I will come,” adding, “I always want to find an excuse to come back.” — JLG

Peso edges up vs dollar ahead of US labor data

REUTERS

THE PHILIPPINE peso inched higher against the dollar on Wednesday as investors positioned ahead of September US labor data, which could influence expectations for another interest rate cut by the US Federal Reserve.

It closed at P58.935 a dollar, up five centavos from Tuesday’s P58.985, based on Bankers Association of the Philippines data posted on its website. It opened at P58.95, swinging between P58.82 and P58.955 during the session.

Dollar turnover reached $1.39 billion, slightly below Tuesday’s $1.46 billion.

“The peso continued to gain on expectations of continued weakness in the soon-to-be-released September US labor report,” a trader said in an e-mailed reply to questions.

Investors are closely watching the Fed as it begins receiving updated economic data from the recently reopened federal government.

Policymakers are seeking clarity for their debate on whether to cut rates at the December meeting, just over three weeks away. However, the timeline for the release of employment, inflation, retail spending and growth data remains uncertain.

The Bureau of Labor Statistics said the delayed September employment report would be published on Thursday, while some October data might be skipped entirely, and November reports could face delays after the mid-month government shutdown.

The Fed last month lowered borrowing costs by 25 basis points, bringing its policy rate to 3.75-4%, the second cut this year. Since its easing cycle began in September 2024, total reductions have reached 150 bps, fueling market bets on additional easing.

The peso also drew support from signals of intervention by the Bangko Sentral ng Pilipinas (BSP), Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.

BSP Governor Eli M. Remolona, Jr. said the central bank has been active in the foreign exchange market, but only to temper any prolonged depreciation that could affect inflation.

Looking ahead, the peso may face mixed pressures. A weak US jobs report could reinforce expectations of further Fed rate cuts, supporting the peso, while global volatility could offset some gains.

The trader expects the peso to trade from P58.80 to P59.05 a dollar on Thursday, a range echoed by Mr. Ricafort, reflecting continued caution amid uncertain US data and central bank interventions. — A.M.C. Sy

Deloitte sees continued potential in Philippine IPOs

BW FILE PHOTO

DESPITE only two local initial public offerings (IPOs) this year, the Philippine market raised substantial funds and remains poised for growth within Southeast Asia’s IPO landscape, according to global professional services firm Deloitte.

“The Philippine market has actually shown quite consistent performance,” Deloitte Southeast Asia Capital Markets Services Leader Tay Hwee Ling said during a briefing on Tuesday.

“Year in, year out, we do see faster growth from the Philippines. So, the Philippine market as well — we do see potential,” she added.

While only two firms have listed on the Philippine Stock Exchange this year — Maynilad Water Services, Inc., which made its market debut on Nov. 7, and Top Line Business Development Corp., a fuel distributor and retailer in Cebu — total funds raised surged.

Maynilad’s IPO, priced at P15 per share, raised P34.3 billion in gross proceeds, making it the largest domestic listing since Monde Nissin Corp.’s P48.6-billion offering in 2021.

“This year, for the amounts of funds basically, compared to let’s say Singapore, Malaysia, and Vietnam, the fund raised actually increased more than double compared to last year from the Philippine market. It’s fueled by the IPO blockbuster water company that raised a respectable amount of funds in water,” Ms. Hwee Ling said.

Deloitte’s report showed that IPO activity across Southeast Asia picked up during the first 10.5 months of 2025, with 102 IPOs on six exchanges raising about $5.6 billion.

Although the number of listings fell compared with 2024 (136 IPOs raising $3.7 billion) and 2023 (163 IPOs raising $5.8 billion), total IPO proceeds rose by 53%, largely due to bigger deals and strong market performance in Singapore, Vietnam, Malaysia, and Indonesia.

“The increase in total IPO proceeds in 2025 is mainly due to more high-value listings in the real estate, financial services, and consumer sectors,” the report said.

Average IPO size in the region rose from around $27 million in 2024 to $55 million in 2025, with four IPOs in Singapore, Vietnam, and the Philippines raising more than $500 million each, and several companies reaching market values above $1 billion.

“At the same time, if you recall, talking about cross-border listing into NASDAQ, there’s also Hotel 101, which is a Philippine-based business that successfully got listed in NASDAQ in July this year — raising this is by respect, which is also a sizable business as well,” Ms. Hwee Ling said.

On July 1, Hotel 101 became the first Filipino-owned company to be listed on NASDAQ, with a market capitalization of approximately $1.36 billion as of Nov. 11.

To date, DoubleDragon remains the first and only Filipino company with a subsidiary publicly listed on the NASDAQ.

“So, from a Philippine market perspective, while we don’t see a significant count, we always see consistent performance in the top IPO blockbuster across the nation,” Ms. Hwee Ling said.

Deloitte also noted that private equity-backed listings sustained capital inflows across the region and attracted strong investor interest.

“Looking ahead to the coming year, Deloitte anticipates that investor appetite will remain healthy, sustained by the continued emergence of new market opportunities,” the team said. — Alexandria Grace C. Magno

Caterer to the stars Juan Carlo celebrates 30th year

CATERER to the stars, Juan Carlo the Caterer celebrated its 30th anniversary last week with an event filled with the country’s brightest artists and a seven-course Filipino feast.

The celebration segued into a full-blown all-star concert, as it featured performances by Regine Velasquez, Ogie Alcasid, Erik Santos, Morissette Amon, Angeline Quinto, and Aicelle Santos. All of them expressed their congratulations and gratitude to the owners, having been clients of Juan Carlo the Caterer over the years.

“I think my husband and I are part of those 30 years because they were also part of our 15 years as a couple. So I just want to say congratulations,” Ms. Velasquez said in both English and Filipino after she sang.

“Juan Carlo doesn’t just serve incredibly delicious food. They also give us joy and wonderful memories,” she also said.

The catering company’s founder, Alex Michael U. del Rosario, who named his enterprise after his son, recalled the company’s humble beginnings in 1995.

For their very first catering job, he had to borrow his father-in-law’s jeep to transport their equipment. Mr. Del Rosario also said that the plates they used for that first gig at a hospital in Batangas City were borrowed from his mother-in-law.

“Since we were just starting our catering business, I was a one-man team. I was the chef, the waiter who set up, the one who cleaned up after the catering, and even the one who washed the dishes to that extent,” Mr. Del Rosario said in Filipino during a speech at the event.

They eventually gained widespread recognition in Metro Manila after catering the grand wedding of former Senator Ramon “Bong” Revilla, Jr. and actress Lani Mercado in 1998.

From borrowed vehicles and plates, the company now has over 50 service vehicles and 20,000 plates, said Mr. Del Rosario. What once was a one-man operation has grown into an enterprise with 214 regular staff members, 300 part-time workers, and around 500 on-call waiters.

For Juan Carlo Del Rosario, after whom the business was named, and who is now the company’s assistant vice-president, the key to its success lies in the dedication and excellence of every staff member at each event.

“Juan Carlo the Caterer’s legacy is built on passion, hard work, and the drive to be at the heart of tasteful celebrations,” he said.

“As we look towards staging more memorable moments and setting new standards for luxury, we commit to continuous delivery of world-class culinary performances and creating unforgettable memories,” he added.

During the celebration, BusinessWorld had the chance to try some of Juan Carlo the Caterer’s finest offerings — a seven-course meal that presented an elevated take on traditional Filipino cuisine, infused with some European techniques.

One thing that stood out in Juan Carlo’s offerings that night was their passion for incorporating traditional Filipino ingredients into their dishes, from kamias in the appetizer to the use of Asín Tibuok from Bohol in one of the main courses.

Although the anniversary celebration featured a top-of-the-line menu, star-studded performances, and exquisite decorations, it did not overshadow the true heart of the event: the family and the people who helped build the company over the last 30 years. — Edg Adrian A. Eva

The Vietnamese economy overtakes the Philippines: From economic strategies to governance and flood control

STOCK PHOTO | Image by Toomas Tartes from Unsplash

By Cesar Polvorosa, Jr.

(Second of two parts)

BEYOND TRADE, structural differences in demographics and education shape both countries’ long-term trajectories.

Vietnam is aging rapidly. Its median age of 33.3 in 2024 is projected to reach nearly 40 by 2040. This raises the risk of “growing old before getting rich,” a challenge like that faced by China. An aging population could slow productivity growth and strain public finances.

The Philippines, with a median age of only 25.7 in 2024, enjoys a major demographic dividend. A youthful workforce offers a long-term advantage for as long as education and job creation systems can sustain it. The Philippines is however hamstrung by some of the worst education outcomes in East Asia. Its PISA scores in math, science, and reading fall far below OECD averages. Without major investments in foundational learning, digital literacy, and tertiary education, the demographic dividend may degenerate into a demographic burden.

Vietnam, on the other hand, has consistently invested in human capital, especially teacher training and STEM education. Its students regularly outperform global averages, ranking second only to Singapore in Southeast Asia. Although recent PISA results show some slippage, Vietnam’s education system remains a key pillar of its competitiveness and is considered a model for developing countries.

Both countries face another long-term challenge: the rise of disruptive technology, particularly AI and automation.

Vietnam’s labor-intensive export model is vulnerable to technological disruption, while the Philippines’ business process outsourcing (BPO) industry faces risks from AI-driven customer service, automation, and generative AI applications. Both could lose millions of jobs if they fail to adapt. Investment in digital infrastructure, AI readiness, and advanced skills training will determine whether they capture AI-driven productivity or fall victim to it.

ECONOMIC PROGRESS THROUGH GOOD GOVERNANCE
Governance quality is among the strongest predictors of long-term development. Here, too, Vietnam and the Philippines diverge.

In Transparency International’s 2024 Corruption Perceptions Index, Vietnam scored 40/100 (88th of 180 countries), while the Philippines scored 33/100 (114th). Vietnam’s score reflects its “blazing furnace” anti-corruption campaign, which is a highly centralized, often politically selective, but impactful effort to discipline officials and signal seriousness to investors.

The Philippines, by contrast, faces systemic and persistent corruption.

The Philippine score on the Corruption Perception Index is expected to substantially deteriorate in 2025 after the shocking revelations of massive corruption surrounding “ghost” infrastructure projects. Most alarming had been the major role of lawmakers and the bureaucrats conniving with favored construction companies.

Over the decades, Philippine governance crises have repeatedly derailed economic progress resulting in the country becoming a laggard in a dynamic region. In 1960, the Philippines outranked South Korea in GDP per capita income. Until the mid 1980s, it compared favorably with Thailand. But political upheavals, weak institutions, and unresolved corruption caused repeated stagnation. Indonesia overtook the Philippines in the early 2000s after stabilizing its post-Suharto governance environment. Thus, the Philippines lagging behind Vietnam can be viewed from the bigger picture of the country losing its economic position to its neighbors over several decades.

The administration of President Benigno “Noynoy” Aquino III (2010–2016) marked a brief renaissance, with 6.2% average GDP growth which was the highest in four decades and that partly recovered lost ground for the Philippine economy driven by improved governance. But the momentum was lost when President Rodrigo Duterte’s catastrophic COVID-19 response led to a -9.5% GDP collapse in 2020, the worst in Southeast Asia. Today, the Philippines is once again embroiled in major political turmoil with revelations of unprecedented massive corruption and the acrimonious divide between politicians and supporters of President Ferdinand “Bongbong” Marcos, Jr. against those of the Duterte family.

The combined headwinds of destructive floods, governance concerns, and trade tensions have driven Philippine GDP growth as of the 3rd quarter year on year 2025 to an anemic 4% vs. 8.2% for Vietnam for the same period!

There is widespread disillusionment with the culture of impunity and sense of entitlement of the powerful political dynasties. For the Philippines, governance remains the decisive element in its long-term development. Demographics, remittances, and strategic location alone cannot offset weak institutions.

CORRUPTION, GOVERNANCE, AND FLOOD CONTROL
Governance failures have real-world consequences, especially in sectors like flood control, which is one of Southeast Asia’s most urgent development priorities. Both the Philippines’ and Vietnam’s geographies — the Philippines being a sprawling archipelago and Vietnam with its long eastern coast and densely populated river deltas  — make them vulnerable to typhoons.

Recent Philippine investigations and Senate testimonies have highlighted the depth of corruption in flood control spending, revealing overpriced and substandard projects, “ghost” or non-existing flood control works, huge kickbacks in procurement, chronic delays, and failures in major river and drainage projects. These deficiencies leave millions of people vulnerable to climate-amplified storms and severe flooding. Weak oversight, fragmented authority, and political patronage exacerbate the problem.

Vietnam also faces challenges in flood management, especially in Ho Chi Minh City and Hanoi. However, public reporting shows more frequent use of formal audits conducted by multilaterals like ADB and the World Bank and state-led project reviews such as audits proposed for delayed Ho Chi Minh City flood-defense mega-projects. While this does not eliminate corruption, it reflects a more centralized system of accountability, which can mitigate the worst excesses seen in the Philippines.

Both countries need stronger transparency rules, independent auditing capacity, and genuine community oversight to ensure that flood-risk investments achieve their purpose: protecting vulnerable populations rather than enriching contractors and political intermediaries.

LOOKING AHEAD
Vietnam’s ascent over the Philippines is the outcome of effective industrial strategy, educational investment, relative political stability, and stronger governance. The Philippines, meanwhile, continues to experience cycles of promise followed by reversals — a pattern rooted in institutional weaknesses and uneven policy implementation in the context of a semi feudal society.

Both countries face daunting challenges: Vietnam must avoid the middle-income trap, manage the rapid aging of its population, and adapt to AI-driven manufacturing shifts. The Philippines must overhaul its education system, strengthen institutions, dismantle political dynasties, uphold rule of law and confront corruption especially in infrastructure sectors such as flood control.

As Northeast Asian economies mature, Southeast Asia will increasingly become the center of global economic gravity. Whether Vietnam and the Philippines can seize this moment depends on the quality of their governance, the coherence of their economic strategies, and the strength of their investment in people.

(Read Part 1 here: https://tinyurl.com/2ceq7h29 )

 

Cesar Polvorosa, Jr. is professor of Economics and International Business at a Canadian University. He is an occasional contributor to current affairs publications including the Philippine Star and Interaksyon. His literary publications in North America and Asia have been anthologized.

SEC seeks comments on REIT rules to include power, infra, telco sectors

STOCK PHOTO | Image by Jcomp from Freepik

THE Securities and Exchange Commission (SEC) has released a draft memorandum circular proposing updates to the real estate investment trust (REIT) rules to broaden the definition of income-generating assets, extend sponsors’ reinvestment deadlines, and strengthen disclosure and governance requirements.

The draft circular, released on Nov. 18, is open for public comments until Dec. 3.

It aims to clarify and expand the types of assets considered income-generating to include sectors such as power, infrastructure, and telecommunications, potentially allowing more companies beyond traditional real estate to register REITs.

Under the current REIT Act, income-generating assets are primarily limited to real estate properties held for rental or lease, such as buildings, malls, offices, and warehouses, excluding broader infrastructure or utility assets.

In his earlier statements, SEC Chairperson Francisco Ed. Lim said the enumeration of asset types aims “to avoid confusion and disputes over what constitutes an income-generating property.”

The draft also proposes extending the reinvestment period for proceeds from REIT share or asset sales to two years.

A REIT is a stock corporation established to own income-generating real estate assets, and under current rules, proceeds from asset sales must be reinvested within a year.

The proposed amendments would further enhance transparency requirements by mandating detailed disclosures on leases, related-party transactions, and fees, the commission said.

It also intends to strengthen public ownership regulations and introduce joint-venture provisions requiring REITs to maintain operational control and safeguard investors’ profit rights.

The commission previously announced its plan for the amended REIT rules and other reforms to take effect in January next year. — Alexandria Grace C. Magno

Mastercard unveils Google Pay in PHL for tap-to-pay options

STOCK PHOTO | Image by Jonas Leupe from Unsplash

MASTERCARD on Wednesday rolled out Google Pay for its cardholders in the Philippines, joining Visa in expanding tap-to-pay options as the country seeks to accelerate its transition toward a cashless, digitally inclusive economy.

“The highly anticipated arrival of Google Pay marks a pivotal moment for the Philippines’ financial ecosystem,” Mastercard Philippines Country Manager Jason Crasto said in a statement.

“This innovation not only simplifies everyday payments but also accelerates the country’s journey toward a digitally inclusive economy, where secure, tokenized transactions become the norm for all,” he added.

The service will initially support Chinabank, EastWest, RCBC, Zed Mastercard credit cards and GCash via its Tap-to-Pay feature, with more partner banks expected to join soon.

Google Pay uses tokenization, replacing sensitive card details with a secure digital token stored on a user’s device, lowering the risk of fraud in-store, online and in-app transactions.

The partnership with Mastercard would bring faster, convenient and more secure payments to the Philippines, Google Philippines Country Manager Prep Palacios said in the statement

“This launch underscores our enduring commitment to accelerating financial inclusion and fueling the next chapter of the Philippines’ dynamic digital economy,” he added.

The move follows Visa’s launch with Google Wallet a day earlier, allowing seven issuers — including Chinabank, EastWest, GoTyme, Maya, RCBC, UnionBank and Wise — to accept Google Pay.

Maya in a separate statement said tap-to-pay adoption is expected to expand alongside the growing number of NFC-enabled terminals, promising a seamless experience for both credit and prepaid cardholders.

“This integration empowers our users to move through digital and physical spaces with greater ease, security and reach,” GCash President and Chief Executive Officer Oscar Enrico A. Reyes, Jr. said in a separate statement.

He said the feature would be available to more users in the coming months. EastWest Bank also said Google Pay strengthens its role as a pioneer in contactless and digital payments.

The rollout could significantly accelerate the adoption of cashless payments in the Philippines, where smartphone penetration and e-wallet usage are rising, yet a large share of transactions remain in cash.

By linking card issuers, e-wallets, and digital wallets, Google Pay can reduce reliance on cash, improve transaction security and give banks and fintechs access to richer consumer data for tailored financial services.

The launch also highlights a broader trend: fintech and banking partnerships are reshaping how Filipinos pay for everyday goods and services, bridging gaps in financial inclusion. — Aaron Michael C. Sy

Dining In/Out (11/20/25)


Penang takes over Pen’s Bar

BACKDOOR BODEGA in Penang, one of Asia’s 50 Best Bars in 2022 and 2024, is lending two of their stars, Yun Shen Koh and Thaneshkumar Sivakumar for a takeover at The Peninsula Manila’s The Bar on Nov. 21. Expect drinks from Remy Martin and Cointreau flowing from 8 p.m. to midnight. For inquiries, call 8887-2888 loc. 6694 or e-mail diningpmn@peninsula.com.


DTF marks 10 years with dimsum basket

DIN TAI FUNG’s Xiaolongbao Day returns with a special XLB Basket to celebrate 10 years in the Philippines. For a limited time only, Din Tai Fung Philippines will celebrate DTF Xiaolongbao Day, bringing diners a special XLB Birthday Basket featuring five mainstay flavors and five XLB Day comeback flavors from Nov. 19 to Dec. 3. Guests can order The Birthday Basket for P985 at all Din Tai Fung shops for dine-in only. This limited time offer features five mainstay Xiaolongbao flavors: Pork, Pork Xiaolongbao with Nomad Caviar, Chili Crab and Shrimp Xiaolongbao, Pork and Truffle Xiaolongbao, Foie Gras and Chicken Xiaolongbao. The others, from the Flavors of Asia XLBs, inspired by regional cuisines and released in previous XLB Days celebrations, include Prawn Tom Yum, Pork Kurobuta Ramen, Scallop and Prawn Laksa, Wagyu Pho, and Wagyu Mala Xiaolongbao. Each shop will only serve 100 baskets a day.


Starbucks planner out now

STARBUCKS Philippines is celebrating 23 years of a holiday tradition with the return of its Starbucks Traditions Collection — which, yes, includes the planner. Customers can already begin collecting stickers through the Starbucks PH App or QR Promo Card to redeem pieces from the 2026 collection. This year’s theme, “Invite Joy,” is an invitation back to the familiar comfort of a coffeehouse. Customers can collect one e-sticker for every purchase of a Tall, Grande, or Venti handcrafted beverage through the Starbucks PH App or QR Promo Card. After collecting 18 stickers, they can redeem their choice of 2026 Starbucks Traditions Planner: the 2026 Siren Planner with Carrier in charcoal and onyx; or the daily planner and its matching leather carrier which includes a sleek pen. Other gifts include the cold cup, tumbler, or mug. Stickers can now be collected in all Starbucks stores nationwide. To have a closer look at the 2026 Starbucks Traditions and new holiday offers, visit www.starbuckstraditions.ph.


Joel’s Place unveils a holiday hamper collection

JOEL’S PLACE has unveiled a holiday hamper collection that includes a variety of versions for different recipients. For those who love to host and cook, the selection ranges from La Dolce Passata (P999) to The Big Paella Celebration (P3,499) to the Gusto Hamper (P5,999). For friends and family who prefer to enjoy rather than prepare, there are ready-to-eat offerings like the Signature Snack Box (P2,599) and the premium Curated Cravings Hamper (P9,999). For wellness buffs there are options like the Coconut Collective (P899) and the Merry Harvest (P2,999). Beyond these ready-made hampers, customers can create their own, filling bayongs, red baskets, or picnic hampers with their favorite gourmet finds. Assembling a holiday feast is also an option with ready-to-serve meals. These include the Smoked Salmon Board, the Best of Season Platter, Salmon Wellington in Golden Pastry, the Roast Beef Belly Feast, the Crispy Crunchy Lechon Belly, Roast Duck Breast with Pancakes and Hoisin, and the Festive Flame-Grilled Feast. For dessert, there’s the Biscoff Icebox Dream Cake or the Sticky Toffee Cake. The celebration continues with the Holiday Bakehouse line, featuring the Christmas Tree Croissant, Ribbon Pain Suisse, and gourmet cookie jars filled with Dark Fig & Nut Choco and Food for the Gods Biscotti. Details on the Christmas collection, pricing, and customization options can be found at joelsplace.com.


Taco Bell spices it up

TACO BELL is serving up the new Cheesy Lava sauce in featured items like the Cheesy Lava Crunchy Taco Supreme (starts at P159), made with seasoned beef, shredded lettuce, cheddar cheese, diced tomato, and Cheesy Lava sauce inside a crispy taco shell. There’s also the Cheesy Lava Grilled Stuft Burrito (starts at P219), made with seasoned beef, Mexican rice, a two-cheese blend, and the signature Cheesy Lava sauce, wrapped in a flour tortilla. For sharing, try the Cheesy Lava BBQ Nachos Supreme (starts at P199), made with seasoned nacho chips topped with beef, cheese sauce, sour cream, diced tomato, and a layer of Cheesy Lava sauce. There are also the Cheesy Lava Beef Quesadilla (P199) and the Cheesy Lava Loaded Fries (starts at P299). Diners can add an extra serving of the fiery Cheesy Lava sauce for P39. The Cheesy Lava Crunchy Taco Supreme, Grilled Stuft Burrito, and Beef Quesadilla can come as a combo with a side of Nacho Sprinkle and a 12oz soda for an additional P70. Shareable items like the Cheesy Lava Nachos Supreme and Loaded Fries can also be paired with a 12oz soda for P30 more. Available at Taco Bell store for dine-in and take-out orders. They can also be ordered for delivery via Grabfood, foodpanda, and Pickaroo (prices may vary).

Idle school funds

PHILIPPINE STAR/MIGUEL DE GUZMAN

We have long known that public education needs both special attention and money. As early as 1968, Congress created the Special Education Fund (SEF) through Republic Act No. 5447, setting aside money to pay for classrooms, textbooks, equipment, teacher salary adjustments, and scholarships.

Under RA 5447, the SEF was funded by earmarking portions of real property and cigarette taxes to the Department of Education (DepEd). The law conveyed that education mattered enough to deserve an additional tax base and its own fund, not just whatever was appropriated in the general budget.

That principle was carried over into the 1991 Local Government Code, which devolved public services, including education, to local government units (LGUs). Control over the SEF was transferred to local school boards from DepEd, with funding drawn from an additional 1% real property tax collected by LGUs.

Yet after 57 years of the SEF, there is still no convincing evidence that the fund, in its current design, has systematically lifted the public school system out of its chronic problems. Classroom and teacher shortages persist, and inequalities between schools in rich and poor LGUs endure.

Studies point to a familiar pattern: some cities and municipalities manage the fund well and see local gains, while others underspend, misalign priorities, or simply park SEF balances in bank accounts while learners struggle in overcrowded, under-equipped classrooms, and from lack of teachers.

Reports indicate that from 2018 to 2022, the SEF accumulated an unspent balance of P15 billion sitting idle in LGU bank accounts, earning interest. Clearly, money is not the problem, governance is. The way we govern and spend education funds has not been enough to improve outcomes at scale.

The Department of Finance’s (DoF) call for SEF reforms is therefore timely and necessary. But Congress should also take a long, hard look at what has transpired since 1968 and make an informed decision on how best to redesign the SEF and make it the true helping fund that it was meant to be.

With former senator and congressman Sonny Angara now heading the Department of Education, he is in a position to propose practical, politically feasible reforms. Of all people, he understands how Congress works, and how the budget process can be misused to benefit the unscrupulous.

There is more to this issue than money. There are local cases where the SEF was well-spent, producing positive outcomes. But across the country, the fund remains underutilized and inefficiently managed. A full overhaul may be necessary to confront the systemic weaknesses in our education governance.

Available analyses show a mismatch between what schools need (classrooms, teachers, or learning materials, etc.) and how LGUs spend SEF money, often prioritizing infrastructure and sports facilities. In many cases, funds simply sit in banks earning interest, while students share textbooks or study under trees.

This suggests that underutilization stems not from lack of revenue, but from poor planning, weak coordination with the DepEd, and inadequate administrative capacity at the local level. Governance failures, rather than corruption or revenue shortfalls, appear to limit educational outcomes.

To be fair, the SEF has financed classrooms, teaching materials, and even teacher supplements for over five decades. While some studies indicate good results where the fund was planned and spent well, I have yet to see any national study proving that the SEF, as currently designed, has systematically improved the performance of the public school system in the last 50 years.

Imagine how much money is raised nationwide every year through the additional 1% real property tax earmarked for education, on top of the basic RPT. These proceeds flow to local school boards to support school operations, minor infrastructure, learning materials, sports development, and other programs.

I am certain that both DepEd and DoF are exploring ways to standardize planning and require LGUs to align SEF spending with DepEd priorities and local development plans. The DoF is also monitoring SEF collections and utilization by LGUs. My concern lies in any pending proposal to double the SEF rate and expand its scope of spending at the same time.

There is a proposal to raise the SEF from 1% to 2% of real property tax, and to allow its use for a wider range of activities such as Special Education (SPED), Open High School, madrasah, flexible learning, feeding and health programs, mental health, and child-protection services, among others. These are all worthy causes, but the expansion may be a case of too much, too fast, especially when the present SEF is not efficiently utilized.

Before we double the SEF tax, the DepEd, DoF, and LGUs must first prove they can spend the current 1% properly. The P15-billion unspent balance from 2018-2022 already proves otherwise. Capacity and governance issues must be fixed before asking taxpayers for more money.

If property taxes rise and SEF collections double, but the funds still sit idle or go to token projects with little impact, the reform could be politically suicidal for LGUs. More so now that citizens are more aware of how public money can be misused, as seen in recent flood control projects scandal.

A higher SEF rate could also widen the gap between schools in rich cities like Quezon City or Makati and poor municipalities in the provinces, unless a redistribution or equalization mechanism is put in place. The DepEd should be empowered to use national funds to augment the SEF of poorer LGUs, particularly for school construction and teacher hiring.

A bigger SEF, if inefficiently used, can also turn local school boards into battlegrounds for local politics, with mayors and school officials fighting over control of the fund. This invites abuse, politicization, and corruption in procurement. And even if used honestly, what guarantee is there that a bigger SEF will lead to better educational outcomes?

Almost six decades of SEF experience already exposed the system’s weaknesses. These must first be corrected before raising additional money. Reforms must proceed sequentially, not in parallel. Safeguards, performance benchmarks, and accountability measures should come first. Tax hikes can follow.

Otherwise, we risk repeating the same mistakes that have kept our public school system chronically underfunded, underperforming, and underdelivering on the promise of quality education for all. We might just be raising more money to mismanage and squander.

 

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippine Press Council

matort@yahoo.com