PHL inks free trade deal with UAE
THIS frame grab from footage circulating on social media shows protesters dancing and cheering around a bonfire as they take to the streets despite an intensifying crackdown as the Islamic Republic remains cut off from the rest of the world, in Tehran, Iran, Friday, Jan. 9, 2026. UGC VIA AP
By Samuel P. Medenilla & Andrea San Juan
T
WORLD » A6
IRAN ALLOWS LIMITED INTERNATIONAL CALLS AMID PROTEST CRACKDOWN; DEATH TOLL MOUNTS, US RAISES PRESSURE
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
HE country’s trade with the United Arab Emirates (UAE) is expected to get a significant boost with the signing of the Comprehensive Economic Partnership Agreement (CEPA), which will cover agricultural and electronic products as well as services, between Manila and Abu Dhabi on Tuesday. President Ferdinand R. Marcos Jr. and UAE President Sheikh Mohamed bin Zayed Al Nahyan witnessed the signing of the country’s first ever free trade agreement (FTA) with a Middle East country at the sidelines of the Abu Dhabi Sustain-
ability Week (ADSW) 2026 Summit. “The agreement aims to reduce tariffs, enhance market access for goods and services, increase investment flows, and create new opportunities for Filipino professionals and service providers in the UAE,” the Presidential Communications Office (PCO) said in a statement. Under the trade deal, 95 percent of local goods bound for the Middle Eastern country will enjoy reduced or zero duty, according to the Department of Trade and Industry (DTI). Trade officials also expect the CEPA will boost the country’s trade with the UAE by 9.13 percent. Bilateral trade between the two nations reached nearly $1.83 billion
in 2024 and $1.65 billion in 2025. In 2024, the UAE ranked among the Philippines’s top trading partners and served as a “major export market” in the Middle East, DTI noted. The PCO, meanwhile, noted that the UAE ranked 18th among the Philippines’s trading partners and accounted for nearly 39 percent of Philippine exports to the Middle East.
Opens cooperation
THE DTI said through the statement it issued Tuesday evening it also expects the CEPA will help manufacturers expand exports, scale up production and generate more jobs at home. “Benefiting products include personal care and cosmetic items
[hair creams and deodorants], food products [canned tuna, sardines, snacks, and condiments], electronic equipment [hair dryers, instant-print cameras, and parts of electrical machinery], automotive and aircraft parts, and textile and apparel products,” DTI said. Beyond trade in goods, DTI said the CEPA provides “clearer and more predictable” rules for businesses operating in service sectors such as information technologybusiness process management, tourism, healthcare, education, construction, and professional services. The FTA also has provisions ensuring non-discriminatory environment for Filipino firms, including See “Trade,” A2
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
‘WAIT-AND-SEE’ STANCE: FDI INFLOWS DIP TO $642M www.businessmirror.com.ph
F
n
Wednesday, January 14, 2026 Vol. 21 No. 94
P25.00 nationwide | 2 sections 20 pages | 7 DAYS A WEEK
By Reine Juvierre S. Alberto @reine_alberto
OREIGN direct investment (FDI) inflows into the Philippines plunged to $642 million in October 2025, as investors adopted a “wait-and-see” stance amid global trade risks and domestic political developments. Data from the Bangko Sentral ng Pilipinas (BSP) showed FDIs fell by 39.83 percent to $642 million in October 2025 from $1.067 billion in the same month a year ago. Still, October’s inflow was the highest in three months and more than double the $320 million recorded in September, which marked the lowest monthly level in five years. According to Jonathan L. Ravelas, senior adviser at Reyes Tacandong & Co., the drop in FDIs was mainly due to foreign firms cut-
ting back on intercompany loans, which dragged down the headline figure even as equity inflows and reinvested earnings actually improved. “The flood‑control scandal added noise, but the data shows the bigger driver was corporate financing decisions, not politics,” Ravelas said. BSP data showed nonresidents’ net investments in debt instruments declined by 50.78 percent year-on-year to $437 million in October 2025 from $888 million. See “FDI,” A2
DBM VOWS TO PAY TAX PERKS OF CARS, RACE BENEFICIARIES By Samuel P. Medenilla
T
@sam_medenilla
HE Department of Budget and Management (DBM) gave assurances on Tuesday that the government will settle its unpaid tax perks with the two beneficiaries of Comprehensive Automotive Resurgence Strategy (CARS) and the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) Program. DBM Acting Secretary Rolando U. Toledo made the assurance after President Ferdinand Marcos vetoed the unprogrammed appropriations (UA) for both programs of the Department of Trade and Industry (DTI) in the 2026 General Appropriations Act. Prior to the veto, CARS was supposed to get a P4.32-billion Fiscal Support Arrearages, while for RACE it was at P250 million from the government through the UA provision of the 2026 GAA. Mitsubishi Motors Philippines Corp (MMPC). and Toyota Mo-
tors Philippines (TMP), the two beneficiaries of both programs, which are meant to promote local cars assembly through tax incentives, expressed concern about the veto. “We’ll be having our meeting tomorrow with the DTI to look at how we can settle this account as far as our party which is the Toyota and the Mitsubishi,” Toledo said, partly in Filipino, in a press briefing in Malacañang on Tuesday. Toledo said the government is also currently waiting for the necessary Tax Payment Certificate (TPC) from both companies before it can settle the CARS and RACE arrears. “The TPC should be issued before they [are] paid. But at this time, they have only earned; but the TPC has not yet been issued,” Toledo said. The TPC is a non-transferrable certificate, which shall be used to defray the tax and duty obligations of the Philippine car manufacturer to the government. See “DBM,” A2
GOVT FAST-TRACKS CANCER CENTER CONSTRUCTION DPWH Secretary Vince Dizon inspects the ongoing construction of the 20-story Philippine Cancer Center hospital in Quezon City on
Tuesday, January 13, 2026. The facility is being built to house advanced cancer care technologies, including MRI units, a linear accelerator machine, positron emission tomography (PET) scan, a hybrid operating room, CyberKnife, and proton therapy systems. The inspection aligns with President Ferdinand Marcos Jr.’s directive to fast-track and complete pending government infrastructure projects— particularly hospitals—to ensure timely access to critical medical services for Filipinos in need. NONOY LACZA
Infraspend for ’26 down to 4.3% of GDP By Samuel P. Medenilla
D
@sam_medenilla
ESPITE the developments in the investigation on flood control projects resulting in the filing of charges against erring officials in previous months, government spending on infrastructure projects was reduced to 4.3 percent of gross domestic product this year, according to the Department of Budget and Management (DBM). This is below DBM’s initial projection of 5.1 percent in 2026, which is equivalent to P1.558 trillion. In a press briefing in Malacañang last Tuesday, Department of Budget and Management (DBM) Acting Secretary Rolando U. Toledo disclosed that they had scaled down the projection. “So we’re looking at achieving our
infrastructure target as a percentage of GDP at 4.3 percent, and even at the nominal level that is equivalent to 1.3 trillion [pesos] which is based on GAA [General Appropriations Act],” he said. The DBM chief said he is confident the target infrastructure spending this year will be met as the Marcos administration addresses gaps in ghost public works projects. Under the 2026 GAA, the Department of Public Works and Highways (DPWH) was reduced to P351 billion after the bicameral conference committee decided to cut its proposed P529.6 billion budget.
were riddled with billions worth or anomalies. The review of flood control projects has contributed to a slowdown in economic growth last year. With the crackdown on flood control project anomalies, Toledo said they expect the public works spending to increase in the coming months. “As much as possible, we want to increase further [public spending], moving forward in the medium term so we want to increase investment in terms of our infrastructure project,” he said.
Increased spending
IN another development, DBM also said it will set a 5 percent cap on unprogrammed appropriations (UA) for the proposed 2027 national budget. “From the Public Financial Man-
THE reduction in the proposed DPWH budget follows marked scrutiny of the agency after it was revealed its flood control projects
Unprogrammed appropriations cap
agement’s perspective we are following at least within 5 percent of the total program of the budget,” Toledo said. He said this was in line with international benchmarks and the country’s laws. Former Department of Budget and Management (DBM) Secretary Amenah F. Pangandaman has been pushing for institutionalizing the 5-percent cap on UA. President Ferdinand Marcos decided to veto P92 billion worth of unprogrammed appropriations in the P6.793-trillion 2026 GAA, which he said is being “misused or treated as a backdoor for discretionary spending.” Last week, DBM already called on heads of government departments and agencies to start their preparations for the 2027 national budget.
PESO EXCHANGE RATES n US 59.2410 n JAPAN 0.3746 n UK 79.7680 n HK 7.5987 n CHINA 8.4954 n SINGAPORE 46.0804 n AUSTRALIA 39.7507 n EU 69.1224 n KOREA 0.0404 n SAUDI ARABIA 15.7976 Source: BSP (January 13, 2026)