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BusinessMirror October 23, 2025

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Govt infra spending down by 21.8% in Aug By Reine Juvierre S. Alberto

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WORLD » A7

RUSSIA LAUNCHES MASSIVE ATTACK ON UKRAINE AMID ESCALATING TENSIONS AND ENERGY CRISIS

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HE government’s infrastructure spending dropped by 21.8 percent to P84.9 billion in August, as project validation by the Department of Public Works and Highways (DPWH) and adverse weather conditions slowed disbursements. Latest data from the Department of Budget and Management (DBM) showed infrastructure expenditure and other capital outlays fell to P84.9 billion in August from P108.6 billion in the same month last year. The downturn stemmed from the ongoing validation of the

status of implementation, quality and completion of infrastructure projects implemented by the DPWH nationwide, according to the DBM. The review process has held up contractors’ submission of progress billings, as well as the timelines for the processing of payment claims and disbursement of funds. Compounding the setback were adverse weather conditions in August, which slowed the construction of various infrastructure projects, particularly in areas or regions hit by heavy Habagat rains and typhoons. Despite this, higher disbursements were recorded by the De-

partment of Transportation (DOTr) for local counterpart funds for foreign-assisted projects and the Department of Education (DepEd) for the construction, rehabilitation, and repair of school buildings--helping temper the contraction in infrastructure spending. From January to August, infrastructure and other capital outlays also declined by 5.6 percent to P798.4 billion from P845.3 billion in the same period a year ago. “Infrastructure spending was lower pending settlement of progress billings and completed infrastructure projects of the DPWH due to the ongoing validation and audit amid corruption issues,” the

DBM said. The timing of releases for the Revised Armed Forces of the Philippines Modernization Program (RAFPMP) under the Department of National Defense (DND) also weighed on expenditures during the eight-month period. Meanwhile, infrastructure disbursements, including the infrastructure components of subsidy and equity to state-run corporations and transfers to local government units, slumped by 5 percent year-on-year to P940.1 billion as of end-August from P989.4 billion. According to John Paolo Rivera, senior research fellow at state-run See “Govt,” A2

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GROWTH TO SLOW IN Q3 ON STORMS, FUND MESS www.businessmirror.com.ph

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Thursday, October 23, 2025 Vol. 21 No. 15

P25.00 nationwide | 2 sections 24 pages | 7 DAYS A WEEK

By Andrea E. San Juan @andreasanjuan

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EATHER disturbances and the flood control mess will slow down economic growth in the third quarter but will likely pick up in the last quarter of the year due to lower inflation rate, more OFW remittances and “steady” export gains despite the Washingtonimposed tariffs. This was according to the University of Asia and the Pacific (UA&P) in its latest Market Call report which stated that economists see a GDP slowdown to a 5.2-percent pace in the third quarter. “We project a GDP slowdown to a 5.2 percent pace in Q3 due to more weather disturbances and the popular uproar See “Growth,” A2

UNDER FIRE Firefighters respond to a third-alarm blaze that hit the Department of Public Works and Highways’ Bureau of Research and Standards (BRS) building along NIA Road in Barangay

‘ECO-FRIENDLY TEXTILES WILL HIKE PHL EXPORTS TO EUROPE’ By Ada Pelonia

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@adapelonia

HE country’s local textile industry should integrate sustainability in its business strategy to expand its access to the European market, according to the Department of Science and Technology (DOST). DOST Secretary Renato Solidum Jr. said eco-friendly initiatives could serve as a niche for local tropical fabrics to gain an edge in the international market. He noted that the Philippine Textile Research Institute (PTRI), an attached agency of the DOST, places primacy on sustainability, particularly in processing fabrics using natural dyes.

“With this, and in line with the global advocacy of sustainability, this kind of materials are better appreciated when you send them to Europe,” Solidum told reporters on the sidelines of the 2025 Philippine Textile Congress on Wednesday. “We need to have a niche in our efforts. Sometimes it’s not just about being [the cheaper product]. We also need to market our products from an environmental perspective,” he added. Solidum said the process of adding color through synthetic dyes and applying finishing for comfort often releases toxins that pose harm for public health and ecosystems. See “Eco-friendly,” A5

Pinyahan, Quezon City, on Wednesday, October 22, 2025. The DPWH said the fire, traced to an exploding computer unit, did not destroy any documents related to the ongoing probe into flood-control anomalies. Story on A16. NONOY LACZA

Tariffs, US outsourcing bill pose risks: DOLE By Ma. Ayanna Selda

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HE Department of Labor and Employment (DOLE) admitted on Wednesday that possible higher tariffs and the potential passage of the Keep Call Centers in America Act pose risks to employment in the Philippines, which remains one of the world’s largest business process outsourcing (BPO) hubs. Labor Secretary Bienvenido Laguesma said the department aims to conduct a preliminary assessment of employment risks to determine the possible factors to labor market instability, as the country faces global trade uncertainties and the potential passage of the US legislation seeking to curb call center outsourcing.

“Externally, we are seeing [risks from] the possible imposition of higher tariffs. There is also the possibility that the Keep Call Centers in America bill will become law,” Laguesma said in a budget briefing, adding that the labor department is closely monitoring these external developments. The Keep Call Centers in America Act, filed in the United States by Senators Ruben Gallego and Jim Justice, aims to curb the outsourcing of call center operations by imposing stricter rules on firms that transfer a significant portion of their services overseas. Under the proposed bill, companies that relocate at least 30 percent of their operations

abroad would be placed on a public registry. Those listed could lose access to federal grants and loans, face penalties if they continue outsourcing while holding federal contracts and be deprioritized in future government bidding. The bill also includes a consumer transparency clause that, one year after its enactment, would allow American customers to know if the call center agent assisting them is located outside the United States and to request a transfer to a US-based representative. BPO Industry Employees Network (BIEN) earlier said that the proposed legislation could trigger widespread job losses in the Philippines, which hosts one of

the largest call center workforces in the world. The Center for Trade Union and Human Rights (CTUHR) also previously urged the Marcos administration to prepare protection measures for call center agents, warning that if passed, the law could lead to a “massacre of jobs” in the country’s BPO industry.

DOLE meets stakeholders

ACCORDING to Laguesma, DOLE had already met with the Contact Center Association of the Philippines on Tuesday to discuss industry concerns and determine how the government could provide support. “It’s not only related to the continuous increase in wages and the See “Tariffs,” A2

PESO EXCHANGE RATES n US 58.1770 n JAPAN 0.3831 n UK 77.7826 n HK 7.4864 n CHINA 8.1652 n SINGAPORE 44.8274 n AUSTRALIA 37.7452 n EU 67.5202 n KOREA 0.0407 n SAUDI ARABIA 15.5126 Source: BSP (October 22, 2025)


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