Govt infra spending plunges by 45% in Nov By Reine Juvierre S. Alberto
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HE government’s infrastructure spending took a sharp downturn in November last year as the investigation into corruption allegations at the Department of Public Works and Highways (DPWH) stalled projects and delayed billings. According to the latest data from the Department of Budget and Management (DBM), infrastructure and other capital outlays fell by 45.2 percent to P48 billion in November 2025 from
P87.6 billion in November 2024. “The spending performance of the DPWH continued to post negative growth amid the ongoing probe and crackdown on corruption issues,” the DBM said. As a result, this slowed the implementation of DPWH’s infrastructure projects across the country, which affected contractors’ timely reporting of progress billings and the handling of payment claims. The corruption probe also hampered year-to-date infrastructure spending, as this contracted by 16 percent to P991.1 billion from
January to November 2025 from P1.180 trillion in the same period a year ago.
‘Economic drag’
ACCORDING to John Paolo R. Rivera, senior research fellow at the state-run think tank Philippine Institute for Development Studies, the decline in infrastructure spending reflects how governance shocks can quickly translate into real economic drag. “While tighter scrutiny of projects is necessary to restore integrity, the prolonged slowdown in disbursements also weakens
growth momentum by delaying multiplier-heavy spending on construction, jobs, and regional activity,” Rivera said. “The key challenge now is to ensure that anti-corruption measures lead to faster, cleaner execution and not a paralysis in public investment so infrastructure can resume supporting recovery in 2026,” he added. As these probes on questionable contracts take place, Rivera said government should continue funding and implementing projects that are already vetted such
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BSP: COSTLIER RICE, OIL MAY HEAT UP INFLATION www.businessmirror.com.ph
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Monday, February 2, 2026 Vol. 21 No. 113
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By Andrea E. San Juan & Justine Xyrah Garcia
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ICE and fish prices, increased domestic fuel costs and the weakening of the peso likely caused inflation to accelerate in January, according to the Bangko Sentral ng Pilipinas (BSP). In its month-ahead inflation forecast, the BSP said inflation will likely settle within 1.4 percent to 2.2 percent in January 2026. In December 2025, prices of commodities went up by an average of 1.8 percent. “Upward price pressures may stem from higher prices of major food items such as rice and fish, increased domestic fuel costs, the annual adjustment in excise taxes for alcohol and tobacco, higher water and toll rates, as well as the peso depreciation,” BSP said in a statement over the weekend. The central bank noted, howev-
er, that these pressures could be partly offset by lower electricity charges in Meralco-serviced areas and stabilizing vegetable prices. Nonetheless, the BSP said it will continue to monitor domestic and international developments affecting the outlook for inflation and growth in line with its “datadependent” approach monetary policy. Recently, commercial bank economists laid out data points and possible factors that the BSP may take into account at its upcoming policy meeting on February 19. See “Inflation,” A2
PEZA UNFAZED BY DECLINE IN JAN INVESTMENT APPROVALS By Bless Aubrey Ogerio
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HE 57-percent year-on-year drop in investment approvals last month is due to seasonality and is not indicative of a weakening investor interest, the Philippine Economic Zone Authority (PEZA) said. Approved investments in economic zones reached P12.86 billion in January, down from P30.16 billion recorded in the same month last year, based on PEZA data. “In our history, usually January is down because it’s during the fourth quarter that companies peak with their operations and exports,” PEZA Director General Tereso Panga told reporters on the sidelines of a British Chamber of Commerce Philippines event in Makati last Thursday.
“So, slowly they will be ramping up. We’re hopeful that we can get more projects in the coming months,” he added. Even with the dip, the agency maintained its target of generating P300 billion in investments and creating 100,000 jobs in 2026, noting that the goal remains conservative relative to historical growth trends. “If you look at our average growth rate, it’s about 23 percent yearly. So that P300 billion is just 15 percent,” Panga said. Earlier this week, PEZA described the slowdown as a “steady recalibration” rather than a downturn, saying it reflects how investors adjust timelines without abandoning long-term plans. “Resilience is built not just in times of expansion, but in how economies navigate See “Investments,” A2
BENGUET’S CRESCENT CRAZE Tourists are flocking to the crescent moon display in Sitio Bayacsan, Taloy Norte, Tuba, Benguet, framed by mountains and morning mist. The new attraction also features a cozy coffee nook, a pasalubong center, and breathtaking sunset views over the fog-kissed peaks. MAU VICTA
PHL proposes Asean maritime cooperation By Malou Talosig-Bartolome
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EBU City—The Philippines is pushing for intensified maritime cooperation among Southeast Asian nations as Asean and China race to conclude the long-delayed Code of Conduct (COC) in the South China Sea within the year. Foreign Affairs Secretary Ma. Theresa Lazaro said Asean foreign ministers “welcomed” Manila’s proposal for leaders to adopt an Asean Declaration on Maritime Cooperation at the May summit. The declaration, she noted, will identify specific initiatives to strengthen regional collaboration, though de-
tails were not disclosed. DFA Undersecretary Leo Herrera-Lim, chair of the Asean senior officials meeting, clarified that the proposed declaration is distinct from the COC negotiations with Beijing.
Strategic waters
BEYOND the South China Sea, Asean’s maritime agenda covers vital arteries of global trade—the Malacca, Singapore, and Lombok straits—connecting the Pacific and Indian Oceans. These waterways underpin supply chains, energy security, and regional connectivity. In 2023, Asean senior officials See “Maritime,” A2
ARAW NG BIÑAN 2026 C1-C4
HERITAGE, VALOR, AND BIÑANENSE IDENTITY THROUGH THE PRISM OF HISTORY
PESO EXCHANGE RATES n US 58.8880 n JAPAN 0.3847 n UK 81.3361 n HK 7.5449 n CHINA 8.4723 n SINGAPORE 46.5849 n AUSTRALIA 41.4925 n EU 70.5007 n KOREA 0.0412 n SAUDI ARABIA 15.7018 Source: BSP (January 30, 2026)