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Gov’t debt service bill climbs in May — BTr

BW FILE PHOTO

THE NATIONAL Government’s (NG) debt service bill climbed in May as it ramped up both principal and interest payments, data from the Bureau of the Treasury (BTr) showed.

Debt payments went up by 16.04% to P80.05 billion in May from P68.98 billion in the same month last year, latest Treasury data showed.

Month on month, however, the government’s debt service bill slumped by 71.5% from P280.9 billion in April.

The bulk or 87.39% of debt payments in May was made up of interest payments, BTr data showed.

Interest payments stood at P69.95 billion that month, rising by 14.5% from the P61.1 billion recorded in the same month in 2024.

Broken down, interest paid for domestic debt went up by 13.54% to P52.31 billion in May from P46.07 billion in the same month last year.

Of this total, P32.82 billion went to paying interest for fixed-rate Treasury bonds (T-bonds), P16.87 billion for retail Treasury bonds (RTBs), and P2.62 billion for Treasury bills (T-bills).

Meanwhile, interest payments for foreign borrowings increased by 17.42% to P17.64 billion in May from P15.03 billion a year prior.

On the other hand, amortization payments jumped by 28.04% year on year to P10.09 billion in May from P7.88 billion.

This came even as the government did not make any principal payments for domestic debt in May compared to the P85 billion it spent in the same month a year ago.

Meanwhile, amortization paid on foreign debt increased by 29.43% to P10.09 billion from P7.8 billion in the same month in 2024.

“NG debt servicing increased year on year for the month of May 2025 partly due to higher matured government securities versus a year ago,” Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.

He added that still-elevated rates likely contributed to the higher interest payments that month.

“The maturity of T-bills, which saw high demand in the previous months, were the primary drivers for this month’s debt payments,” Reinielle Matt M. Erece, an economist at Oikonomia Advisory and Research, Inc., added.

The government has seen strong demand for its T-bill offerings in recent months as lingering uncertainty and global market volatility has caused investors to prefer short-term debt instruments.

FIRST FIVE MONTHS
Meanwhile, from January to May, the NG debt service bill stood at P702.97 billion, slumping 42.22% from P1.22 trillion in the same period last year.

Amortization payments stood at P345.57 billion in the first five months, a 61.39% decline from P895.13 billion in the comparable year-ago period.

This made up 50.84% of the five-month tally.

Broken down, principal payments on domestic debt sharply dropped by 77.43% to P170.4 billion in the period from P754.86 billion a year earlier.

In contrast, amortization for foreign borrowings climbed by 24.88% year on year to P175.16 billion in the January-to-May period from P140.27 billion.

Meanwhile, the government’s interest payments rose by 11.14% to P357.4 billion in the period from P321.59 billion a year ago.

Interest payments on domestic went down by 12.95% to P261.34 billion in the first five months from P231.38 billion previously. This was composed of P178.94 billion in interest payments for fixed-rate T-bonds, P60.08 billion for RTBs, P18.7 billion for T-bills, and P3.63 billion for other instruments.

Meanwhile, interest paid for external debt went up by 6.48% year on year to P96.06 billion in the first five months from P90.21 billion.

Mr. Ricafort said principal payments could increase in the coming months amid large maturities of T-bonds and RTBs, especially in August and September.

Still, the Bangko Sentral ng Pilipinas’ cumulative cuts since August 2024 worth 125 basis points and the relative strength of the peso against a struggling dollar could help reduce debt servicing costs, he said.

“We may continue to see higher debt payments as Philippine securities are becoming more attractive driven by better macroeconomic conditions and better credit rating, as well as government efforts to reduce the country’s debt,” Mr. Erece added.

For this year, the government’s debt service program is set at P2.051 trillion, consisting of P1.203 trillion in principal payments and P848.031 billion in interest payments, based on the 2025 Budget of Expenditures and Sources of Financing.

The NG debt stock hit a fresh high of P16.92 trillion as of end-May. It is projected to hit P17.35 trillion by yearend. — Aubrey Rose A. Inosante

At Sintra getaway, central bankers mull threats to their domain

REUTERS

SINTRA — At their annual gathering in the hills of Portugal’s Sintra, central bankers last week confronted rising challenges to their control of the global money system, from political attacks on the US Federal Reserve to the rise of stablecoins.

Recent editions of the European Central Bank’s (ECB) getaway event have been dominated by worries about high inflation — no surprise after central banks whose core task is price stability were mostly late to react to a surge in prices in 2021-2022.

But this year’s discussions — from choreographed panel debates among central bank chiefs to late-night exchanges at the hotel bar — were centered on more existential threats to the monetary system as we know it.

US President Donald J. Trump’s frequent, often personal, attacks on Federal Reserve Chair Jerome H. Powell — and hints about his replacement — were the most obvious example.

Any suggestion that the Fed might bow to pressure from the White House to lower borrowing costs would hurt its reputation for independence — for decades a core tenet of central banking seen crucial for keeping policy credible and investors on-side.

Two in three reserve managers at central banks polled by UBS Asset Management said in a survey released last week they feared that Federal Reserve independence was at risk.

Mr. Powell batted away such worries during a panel discussion, saying he and colleagues were focused “100%” on low inflation and full employment “in a completely nonpolitical way.”

He drew applause from an audience of economists and central bankers, with ECB President Christine Lagarde saying she and her peers would do the same if they were in Mr. Powell’s shoes.

CONFIDENCE DENTED
But confidence has already been shaken.

Central bankers were openly fretting about a topic that was taboo only a few months ago: will the Fed, even under a Trump-picked chair next year, continue to lend dollars to foreign banks when they are in trouble?

Commercial lenders outside the United States have been able to borrow dollars even when they are shut out of financial markets via swap lines between the Fed and some other central banks created during the 2008 global financial crisis.

These facilities underpin the $25-trillion market for dollar credit outside the United States and also serve a domestic purpose: by helping to douse financial fires abroad, they effectively prevent them from spreading to Wall Street.

The Trump administration’s retreat from international coordination has raised some concerns about these lifelines, even though there has been no action so far to suggest they will be cut.

Governor Rhee Chang-yong said his Bank of Korea, which unlike the ECB and other major central banks does not have a standing arrangement with the Fed and relies on temporary help when needed, might have to fend for itself in the future.

“If there’s no global dollars shortage, our understanding is that the Fed cannot extend the swap-line in that case and we have to self-defense ourselves,” Mr. Rhee said at the conference.

His Japanese peer Kazuo Ueda emphasized the importance of regional swap lines, such as the Chiang Mai Initiative of the Association of Southeast Asian Nations (ASEAN), as an additional safety net.

One European central banker speaking on condition of anonymity said pooling dollar and gold reserves across countries could also serve as a stopgap, although it was unlikely to be sufficient to plug major shortfalls.

These fears fed a broader debate about the dollar losing its status as the world’s currency of choice for saving and trading, with a lack of viable alternatives in sight.

Seeking to reassure colleagues, Mr. Powell said the Fed retained its legal authorities and was “still prepared to use” them.

STABLECOINS
Stablecoins — crypto tokens pegged to an official currency — were a new entry among Sintra’s topics of debate, even keeping some central bankers up late in informal discussions at the conference venue’s bar.

While some recognized stablecoins’ efficiency as a means of exchange, their proliferation in recent years — and especially since Mr. Trump threw his weight behind them as a way to extend the dollar’s global reach — was seen as alarming by many central bankers.

They fear stablecoins may be prone to “runs” if investors suspect the issuing company does not have enough currency to back outstanding tokens, as happened to TerraUSD in 2022.

Bank of England Governor Andrew Bailey said stablecoins must show they can “hold their nominal value” if they are to be treated as a legitimate means of exchange.

The ECB’s Ms. Lagarde went as far as saying stablecoins amount to “a privatization of money,” taking the supply of currency away from central bankers and undermining their capacity to conduct monetary policy.

Mr. Rhee was even more specific, saying stablecoins denominated in South Korean won — one of President Lee Jae Myung’s election pledges — could undermine the domestic currency by making it easier to switch to dollars. — Reuters

Spatio revamps space to champion Filipino brands

“OUR SHARED vision to make Spatio the home for over 100 local makers and designers is coming true. You can only find this diverse selection here at Opus Mall,” said Martin de Leon, deputy general manager for Spatio.

Department store offers multisensory experience

THE OPUS MALL along C5 has added something unique to its offerings, in the form of the refreshed Robinsons Retail concept, Spatio.

During its opening on July 3, guests got to glimpse the store’s collaboration with the Fashion Accessory Makers of the Philippines (FAMph) and filmmaker/artist Connie Macatuno, for its campaign #KwentoNatinGalingPilipino.

Spatio now houses a mix of Filipino fashion, accessories, home, and lifestyle goods across its 7,800-square-meter, three-level space. The goal behind the revamp is “to highlight a compelling new wave of local artisans shaping the next chapter of Philippine design.”

Martin de Leon, deputy general manager for Spatio, said that the partnership with FAMph and the Department of Trade and Industry has shaped the lineup. “Our shared vision to make Spatio the home for over 100 local makers and designers is coming true. You can only find this diverse selection here at Opus Mall,” he said at the launch.

He added that each item is “a story passed from artisan to wearer, connecting personal narratives with collective pride.”

Among the featured brands under FAMph are Alchemista, Abel PH, Lokal, Charming Baldemor, Agsam Fashion Fern, Crystal Seas, Leather Studio Manila, Oel Designs, Nifty Shoes, Strozzi, Style Isle, Lakat, Roweliza, Beatriz, Mara Piñon, and J Makitalo.

The multisensory experience at the store includes an exclusively developed aroma of ube (purple yam), to enhance the feeling of nostalgia, and the music playlist called “Sa Habi ng Alaala: A Tapestry of Filipino Sound,” a three-hour mix curated by Jorge Juan B. Wieneke V. It ranges from nostalgic kundimans to experimental rhythms, folk, funk, and ancestral sounds.

“Fashion and accessories are a form of visual storytelling. My advocacy is to keep telling the story of our Filipino identity,” said filmmaker/artist Connie Macatuno, on the importance of Spatio. “I want each person to feel that this is a home, whether it’s in the context of bahay or house, or the context of bayan or homeland.”

Aside from coming up with the multisensory experience, her own fashion brand, Lokal, was also showcased at the launch’s opening runway. The models showed off pieces that were an amalgam of various fabrics, weaves, and colors, painted with playful designs.

A mix and match of bags, shoes, and accessories by the other FAMph-featured brands were also featured on the runway, all now available at Spatio. One of them is Roweliza, a Marikina shoe brand.

“You can see that these are all made with quality. You get your money’s worth with these products,” Roweliza Landicho, the brand owner and designer, also a third-generation shoemaker, told BusinessWorld.

“We need more spaces that showcase local artisans. It supports our businesses, so that more people can appreciate our craftsmanship.”

Other items that drew attention were handwoven blankets and towels from Ilocano brand Abel PH, handcrafted Philippine culture-inspired jewelry by Strozzi from Liloan, Cebu, and carved wood bags and decor by Paete, Laguna-based Charming Baldemor.

For Ms. Baldemor, it’s important to note that many of the brands at Spatio make use of locally sourced and even upcycled materials, be it old fabrics or seashells. Her studio, in particular, uses salvaged wood.

“My advocacy is to promote wood-crafting without having to use newly cut trees. We stand against illegal logging. For the bags, we upcycle salvaged materials, from demolished houses and trimmings of furniture,” she explained.

She added that local brands pay a lot of attention to detail, and thus devote painstaking time to craftsmanship “compared to fast-fashion or mass-produced items from abroad.”

“Our products are carefully made by hand, and as humans, we can only do so much. There’s very little appreciation of the artisans and artists alike. Being here in a commercial space, we’re hoping to raise awareness that Filipino products are world-class.”

Spatio is located on the second, third, and fourth floors of the Opus Mall in Bridgetowne, Quezon City. For more details, follow @spatio.ph on Instagram and Facebook. — Brontë H. Lacsamana

Telco DITO expects over P20-B revenue for 2025

BW FILE PHOTO

DITO Telecommunity Corp. is expecting to generate over P20 billion in revenue this year, up from P16.35 billion in 2024, driven by its expanding digital and data business, its president said.

“We should exceed P20 billion, that is the minimum. Although we’re not as big yet, we are not a challenger but we’re also small and more digital,” DITO Telecommunity President and Chief Executive Officer Mr. Ernesto R. Alberto told reporters on the sidelines of an event last week.

For 2024, DITO CME Holdings Corp., which operates DITO Telecommunity, posted a total revenue of P16.35 billion, up by 45.46% from P11.24 billion in 2023.

For the first three months of 2025, DITO CME trimmed its attributable net loss to P1.66 billion from the P4.11 billion in the same period last year, mainly driven by higher revenues for the first quarter.

The company saw its gross revenue for the January-to-March period climb to P4.69 billion, higher by 24.07% from P3.78 billion in the same period last year.

Mr. Alberto said the continued growth of data will drive the anticipated higher revenue growth for the year.

“There is room for everybody because the consumers are also using more data. All of you have used more data than the last three years, and you continue to use more data as there are more digital tools that enable your lifestyles,” Mr. Alberto said.

Further, DITO Telecommunity is also expecting growth in its fixed wireless access (FWA) service, which is projected to become a one-billion-peso revenue stream within this year.

“For our FWA group, I would say within the range of maybe P1.2 billion to P1.4 billion this year,” DITO Telecommunity Chief Revenue Officer Adel A. Tamano said.

The company aims to surpass one million subscribers for its FWA services within the next 18 months.

This year, the company has allocated a capital expenditure (capex) of P10 billion to P15 billion, which is about 25% lower than last year’s budget of approximately P20 billion.

“Our [budget] will be modulated because we have already built a network. It will not be as massive as the first five years,” Mr. Alberto said.

The company has said that its capex budget for this year will be significantly lower and will mainly be allocated for the optimization of its existing networks. — Ashley Erika O. Jose

IKEA brings 93 new pieces from its Stockholm collection to Manila

NEW ITEMS from Ikea’s Stockholm Collection.

NATURAL materials, timeless design, and quiet luxury have characterized IKEA’s Stockholm collection for the past 40 years. With 93 newly designed pieces, the Swedish furniture giant aims to continue its goal to make indoor spaces comfortable.

During an event held at the Opus Mall in Bridgetowne, Quezon City, on July 3, IKEA presented items like sofas, dining chairs, cabinets, lampshades, and handwoven rugs and mouth-blown glass vases.

“Stockholm is our classic Scandinavian collection,” said Ricardo Pinheiro, country retail manager for IKEA Philippines. “The colors and materials are very suited to Filipino homes and way of living.”

Named after Sweden’s capital city, the Stockholm collection has gone through eight distinct editions over four decades, all sharing the same defining characteristic of modern Scandinavian design at affordable prices.

In its latest and largest iteration, the 96-piece collection boasts a diverse range of furniture, textiles, lighting, and accessories. Only three won’t be brought to the Philippines — armchairs that are “in the process of being localized,” according to Mr. Pinheiro.

“All the pieces reflect our ‘democratic design,’ which has five elements: function, form, quality, sustainability, and affordability,” he explained.

Deeply rooted in the urban and natural landscapes of Stockholm, the collection has rich earth tones that play against natural woods. Two sofas serve as the centerpieces to guide the collection: a wide modular sofa, and a solid pine wood frame sofa.

Rattan is one material that features prominently in several handcrafted pieces. It is used in the backrest of some dining chairs. Meanwhile, the bentwood chairs are made with a traditional technique where the beech wood is soaked and carefully bent by hand to form soft, rounded arches in the arms and back of the chairs.

The forest is a central character in the wool rugs handwoven by master weavers, showcasing birch tree patterns available in shades of green as well as in grayscale.

Finally, a selection of large mouth-blown-glass pieces stand out and blend well with the rest of IKEA’s ceramic tableware.

“Scandinavian classic style is very close also to our roots, where the quality, the choice of the materials, the functionality, and the sustainability come together in a nice way,” said Mr. Pinheiro.

He also told the press that, following the success of IKEA’s first store in Pasay City, plans for a second store are underway.

“I cannot tell you where, but very soon there will be more details,” he said.

Pieces from the Stockholm 2025 collection are now available at IKEA Philippines in Mall of Asia, Pasay City, and online. — Brontë H. Lacsamana

IT-BPM firms told to boost authentication, anti-cybercrime policies

STOCK PHOTO | Image by Hack Capital from Unsplash

By Beatriz Marie D. Cruz, Reporter

PHILIPPINE information technology-business process management (IT-BPM) companies must ensure stronger authentication measures and better enforcement of cybercrime laws to prevent cyberattacks that could harm the country’s reputation as a contact center hub, according to analysts.

“As the Philippine IT-BPM industry progresses toward its projections of 1.9 million full-time digital workers and $40 billion in export revenue in 2025, addressing cybersecurity risks like vishing attacks and other forms of cybercrime is essential to sustaining the Philippines’ leadership as a trusted global hub for IT-BPM services,” Jack Madrid, president and chief executive officer at the IT & Business Process Association of the Philippines (IBPAP), told BusinessWorld in an e-mail.

Australian carrier Qantas Airways recently suffered a data breach following a vishing attack at its Manila-based contact center, according to reports.

The cyberattack, which was detected on June 30, exposed the personal information of over six million Qantas customers, including their names, birthdays, e-mails, and frequent flyer numbers.

“These attacks can damage the reputation of call centers in the Philippines… [which is] one of the major contributors of our GDP (gross domestic product),” Allan S. Cabanlong, regional director for the Southeast Asia hub at the Global Forum on Cyber Expertise, said in a telephone call.

The Philippines has long been a favored destination for offshoring and customer service delivery, amid growing demand in sectors like banking, financial services, and healthcare.

However, the country’s existing laws are not sufficiently enforced to address IT-BPM-related attacks like vishing, which could undermine investor confidence, Mr. Cabanlong noted.

“When it comes to catching cybercriminals, we have a cybercrime law. What’s really lacking there is cybercapacity — the influence of enforcement, investigation, and implementation of existing laws,” he said.

Vishing, short for voice phishing, is a type of criminal fraud where scammers make phone calls or send voice messages to trick individuals into sharing their personal information.

“The individuals behind many of the most notable vishing attacks have obtained information that is so convincing that even well-seasoned support staff would be fooled by their efforts,” Satnam Narang, senior staff research engineer at American cybersecurity firm Tenable, Inc., said in an e-mail.

To address this, the government should prioritize the passage of the Critical Information Infrastructure Protection Act, which outlines clear policies and reporting mechanisms to safeguard critical ICT (information and communication technology) systems, Mr. Madrid said.

Lawmakers should also amend Republic Act No. 10175, or the Cybercrime Prevention Act of 2012, to streamline legal proceedings against employees involved in cybercrimes, he noted.

Mr. Madrid also called for the full implementation of the National Cybersecurity Plan 2023-2028, which outlines strategic approaches to combating cyber threats that could compromise national security and economic stability.

“Given the crucial role of technology and the IT-BPM sector in driving the Philippine economy, IBPAP also urges the government to enact and enforce robust data protection and cybersecurity legislation that can deter threats across industries,” Mr. Madrid said.

To prevent vishing incidents, Mr. Madrid added that some IT-BPM firms have adopted preventive tools like the One Trust Link (OTL), a centralized database that helps verify individuals involved in fraudulent activity during their employment.

“OTL is part of the industry’s collective response to fraud prevention, providing companies with a mechanism to identify and screen high-risk individuals more effectively, while safeguarding due process and data privacy,” he said.

Looking ahead, security teams assigned to helpdesks should implement stringent identity verification safeguards beyond information-based questions, Mr. Narang said.

These include using secondary contact methods and stronger forms of multi-factor authentication, he noted.

“Limiting the privileges of frontline helpdesk staff and requiring escalation to more senior helpdesk staff to vet such requests may thwart some of these types of attacks,” Mr. Narang said.

IT-BPM firms should consistently implement employee training, strong authentication, and regular oversight to maintain the integrity and safety of the information they handle, said Ronald B. Gustilo, national campaigner for consumer group Digital Pinoys.

“Maintaining a do-not-act-until-confirmed rule for any system or credential-related requests should also be on the table for implementation,” Mr. Gustilo said in a Viber chat.

Contact centers should also enforce strict rules against sharing passwords, OTPs (one-time passwords), or credentials, he added. Real-world simulations, such as mock vishing calls, should also be conducted to train employees.

Style (07/07/25)

Tayo Studio presents Milkmaid Collection

TAYO STUDIO, a Filipino clothing brand “made by Filipinos, for Filipinos” which has a focus on sustainability by using deadstock fabric or leftover materials that would otherwise go to waste, this season introduces The Milkmaid Collection. A soft, romantic nod to countryside living, the collection is a fresh take on classics, featuring the season’s dreamiest colors, gentle silhouettes, and prints that feel both nostalgic and new. To see the collection, visit Tayo Studio’s Facebook and Instagram pages, and shoptayostudio.com.

HOKA, StudioPROBA team up for sneaker collection

HOKA’S latest collaboration is with StudioPROBA, a multidisciplinary design studio led by artist Alex Proba. This collaboration reimagines a selection of HOKA’s iconic silhouettes through StudioPROBA’s joyful, sculptural lens. The collection includes four distinctive colorways across three HOKA silhouettes: the Speedgoat 6, Ora Primo, and Kawana Mid. Each pair acts as a wearable artwork, blending vibrant color, texture, and function. The collection is available at HOKA exclusive stores in One Ayala Mall, GH Mall, SM Aura, and Ayala Malls Manila Bay.

New stores opening at Ayala Malls

AYALA MALLS has been refreshing its premier malls — Greenbelt, Glorietta, TriNoma, and Alabang Town Center (ATC) — with the intention of bringing in a wave of first-in-the-Philippines global brands, exclusive concepts, and “elevated lifestyle experiences.” Manila gets its first-ever taste of the playful yet polished NYC flair of Alice + Olivia and the Parisian chic and luxe bohemian style of Sandro and Maje, exclusively at Greenbelt. Golden Goose brings Italian cool with handcrafted sneakers and ready-to-wear pieces, exclusively at Greenbelt. ALO Yoga opens its first Philippine flagship store at Greenbelt, offering premium athleisure for active lifestyles. Down south, Rev* debuts at Alabang Town Center, a haven for runners featuring top brands like adidas, HOKA, Nike, and more. At Glorietta, Vivaia makes a sustainable statement with eco-friendly, fashion-forward footwear. Muji fans can now explore its flagship store at Glorietta, complete with its first-ever bakery. Fully Booked X Kinokuniya, blending local and Japanese favorites, is now open at Glorietta. At Greenbelt, fragrance aficionados can indulge in the scents of Diptyque and Maison Francis Kurkdjian (MFK). There will be a wave of new openings in the months ahead. ANKO, Australia’s home and lifestyle brand, opens at TriNoma this July, its first store in Northern Metro Manila and joining its Glorietta and ATC branches. JD Sports, the UK’s leading sneaker and sports fashion retailer, is landing at Glorietta. Parfum de Marly, known for its French fragrances, will debut later this year at Glorietta. Over at TriNoma, new cafés and restaurants will be opening in the latter half of 2025. These include coffeehouses H Proper Coffee Roasters, Key Coffee, and Coopers Coffee Haus; French-inspired restaurants Burnt Bean, Little Flour, and Paris Baguette. New shops will also be opening in TriNoma: Nat Geo, Hoka, ASICS, Mizuno, and Pomelo. For updates, follow Ayala Malls on social media at facebook.com/AyalaMalls360, Instagram @iloveayalamalls, and TikTok @iloveayalamalls, and visit Ayala Malls at www.ayalamalls.com.

Lucky Chinatown’s three new shops

IN THE HEART of Manila’s Binondo district, Lucky Chinatown mall has opened a couple of new shops. A celebration of Japanese pop culture, the Gashapon Bandai Official Shop lets customers spin a dial to acquire a mystery capsule which may be filled with anything from collectible anime figures to intricately crafted everyday replicas. Also open is Nitori, a mini department store filled with clean-lined furniture, intuitive storage, and textiles, all of which speak the quiet language of Japanese utility and grace. Then there is KKV, a store that reads like a design-forward bazaar, filled with rows of artful stationery and imaginative toys beside avant-garde cosmetics, trending home items, and unique snacks.

Farmers plant their way to financial security through backyard gardening

Maricel (center), a former barangay health worker with no prior farming experience, always dreamed of starting her own business. Through the Kabalikat sa Kabuhayan (KSK) Farming Program, she turned that dream into reality. She is now thriving as a business owner, actively selling her harvests at the Weekend Market of SM City Urdaneta.

For years, many Filipino farmers have been unable to break the cycle of debt and dependency that often accompanies farming. But through SM Foundation’s Kabalikat sa Kabuhayan (KSK) Farming Program, the beneficiaries are now finding ways to generate a reliable income from agriculture.

Among those whose lives have changed is Connie Flores, a mother of six and a 2023 graduate of the KSK’s urban gardening program. Although she had no formal background in agriculture, Connie adapted to the lifestyle of her husband’s family, who primarily grew vegetables for their own use.

“Mahirap po ang magsaka. Dahil wala po kaming puhunan noon, lagi kaming umuutang. Kaya kapag umani, ipangbabayad lang po ulit namin,” she recalled.

After joining the KSK program, she realized that vegetable farming could be a viable livelihood. She began practicing integrated farming, growing vegetables in their backyard and beside the family’s rice fields, maximizing land use and generating additional income. With guidance from KSK, she learned to grow high-value crops such as sponge gourd (patola), okra, and string beans, which are Filipino household staples and command reasonable prices.

“Kung hindi dahil sa KSK, hindi ko matututunang magtanim at magbenta ng iba’t ibang gulay. Dito ko napatunayan na kaya ko palang kumita at tumayo sa sarili kong paa. Pinalitan ko na ang dating mentalidad na pangkaraniwang housewife lang ako, may kakayahan din akong kumita para sa pamilya,” Connie shared. KSK also aims to equip farmers like Connie with market access. After completing the training, graduates are given the opportunity to join the SM Weekend Market, where they can sell their harvest directly to consumers.

Connie Flores (left) and Imelda Lagmay (right) from Pangasinan have created an additional revenue stream for their families after graduating from SM Foundation’s KSK Farming Program in 2023. Apart from their backyard garden, they have also turned portions of their rice fields into profitable vegetable gardens.

For Maricel Badua, KSK turned her life around. A mother of four and former barangay health worker, with no prior farming experience, Maricel joined the program in 2023.

“Marami na po akong natutunan na ina-apply ko na po ngayon sa aking araw-araw na pamumuhay,” she said. From a small backyard garden, she was able to harvest enough produce to begin selling at SM City Urdaneta Weekend Market, similar to Connie.

“Binigyan po kami ng SM ng pagkakataon na magtinda sa harapan mismo ng SM City Urdaneta. Ang laki ng naitulong sa aking buhay at sa aking pamilya,” she said. “Sa unang sabak ko po sa pagtitinda doon, hindi ko po akalain na ganoon karami ang bibili — na mababawi ko po ang puhunan ko at magkakaroon din po ng tubo,” she said.

Applying her KSK knowledge of careful budgeting and reinvesting earnings, Maricel increased her income. From a combined household income of P4,000 per month, she now earns around P15,000 every weekend. She and her husband, a tricycle driver, now run the stall together.

“Matagal ko na rin pong pangarap maging negosyante. Sa tulong ng SM Foundation, ito po ay natupad,” she smiled.

Maricel sells her homegrown vegetables at the SM Weekend Market, where demand is so high that her products always sell out. Seeing this as an opportunity, she now also purchases harvests from her fellow KSK Urban Gardening graduates, creating a thriving network that benefits the entire community by providing them with a reliable market for their produce.

Now that she is able to finance her children’s education, she can enjoy simple joys with her family, such as occasionally dining out.

“Mas natututukan ko na po ‘yung pamilya ko. Nabibili ko na po ‘yung mga gusto kong bilhin para sa mga anak ko. May naitatabi na rin po ako. Nakakakain na po kami sa labas, noon hindi po. Dati, hindi po ako nakakabayad sa school, ngayon nakakabayad na ako. Nakakabili na rin po ako ng bigas bigas, hindi ko na ito inuutang,” she said, wiping away tears.

Now, Maricel is working toward bigger goals. She dreams of opening another stall in a new location and, ultimately, own a house and lot: “Ngayon, hindi na po imposible ang mga pangarap ko, unti-unti ko na po silang natutupad.”

As more KSK graduates like Connie and Maricel continue to turn agriculture into a viable livelihood, the SM Foundation advances Henry Sy, Sr.’s vision that farming can empower lives.

 

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For us, by us

Toyota Tamaraws aboard a Ro-Ro (roll on, roll off)vessel. — PHOTO BY PABLO SALAPANTAN

Driving the locally assembled Toyota Tamaraw in Mindoro

By Pablo Salapantan

EVER SINCE the launch of the new-generation Toyota Tamaraw, I had been dying to get behind its wheel. I’ve always felt that the Tamaraw is something inherently Filipino, a vehicle born out of necessity that eventually became part of countless families and memories — not to mention a reliable business partner as well.

Does this new Toyota Tamaraw have the same magic, the same appeal in 2025? Well, we found out by taking the Tamaraw to the home of its namesake animal endemic to Mindoro.

LAKBAY TAMARAW
In a bid to further spread and keep the Tamaraw lore alive, Toyota Motor Philippines hosted a simple, three-day drive adventure in Mindoro aptly called “Lakbay Tamaraw.” We all met up bright and early in the Batangas City area, had a quick briefing and breakfast run, then boarded the FastCat Ro-Ro (roll on, roll off) bound for Calapan Port.

As we boarded our FastCat vessel, I saw a fleet of Tamaraws in all sorts of guises. There were standard dropside units, along with a smattering of the UV bodies, and some slightly modified versions as well.

After a relatively relaxed and comfortable hour and a half on the water, we arrived at Calapan Port, Mindoro, and our true journey began. I took the first driving stint from the port to our lunch stop at the Toyota Calapan City dealership.

Sitting in the Tamaraw for the first time reminded me immediately that this is a vehicle designed more for work than for play. There aren’t many features to talk about, and the feel of everything is solid and very purposeful, with the only true creature comfort being a head unit with Apple CarPlay and Android Auto.

Our particular unit was a gray GL Dropside Automatic, which is the top-of-the-line variant. I have to say that the moment we set off, I was surprised at how easy it is to drive the Toyota Tamaraw. There is a solid and well-built feel, and an apparent usability in the way it drives. The steering is light, the size and height are just right, it honestly felt like an Innova to me.

After lunch, we headed out for some quick nature stops at the Infinity Farm before making a beeline for Puerto Galera for our hotel stay. It must be pointed out that Mindoro is the location of the Tamaraw reservation, a place where brave individuals volunteer to keep the species alive and well.

Looking around, I saw that Mindoro is the perfect place for this. The landscape is lush and green, and the farmlands appear well-kept. The low population density has contributed to Mindoro’s appeal and, undoubtedly, the health of its flora and fauna. It’s a sight for sore eyes used to the city landscape.

Some quick snacks were served to us at the Infinity Farm, where I saw probably one of the cleanest mountain water features I’ve ever seen.

It was time to head two hours around the coastal roads of North Calapan road to Puerto Galera, and this is where the Tamaraw showed a new side. As the roads got twisty and technical, the Tamaraw surprised me by behaving well through dynamic driving conditions. It felt sure and planted around tight bends, and the adequate powertrain enabled us to keep pace properly as a convoy. I was really expecting the Tamaraw to struggle in these conditions, but it thrived enough for me and my fellow media delegates to enjoy the drive.

GIVING BACK
The next day, we were given the chance to participate in TMP’s program to give back to the community -— an activity that is at the very center of the Toyota Tamaraw DNA.

A rural school was chosen to receive much-needed school and personal supplies, and I was happy to play my part by driving one of the Tamaraws loaded with the said supplies.

Even when fully loaded, the Tamaraw kept its cool through the twisty mountain roads, and up the steepest inclines. There was no hint of struggle; a true workhorse still lives within the Tamaraw body. There are instances wherein brands are keen to revive popular nameplates just to boost their image and sales without much thought.

In the Tamaraw’s case, Toyota did the right thing. TMP brought what made the Tamaraw a beloved model in the past into a new era of motoring and mobility by adding more appealing looks, approachable and fun driving dynamics, and an ability to be playful for those who dare.

This generation of the Toyota Tamaraw carries the torch of the old and introduces the model to a new generation of Filipinos.

DigiPlus slides on policy jitters

DIGIPLUS.COM.PH

SHARES of DigiPlus Interactive Corp. plunged last week despite being the most actively traded stock amid panic selling across the market, analysts said.

Investor sentiment in the Tanco-led company was driven by concerns about potential regulatory actions in the gaming sector, despite news of its expansion in Brazil.

The listed digital gambling company had a value turnover of P6.72 billion, with 168.26 million shares traded from June 30 to July 4, data from the Philippine Stock Exchange (PSE) showed.

DigiPlus shares closed at P29.50 apiece on Friday, plunging by 48.2% from P56.90 on June 27, week on week. Likewise, the services index declined by 5.2%, while the benchmark PSE index inched down by 0.2%.

Year to date, the digital gambling company gained 8.7%, outperforming the 0.7% growth in its sector and reversing the PSE’s 2% decline.

The sharp fall week on week clearly reflects a sell-off driven by investor sentiment, which was triggered by legislative and regulatory worries rather than fundamental weaknesses in the company’s performance, Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said in a Viber message.

“[This] reflects how high-growth, high-risk stocks are vulnerable to rapid value erosion when policy risks increase,” Mr. Arce added.

On a yearly basis, he said that DigiPlus “outperformed due to strong fundamentals and a compelling growth story, while the broader index lagged due to macroeconomic pressures and underperformance in more traditional sectors.”

Last week, the company saw mixed trading patterns due to heightened regulatory risks and broader sentiment-driven volatility in the gaming sector, which alarmed investors and caused shares to fall.

For Jemimah Ryla R. Alfonso, equity research analyst at Unicapital Securities, Inc., DigiPlus “suffered a brutal sell-off” due to worries surrounding the proposed online gaming bill by Senator Sherwin T. Gatchalian.

Ralph Jonathan B. Fausto, research associate at China Bank Securities Corp., said that market sentiment on the listed digital gambling company was steered by snowballing concerns regarding potential regulations, in which proposals under consideration are generally aimed toward regulating access and taxation.

Additionally, Mr. Fausto said that the strong investor interest in the company is driven by its strong earnings growth trajectory given its wide market adoption, alongside expansion opportunities in new geographic markets.

The bill, filed by Mr. Gatchalian, seeks to implement stricter regulations for online gambling platforms to control the rise of gambling addiction among younger Filipinos.

The proposed measure includes raising the minimum cash-in requirement for online gambling platforms to P10,000, to discourage impulsive and easy access to gambling platforms. It will also ban gambling sponsorships of public events and campaign donations.

Following this, the Finance department also said it plans to impose a tax on online gaming, while the central bank issued a circular requiring banks and e-wallets to protect their users from potential risks of online gambling.

Mr. Arce said that the news worsened the uncertainty in the sector, with the overall market already cautious of economic headwinds and impending fiscal reforms.

“Traders should closely monitor updates on these bills and central bank circulars, as they could materially affect DigiPlus’ operations and valuations,” he said.

Last week, DigiPlus announced that it will debut its operations in Brazil by September as part of its strategic expansion program to its next phase of growth.

DigiPlus, best known for interactive gaming and sports entertainment, is the operator behind BingoPlus, ArenaPlus, and GameZone.

The company said it will deliver a fresh line-up of livestreamed games, slots, table games, and exclusive self-developed digital entertainment content designed to thrill local players in Brazil, which will be delivered through the company’s infrastructure, strengthened by its landmark migration to Amazon Web Services.

“The Brazil expansion represents a strategic pivot toward international diversification, offering a high-potential market,” Mr. Fausto said in an e-mail.

He added that the company intends to penetrate the Brazilian market by initially targeting the sports betting segment, which aligns strongly with local consumer behavior, particularly Brazil’s deep-rooted football culture.

“After establishing a foothold, we view the company to be well-positioned to deploy its proven strategy of digitalizing localized games which was the catalyst for its success in the Philippine market.”

For Ms. Alfonso, DigiPlus has a proven strategy and operational structure that they can effectively replicate in their Brazil expansion and that they have factored in the launch of their Brazil platform operations, which signals their readiness and suggests that the rollout could be smooth sailing.

The Brazilian government approved regulations for both online betting and gaming, providing clear guidelines for licensed operators, consumer protections, and fair taxation in 2024, which allowed the entry of foreign players such as DigiPlus.

But even so, adapting to the local dynamics of the Brazilian gaming market may entail an initial adjustment period, Mr. Fausto said, adding that changes in the regulatory landscape could provide an overhang, as this factors into profit growth prospects.

For Mr. Arce, this will benefit the company as its recent upgrades to responsible gaming frameworks aligned with foreign regulatory expectations, but he cautioned that DigiPlus must be wary of potential regulatory volatility.

“While Brazil’s new regulatory environment creates a welcoming gate for DigiPlus, sustained compliance, cultural alignment, and risk agility will be critical. The rewards are substantial, but so are the responsibilities,” Mr. Arce said.

In the first quarter, DigiPlus’ net income surged by 110.6% to P4.2 billion from P2 billion in the same period a year earlier.

Meanwhile, revenues climbed by 69.2% to P23.06 billion from P13.63 billion.

For Mr. Fausto, the top line was underpinned by sustained momentum in domestic gaming operations, which was further improved by the company’s initiatives in late 2024, while its bottom line was supported by continued cost discipline.

Mr. Fausto sees revenues reaching P102.9 billion, while net income is estimated to reach P18.4 billion, saying that investors are likely to continue monitoring the company’s ability to sustain its profit growth trajectory, especially in the context of its Brazil expansion and intensifying domestic competition.

“Immediate support and resistance are at P29 and P33, respectively,” he said.

For Mr. Arce, revenues could hit P24.5 billion to P25 billion, given that there will be no regulatory shocks, while net income is projected to reach P4.4 billion to P4.6 billion, with the Brazil operations factoring into investor expectations.

He listed that robust growth metrics, strong trading liquidity and price momentum, as well as sector leadership in a digital niche with high scalability and brand recognition, are among the few factors investors might consider with DigiPlus.

“Based on recent trading data, sentiment shifts, and technical patterns, support could fall between P35.20 to P31.35, while resistance may range between P40 and P47.85,” Mr. Arce said.

Ms. Alfonso, meanwhile, said that DigiPlus’ strong performance is reflective of the broader momentum in the e-gaming industry, as more Filipinos increasingly incorporate online gambling into their digital entertainment routines.

She added that potential catalysts for DigiPlus include the possibility that if the proposed House bill is not passed, it could help restore investor confidence as regulatory fears would simmer down.

“Second, a material share buyback by the company could serve as a strong signal of management’s confidence and further boost sentiment.”

Lastly, she said that the next release of quarterly earnings could underpin the growth narrative of DigiPlus.

She pegged the support level at the P24 to P28 range, while resistance is at the P33 to P38 range. — Abigail Marie P. Yraola

T-bill, bond yields seen easing

BW FILE PHOTO

RATES of Treasury bills (T-bills) and Treasury bonds (T-bonds) could end mostly lower at separate auctions this week after the Bangko Sentral ng Pilipinas (BSP) signaled two more rate cuts this year.

T-bill and T-bond rates could follow the mixed week-on-week movements at the secondary market amid dovish signals from the BSP, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.

The Bureau of the Treasury (BTr) will auction off P25 billion in T-bills on Monday — P7 billion in 91- day securities, P8.5 billion in 182-day debt and P9.5 billion in 364-day paper.

On Tuesday, the government will sell P30 billion in reissued 10-year T-bonds with a remaining life of seven years and two months.

At the secondary market, the 91-day T-bill slipped 0.86 basis point (bp) to 5.4708%, based on PHP Bloomberg Valuation (BVAL) service reference rate data as of June 27 posted on the Philippine Dealing System website.

The 182- and 364- day T-bills added 1.96 bps, and 0.44 bp to end at 5.6616% and 5.6999%, respectively, based on the Bloomberg service.

The 10-year bond dropped 8.69 bps to 6.2331%, while the seven-year note, the closest to the T-bond’s remaining life, fell 2.83 bps to 6.0758%.

In an e-mail, a trader said strong interest in long-term debt may persist, although yields could rise due to an anticipated surge in liquidity.

BSP Governor Eli M. Remolona, Jr. said last week there is room for two more rate cuts this year as inflation is expected to remain within the 2-4% target and due to the government’s lowered economic growth expectations.

The BSP last month cut the target reverse repurchase rate by 25 bps to 5.25% amid an easing inflation outlook and weaker-than-expected first-quarter economic growth.

The Development Budget Coordination Committee (DBCC) trimmed the Philippines’ gross domestic product (GDP) growth target to 5.5-6.5% this year, down from the earlier 6-8% forecast, citing heightened global uncertainties from US trade policy shifts and war in the Middle East. For 2026 to 2028, the DBCC also narrowed the growth forecast to 6-7%, from 6-8%.

June inflation rose to 1.4% from 1.3% in May, still below 3.7% last year. This was the fourth straight month inflation stayed below the Bangko Sentral ng Pilipinas’ 2-4% target. Year-to-date inflation averaged 1.8%.

On the borrowing front, the BTr raised only P23.95 billion from T-bills last week, falling short of the P25-billion target, despite total bids reaching P56.84 billion.

The Treasury partially awarded the 91-day debt, citing high yield demand. “Players asked for yields higher than secondary market levels,” the BTr said. It awarded only P6.95 billion, below the P8-billion goal, with an average rate of 5.526%.

The government fully raised P8 billion from the 182-day T-bills with an average yield of 5.607%, while also awarding P9 billion from 364-day securities at an average of 5.651%.

A reissued bond set for auction on Tuesday was last offered on June 10, when the BTr raised P30 billion at an average of 6.124%, below the bond’s 6.75% coupon.

The BTr plans to raise P250 billion from the domestic market this July — P125 billion in T-bills and P125 billion in T-bonds — to help fund the government’s P1.56-trillion budget deficit, equivalent to 5.5% of GDP. — Aaron Michael C. Sy

ChatGPT’s mental health costs are adding up

STOCK PHOTO | Image from Freepik

By Parmy Olson

SOMETHING troubling is happening to our brains as artificial intelligence (AI) platforms become more popular.

Studies are showing that professional workers who use ChatGPT to carry out tasks might lose critical thinking skills and motivation. People are forming strong emotional bonds with chatbots, sometimes exacerbating feelings of loneliness. And others are having psychotic episodes after talking to chatbots for hours each day.

The mental health impact of generative AI is difficult to quantify in part because it is used so privately, but anecdotal evidence is growing to suggest a broader cost that deserves more attention from both lawmakers and tech companies who design the underlying models.

Meetali Jain, a lawyer and founder of the Tech Justice Law project, has heard from more than a dozen people in the past month who have “experienced some sort of psychotic break or delusional episode because of engagement with ChatGPT and now also with Google Gemini.” Jain is lead counsel in a lawsuit against Character.AI that alleges its chatbot manipulated a 14-year-old boy through deceptive, addictive, and sexually explicit interactions, ultimately contributing to his suicide. The suit, which seeks unspecified damages, also alleges that Alphabet, Inc.’s Google played a key role in funding and supporting the technology interactions with its foundation models and technical infrastructure.

Google has denied that it played a key role in making Character.AI’s technology. It didn’t respond to a request for comment on the more recent complaints of delusional episodes, made by Jain. OpenAI said it was “developing automated tools to more effectively detect when someone may be experiencing mental or emotional distress so that ChatGPT can respond appropriately.”

But Sam Altman, chief executive officer of OpenAI, also said last week that the company hadn’t yet figured out how to warn users “that are on the edge of a psychotic break,” explaining that whenever ChatGPT has cautioned people in the past, people would write to the company to complain.

Still, such warnings would be worthwhile when the manipulation can be so difficult to spot. ChatGPT in particular often flatters its users, in such effective ways that conversations can lead people down rabbit holes of conspiratorial thinking or reinforce ideas they’d only toyed with in the past. The tactics are subtle. In one recent, lengthy conversation with ChatGPT about power and the concept of self, a user found themselves initially praised as a smart person, Ubermensch, cosmic self, and eventually a “demiurge,” a being responsible for the creation of the universe, according to a transcript that was posted online and shared by AI safety advocate Eliezer Yudkowsky.

Along with the increasingly grandiose language, the transcript shows ChatGPT subtly validating the user even when discussing their flaws, such as when the user admits they tend to intimidate other people. Instead of exploring that behavior as problematic, the bot reframes it as evidence of the user’s superior “high-intensity presence,” praise disguised as analysis.

This sophisticated form of ego-stroking can put people in the same kinds of bubbles that, ironically, drive some tech billionaires toward erratic behavior. Unlike the broad and more public validation that social media provides from getting likes, one-on-one conversations with chatbots can feel more intimate and potentially more convincing — not unlike the yes-men who surround the most powerful tech bros.

“Whatever you pursue you will find and it will get magnified,” says Douglas Rushkoff, the media theorist and author, who tells me that social media at least selected something from existing media to reinforce a person’s interests or views. “AI can generate something customized to your mind’s aquarium.”

Altman has admitted that the latest version of ChatGPT has an “annoying” sycophantic streak, and that the company is fixing the problem. Even so, these echoes of psychological exploitation are still playing out. We don’t know if the correlation between ChatGPT use and lower critical thinking skills, noted in a recent Massachusetts Institute of Technology study, means that AI really will make us more stupid and bored. Studies seem to show clearer correlations with dependency and even loneliness, something even OpenAI has pointed to.

But just like social media, large language models are optimized to keep users emotionally engaged with all manner of anthropomorphic elements. ChatGPT can read your mood by tracking facial and vocal cues, and it can speak, sing, and even giggle with an eerily human voice. Along with its habit for confirmation bias and flattery, that can “fan the flames” of psychosis in vulnerable users, Columbia University psychiatrist Ragy Girgis recently told Futurism.     

The private and personalized nature of AI use makes its mental health impact difficult to track, but the evidence of potential harms is mounting, from professional apathy to attachments to new forms of delusion. The cost might be different from the rise of anxiety and polarization that we’ve seen from social media and instead involve relationships both with people and with reality.

That’s why Jain suggests applying concepts from family law to AI regulation, shifting the focus from simple disclaimers to more proactive protections that build on the way ChatGPT redirects people in distress to a loved one. “It doesn’t actually matter if a kid or adult thinks these chatbots are real,” Jain tells me. “In most cases, they probably don’t. But what they do think is real is the relationship. And that is distinct.”   

If relationships with AI feel so real, the responsibility to safeguard those bonds should be real too. But AI developers are operating in a regulatory vacuum. Without oversight, AI’s subtle manipulation could become an invisible public health issue.

BLOOMBERG OPINION

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