4th Marcos Sona: Inclusive agenda sought
Freshly Brewed
By Jovee Marie N. Dela Cruz
T
HE House of Representatives is all set to open the First Regular Session of the 20th Congress and hold the joint session for the fourth State of the Nation Address (Sona) of President Marcos on Monday, with expectations that the President will highlight government gains and
PH’S FIRST MUSLIM-FRIENDLY HOTEL CHAIN CLEOFE ALBISO, MANAGING DIRECTOR, MEGAWORLD HOTELS & RESORTS, A7 ON ELEVATING INCLUSIVE TOURISM IN THE PHILIPPINES »A12
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lay out a forward-looking, inclusive national agenda. Leyte Rep. Ferdinand Martin Romualdez expressed confidence that President Marcos’s fourth Sona will reinforce the administration’s drive toward inclusive growth and responsive governance. “As President Ferdinand R. Marcos Jr. prepares to deliver his fourth State of the Nation Ad-
dress, I am proud of the gains he has made under his steady and compassionate leadership,” Romualdez, who served as Speaker of the 19th Congress, said. He pointed to major strides in economic recovery, agriculture, infrastructure, education, and digital innovation as clear evidence of the Marcos administration’s proactive and people-centered approach.
“From bold economic recovery initiatives to decisive investments in agriculture, infrastructure, education, and digital innovation, the President has shown that strong governance can uplift lives and restore confidence in our nation’s future,” he added. “But the work is far from over,” he added. “The Filipino people still face many challenges—from high See “4th,” A2
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BORROWINGS HIT ₧1.6T; EXTERNAL DEBT SURGES www.businessmirror.com.ph
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Monday, July 28, 2025 Vol. 20 No. 288
P25.00 nationwide | 3 sections 32 pages | 7 DAYS A WEEK
By Reine Juvierre S. Alberto @reine_alberto
T
HE national government’s gross borrowings inched up to P1.591 trillion in the first half of the year, as external debt surged despite a slowdown in domestic financing.
FOREIGN-FUELED FINANCES H1 2025 borrowings hit P1.6 trillion amid surging external debt →Breakdown by Source (Q1 2024 vs Q1 2025)
→Domestic Borrowings Composition
❝The rise in external debts is a violation of this principle [of limiting foreign borrowing] and shows that Filipinos do not seem to be willing to lend to Filipinos anymore as economic risks rise.❞ — Leonardo A. Lanzona, Ateneo economist
Latest data from the Bureau of the Treasury (BTr) showed the government’s gross borrowings reached P1.591 trillion in the first six months of the year, up by 1.33 percent from P1.570 trillion in the same period a year ago. This makes up 62.51 percent of the government’s P2.545-trillion borrowing program for the year. Of the total gross borrowings, P1.189 trillion was obtained from domestic creditors while P402.351 billion came from foreign lenders. The government cut down on its domestic borrowings by 8.74 percent to P1.189 trillion in the first quarter from P1.303 trillion
a year ago. This is because the government has yet to launch retail Treasury bonds (RTBs) this quarter. (See: https://businessmirror.com. ph /2025/07/22 /ng- e ye ing%e2%82%b1200b-from-rtboffering-this-q3/). Last year, the government raised P584.861 billion from its issuance of 5-year RTBs. During the six-month period, the government secured P132.310 billion from Treasury bills (T-bills), P756.837 billion from fixed-rate Treasury bonds (T-bonds) and P300 billion from fixed-rate Treasury notes. See “Borrowings,” A2
POGO EXIT WILL STILL IMPACT OFFICE SPACE VACANCIES IN ’25 By Rizal Raoul S. Reyes
V
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ACANCIES in the office sector will reach one million square meters this year, mainly driven by the exit of the Philippine Offshore Gaming Operators (POGOs), but it is expected to taper off in 2028 because of the continuing growth of the information technologybusiness processing management (IT-BPM). “There are two scenarios on the reduction of the vacancy of the office sector. The first sce-
nario is when the IT-BPM sector continues to grow 10 to 15 percent in terms of full time employees per year. The second scenario is more conservative because historical demand showed only 2.4 percent of growth in three years,” said CBRE Philippines country head Jie Espinosa in an interview on the sidelines of the recent CBRE Q2 2025 report briefing in Makati City. “The vacancies were mainly driven by POGO closures. We’re only short of around 5,000 sqm See “Pogo,” A2
BM Graphics: Ed Davad | Source: Bureau of the Treasury
→NG Gross Borrowings Year‑on‑Year Comparison
WHEELS OF SURVIVAL Stranded by days of flooding, residents hitch a ride on a dump truck out of Barangay San Vicente in Apalit, Pampanga, to reach town and tend to daily needs. The area
remains submerged following relentless rains from Typhoon Emong and the southwest monsoon. The Department of Labor and Employment has earmarked P1 billion for emergency jobs under the TUPAD program in storm-hit areas like Pampanga, offering short-term work such as cleanups and repairs to help communities recover. NONIE REYES
PHL airfares still among Asean’s lowest By Ma. Stella F. Arnaldo Special to the BusinessMirror
T
HE cost of air travel within the Philippines is still considerably less than other Southeast Asian countries, although the fare to select destinations could be improved with better infrastructure. In a panel discussion on “Gateways to Seamless Travel” at the Philippine Hotel Owners Association’s Philippine Hotel Connect 2025 on Friday, Cebu Pacific President and Chief Commercial Officer Alexander G. Lao said, based on the carrier’s independent study of airfares in Southeast Asia, “The reality is, if we compare Manila-Davao to a similar sector length within Southeast Asia, we’re actually seeing
something like 15-to-20 percent more affordability for the Philippines for their fares.” But he noted that for island destinations for instance, an upgrade of the latter’s airports could also help bring down ticket prices. “Ultimately, it depends on what infrastructure can deliver,” Lao stressed, citing Coron and Siargao, to which consumers complain of being expensive to fly. “We can only use the smaller turbo-propeller aircraft, [that] can only take in 78 seats. If we can bring in an Airbus A321 [with] 240 seats, in theory, we can spread the cost of two pilots, instead of across 78 seats, to across 240 seats.”
CAB ensures ‘reasonable’ fares
FOR his part, Civil Aeronautics
Board (CAB) Executive Director lawyer Carmelo L. Arcilla pointed out that the Philippines remains one of the few countries in the world that still regulates airfares, although dynamic pricing is permitted. “For the domestic sector, the CAB sets the maximum ceiling because it is required [by law], although we have internal pricing system already per Executive Order No. 219…and what we do is improve the ceiling…. We ensure the reasonablenes of the airfare,” based on the fuel, foreign exchange rates, historical trend, among others. The CAB recently fined AirAsia MOVE, the online booking platform for AirAsia, for P6 million for allegedly posting “excessive and unreasonable” airfares. The agency
also penalized Trip.com and Agoda for similar violations. Arcilla did note that recent “sharp increases” in airfares in the country are due to the “expensive spare parts” purchased by local carriers, owing to the global supply chain issue. Yet Samuel S. David, Philippines country manager of the International Air Transport Association, underscored that among the factors driving up the cost of plane tickets are jet fuel, which accounts for “26 percent of an airline’s cost.” An impending increase in ground charges like takeoff/landing fees, rental rates, as has happened at the Ninoy Aquino International Airport (Naia), which has been privatized, “could bear on ticket prices See “PHL,” A2
PESO EXCHANGE RATES n US 56.6650 n JAPAN 0.3853 n UK 76.5657 n HK 7.2190 n CHINA 7.9189 n SINGAPORE 44.3562 n AUSTRALIA 37.3422 n EU 66.5700 n KOREA 0.0413 n SAUDI ARABIA 15.1050 Source: BSP (July 25, 2025)