ROTARY CLUB OF MANILA JOURNALISM AWARDS
2006 National Newspaper of the Year 2011 National Newspaper of the Year 2013 Business Newspaper of the Year 2017 Business Newspaper of the Year 2019 Business Newspaper of the Year 2021 Pro Patria Award PHILIPPINE STATISTICS AUTHORITY 2018 Data Champion
BusinessMirror A broader look at today’s business
EJAP JOURNALISM AWARDS
BUSINESS NEWS SOURCE OF THE YEAR
(2017, 2018, 2019, 2020, 2021) DEPARTMENT OF SCIENCE AND TECHNOLOGY
2018 BANTOG MEDIA AWARDS
FITCH SEES 50-BPS RATE CUT ON SLOW INFLATION www.businessmirror.com.ph
F
n
Wednesday, April 30, 2025 Vol. 20 No. 199
P25.00 nationwide | 2 sections 28 pages | 7 DAYS A WEEK
PBBM still most trusted amid slight ratings dip
By Cai U. Ordinario @caiordinario
ITCH Ratings said on Tuesday that easing inflation will prompt the Bangko Sentral ng Pilipinas (BSP) to cut rates by another 50 basis points (bps) this year. In a report where it affirmed the country’s BBB credit rating with a stable outlook, Fitch Ratings said this is also due to the country’s “strong medium-term growth.” In its meeting in April, the Monetary Board of the BSP de-
By Samuel P. Medenilla
cided to lower key policy rates by 25 bps to 5.5 percent. (See: https://businessmirror.com. ph/2025/04/11/bsp-lowerskey-rate-by-25-bps-more-cutsseen/).
D
See “Fitch,” A2
NEW USES FOR A.I., NATIONAL I.D. TO BUOY DIGITAL ECONOMY By Bless Aubrey Ogerio & Cai U. Ordinario
N
EW uses for the National ID and Artificial Intelligence (AI) are expected to boost the growth of the country’s digital economy, according to the Department of Economy, Planning and Development (Depdev). On Tuesday, the Philippine Statistics Authority (PSA) reported that the value added of the digital economy to the economy has reached P2.25 trillion or 8.5 percent to the country’s Gross Domestic Product. The PSA said the country’s digital econo-
my grew 7.6 percent from the P2.09 trillion Gross Value Added recorded in 2023. “Mababa pa yan [That is still low] especially as the private sector starts or intensifies it. The key there is PSA [which] collects a lot of data, national ID, use cases for those that have not been developed yet,” Depdev Secretary Arsenio M. Balisacan told reporters. “Once it is developed, it can spur growth in new industries or even existing industries. So we expect a lot of that.” Balisacan said the efforts of the Bangko Sentral ng Pilipinas (BSP), particularly on digitalization and financial inclusion, See “New,” A2
SM CITY TUGUEGARAO IS YOUR ULTIMATE SUMMER SPORTS DESTINATION! Get ready for non-stop action as the spirit of sports takes over through the SM Active Hub! With a variety of sports activities and goodies to choose from, SM Supermalls is turning up the heat. So lace up your sneakers, gather your squad, and dive into a summer filled with play, laughter, and endless fun!
TUNNEL BREAKTHROUGH IN DAVAO Officials pose inside the northbound tunnel of the 2.3-kilometer twin-tube road tunnel—soon to be
the longest mountain tunnel in the Philippines—after a successful engineering breakthrough in Barangay Waan, Davao City. The milestone marks a major leap for the 45.5-kilometer Davao City Bypass Construction Project, supported by the Japan International Cooperation Agency (Jica) using Japanese tunneling technology. The tunnel is expected to significantly ease travel time and traffic congestion across Davao’s urban sprawl. PHOTO FROM JICA
DOF asks solons to shelve GROWTH bill
A
MID global economic uncertainties, the Department of Finance (DOF) has withdrawn its proposal to increase several wealth tax rates, given the government’s “robust” fiscal position. Finance Secretary Ralph G. Recto said on Tuesday that there is no need to inflict new taxes, as the government is “properly managing” its finances. “Strategic measures were prepared to ensure fiscal sustainability and provide necessary buffers amid rising global economic uncertainty due to political tensions, prolonged higher interest rates, and unpredictable trade policies. But given our current strong fiscal performance, these are not needed at this time,” Recto said. In a letter addressed to Congress, Recto requested to withdraw consideration of the Government Revenues Optimization through Wealth Tax Harmonization (GROWTH) bill. The bill, formerly the Passive Income and Financial Intermediary Taxation Act (Pifita), pro-
posed amendments to the Capital Markets Efficiency Promotion Act (CMEPA). This is seen to generate about P300 billion from 2025 up to 2030, by harmonizing the current 6-percent tax rates for capital gains, donor’s and estate taxes to a unified 10 percent. “These were intended to function as a buffer for increased government expenditure during times of crisis and to provide the government with fiscal space in the worstcase scenario,” Recto said. The withdrawal comes after the “better-than-expected” revenue performance of the government in the first quarter of 2025. Recto reported that revenue collections rose to P931.5 billion in the first quarter of 2025, up by 13.55 percent from P820.3 billion during the same period in 2024. Broken down, the Bureau of Internal Revenue (BIR) raised P690.4 billion, a 16.67-percent increase from P592.7 billion a year ago. Likewise, the Bureau of Customs (BOC) generated P231.4 billion,or 5.72 percent higher year-on-year
from P218.8 billion. “At this point, current revenues are more than sufficient to support our expenditure requirements. We are meeting our obligations, funding key programs, and growing the economy without having to impose new taxes on our kababayan,” Recto said. The government is also “decisively managing” the deficit level while maintaining a sustainable debt trajectory in line with the MediumTerm Fiscal Framework (MTFF). Recto said the DOF remains committed to implement key reforms aimed at attracting investments and boosting government revenues, such as through the CREATE MORE Act, the Ease of Paying Taxes (EOPT) Act, amendments to the Foreign Investment Act, the Retail Trade Liberalization Act, the Public Service Act and the Public-Private Partnership (PPP) Code. The agency will also continue efforts to enhance non-tax revenue sources to meet the revenue targets outlined in the Budget of Expenditures and Sources of Financing (BESF), Recto added. Reine Juvierre S. Alberto
@sam_medenilla
ESPITE a slight decline in his trust and performance ratings in a new OCTA Research survey this month, President Marcos said his administration still made progress in making his reforms felt by the public. In an interview with reporters on Tuesday at the 46th Commencement Exercises of the Philippine National Police Academy in Cavite, the Chief Executive said the results of the recent Tugon ng Masa Survey (TMS) of OCTA Research confirmed that people were satisfied with the government’s achievements during his term. “Well, it just validates what we are doing, that people are beginning to understand what we have been trying to do for the past two and a half..almost three years. So it continues to inspire me because it shows that we’re making progress,” he said. The survey indicated that President Marcos Jr. remains the country’s most trusted government official, the Palace pointed out. “The President received a trust rating of 60 percent and a performance rating of 59 percent,” the report indicated in the April 2025 TNM nationwide survey of OCTA. Even after the same survey indicated a decline in the President’s performance rating, the OCTA report said, “It is not substantial.” “The majority of Filipino people continue to trust and support the President’s performance,” the report said. “The consistent 60-percent trust rating is evidence of the public’s continued confidence.” The non-commissioned TMS was conducted from April 2 to 5. Compared to the results in November, the President’s trust rating dropped by 5 percentage points, and his performance rating by 4 percentage points. While the President’s trust rating saw a 5-point decrease from See “PBBM,” A2
PESO EXCHANGE RATES n US 56.3330 n JAPAN 0.3965 n UK 75.7003 n HK 7.2628 n CHINA 7.7327 n SINGAPORE 43.0549 n AUSTRALIA 36.2221 n EU 64.3436 n KOREA 0.0392 n SAUDI ARABIA 15.0173 Source: BSP (April 29, 2025)