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
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
DOUBLE BLOW: TARIFFS, FLOOD FUNDS FALLOUT www.businessmirror.com.ph
T
n
Wednesday, November 26, 2025 Vol. 21 No. 49
P25.00 nationwide | 2 sections 22 pages | 7 DAYS A WEEK
By Reine Juvierre S. Alberto @reine_alberto
HE Philippines faces a double blow as the flood control corruption scandal erodes investor confidence while the United States’ reciprocal tariffs begin biting into exports, according to BMI, a unit of Fitch Solutions. In its latest outlook for the Philippines, BMI said foreign direct investment (FDI) inflows are
showing signs of “further deterioration,” as the corruption issue in See “Funds,” A2
PHL DIGITAL ECONOMY TO HIT $36B IN GMV BY END ’25: REPORT By Lorenz S. Marasigan
T
HE Philippine digital economy is expected to reach $36 billion in gross merchandise value (GMV) by the end of 2025, sustaining double-digit growth of 16 percent year-on-year, according to the latest e-Conomy SEA report published by Google, Temasek, and Bain & Co. The 10th edition of the annual report found that the country’s growth is being driven by a combination of innovative platforms, a supportive regulatory environment, and consumers
who are increasingly adopting artificial intelligence tools. “The star of the Philippine digital economy has truly come a long way, but we’re only getting started,” Google Philippines Country Manager Prep Palacios said during a press conference on Tuesday. E-commerce remains the largest contributor to the Philippine digital economy, accounting for more than 60 percent of overall GMV. Video commerce has emerged as a major growth driver, with about 475,000 sellers and stores See “Economy,” A2
BSP: ₧500K cash limit won’t halt legit business
P
ANGLAO, Bohol—The P500,000 cash transaction limit imposed by the Bangko Sentral ng Pilipinas (BSP) will not disrupt legitimate financial activities, as regulators work with banks to ensure smooth implementation and minimize disruption for cash-reliant customers. Speaking to reporters on the sidelines of the Central Banking Symposium here on Monday night, BSP Deputy Governor Zeno Ronald R. Abenoja said the BSP is closely cooperating with banks to ensure the rule does not impede legitimate financial flows. “[This is] to make sure that the legitimate transactions flow as
smooth as possible. They don’t want this to delay financial transactions,” Abenoja said. The deputy governor added that the banks are actively collecting feedback, especially because many Filipinos are cash-oriented. “There was guidance on how to treat those clients. So they’re doing less disruption,” Abenoja said. The BSP issued the regulation on large-value cash transactions in September 2025 to reduce money laundering risks and strengthen financial system integrity. Under the rule, cash transactions above P500,000—or its equivalent in foreign currency— See “P500k,” A2
EARTHQUAKE RESPONSE TECH The Korea International Cooperation Agency (KOICA) conducts a live demonstration of its earthquake response device at the San Juan City Disaster Risk Reduction and Management Office on Tuesday (November 25, 2025). The system delivers real-time seismic data, automated alerts, and rapid response features designed to boost disaster readiness. San Juan City Mayor Francis Zamora cites the recent earthquakes that have shaken the Philippines as he underscores the need to strengthen community resilience. In photo, from left: Seung Youn Lee, KOICA Country Overseas Business Development Manager; San Juan City Mayor Francis Zamora; and Young Sun Jung, KOICA Country Director. NONOY LACZA
S&P revises downward 2025 PHL growth projection
A
S the outlook for the country’s economic health turns bleak, sustainable longterm growth hinges on attracting private investments and improving the overall business environment. “In Indonesia and the Philippines, recent public protests have weakened the respective currencies alongside lower interest rates, which have deterred capital inflows,” S&P Global Ratings said in a report. S&P Global Ratings has revised downwards its gross domestic product (GDP) projection for the Philippines this year by 0.8 percent to 4.8 percent from 5.6 percent. Vincent Conti, senior lead economist at S&P Global Ratings, said that the third-quarter growth was much lower than the pace at which the Philippines usually grows, and this naturally pulls down its forecast for the full year. The Philippine economy grew by
4 percent in the third quarter of 2025—the weakest pace since the first quarter of 2021, when it contracted by 3.8 percent. This is below the government’s target range of 5.5 to 6.5 percent. “Investment, especially by the public sector, has been the main driver of the slowdown. This has also been spilling over into consumer confidence,” Conti said. Meanwhile, Asean+3 Macroeconomic Research Office (AMRO) said in its 2025 Annual Consultation Report (ACR) on the Philippines that the economy will continue to expand at a slower growth rate, as private investment and exports face headwinds from external uncertainties due to the US tariff policy. “The US tariff impact on goods exports would be negative and more pronounced in 2026, while in 2025, it will be partly offset by front-loaded export orders,” AMRO
said, adding that public investments will also be dampened by flood control project controversies. “The government should crowd in private investment to address persistent underinvestment and ensure sustainable long-term economic growth,” AMRO said. According to AMRO staff estimates, about two-thirds of the decline in potential output is attributed to slow capital accumulation due to weak investment growth, driven by subdued private investment and foreign direct investment. “Persistent underperformance in private investment could curtail innovation and quality job creation, while reinforcing structural bottlenecks in infrastructure and logistics. This weakness in investment may persist as the current administration’s term will end in 2028,” AMRO said. AMRO cited recent data showing that private investment is grow-
ing more slowly relative to government-led construction and remains below prepandemic levels. “This slower recovery in private investment reflects cautious investor sentiment amid ongoing economic uncertainties, as well as the expected slower economic recovery,” AMRO explained. The structural barriers to investment that AMRO identified are underdeveloped infrastructure, regulatory barriers, and limited access to long-term financing. Insufficient transport and logistics infrastructure increase operational costs and hinder connectivity, which reduces the country’s appeal to investors, AMRO added. “Addressing these structural constraints through targeted reforms is essential to revitalizing private investment and unlocking the Philippines’ growth potential,” it added. Reine Juvierre S. Alberto
PESO EXCHANGE RATES n US 58.9140 n JAPAN 0.3755 n UK 77.2186 n HK 7.5712 n CHINA 8.2925 n SINGAPORE 45.1552 n AUSTRALIA 38.0761 n EU 67.8807 n KOREA 0.0399 n SAUDI ARABIA 15.7083 Source: BSP (November 25, 2025)