News & Stories

THE Bangko Sentral ng Pilipinas (BSP) on Thursday lowered its benchmark policy rate anew by 25 basis points (bps) to 4.5% and signaled the current easing cycle is nearing its end.

The Monetary Board cut its target reverse repurchase rate for a fifth meeting in a row, bringing the rate to its lowest in over three years or since September 2022.

It likewise trimmed rates on the overnight deposit and lending facilities by 25 bps each to 4% and 5%, respectively.

This was in line with a BusinessWorld poll conducted last week where 17 out of 18 analysts anticipated a 25-bp cut at the Board’s last meeting of the year. “D

epending on the data, (the easing cycle) may have ended already. This

may be the last cut,” BSP Governor Eli M. Remolo

na, Jr. said during a press briefing. “But d

epending on what else we see, we can still con-sider another cut.” The centra

l bank has so far lowered key borrowing costs by 200 bps since it began its easing cycle in August last year. It deliver

ed a 25-bp cut at each of its meetings in April, June, August and October this year. “On balanc

THE Philippine economy continues to bear the brunt of the ongoing flood control corruption scandal, Fitch Ratings said, noting that further unrest could spill over to the country’s credit rating. Fi

tch Ratings Head of Asia-Pacific Sovereigns Thomas Rookmaaker said the controversy surrounding the anomalous government flood control projects threatens the country’s political stability, fiscal policy implementation, as well as business and consumer confidence. “We

believe that the flood control corruption scandal in the Philippines poses an ongoing risk to political stability, fiscal policy execution, and business and consumer confidence,” Mr. Rookmaak

er told BusinessWorld in an e-mail. Governme

nt officials, lawmakers and contractors have been accused of getting billions of pesos in kickbacks from substandard or nonexistent flood control projects. This has

triggered widespread protests, slowed government spending, and hurt investor and consumer sentiment. “The ove

rall impact the scandal will have on the Philippines’ public finances is still uncertain,” Mr. Rookmaaker sai

d. “Public invest

ment spending is likely to remain weak for quite some time, but continued social unrest could simultaneously lead to spending pressures to head off public discontent.” In October, govern

ment spending fell for a third straight month to P430.6 billion, down 7.76% from P466.8 billion a year ago. Revenues likewise

KAOHSIUNG, TAIWAN — Taiwan is looking to bolster its economic ties with the Philippines through potential engagements and industry expansion, as both grapple with shared security concerns in the region, Taiwanese officials said. Ta

ipei is seeking to forge an economic corridor with Manila that is similar to a project started last year by the US, Japan and the Philippines in northern Luzon, which aims to enhance the connectivity of the main Philippine island’s key economic regions, Taiwan Deputy Minister of Foreign Affairs Chen Ming-Chi said late on Tuesday. “Tai

wan aims to align with the strategic objectives of our like-minded partners and deepen bilateral economic ties with the Philippines,” he said at an opening gala of a port development forum organized by Taiwan’s Ministry of Foreign Affairs here. “The Phili

ppines is a key partner for Taiwan, with our interests and strategies closely aligned,” he added. “Both nations

are committed to upholding freedom, democracy and regional peace and stability.” Taipei and Manila

share a trade relationship, and they are forging deeper ties amid mounting tensions with China. Beijing sees Taiwa

n as its own territory and is not shying away from taking control of the island by force, while Chinese ships have repeatedly clashed with Philippine vessels within the Southeast Asian nation’s exclusive economic zone in the South China Sea. The Taiwan-Philippin

es Economic Corridor will help Manila in port development, with Taipei also planning to build data servers in the Philippines and expand cooperation in agriculture and workforce training, Ministry of Foreign Affairs Director-General for International Cooperation and Economic Affairs Yu-Ping Lien said on Wednesday. She said Taiwan is s

eeking to train young Filipino workers to build a pool of skilled talent that could help attract more Taiwanese companies to invest in the Philippines. “The Philippines has

a demographic dividend, and Taiwan is in shortage of labor,” she told BusinessWorld in an interview on the sidelines of the port development forum. Taipei also aims to help

THE ASIAN Development Bank (ADB) has approved a $500-million (around P29.56-billion) policy-based loan to support the development of the Philippines’ blue economy and improve the resilience of coastal communities. Th

e financing for the Marine Ecosystems for Blue Economy Development Program Subprogram 1 was approved on Thursday, the multilateral lender said in a statement. Th

is loan seeks to “strengthen the productivity and diversity of the country’s ocean-based economy, and improve the health and adaptability of coastal areas and communities,” the ADB said. The prog

ram also aims to improve the plastic and solid waste management value chain to ensure long-term ecological and economic resilience in the Philippines. “More th

an half of the Philippine population is dependent on the country’s oceans and rich marine biodiversity for food and livelihoods, with the blue economy having great potential to be central to attaining inclusive, resilient, and low-carbon development,” ADB Country Director for the Philippines Andrew Jeffries said. “This is ADB’s

first extensive cross-sector program focused on fostering national blue economy development in the region. We are committed t

o assisting our host country in achieving its climate resilience and low-carbon objectives,” he added. In addition, Agence

Française de Développement and Germany’s KfW Development Bank are set to provide cofinancing of up to €200 million (about P13.82 billion) each for Subprogram 1. Last year, key blue econom

y sectors generated P1.01 trillion ($17.17 billion) to the country’s economy, accounting for 3.8% of gross domestic product. The blue economy includes fi

sheries, manufacturing of ocean-based products, tourism-related services, shipping, and offshore energy. However, marine ecosystems i

Listed port operator International Container Terminal Services, Inc.

(ICTSI) has signed a 25-year partnership with Transnet SOC Ltd., South Africa’s state-owned logistics company, to manage and upgrade Durban Container Terminal (DCT) Pier 2. Un

der the deal, Transnet retains ownership through a majority stake in the special purpose vehicle Newco, while ICTSI will handle the terminal’s day-to-day operations, a move seen as potentially giving the company additional scale and influence in a key global logistics corridor. “Thi

s partnership marks a shared commitment to revitalizing South Africa’s maritime infrastructure and unlocking new opportunities for growth for South Africa and the entire region,” ICTSI Senior Vice-President Hans-Ole Mad-sen said in a media release on Thursday. Transnet,

established as South Africa’s state-owned freight and logistics operator, manages the country’s port, rail, and pipeline network. According to i

ts website, it operates 16 port terminals across seven South African ports (excluding Mossel Bay), covering automotive, bulk and break-bulk cargo, containerized cargo, and minerals. The partnershi

p covering the management, upgrade, and development of Pier 2 will formally take effect in January 2026. DCT Pier 2 is

Transnet’s largest container terminal, handling more than 70% of Port of Durban’s throughput and roughly 46% of South Africa’s port traffic. The terminal has 1,7

60 meters of operational quay length and 120 hectares of container storage and backup area. “Through our deliber

ate and expansive investment in new equipment across our terminals, the performance of DCT Pier 2 has been on an upwards trajectory. We expect that our par

ACEN CORP. and Citicore Solar Energy Corp.’s joint venture (JV) Greencore Power Solutions 3, Inc. has secured a P2.59-billion loan from the Development Bank of the Philippines (DBP), aimed at supporting the Pampanga solar plant and its renewable energy operations, the companies said. AC

EN and its subsidiary ACEN Global Development Group, Inc. have signed an omnibus loan and security agreement with DBP to act as sponsor and share collateral guarantor for Greencore 3, according to a regulatory filing on Thursday. Ci

ticore Solar will serve as sponsor and collateral grantor for the loan. Gr

eencore 3 operates the 115.671-megawatt Arayat-Mexico Photovoltaic Solar Power Plant in Pampanga. Th

e facility began full commercial operations in August 2022 and currently supplies electricity for over 19,450 households. AC

EN also plans to subscribe to additional shares in Greencore amounting to P859.11 million to help the joint venture meet its financial obligations. Th

e transaction involves the purchase of 2.41 million common A shares at P1 each and 41.97 million redeemable preferred A shares at P20.41 apiece. AC

EN said the subscription is part of a planned increase in Greencore 3’s authorized capital stock, pending approval by the Securities and Exchange Commission. The

Pampanga solar plant is part of ACEN’s 7.1-gigawatt renewable energy portfolio across the Philippines, Australia, Vietnam, India, Indonesia, Laos, and the United States. The co

mpany has earmarked over P80 billion in capital expenditure for 2026 to support its renewable energy pipeline. — Sheldeen Joy Talavera

SHORT FILMS that explore human rights in relation to water — as survival, environment, memory, livelihood, and resistance — make up “Rising Waters, Raising Rights,” a film festival commemorating human rights. Exhibite

d online, the festival kicked off on Dec. 10, which was International Human Rights Day, at the University of the Philippines, and will run until Dec. 20. It i

s or

ganized by Cinemata, a video platform dedicated to showcasing independent films from the Asia-Pacific region, with a strong focus on social issues, community storytelling, and human rights advocacy. “Often,

environmental rights are seen as separate from human rights, but water is a fundamental human right. It’s about

the territories we live in, our access to a healthy environment, and our survival,” Eunice Hel-era, the festival’s film programmer, told BusinessWorld in a Facebook message. The Philippine e

dition of the program is co-organized by Film Workers Against Corruption and curated by Elevated Frames PH, which Ms. Helera leads. In

addition to t

he online screenings, there are also physical and communi-ty-based screenings to be announced, including talkbacks and facilitated discussions, mounted across partner venues and organizations within the 10-day screening window. The chosen films

, divided into three interconnected thematic programs, present stories of coastal labor, climate vulnerability, displacement, queer becoming, cultural memory, and community resistance: Sinking Grounds

SM INVESTMENTS CORP.

(SMIC) expects continued growth next year, citing opportunities outside the National Capital Region (NCR) and in infrastructure and energy, even as investors remain cautious amid political developments, supply chain disruptions, and currency pressures, its executives said.

“We’ll just have to do our work in spite of all of the political noises. So f

or us, we’re going to continue what we have planned. And I

think we will be able to achieve our targets next year,” SMIC Vice-Chairperson and BDO Uni-bank, Inc. Chairwom

an Teresita T. Sy-Coson

said in a speech late Thursday. BDO Pres

ident and Chief Executive Officer Nestor V. Tan said

business uncertainty is likely to continue into 2026, as investors remain cautious amid supply chain disruptions, geopolitical risks, and political developments. “2025 wa

s a rollercoaster year. We started

DEL MONTE Pacific Ltd.

(DMPL) said its net profit for the second quarter (Q2) ended Oct. 31 jumped nearly seven-fold to $16.8 million from $2.3 million a year ago, driven by higher sales.

For the first half of its fiscal year 2026, Del Monte’s net profit from continuing operations rose to $56.3 million, up from last year, supported by a 10% increase in sales to $423.3 million, it said in a statement on Thursday. Sa

les growth was led by the Philippines, where packaged pineapple and mixed fruits recorded strong demand. Pa

ckaged pineapple benefited from nutrition-led campaigns, while mixed fruits expanded beyond seasonal fruit salads to year-round desserts, lifting market share by 4 percentage points, according to the company. In

ternationally, fresh pineapple exports rose 23%, with North Asia remaining the company’s largest market for imported pineapples at a 51% share. Net

debt of continuing operations declined 4.79% to $994.9 million from $1.04 billion a year ago, reflecting improved cash flow and stronger operating results. Del

Monte deconsolidated its US subsidiary Del Monte Foods Corp. effective May 1, 2025, after the unit filed for Chapter 11 bankruptcy in April due to heavy debt and shifting consumer preferences. The

US unit secured $912.5 million in financing to continue operations while selling most of its assets under court supervision. Jose

lito D. Camp

PHILIPPINE National Bank (PNB) has raised P15.7 billion from the sale of dual-tranche bonds to fund sustainable initiatives.

This was over five times the bank’s initial target of P3 billion, it said in a disclosure to the stock exchange on Thursday. “T

he issuance marks the bank’s successful return to the domestic debt capital market since 2019, garnering an orderbook that was more than 5.2 times oversubscribed the initial target size on back of the strong support from in-stitutional and retail investors,” PNB said. “The net

proceeds from the bonds will be used to finance or refinance eligible projects under PNB’s Sustainable Financing Framework consistent with the ASEAN Sustainability Bonds Standards, a reflection of the PNB’s resolute commitment towards sustainable financing in tandem with the bank’s growth mode.” The bonds were iss

ued, settled, and listed on the Philippine Dealing & Exchange Corp. on Thursday. Broken down, PNB r

aised P10.88 billion from three-year Series A ASEAN Sustainability Bonds that were priced at 5.4877% per annum. It also issued P4.

82 billion in five-year Series B ASEAN Sustainability Bonds, which carry an interest rate of 5.7764% per annum. The papers were so

ld at a minimum investment amount of P100,000 and in increments of P50,000 thereafter. This marked the fi

rst issuance from the bank’s P50-billion bond and commercial paper program that was approved earlier this year. PNB’s investment ban

king arm PNB Capital and Investment Corp., ING Bank N.V. Manila Branch, and Sta

NET INFLOWS of foreign direct investments (FDI) into the Philippines plunged to their lowest monthly level in over five years in September, the Bangko Sentral ng Pilipinas (BSP) reported on Wednesday.

Based on preliminary central bank data, FDI net inflows fell by 25.8% to $320 million from $432 million a year ago.

This marked the lowest monthly FDI inflow in more than five years or since the $313.79 million recorded in April 2020.

Month on month, inflows sank by 37.7% from $514 million in August.

“Foreign direct investments into the Philippines posted net inflows of $320 million in September 2025,” the BSP said in a statement on Wednesday. “Jap

an was the top source of FDIs, while manufacturing was the biggest recipient of FDIs during the month.” Investme

nts in equity and investment fund shares rose by 27.8% to $120 million in September from $94 million in the same month in 2024. Net inve

stments in equity capital other than reinvestment of earnings soared to $35 million, nearly five times (378.2%) the $7 million seen a year earlier. Broken d

own, equity capital placements jumped by an annual 20.8% to $99 million, while withdrawals fell by 14.4% to $64 million. Nonresid

ents’ reinvestment of earnings also dipped by 2.1% to $84 million in September from $86 million last year. Meanwhile,

THE ASIAN Development Bank (ADB) slashed its growth forecasts for the Philippines for this year and 2026 but it is still expected to be the second-fastest growing economy in Southeast Asia.

In its December Asian Development Outlook (ADO), the multilateral lender slashed its Philippine gross domestic product (GDP) growth forecast to 5% from 5.6% in September.

For 2026, the ADB trimmed its Philippine growth forecast to 5.3% from 5.7% previously.

These latest projections are below the government’s 5.5-6.5% target for this year, and the 6-7% growth goal for 2026 to 2028. In

its report released on Wednesday, the ADB said the lower growth prospects for the Philippines were “due to weak infrastructure spending amid investigations of publicly funded projects, and natural hazards.” Data f

rom the Department of Budget and Management showed that expenditure on infrastructure and other capital outlays for the January-to-September period declined by 10.7% to P877.1 billion from P982.4 billion a year ago. Sluggi

sh infrastructure spending, affected by adverse weather and stricter fund releases to the Department of Public Works and Highways, dragged Philippine GDP growth to a weaker‑than‑expected 4% in the third quarter. This broug

ht the nine‑month average growth to 5%. “Low inflati

on and ongoing monetary easing should sustain domestic demand, supporting stronger growth in 2026,” the ADB said. The Bangko Sentr

al ng Pilipinas has so far reduced borrowing costs by a cumulative 175 basis points (bps) since it began its easing cycle in August last year, bringing the key rate to 4.75%. “However, uncert