After ‘rough’ 2025, uncertainty to cloud 2026
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NCERTAINTY will shape business sentiment next year, following a year marked by Liberation Day slowdowns, geopolitical risks and local infrastructure challenges, according to the top executive of BDO Unibank Inc. (BDO). In a media event on Wednesday night, BDO President and Chief Executive Officer Nestor Tan described 2025 as a “rollercoaster” and a “rough” year. “The business community is not sure what’s likely to happen and therefore, if they’re not sure, then they will hold back,” Tan said. “Not because they don’t want to invest, but they will hold back a little. And we expect that to hap-
pen going into 2026,” he added. At the beginning of 2025, Tan said BDO, the country’s top bank, started “very strong” and carried over its robust performance in the fourth quarter of 2024. “And then liberation day happened, so people started to pull back. And then, as things are starting to stabilize and things are starting to improve, what happens? We have geopolitical risks, problems,” Tan said. “And then the sticks are starting to settle, supply chains are being normalized, then we have the flood control thing,” he added. “Now, the mood is, I would say, at best is somber. I don’t know if you feel the same way, but business is
that way.” Despite all the “doom and gloom,” Tan remained optimistic as there are still “pockets” of opportunities outside of the uncertain environment. As for BDO, Tan said provincial expansion is growing faster than the National Capital Region on average. The lender also sees some activity in infrastructure, energy and the like, where people continue to invest, he added. “It’s just not a general positive mood,” Tan noted. Meanwhile, BDO Chairperson and SM Investments Corporation Vice Chairwoman Tessie Sy-Coson said that, despite all the political
noise, they will just have to do their work. “For us, we’re going to continue what we have planned, and I think we will be able to achieve our targets next year,” Sy-Coson added. Based on its quarterly report, BDO’s net income grew by 4 percent to P63.1 billion as of the first nine months of 2025 from P60.6 billion in the same period last year. The bank attributed this to the “sustained performance” of its core business segments. BDO’s net interest income rose by 8 percent to P150 billion, on the back of the expansion in its earnings assets. Reine Juvierre S. Alberto
BusinessMirror A broader look at today’s business
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BSP DELIVERS 25-BPS CUT TO SPUR ACTIVITY www.businessmirror.com.ph
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Friday, December 12, 2025 Vol. 21 No. 65
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By Reine Juvierre S. Alberto @reine_alberto
HE Bangko Sentral ng Pilipinas (BSP) may be approaching the end of its easing cycle after delivering its latest 25-basis-point rate cut, the fifth reduction this year, to “revive” economic activity. During its monetary policy meeting on Thursday, the Monetary Board reduced the BSP’s Target Reverse Repurchase (RRP) Rate by 25 basis points to 4.50 percent. The interest rates on the overnight deposit and lending facilities were also adjusted to 4.00 percent and 5.00 percent, respectively. The central bank has cut rates eight times since August 2024, totaling 200 basis points, reducing the policy rate from 6.50 percent to 4.5 percent. “The cut will revive economic activity a bit at a time when painful governance issues around infrastructure investments of weakened government spending, business confidence and domestic demand,” BSP Governor and Chairman of the Monetary Board Eli M. Remolona Jr. said in a press briefing. “Depending on the data, [the easing cycle] may have ended already. This may be the last cut. But depending on what else we see, we can still consider another
cut,” Remolona added, as the BSP assesses the effects of its previous rate cuts and other economic developments, including possible supply shocks. “Another rate cut would be justified if things are worse than we thought. And then just as what’s happening in Q3 and Q4 growth was worse than we thought,” Remolona said. “So if that kind of thing continues, then we’re likely to cut policy rates again.”
Compensating for corruption fallout
THE outlook for domestic economic growth has weakened further, the Monetary Board said, as overall business sentiment has continued to decline on concerns about governance issues and lingering uncertainty over global trade policy. With economic growth slowing more than expected to 4 percent in the third quarter, Remolona said sentiment remains weak due to the corruption issue. While Remolona recognized that See “BSP,” A2
HALF OF PINOY HOUSEHOLDS IN CAUTIOUS SPENDING MODE
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ESPITE steady incomes and a positive outlook for the year ahead, half of Filipino households are tightening their purse strings this holiday season, feeling the pinch of rising prices and taking more cautious approach to spending. In TransUnion’s fourth quarter Consumer Pulse Study, 50 expect of Filipino households plan to spend less on holiday shopping compared to last year, reflecting more deliberate spending even during traditionally high-consumption periods. While 42 percent of Filipino households said income went
up in the past three months, 41 percent reported no change and 18 percent saw a decline. But with income levels held stable, spending remains cautious, with families trimmed extras, paying for what matters first and carried the same financial pressure as last year, according to the study. Inflation continued to dominate the worry list, TransUnion said, with 81 percent ranking everyday prices as their top financial concern, 57 percent picking jobs and 45 percent, interest rates. See “Spending,” A2
AI TO THE RESCUE San Juan City Mayor Francis Zamora (inset) leads the launching and demonstration of ClearBot—a solar-powered, AI-driven robotic vessel designed to remove floating
garbage—on Thursday, December 11, 2025, along the San Juan River near the N. Domingo Bridge. ClearBot is part of the city’s broader initiative to decongest the river, improve water flow, and reinforce long-term flood mitigation strategies. NONOY LACZA
DOLE: 89% of workplaces safe, healthy By Justine Xyrah Garcia
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HE Department of Labor and Employment (DOLE) reported that 88.69 percent of the over 30,00 establishments it inspected this year complied with occupational safety and health (OSH) standards. Data from DOLE showed that a total of 32,257 establishments were inspected by the agency as of October 2025, exceeding the department’s annual target of 28,500 firms. The agency said that among the establishments inspected were business process outsourcing (BPO) firms in Cebu, where
employees were reportedly asked to return to work immediately after a 6.9-magnitude earthquake. In a recent statement, Labor Secretary Bienvenido E. Laguesma said the department continues to prioritize worker safety. “DOLE will always put primordial consideration to the safety and health of our workers above any other consideration,” he said, adding that OSH programs are being rolled out more intensively nationwide. The agency added that the inspections were complemented by 541 training programs, covering 21,920 workers from 14,697 companies.
The agency described the trainings as part of efforts to reinforce compliance with OSH rules, particularly in sectors prone to hazards. “In line with President Ferdinand R. Marcos Jr. administration’s call to strengthen the protection of Filipino workers, the [DOLE] continues to champion workplace safety and [OSH] compliance through its various programs,” it added. Just last month, the DOLE issued Labor Advisory No. 15, Series of 2025, instructing all employers to adopt disaster-ready continuity plans to safeguard workers across sectors. Under the measure, firms are
now required to adopt a “comprehensive and responsive” OSH program that includes hazard identification and risk assessment (HIR AC), crisis management strategies, clear emergency protocols and measures for vulnerable workers. Employers who fail to implement required control measures or ensure the safety of workers during emergencies may be held liable under the Labor Code and Republic Act 11058. DOLE’s routine inspections remain on hold until December 31, but complaint-based inspections will continue, particularly for cases involving potential risks to workers.
PESO EXCHANGE RATES n US 59.2120 n JAPAN 0.3795 n UK 79.2493 n HK 7.6103 n CHINA 8.3797 n SINGAPORE 45.8049 n AUSTRALIA 39.5122 n EU 69.2603 n KOREA 0.0403 n SAUDI ARABIA 15.7789 Source: BSP (December 11, 2025)