10-mo GOCC subsidies plunge 32.62% T WORLD » A7
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HE government’s subsidies to state-owned corporations plunged to P88.374 billion in the first 10 months of the year, according to the Bureau of the Treasury (BTr). Latest BTr data showed that January-October subsidies given to government-owned and -controlled corporations were down by 32.62 percent from P117.210 billion in the same period last year. The government provides subsidies to GOCCs to cover their operations that are not supported by corporate revenues or to fund specific pro-
grams or projects. Broken down, major nonfinancial government corporations cornered 59.29 percent of the total or P52.398 billion, while other government corporations received 40.13 percent or P52.398 billion. Among these firms, the National Irrigation Administration (NIA) was allocated the highest subsidy with P34.031 billion. Receiving the next biggest subsidy during the 10-month period is the National Food Authority (NFA) with P12.904 billion, followed by the National Electrification Administration
with P1.453 billion. In October alone, the government’s subsidies to GOCCs also dropped by 25.46 percent to P8.920 billion from P11.968 billion in the same month a year ago. Having the biggest share of subsidies for October was still the NIA with P6.274 billion, trailed by the Philippine Fisheries Development Authority with P843 million and NFA with P790 million. Of the total subsidies for the month, major non-financial government corporations hauled 80.17 percent or P7.152 billion. Other government cor-
porations took 19.82 percent or P1.768 billion. The government has yet to disburse the remaining P39.053 billion in subsidies to GOCCs, as part of its budgetary support allocation for this year. Next year, state-run corporations are proposed to receive higher subsidies worth P149.654 billion. The Philippine Health Insurance Corporation (PhilHealth) will be given the biggest subsidy amounting to P53.262 billion to fund the annual insurance premiums of indigent beneficiaries. Reine Juvierre S. Alberto
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EXTERNAL DEBT RISES TO $149B AS OF END-SEPT www.businessmirror.com.ph
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Monday, December 15, 2025 Vol. 21 No. 68
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By Reine Juvierre S. Alberto @reine_alberto
OREIGN investors’ increased exposure to Philippine debt securities pushed the country’s external debt to $149.09 billion as of the end of September 2025, according to the Bangko Sentral ng Pilipinas (BSP).
BSP data showed the country’s external debt, composed of borrowings owned by residents and non-residents, rose by 6.8 percent to $149.09 billion as of end-September 2025. This level is higher than the $139.59 billion recorded in the same period last year. The BSP said the increase was caused by new borrowings, which included bond issuances by the national government worth $3.33 billion, as well as external financing tapped by local banks worth
$1.58 billion. The external debt is equivalent to 30.9 percent of the country’s gross domestic product, slightly lower than the previous quarter’s 31.2 percent. Compared to the prior quarter, the country’s external debt grew 0.1 percent from $148.873 billion, driven by the net acquisition by non-residents of Philippine debt securities amounting to $1.47 billion. Despite the increase, net repayments worth $764.56 million and See “Debt,” A2
PHL EMERGES AS TOP SOURCE MARKET FOR ASPAC TRAVEL By Ma. Stella F. Arnaldo Special to the BusinessMirror
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HE Philippines is becoming a strong contender as a source market for tourists within the Asia-Pacific region, and specifically, Southeast Asia. In a recent webinar on Travel Insights 2025 and Travel Trends 2026 on Asia Pacific presented by Amadeus and UN Tourism, ForwardKeys Director for Intelligence and Marketing of Olivier Ponti said, the region “attracts a mix of long-haul interest and solid intra-Asia demand,”
with top source markets coming from India, South Korea, Australia, the United States, Japan, Taiwan, Thailand, the United Kingdom, the Philippines, and China. Specific to travel to Southeast Asia, the Philippines ranked second as a source market after South Korea, with Thailand in third place, then Malaysia, the US, India, Indonesia, Taiwan, and mainland China. “The Philippines…[is] rising in the rankings [for actual travel in Southeast Asia] showing stronger regional travel flows,” he added. See “ASPAC,” A2
PRECARIOUS PAYCHECKS Window washers are seen working high above street level in Binondo, Manila’s Chinatown, with a dragon detail looming overhead. The image highlights the precariousness of informal work, coinciding with rising unemployment in October. Authorities continue to emphasize the importance of OSH compliance to safeguard workers in hazardous conditions. NONIE REYES
Garments exporters see 2-5% growth if . . . By Andrea E. San Juan
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@andreasanjuan
HE Philippines’s garments exporters are pinning their hopes on the government to haggle for a lower reciprocal tariff with Washington so that the local wearables sector will attain its 2 to 5 percent growth target for its outbound shipments next year. This, Foreign Buyers Association of the Philippines (Fobap) President Robert Young said as 2025 turned out to be “surprisingly good” due to advance deliveries which intended to cushion the tariff impact, with revenues expected to hit $1 billion this year from around $900 million in 2024. “We are again looking forward to 2026 that this [growth] will continue and we are hoping against hope that maybe with our govern-
ment intervention, as they say, they are still asking for some adjustments and they are trying to talk to Washington about decreasing the 19-percent [tariff] like what President [Donald] Trump did with other three countries that he lowered it down and some even like went down to zero,” he said. Young, who is also trustee for the textile, yarn and fabric sector of the Philippine Exporters Confederation Inc. (Philexport), is hoping “we can also have that kind of treatment,” adding that if the lower tariff will materialize, “that will be the best thing for us.” Meanwhile, he said industry players are continuing to look for other markets including the European Union, the Association of Southeast Asian Nations (Asean), Canada and Australia. In a phone interview of the Busi-
nessMirror with Young in July of this year, the industry leader described the 19 percent Washington-imposed tariff on Philippine exports a “hard climb” for the garments sector as the local industry would find it difficult to compete with other shippers of garments to the United States. Young said the garments industry was hoping for Manila to negotiate with Washington for a 10-percent reciprocal tariff, given that its toughest competitors such as Vietnam brought down their tariff to 20 percent from 46 percent after negotiating with Washington. “Like we said, we can still have elbow room with the 10 percent. And of course, taking into consideration all these neighboring countries, which are also our competitors, having more or less the same rate as ours now, right? Yes. Like
Vietnam is 20, we are 19,” the Fobap president told this paper. As such, he underscored that “we are almost the same,” adding: “So it will not be easy. It’s a hard climb to compete.” (See: https://businessmirror.com.ph/2025/07/23/ se i p i- u s-p h i li p p i ne s-t ra detalks-yield-favorable-resultsfor-semiconductor-and-electronics-industry/) At the National Exporters’ Week held two weeks ago, Trade and Industry Secretary Cristina A. Roque assured other local industries that the Philippine negotiating team is still working on securing favorable deals for industries slapped with the 19-percent reciprocal tariff on US-bound goods. She made this pronouncement after US President Donald Trump issued an Executive Order exempting See “Growth,” A2
PESO EXCHANGE RATES n US 59.0970 n JAPAN 0.3799 n UK 79.1309 n HK 7.5943 n CHINA 8.3742 n SINGAPORE 45.7514 n AUSTRALIA 39.3704 n EU 69.3740 n KOREA 0.0402 n SAUDI ARABIA 15.7495 Source: BSP (December 12, 2025)